Private ruling: GST supplies and acquisitions
Date of advice: 15 April 2025
Published: 30 June 2025

Ruling: Q1: Is the Entity 1 making a taxable supply pursuant to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it receives a payment from Entity 2 under the mechanism? | A1: Yes. The Entity 1 is making a taxable supply when it receives payment from Entity 2 under the mechanism. | Q2: Is the Entity 1 making a creditable acquisition pursuant to section 11-5 of the GST Act when it makes a payment under the mechanism? | A2: Yes. The Entity 1 is making a creditable acquisition when it makes a payment under the mechanism where Entity 2 is registered or required to be registered for GST.

Relevant facts and circumstances: You make payments and receive payments under a mechanism.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 subsection 9-10(1) | A New Tax System (Goods and Services Tax) Act 1999 section 11-5 | A New Tax System (Goods and Services Tax) Act 1999 section 11-20