Private ruling: Reduced credit acquisitions
Published: July 2016

Ruling: Q1: Is Entity A making a reduced credit acquisition under item 27 in the table in subregulation 70-5.02(2) of the GST regulations, for the acquisition from Entity B under the Agreement? | A1: Yes, as Entity A is the financial supply provider and making an acquisition from a financial supply facilitator for which the consideration is determined on a commission basis, we accept that Entity A is making a reduced credit acquisition under item 27 in the table in subregulation 70-5.02(2) of the GST regulations.

Relevant facts and circumstances: As part of Entity A's business, Entity A operates and maintains ATM' s at various locations. To enable Entity A to provide an ATM service from the ATMs it operates, Entity A enters into agreements with the relevant counterparties, such as merchants or building owners. The relevant arrangements between Entity A and various counterparties generally involve each of the counterparties granting Entity A a licence to operate and maintain the ATMs in licenced areas during the term of each agreement, and a licence to enter premises (or provide site access) for the purposes of Entity A performing its obligations under the agreement. For the purposes of this private ruling request Entity A have provided an Agreement which set out the terms and conditions that apply to the arrangements between Entity A and Entity B.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Division 11 | A New Tax System (Goods and Services Tax) Act 1999 section 70-5 | A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 40-05.09(4A) | A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 70-05.02(2)