Private ruling: Goods and services tax and employee liabilities
Date of advice: 3 May 2016
Published: June 2016

Ruling: Q1: Will the Commissioner of Taxation (the Commissioner) accept that under a sale contract, employee liabilities excluding statutory imposed liabilities, such as long service leave, represent additional consideration for the vendor's supply of assets including employee assets to the purchaser? | A1: Yes, the employee liabilities excluding statutory imposed liabilities, such as long service leave, will represent additional consideration for the vendor's supply of assets including employee assets to the purchaser. This is consistent with the Commissioner's view as discussed in Goods and Services Tax Ruling GSTR 2004/9 Goods and services tax: GST consequences of the assumption of vendor liabilities by the purchaser of an enterprise (GSTR 2004/9).


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 section 9-10 | A New Tax System (Goods and Services Tax) Act 1999 section 9-15 | A New Tax System (Goods and Services Tax) Act 1999 section 9-75


Subject: Goods and services tax and employee liabilities: The ruling concerned the GST treatment of statutory imposed liabilities under a sale contract. The Commissioner has ruled in the following way: