Private ruling: GST and fees and charges
Date of advice: 22 March 2019
Published: May 2019

Ruling: Q1: Is payment of the fees subject to goods and services tax (GST)? | A1: No, Division 81 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) applies to make the payment of the fees not subject to GST because it is treated as being not the provision of consideration.

Relevant facts and circumstances: You are a government agency. You have provided relevant information about your operations. You charge the relevant fees under the relevant Australian law.

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 81-10(1) | A New Tax System (Goods and Services Tax) Act 1999 Section 81-10(2) | A New Tax System (Goods and Services Tax) Act 1999 Section 81-10(4) | A New Tax System (Goods and Services Tax) Act 1999 Section 195-1

Reasons for decision: Summary: All legislative references in this ruling are to the GST Act unless otherwise stated. Under section 9-5, one of the requirements for making a taxable supply is that you make a supply for consideration. However, special rules in Division 81 apply to the payment (or the discharging of the liability to make a payment) of Australian fees or charges, to an Australian government agency by an entity which is liable for the fee or charge under the provisions of the applicable Australian law. The payment of fees or charges to which Division 81 applies, is treated as not being the provision of consideration and is not subject to GST. In particular, under subsection 81-10(1), an Australian fee or charge is not the provision of consideration, if it is a fee or charge covered by subsection 81-10(4) relating to, or relating to an application for, the provision, retention or amendment, under an Australian law, of a permission, exemption, authority or licence. However, subsection 81-10(2) provides a fee is treated as the provision of consideration to the extent the payment is an Australian fee or charge that is, or is of a kind, prescribed by the GST Regulations. In your case, you are a government agency and the fees are payable to you under the relevant Australian law. Accordingly, the fees payable to you are an Australian fee or charge. In addition, the fees are covered by subsection 81-10(4) as they relate to a permission under an Australian law and they are not covered by subsection 81-10(2) where fees are to be treated as provision of consideration nor are they of a kind prescribed by the GST Regulations. Therefore, under subsection 81-10(1), the fees payable to you are not the provision of consideration and are not subject to GST.