Goods and Services Tax Determination GSTD 2000/7







This document was published prior to 1 July 2010 and was a public ruling for the purposes of former section 37 of the Taxation Administration Act 1953 and former section 105-60 of Schedule 1 to the Taxation Administration Act 1953. | From 1 July 2010, this document is taken to be a public ruling under Division 358 of Schedule 1 to the Taxation Administration Act 1953. | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | [Note: This is a consolidated version of this document. Refer to the Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.] | This Determination applies [to tax periods commencing] both before and after its date of issue. However, this Determination will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Determination (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). | 1. The supply of services of apprentices or trainees by a Group Training Company to host employers under a Group Training Scheme is typically a taxable supply. | 2. A Group Training Scheme means an industrial organisation or body corporate that is approved to employ apprentices and trainees but uses the facilities of its members or other employers to train those apprentices or trainees. | 3. In relation to a typical Group Training Scheme, a Group Training Company ("Group Training Company"): | 4. Under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 ('GST Act') an entity makes a taxable supply if: | 5. In the typical situation the supply of the services of apprentices or trainees by the Group Training Company to the Host Employer is a taxable supply as the conditions of section 9-5 are satisfied: | 6. Pursuant to subsection 7-1(1) of the GST Act, GST is payable on the taxable supply between the Group Training Company and the Host Employer. Under subsection 7-1(2) the Host Employer is entitled to input tax credits for the GST included in the fee for the supply of apprentices or trainees where the other conditions for a creditable acquisition are met. | 7. Wages and salaries of employees are excluded from the definition of enterprise under the GST Act and are therefore not subject to GST. In the above situation the entity paying wages and salaries is the Group Training Company and these payments will be subject to withholding payments under the Pay As You Go (PAYG) System. | Commissioner of Taxation 28 June 2000 | Not previously issued in draft form


Related rulings: TR 2006/10
Legislative references: ANTS(GST)A 7-1(1) ANTS(GST)A 7-1(2) ANTS(GST)A 9-5 TAA 1953 Sch1 Div 358
Subject references: goods & services tax GST supply taxable supply enterprise PAYG