Class Ruling CR 2013/39
Date of effect: 1 July 2013

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provision(s) 2. The relevant provisions dealt with in this Ruling are: Unless otherwise stated, all legislative references in this Ruling are to the GST Act. Class of entities 3. The class of entities to which this Ruling applies consists of all councils that are members of the Local Government and Shires Association of New South Wales. 4. Within this Ruling the class of entities is collectively referred to as the Council. Qualifications 5. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling 6. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 11 to 19 of this Ruling. 7. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then this Ruling: 8. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to:

Class of entities or scheme: 3. The class of entities to which this Ruling applies consists of all councils that are members of the Local Government and Shires Association of New South Wales. 4. Within this Ruling the class of entities is collectively referred to as the Council. | Qualifications: 5. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling 6. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 11 to 19 of this Ruling. 7. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then this Ruling: 8. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to: 9. This Ruling applies from 1 July 2013 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. However, this Ruling 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 Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 10. The following description of the scheme is based on information provided by the applicant. 11. The scheme incorporates the supplies made by NSW Councils in relation to management and provision of water, sewerage and drainage services, access, information and rights. 12. Council is registered for goods and services tax (GST). 13. The supplies made by Council are connected with Australia and made in the course or furtherance of Council's enterprise. 14. By force of section 220 of the Local Government Act NSW 1993 (LG Act), Council is a body politic of the State of NSW with perpetual succession and the legal capacity and powers of an individual, both in and outside the State. 15. Council is empowered under the LG Act to: 16. Council levies charges for goods and services under various sections of the LG Act and the other NSW State statutes. In particular, subsection 608(1) of the LG Act, Council may charge and recover a fee for any service it provides. 17. Council sets out which activities including water, sewerage and drainage work which require approval under section 68 of the LG Act, and provides that failure to obtain approval is an offence under section 626. Council is registered for goods and services tax (GST). 18. The relevant provisions of the legislation mentioned above are set out in Appendix 2. 19. This Ruling addresses the GST treatment of supplies made by Council in relation to the provision of water, sewerage and drainage for which particular fees and charges are imposed, The table on page 4 of this Ruling sets out the GST treatment 20. In this Ruling: Commissioner of Taxation 5 June 2013 | Taxable supplies: 21. Subsection 7-1(1) provides that GST is payable on taxable supplies. As such, Council is liable to pay the GST payable on any taxable supply it makes. 22. Section 9-5 states: However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed. (* Asterisked terms are defined in the Dictionary in section 195-1) 23. As Council is registered for GST and provides water, sewerage and drainage supplies in carrying on its enterprise in Australia, the issue that arises under section 9-5 is whether these supplies are for consideration, GST-free or input taxed. [1] 24. Section 9-39 provides special rules in relation to making taxable supplies. In particular, item 8 in the table in section 9-39 provides that where there is a payment of taxes, fees and charges the special rules in Division 81 may apply. | GST-free supplies: 25. Subdivision 38-I deals with the GST-free treatment of a supply of water (section 38-285), sewerage or sewerage like-services (section 38-290), services for emptying of a septic tank (section 38-295) and services for draining storm water (section 38-300). A supply of a right to receive a GST-free supply of any of the above mentioned things is also GST-free under paragraph 9-30(1)(b). 26. Goods and Services Tax Ruling GSTR 2000/25: Goods and services tax:, GST-free supplies of water, sewerage and sewerage-like services, storm water draining services and emptying of a septic tank explains what activities covered by the relevant supplies are GST-free. Water 27. Paragraph 24 of GSTR 2000/25 provides the following supplies related to water will be GST-free: 28. Some activities that are performed by Council may have some connection with a supply of water, but remain separate supplies. These separate supplies include, information, such as plans of water pipe locations, performing site inspections on request or as required, granting approvals for building or development as part of a supplier's statutory duties, and issuing permits. These supplies are not GST-free supplies of water. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 36 to 48 below. 29. A supply that enables an end recipient to use, store or treat water, once it has been supplied, is also not a supply of water and therefore not GST-free. Sewerage and sewerage-like services 30. Paragraphs 34-35 of GSTR 200/25 states: 31. GSTR 2000/25 also provides that charges for sewerage services are often calculated independently of actual use. A charge for the right to use a sewerage service, or a right to discharge waste water, is GST-free. 32. Council may also supply a range of other goods and services. It may be said that these supplies are connected with the business of the supply of sewerage services but they are not in themselves sewerage services. The sale of plans of sewer pipe locations, administrative services for photocopying and site inspection are examples of such supplies that are not GST-free. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 43 to 55 below. Emptying of septic tanks 33. Section 38-295 provides a supply that consists of the emptying of a septic tank is GST-free Drainage 34. Section 38-300 provides that a service that consists of draining storm water is GST-free. Charges for draining storm water may be calculated independently of actual usage. Where such charges are in respect of a right to use a storm water draining service, the supply of the right is GST-free. 35. Some activities that are performed by Council may have a connection with draining storm water, but remain separate supplies. An example is the supply of information to the public as a client service. Such information includes the supply of plans, maps and other statistical information to licensed tradespeople. These supplies are not GST-free. Other supplies such as approvals given for building or development applications are also not GST-free. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 43 to 55 below. | Australian tax: 36. Section 81-5 considers the effect of the payment of a tax. It states: 37. The term 'Australian tax' is defined in section 195-1 as: 38. 'Tax' is not defined in the GST Act. However, the following is the usual description of a tax, as cited in the High Court case of Roy Morgan Research Pty Ltd v. CMR of Taxation [2011] HCA 35 (Roy Morgan), as per Latham CJ in Matthews v. Chicory Marketing Board (Vict ) ( 1938 ) 60 CLR 263 : 39. The above description includes the words 'not a payment for services rendered'. It was discussed in Air Caledonie International v. Commonwealth (1988) 165 CLR 462 that in order to be classified as a fee for service rather than a tax, the fee or charge must be exacted for particular identified services provided or rendered individually to, or at the request or direction of, the particular person required to make the payment. Ordinary rates 40. As the ordinary rates levied by Council satisfy the usual description of a 'tax' as cited in the High Court case of Roy Morgan i, the Commissioner considers a payment of ordinary rates to be a payment of an Australian tax for the purposes of section 81-5. Therefore fees and charges for water, sewerage or drainage charges that are included in the general rate will be a tax. Special rates 41. All special rates, where Council does not provide any good or service to the ratepayer, that satisfies the usual description of a tax is considered to be an Australian tax for purposes of subsection 81-5(1). Climate Change Fund Contribution 42. As, the Climate Change Fund Contribution imposed by Council exhibits all of the attributes of a tax which is imposed by an Australian law, the payment of this to Council, is an 'Australian tax' for the purposes of subsection 81-5(1) of the GST Act. | Australian fees and charges: 43. Sections 81-10 and 81-15 consider the effect of certain fees and charges and state: 44. The term 'Australian fee or charge' is defined in section 195-1 as: | Australian law: 45. The term 'Australian law' is defined in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and relevantly includes a State law. It includes acts and law making powers which are delegated by parliaments, such as regulations, by-laws, proclamations and orders made under Acts. | Australian government agency: 46. The term 'Australian government agency' is defined in section 995-1 of the ITAA 1997 and means: 47. For the purposes of this Ruling it is accepted that Council comes within the definition of Australian government agency. | GST Regulations: 48. Division 81 of the GST Act gives effect to the principles contained in the Intergovernmental Agreement on Federal Financial Relations (Intergovernmental Agreement). Payments of taxes are exempt from the GST. Payments of fees and charges generally constitute consideration and if the requirements of section 9-5 of the Act are satisfied, the payment will be for a taxable supply. Some supplies are excluded and will be exempt. The Act provides for regulations to prescribe payments that constitute consideration for a supply and, conversely, prescribe payments that are otherwise taxable as being a fee or charge that does not constitute consideration. | Australian fees and charges that constitute consideration: 49. Regulation 81-10.01 sets out those fees and charges that do not fall within the principles contained in the Intergovernmental Agreement , and therefore supplies to which they relate are not intended to be exempt from GST. A fee for the provision of information, if the provision of information is of a non-regulatory nature, is consideration for a supply. For example, a payment for a commercial sale of books by a government bookshop is treated as consideration for a supply, and if the other conditions of section 9-5 are met, it will be a taxable supply. 50. Regulation 81-10.01 also ensures that the regulatory activities of government made in competition with the private sector are subject to GST where the other requirements of section 9-5 of the Act are satisfied. 51. The Explanatory Statement to the A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 2) explains that the regulations ensure that the regulatory activities of government made in competition with the private sector are subject to GST where the other requirements of section 9-5 are satisfied. It states: | Australian fees and charges that do not constitute consideration: 52. Regulation 81-15.01 sets out those fees and charges that are prescribed for section 81-15 and which do not constitute consideration. Because these fees and charges do not constitute consideration, the supplies to which they relate, if any, do not satisfy the requirements of section 9-5 of the Act and are not taxable supplies. 53. Those fees and charges that are prescribed include a fee or charge imposed on an industry to finance regulatory or other government activities connected with the industry and a fee or charge for a supply of a regulatory nature made by an Australian government agency. 54. Those prescribed include a fee or charge imposed on an industry to finance regulatory or other government activities connected with the industry and a fee or charge for a supply of a regulatory nature made by an Australian government agency. 55. However, sub-regulation 81-10.01(2) of the GST Regulations provides that despite sub regulation 81-10.01(1), a fee or charge, the payment of which is covered by subsections 9-17(3) or (4), which are about payments made by government related entities to another government related entity, and the payment is specified in regulations made for this purpose, is not the provision of consideration. | Australian fees and charges covered by both regulations 81-10.01 and 81-15.01 of the GST Regulations: 56. If a fee or charge is covered by both regulations 81-10.01 and 81-15.01 of the GST Regulations, regulation 81-15.02 of the GST Regulations determines which regulation would prevail. | New South Wales Acts: 57. The following new South Wales Acts were considered in preparing this ruling: | Local Government Act 1993 (NSW): 58. Section 68 of the LG Act lists activities requiring approval of the council and states the following: 59. Section 20 of the LG Act states: 60. Council may make and levy special rates and annual levies under section 495 of the LG Act and section 501 list the services council can impose an annual charge and they state: 61. Section 502 and 608 of the LG Act Council can make charges for actual use and fees for services other then on an annual basis which state: 62. The terms 'water supply work', 'sewerage work' and 'stormwater drainage work' are defined in the Dictionary in the LG Act as: 63. The following is a detailed contents list for this Ruling:

Ruling: 19. This Ruling addresses the GST treatment of supplies made by Council in relation to the provision of water, sewerage and drainage for which particular fees and charges are imposed, The table on page 4 of this Ruling sets out the GST treatment 20. In this Ruling: Commissioner of Taxation 5 June 2013


Appendix: Taxable supplies: 21. Subsection 7-1(1) provides that GST is payable on taxable supplies. As such, Council is liable to pay the GST payable on any taxable supply it makes. 22. Section 9-5 states: However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed. (* Asterisked terms are defined in the Dictionary in section 195-1) 23. As Council is registered for GST and provides water, sewerage and drainage supplies in carrying on its enterprise in Australia, the issue that arises under section 9-5 is whether these supplies are for consideration, GST-free or input taxed. [1] 24. Section 9-39 provides special rules in relation to making taxable supplies. In particular, item 8 in the table in section 9-39 provides that where there is a payment of taxes, fees and charges the special rules in Division 81 may apply. | GST-free supplies: 25. Subdivision 38-I deals with the GST-free treatment of a supply of water (section 38-285), sewerage or sewerage like-services (section 38-290), services for emptying of a septic tank (section 38-295) and services for draining storm water (section 38-300). A supply of a right to receive a GST-free supply of any of the above mentioned things is also GST-free under paragraph 9-30(1)(b). 26. Goods and Services Tax Ruling GSTR 2000/25: Goods and services tax:, GST-free supplies of water, sewerage and sewerage-like services, storm water draining services and emptying of a septic tank explains what activities covered by the relevant supplies are GST-free. Water 27. Paragraph 24 of GSTR 2000/25 provides the following supplies related to water will be GST-free: 28. Some activities that are performed by Council may have some connection with a supply of water, but remain separate supplies. These separate supplies include, information, such as plans of water pipe locations, performing site inspections on request or as required, granting approvals for building or development as part of a supplier's statutory duties, and issuing permits. These supplies are not GST-free supplies of water. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 36 to 48 below. 29. A supply that enables an end recipient to use, store or treat water, once it has been supplied, is also not a supply of water and therefore not GST-free. Sewerage and sewerage-like services 30. Paragraphs 34-35 of GSTR 200/25 states: 31. GSTR 2000/25 also provides that charges for sewerage services are often calculated independently of actual use. A charge for the right to use a sewerage service, or a right to discharge waste water, is GST-free. 32. Council may also supply a range of other goods and services. It may be said that these supplies are connected with the business of the supply of sewerage services but they are not in themselves sewerage services. The sale of plans of sewer pipe locations, administrative services for photocopying and site inspection are examples of such supplies that are not GST-free. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 43 to 55 below. Emptying of septic tanks 33. Section 38-295 provides a supply that consists of the emptying of a septic tank is GST-free Drainage 34. Section 38-300 provides that a service that consists of draining storm water is GST-free. Charges for draining storm water may be calculated independently of actual usage. Where such charges are in respect of a right to use a storm water draining service, the supply of the right is GST-free. 35. Some activities that are performed by Council may have a connection with draining storm water, but remain separate supplies. An example is the supply of information to the public as a client service. Such information includes the supply of plans, maps and other statistical information to licensed tradespeople. These supplies are not GST-free. Other supplies such as approvals given for building or development applications are also not GST-free. However, some fees and charges imposed by Council for these supplies may be exempt under Division 81: see paragraphs 43 to 55 below. | Australian tax: 36. Section 81-5 considers the effect of the payment of a tax. It states: 37. The term 'Australian tax' is defined in section 195-1 as: 38. 'Tax' is not defined in the GST Act. However, the following is the usual description of a tax, as cited in the High Court case of Roy Morgan Research Pty Ltd v. CMR of Taxation [2011] HCA 35 (Roy Morgan), as per Latham CJ in Matthews v. Chicory Marketing Board (Vict ) ( 1938 ) 60 CLR 263 : 39. The above description includes the words 'not a payment for services rendered'. It was discussed in Air Caledonie International v. Commonwealth (1988) 165 CLR 462 that in order to be classified as a fee for service rather than a tax, the fee or charge must be exacted for particular identified services provided or rendered individually to, or at the request or direction of, the particular person required to make the payment. Ordinary rates 40. As the ordinary rates levied by Council satisfy the usual description of a 'tax' as cited in the High Court case of Roy Morgan i, the Commissioner considers a payment of ordinary rates to be a payment of an Australian tax for the purposes of section 81-5. Therefore fees and charges for water, sewerage or drainage charges that are included in the general rate will be a tax. Special rates 41. All special rates, where Council does not provide any good or service to the ratepayer, that satisfies the usual description of a tax is considered to be an Australian tax for purposes of subsection 81-5(1). Climate Change Fund Contribution 42. As, the Climate Change Fund Contribution imposed by Council exhibits all of the attributes of a tax which is imposed by an Australian law, the payment of this to Council, is an 'Australian tax' for the purposes of subsection 81-5(1) of the GST Act. | Australian fees and charges: 43. Sections 81-10 and 81-15 consider the effect of certain fees and charges and state: 44. The term 'Australian fee or charge' is defined in section 195-1 as: | Australian law: 45. The term 'Australian law' is defined in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) and relevantly includes a State law. It includes acts and law making powers which are delegated by parliaments, such as regulations, by-laws, proclamations and orders made under Acts. | Australian government agency: 46. The term 'Australian government agency' is defined in section 995-1 of the ITAA 1997 and means: 47. For the purposes of this Ruling it is accepted that Council comes within the definition of Australian government agency. | GST Regulations: 48. Division 81 of the GST Act gives effect to the principles contained in the Intergovernmental Agreement on Federal Financial Relations (Intergovernmental Agreement). Payments of taxes are exempt from the GST. Payments of fees and charges generally constitute consideration and if the requirements of section 9-5 of the Act are satisfied, the payment will be for a taxable supply. Some supplies are excluded and will be exempt. The Act provides for regulations to prescribe payments that constitute consideration for a supply and, conversely, prescribe payments that are otherwise taxable as being a fee or charge that does not constitute consideration. | Australian fees and charges that constitute consideration: 49. Regulation 81-10.01 sets out those fees and charges that do not fall within the principles contained in the Intergovernmental Agreement , and therefore supplies to which they relate are not intended to be exempt from GST. A fee for the provision of information, if the provision of information is of a non-regulatory nature, is consideration for a supply. For example, a payment for a commercial sale of books by a government bookshop is treated as consideration for a supply, and if the other conditions of section 9-5 are met, it will be a taxable supply. 50. Regulation 81-10.01 also ensures that the regulatory activities of government made in competition with the private sector are subject to GST where the other requirements of section 9-5 of the Act are satisfied. 51. The Explanatory Statement to the A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 2) explains that the regulations ensure that the regulatory activities of government made in competition with the private sector are subject to GST where the other requirements of section 9-5 are satisfied. It states: | Australian fees and charges that do not constitute consideration: 52. Regulation 81-15.01 sets out those fees and charges that are prescribed for section 81-15 and which do not constitute consideration. Because these fees and charges do not constitute consideration, the supplies to which they relate, if any, do not satisfy the requirements of section 9-5 of the Act and are not taxable supplies. 53. Those fees and charges that are prescribed include a fee or charge imposed on an industry to finance regulatory or other government activities connected with the industry and a fee or charge for a supply of a regulatory nature made by an Australian government agency. 54. Those prescribed include a fee or charge imposed on an industry to finance regulatory or other government activities connected with the industry and a fee or charge for a supply of a regulatory nature made by an Australian government agency. 55. However, sub-regulation 81-10.01(2) of the GST Regulations provides that despite sub regulation 81-10.01(1), a fee or charge, the payment of which is covered by subsections 9-17(3) or (4), which are about payments made by government related entities to another government related entity, and the payment is specified in regulations made for this purpose, is not the provision of consideration. | Australian fees and charges covered by both regulations 81-10.01 and 81-15.01 of the GST Regulations: 56. If a fee or charge is covered by both regulations 81-10.01 and 81-15.01 of the GST Regulations, regulation 81-15.02 of the GST Regulations determines which regulation would prevail.


Goods and services tax: the GST treatment of fees and charges imposed by NSW councils in relation to water, sewerage and drainage supplies: Paragraph 32 of TR 2006/10 provides further guidance on the status and binding effect of public rulings where the law has been repealed and rewritten. | A comparison table which provides the replacement provisions in the A New Tax System (Goods and Services Tax) Regulations 2019 for regulations which are referenced in this Ruling is available. | What this Ruling is about | NOT LEGALLY BINDING SECTION: | Appendix 2: Législative references | 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.] | Application for plumber's licence | Exempt-Subsection 81-10(4) Licence | Recovery of costs incurred in tracing a person liable to pay fees or charge | Includes ordinary rates, special rates, fees and charges | Exempt - Paragraph 81-15.01(1)(d) of the GST | Exempt - Section 81-5 Australian tax | Annual charges for coastal protection services | Fee to protect coastal foreshores | Exempt - Paragraph 81-15.01(1)(f) of the GST Regulations | Charge set for development of residential subdivisions/strata units/flats-per lot/unit | Developer Contribution under section 64 of LGA | Developer charges in relation to water sewerage or drainage works | The water headworks charge is payable whenever a new lot is connected to the water supply or an existing lot increases its use of the water. | Developer Contribution under section 306 of the Water Act | Councils require a Developer to contribute to the existing a future water infrastructure | Detention, retention, flood or drainage related fee | Fee charged in relation to detention, retention, flood or drainage of water. May relate to council-supplied drainage services or actual physical services provided by council. May include review fees charged by council to review or assess a situation/installation. May include assessment fee in relation to flood matters, such as gutter flows. May also be a fee charged for use of Council's drainage model or flood model. Flood advice service. | Inspection fee for inspection and assessment of stormwater drainage | Includes the inspection required by Council when drainage is to be connected to Council's system, where the service DOES OCCUR up to and including the point of supply. | Includes the inspection required by Council when drainage is to be connected to Council's system, where the service DOES NOT occur up to and including the point of supply | Sewerage discharge Inspection Fee | Trade waste premises inspection fee | Trade waste, additional inspection fee (under best practice guidelines) includes liquid trade waste inspection fee. | Application fee to install or operate an On site (septic) Sewerage System | Install, construct alter and operate sewerage management facility (Domestic/Commercial premises). Commercial or Industrial. Advisory/consultancy and written response detailing Septic System registration. Includes on-site septic systems & Domestic Grey water Treatment Systems); includes sustainable effluent application area; Includes amendments to plans with Council and additional toilets. Includes the application fee for an on-site trade waste facility and fees for amendments to those applications. Also includes inspection fee. Also includes an amendment. Includes fee for On site (septic) sewerage system compliance certificate and a sewerage management device report. | Fee for change of ownership of onsite sewerage system | Exempt - Subsection 81-10(5) Information | Install, construct or alter a waste treatment device or a human waste storage facility or a drain connected to any such device or facility | GST-free - Section 38-290 Items 4 and 5 of Appendix 2 of GSTR 2000/25 | On site (septic) sewerage inspection fee | Domestic or commercial premises. Includes consultancy and/or advisory services. Including pre-purchase inspections. Reinspection fee. Requested inspection of a waste treatment device or human waste storage facility (includes on-site Septic (on site disposal) systems & Domestic Grey water Treatment Systems) | Operate a system of sewerage management (within the meaning of section 68A) | Operate a system of sewerage management | On site(septic) Detention compliance fee | On site(septic) Detention where council charges for OSD compliance certificate/plate/other document or device indicating parameters or requirements have been met | Recovery of costs incurred in performing a function or reaching a decision | Recovery of costs incurred by council in relation to drainage, sewerage or stormwater. Could include costs such as CCTV fees paid by council to check on condition of pipe work. Includes where Council must utilise the services of an outside provider to, say, have water tested and analysed (eg collection and analysis of water samples by a NATA approved laboratory). | Exempt - Paragraph 81-15.01(1)(d) of the GST Regulations | Sanitary service charge - per annum | GST-free - Section 38-290 paragraph 40 of GSTR 2000/25 | Sanitary service charge - per service | Septic (on site disposal) tank effluent disposal fee | GST-free - Section 38-295 Paragraph 40 of GSTR 2000/25 | Fee for Registration of Septic (on site disposal) System | Registration of a Septic (on site disposal) System, licence to operate, operational licence search | Septic (on site disposal) tank applications or application amendment fee | Septic (on site disposal) installation, operation. Also alter or amend the construction application | Septic (on site disposal) tank Inspection fee | Septic (on site disposal) tank Inspection fee. Includes reinspection after works | Application fee to construct sewer or drainage over council land | Fee for permission to enter Council lands for the purpose of laying Sewer and drainage lines including fees for Granting of Easements | Miscellaneous sewer service charges | High pressure sewer cleaning charge, camera (CCTV) inspection of sewer pipes, sewer vent relocation, raise boundary riser to surface, smoke testing, clearing sewer chokes, foaming of mains. Includes working time charged per hour or per klm | GST-free - Section 38-290 Item 5 Sewerage Appendix 2 of GSTR 2000/25 where the service occurs up to and including the point of supply. | Sewer and drainage inspection | Charge to inspect sewerage and drainage works, including entry to confined spaces; Includes fee for final inspection certificate. Includes inspection of concrete encasement and additional junction cut ins. Includes additional inspections. Includes inspection of sewerage drainage arrester. | Fee for connection to Council's sewer or water system | Connection to Council's sewer or water system under the Water Management Act. Also includes reconnection. | GST-free - Section 38-290 or 38-285 Paragraph 24 and item 4 Sewerage Appendix 2 of GSTR 2000/25 | Fee for connection to Council's sewer system. Sewer connection charge | Connection to Council's sewer or water system other than under the Water Management Act. Also includes reconnection | GST-free - Section 38-290 Item 4 Sewerage Appendix 2 of GSTR 2000/25 | Fee for connection to Council's sewer or water system - additional fee to lift pavers or do other work in order to make the connection or disconnection | Additional fee necessary to undertake a successful connection or disconnection | Liquid Trade Waste Access Charge | For Trade Waste discharge whether the Discharger has approval or not specified pre-treatment or not or entered into a Service Contract or not. Likely that the discharger enters into a service contract. Charge depends on category. | Liquid Trade Waste Application Fee | Includes application fee for approval of liquid trade waste access, initial inspection and any reinspections. Also includes withdrawal of or modifications / amendments to application for liquefied trade waste access. Also includes renewal of approval, application for trade waste discharge factor variation and application for exception of installing standard pre-treatment equipment. Also includes fees for withdrawal or modifications of applications. | Liquid Trade Waste Inspection or Re Inspection fee | Sewer Non Rateable Property Access Charge | Schools are examples of non rateable property. Charge may be per water closet or per cistern serving a urinal | Sewer Non Residential Access Charge | Annual Charge for Non residential property to the Sewer based on assessment of various factors | Sewer Residential Access Charge | Annual Charge for Residential Property to access (or have proximity to the sewer that allows access). Include fee for additional WC's, also described as pedestals. Includes properties connected under agreement which were agreements for supply some rural customers in the 1980's. Includes charge for a second dwelling on each parcel of land. | GST-free - Section 38-290 Item 1 Sewerage Appendix 2 of GSTR 2000/25 | Sewer Residential Access Charge - vacant land | Annual charge where access to sewer main is available. It is normal to bill for access charge in relation to land, the boundary of which is within 225 metres of a main. | Drainage Non Residential Usage Charge | Charge based upon stormwater drainage per KL | GST-free - Section 38-300 Item 2 Drainage - Stormwater Appendix 2 of GSTR 2000/25 | Liquid Trade Waste Usage Charge | These are based on total mass of contaminant. The mass will be calculated from the volume of trade waste discharged and the concentration of contaminants in the trade waste flow. The trade waste volume will be calculated by measuring water consumption and applying a Trade Waste Discharge Factor (TDF). The TDF will be determined for each property according to availability of information for the TDF calculation, otherwise industry default factors will apply. Charge may vary depending on whether user has appropriate pre treatment. Includes trade food waste disposal charge per bed/ | GST-free - Section 38-290 290 Item 2 Sewerage Appendix 2 of GSTR 2000/25 | Sewer Non Residential Usage Charge | Charge for actual use based on Sewerage Discharge Factor (SDF) formulation | GST-free - Section 38-290 Item 2 Sewerage Appendix 2 of GSTR 2000/25 | Trade Waste mass fee (per kg) - Large Discharger, includes fee for mobile home disposal unit; Includes disposing of waste water into sewer of council. | Fee for discharge approval (Commercial) | Fee for discharge approval under section 144 of the Water Management Act (Note that residential waste does not require an approval) Discharge approval means an approval for the discharge of a substance into a water supply authority's sewerage system. | Sewer charge Non rateable properties | Sewer Charge Non-rateable properties (excluding schools) | GST-free - Section 38-290 Items 1 and 2 Sewerage Appendix 2 of GSTR 2000/25 | Pressure Sewer Design, Preparation of line drawing (with auxiliary items and pipe sizes shown) suitable for experienced contractors (per lot). Additional details such as parts list etc (per hour).Includes fee to cover the cost of drafting, filing and retrieving plans | Taxable - Section 9-5 and the application of paragraph 81-10.01(1)(h) of the GST Regulations | Charge to extend sewer main to a block/parcel of land | Sewer Residential Usage Charge | Low pressure air testing (includes confined space equipment); | Trade Waste Inspection Fee | Includes fee for re-inspection | Carry out stormwater drainage work | Fee in connection with work. Stormwater drainage work means the construction, alteration, extension, disconnection, removal, maintenance, repair, renewal, flushing, cleansing or clearing of any stormwater drain communicating or intended to communicate, directly or indirectly, with any stormwater channel of a council. | GST-free - Section 38-300 (Item 3 Drainage - Stormwater Appendix 2 of GSTR 2000/25) | Annual charge for stormwater management services | Fee to cover council's costs of providing stormwater services, levied on rateable land | GST-free - Section 38-300 Item 1 Drainage - Stormwater Appendix 2 of GSTR 2000/25 | For fee or reward, transport waste over or under a public place | Includes Liquid waste/effluent removal licence fee. Fee to transport over public land | Trade Waste Application Fee | Trade Waste Application Fee for costs associated with registrations of all new premises | Council may charge a separate fee for the urgent processing of an application. Sometimes 2 fees quoted for a particular thing eg certificate, a fee for normal turnaround and another fee for a reduced time | Annual trade Waste Agreement Fee | Fee for Approval of Sewerage Drainage Arrester | Fee for Approval of Sewerage Drainage Arrester. Also known as grease arrestors, these devices are used to pre-treat certain liquid waste generally originating from food service establishments. | Fee for lack of trade waste pre treatment facility | Fee for supply of tertiary treated sewerage effluent | Fee for supply of tertiary treated sewerage effluent, charged per kilolitre. Tertiary Treatment includes secondary effluent pump station, filtration chlorination, de-chlorination. Treatment levels beyond secondary are called advanced or tertiary treatment. Tertiary treatment technologies can be extensions of conventional secondary biological treatment to further stabilize oxygen-demanding substances in the wastewater, or to remove nitrogen and phosphorus. Tertiary treatment may also involve physical-chemical separation techniques | GST-free - Section 38-290 Item 2 Drainage - Stormwater Appendix 2 of GSTR 2000/25 | Septic (on site disposal)/Portaloo/Mobile Cleaning Charge | Taxable - Section 9-5 Supply of services | Application fee for approval to connect to council's water supply system | Applies to residential and non-residential new connections and alterations. Includes re connection fee. | GST-free - Section 38-285 Paragraph 24 of GSTR 2000/25 | Carry out water supply work | Water supply work means the construction, alteration, extension, disconnection, removal, flushing, cleansing, maintenance, repair, renewal or clearing of any pipes or fittings of any water service communicating or intended to communicate, directly or indirectly, with any water main of a council, but does not include changing a washer. | GST-free - Section 38-285 Paragraph 24 and Appendix 2 Water of GSTR 2000/25 | Sewerage work means the construction, alteration, extension, disconnection, removal, ventilation, flushing, cleansing, maintenance, repair, renewal or clearing of any sewerage service pipes or fittings or fixtures communicating or intended to communicate, directly or indirectly, with: (a) a septic tank, an effluent or a sullage disposal system, or (b) any sewer of a council. | GST-free - Section 38-290 Appendix 2 Sewerage of GSTR 2000/25 | Fee to connect to water supply | May include an inspection fee where the service provided requires a physical inspection prior to the service or certification being performed, such as a on-site detention and positive covenant inspection certificate. Includes an On Site Detention assessment | Fee paid to State Rail Authority as a condition of connection | Fee paid to State Rail Authority where the service requires a rail crossing and approval from the State Rail Authority, fee is passed on by council. | Draw water from a council water supply or a standpipe or sell water so drawn | Includes call out per load. May include metered standpipe hire and access fee, rent of standpipe, service charge and consumption charges. Includes charge for key or key replacement | GST-free - Section 38-285 Item 10 Water Appendix 2 of GSTR 2000/25 | Standpipes are pipes from which water can be obtained. Fee for Standpipe hire. May be charged annually, quarterly or monthly. Also includes fee for hire of bulk water tower key. | Fees associated with interruption of water supply | GST-free - Section 38-285 (Item 6 Water Appendix 2 of GSTR 2000/25 | Fee for pressure flow test | GST-free - Section 38-285 Item 12 Water Appendix 2 of GSTR 2000/25 | Water or sewer main location service | Fee to locate water or sewer main | GST-free-Section 38-285 or 38-290 Water or Sewerage - Item 4 of Water Appendix 2 or Item 4 Sewerage appendix 2 of GSTR 2000/25 where the service is in for connection and occurs up to and including the point of supply. | Service call for damaged service | Service call for damaged water meter | GST-free - Section 38-285 Item 5 Water Appendix 2 of GSTR 2000/25 | Install, alter disconnect or remove a meter connected to a service pipe | Water carters license fee | Water carter's license - for operators of businesses that collect water from a municipal supply and deliver to premises generally dependant on rain water for water supply (or perhaps to say fill up a swimming pool quickly). Also includes bowsers. Includes fees for bacteriological samples. | Additional cost to ratepayer for connection to water service where council has to bore under a road to connect the ratepayer to council's supply | GST-free - Section 38-285 Item 4 Water Appendix 2 of GSTR 2000/25 | Special Water Meter Reading fee | Fee to read meter, usually in connection with the sale of a property so the buyer knows the outstanding water usage charges. Exempt as information required to be given to applicant | Water Usage Charge or Water Usage Component (usage component) - Regulation 191 of Water Management (General Regulation) - section 314 of the Water Management Act. Also includes Recycled Water Usage Charge. May also include water usage from Council standpipe. | GST-free - Section 38-285 Item 1 and item 10 Water Appendix 2 of GSTR 2000/25 | Water Access Charges - Annual | Annual access fee for water Service availability charge made annually and related to the size of the Meter. Even if a ratepayer is not connected to the water supply they will still be charged a service availability charge if the property boundary is within 225metres of the water supply. Includes fee for initial installation of water meter. May be billed or payable quarterly or otherwise but fee is set per annum. | GST-free - Section 38-285 Item 3 Water Appendix 2 of GSTR 2000/25 | Stormwater drainage - Annual charge | Fee charged for stormwater drainage per rateable parcel | GST-free - Section 38-300 Item 5 Drainage - Stormwater Appendix 2 of GSTR 2000/25 | Water Access Charges - Non rateable property | Access charge for non rateable property such as churches | Water Access Charges - Government property | Access charge for non rateable property such as government property | Water access charge - additional fee for separate fire service connected | Where property has fire service | Water usage or consumption charges | Fee charged for water usage usually based upon quantity of water consumed. Includes application fee and fee for initial key card. Also includes fee for additional key cards. Also includes fees charged for water delivery. There are different charges for different types of users which may initially be divided into urban and non urban eg general tariff; strata title units and flats; industrial; commercial; community facilities; bulk supply and primary producers | GST-free - Section 38-285 Item 1 Water Appendix 2 of GSTR 2000/25 | Fee to ease water restriction | Exempt - Subsection 81-10(4) Permission | Non compliance with water restrictions | In the nature of a fine for not complying with water restrictions | Fee for hire of water truck | Fee to use truck or tanker | Water usage or consumption charges - non potable water | Charge for non potable water. Wikipedia defines potable water as: 'Drinking water or potable water is water pure enough to be consumed or used with low risk of immediate or long term harm'. Non potable water is the opposite of this and is often used to water golf courses or in industrial situations | Water Supply Special Rate or Charge | Applies to residential, commercial, and industrial | Application fee for approval to disconnect from council's water supply system | Application for water meter | Application for water meter of various sizes, charged separately to water connection fee. | Backflow Prevention Device Application and Registration Fee and test fee | Backflow Prevention Device Application and Registration Fee also includes administration fee | Registration Fee and test fee. Reduced Pressure Zone Device (RPZD, RPZ or RPZ valve) is a type of backflow prevention device used to protect water supplies from contamination. RPZDs may also be known as reduced pressure principle backflow prevention devices, or reduced pressure zone assemblies | Effluent water standpipe licence | Effluent/ recycled water supply fee | Recycled water irrigation. Sales of treated effluent for golf courses etc. | Environmental Laboratory Fees for Analysis relating to Water and/or Sewer | Where council conducts water analysis for quality, toxicity, Mouse Bio Assay, colour, turbidity, the presence of chemicals, metals, air-borne dusts, algae, bacteria, etc. Also includes hourly fee for sample collection and on-site analysis, chemical water testing packages, waste water treatment plant water analysis and digester analysis | Application for plumbing permit | Fee for disconnection from Council's water or sewer system | Under section 150 of the Water Management Act (disconnection constitutes 'plumbing work' as it affects a connection. Includes application fee and cost of physical work and labour. | GST-free - Paragraph 24 and Item 4 of Sewerage Appendix 2 of GSTR 2000/25 | Fee for test of water meter | Removal of the meter by an accredited organisation at the customer's request to determine the accuracy of the water meter. A separate charge relating to transportation costs and the full mechanical test which involves dismantling and inspection of meter components will also be payable. (This fee is for meters 20mm 80mm, and not applicable for 100mm 150mm) | GST-free - Section 38-285 Item 9 Water Appendix 2 of GSTR 2000/25 | Fee for Water Pressure Certificate | Includes fee for water pressure testing. Water pressure certificates may be issued by council in regards to hose reel installation, fire hydrant installation and fire sprinkler and / or wall drencher installation | Section 307 Certificate of Compliance provided under the Water Management Act for works carried out in a water supply authority's area. | Section 360 Certificate as to outstanding rates and charges under the Water Management Act | Incl metered hydrant for domestic purposes | Hire Charge for water meter, may also be used in reference to discharges made by property. Water Management Act related | EG Clearing of shrubs and trees and bushes | Subsection 38-290(1) provides that 'a supply of sewerage services is GST-free.' | 81-5 Effect of payment of tax | Australian tax means a tax (however described) imposed under an *Australian law. | .....a compulsory exaction of money by a public authority for public purposes, enforceable by law, and is not a payment for services rendered ... | 81-10 Effect of payment of certain fees and charges | 81-15 Other fees and charges that do not constitute consideration | The regulations may provide that the payment of a prescribed *Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of *consideration. | Australian fee or charge means a fee or charge (however described), other than an Australian tax, imposed under an *Australian law and payable to an *Australian government agency. | Fees and charges in this category are not excluded from being consideration for a taxable supply. This is consistent with the National Competition and Consumer Policy guidelines and ensures that a government entity is not given a competitive advantage over a private sector supplier making the same type of supply. | This covers situations in which government agencies have authorised private agencies to perform activities that form part of a regulatory process, for example, certification activities which are required for a regulatory process to be followed. Where government agencies, as well as government certifiers, have authorised private certifiers to perform certification activities these fees and charges will continue to be consideration for a supply that is subject to GST. This ensures competitive neutrality between supplies made by government and non-government agencies. | This paragraph applies only where a government agency is providing a supply in a competitive market, or where private suppliers have been accredited or authorised to make a supply over which the agency would otherwise have a monopoly. | This paragraph does not cover supplies of information that are regulatory in nature and can only be supplied by government agencies, notwithstanding that the public may obtain such information through a private sector supplier acting as a conduit for the information from the government agency. The supply is only a taxable supply where the private sector entity charges for the supply in its own right. | Note : A person who fails to obtain an approval or who carries out an activity otherwise than in accordance with an approval is guilty of offence-see sections 626 and 627. | The amount of special rate will be determined according to the council's assessment of the relationship between the cost or estimated cost of the work, service, facility or activity and the degree of benefit afforded to the ratepayer by providing or undertaking the work, service, facility or activity. | 495A Strata lots and company titles taken to be separate parcels of land for annual charges | 502 Charges for actual use | A council may make a charge for a service referred to in section 496 or 501 according to the actual use of the service. | Stormwater drainage work means the construction, alteration, extension, disconnection, removal, maintenance, repair, renewal, flushing, cleansing or clearing of any stormwater drain communicating or intended to communicate, directly or indirectly, with any stormwater channel of a council. | Water Management Act 2000 | 314 Basis of levying service charges | The regulations must specify the basis or bases according to which a water supply authority may levy service charges . | Water Management (General) Regulation 2011 | Australian fees and charges covered by both regulations 81-10.01 and 81-15.01 of the Regulations | Appendix 2 - Legislative references | Appendix 3 - Detailed contents list | Legislative References: ANTS (GST) A99 7-1(1) ANTS (GST) A99 9-5 ANTS (GST) A99 9-17(3) ANTS (GST) A99 9-17(4) ANTS (GST) A99 9-39 ANTS (GST) A99 Div 38-I ANTS (GST) A99 38-285 ANTS (GST) A99 38-290 ANTS (GST) A99 38-295 ANTS (GST) A99 38-300 ANTS (GST) A99 Div 81 ANTS (GST) A99 81-5 ANTS (GST) A99 81-10 ANTS (GST) A99 81-10(1) ANTS (GST) A99 81-10(2) ANTS (GST) A99 81-10(3) ANTS (GST) A99 81-10(4) ANTS (GST) A99 81-10(5) ANTS (GST)A99 81-15 ANTS (GST) A99 195-1 ANTS (GST) R99 81-10.01 ANTS (GST) R99 81-10.01(1) ANTS (GST) R99 81-10.01(1)(c) ANTS (GST) R99 81-10.01(1)(g) ANTS (GST) R99 81-10.01(1)(h) ANTS (GST) R99 81-10(2) ANTS (GST) R99 81-15.01 ANTS (GST) R99 81-15.01(1) ANTS (GST) R99 81-15.01(1)(c) ANTS (GST) R99 81-15.01(1)(d) ANTS (GST) R99 81-15.01(1)(e) ANTS (GST) R99 81-15.01(1)(f) ANTS (GST) R99 81-15.01(2) ANTS (GST) R99 81-15.02 ANTS (GST) R99 81-15.02(2) ITAA 1997 995-1 TAA 1953 Copyright Act 1968 Library Act 1939 (NSW) Local Government Act 1993 (NSW) Water Management Act 2000(NSW)


Related rulings: GSTR 2000/25 TR 2006/10
Legislative references: New South Wales Acts | 57. The following new South Wales Acts were considered in preparing this ruling: | Local Government Act 1993 (NSW) 58. Section 68 of the LG Act lists activities requiring approval of the council and states the following: | 59. Section 20 of the LG Act states: | 60. Council may make and levy special rates and annual levies under section 495 of the LG Act and section 501 list the services council can impose an annual charge and they state: | 61. Section 502 and 608 of the LG Act Council can make charges for actual use and fees for services other then on an annual basis which state: | 62. The terms 'water supply work', 'sewerage work' and 'stormwater drainage work' are defined in the Dictionary in the LG Act as: | 63. The following is a detailed contents list for this Ruling:
Case references: Air Caledonie International v. Commonwealth (1988) 165 CLR 462 [1988] HCA 61
Subject references: GST Government entities Division 38-I - Water, sewerage and Drainage Division 81 - Payment of taxes, fees and charges Government entities GST consideration GST regulations
Other references: Explanatory Statement to ANTS (GST) Amendment Regulation 2012 (No. 2)