The Magistrates Court of Qld (at Brisbane) has held that GST on domestic and imported goods used in a coal seam gas project in Qld is a component of the cost of building and construction work and therefore subject to a building and construction training levy, and long service leave levy and a work health and safety levy under s 66 of the Building and Construction Industry (Portable Long Service leave) Act 1991 (Qld).
The appellant and its subsidiaries are involved in a project for the development of coal seam gas (CSG) to liquefied natural gas (LNG) in Qld. GST on the building and construction costs for the purpose of the various levies totalled around id=”mce_marker”.2bn with the result that the first appellant was assessed to pay levies totalling over $85m. The appellant argued that any GST liability for the supply of goods or services in Australia, which is then offset by an input tax credit (ITC), was not a component of the cost of the building and construction work within the meaning of the above Act.
The Magistrates Court agreed with the Building and Construction Industry Authority, finding that the applicable GST was part of the cost (directly and indirectly) of the building and construction work for the purposes of the Act. The Court said entitlement to recover ITCs was “immaterial to the cost” – the cost to the appellants was inclusive of GST.
(Australia Pacific Pty Ltd & Ors v Building and Construction Industry Authority [2014] QMC 004, Magistrates Court of Qld, Brisbane, Deputy Chief Magistrate Rinaudo O, 24 February 2014.)
[LTN 50, 14/3/14]
Taxpayers appeal to the Industrial Court of Queensland
It is understood the applicants have appealed to the Industrial Court of Queensland against the decision of the Magistrates Court of Qld (Deputy Chief Magistrate Rinaudo O) in Australia Pacific Pty Ltd & Ors v Building and Construction Industry Authority [2014] QMC 004. The Magistrates Court had held that GST on domestic and imported goods used in a coal seam gas project in Qld was a component of the cost of building and construction work. This meant the GST was subject to a building and construction training levy, and long service leave levy and a work health and safety levy under s 66 of the Building and Construction Industry (Portable Long Service leave) Act 1991 (Qld).
[LTN 52, 18/3/14]