GSTD 2013/D3 – GST-free non-accommodation supplies by Charities etc at less than 75% of the consideration provided by the Charity etc – depreciating capital items [76]

This Draft GST Determination, released on Wed 29.5.2013, states that a portion of the consideration a supplier has provided for acquiring capital items that diminish in value over time can be included when calculating whether a supply in that period is GST-free under s 38-250(2)(b)(ii) of the GST Act (A New Tax System (Goods and Services Tax) Act 1999) where the capital items are utilised in making the supply.

DATE OF EFFECT: When the final GST Determination is issued, it is proposed to apply both before and after its date of issue.

COMMENTS are due by 26 June 2013. ATO contact: Grant Murphy – Tel: (07) 3213 5707; Fax: (07) 3213 5873; Email: grant.murphy@ato.gov.au.

[LTN 102, 29/5/13]

s38-250(2) of the GST Act (By Charities etc.)

(2)  A supply is GST-free if:

(a)      the supplier is an * endorsed charity, a * gift-deductible entity or a * government school; and

(b)      the supply is for * consideration that:

(i)      if the supply is a supply of accommodation–is less than 75% of the cost to the supplier of providing the accommodation; or

(ii)      if the supply is not a supply of accommodation–is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.