This Draft Determination, released Wed 20.8.2014, states that a “destination outside Australia” for the purposes of s 38-355(1) of the GST Act [which makes the transport of persons GST-free] is a specific physical location outside Australia stopped at by the ship where that location is significant to the passenger having regard to facts and circumstances considered objectively when the transport is purchased.
Broadly, it states that once it is established that the supply of sea transport to a passenger includes a “destination outside Australia” the supply of that sea transport of the passenger on domestic legs of that journey may also be GST-free.
DATE OF EFFECT: When the final Determination is issued, it is proposed to apply both before and after its date of issue.
COMMENTS due by 19 September 2014. ATO contact: Chris Mackenzie – Tel: (02) 9374 8695; Fax: (02) 9364 2387; Email: Chris.Mackenzie@ato.gov.au.
[LTN 160, 20/8/14]