On 2 November 2011 the ATO issued draft GST Ruling GSTR 2011/D4 ‘Goods and Services tax: financial assistance payments’. This ruling is intended to replace GSTR 2000/11 ‘Goods and Services tax: grants of financial assistance’.
The draft ruling deals with the GST treatment of the following matters:
- what constitutes a taxable supply in return for a financial assistance payment, including determining the relevant nexus between supply and consideration;
- sponsorships
- gift to non-profit bodies;
- non-monetary consideration;
- financial supplies.
The ruling also details the transitional rules catering for the replacement of the current ruling.
Comments are invited on the ruling by 16 December 2011.
Stay tuned for a more detailed analysis of the draft ruling.
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