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;
- gift to non-profit bodies;
- non-monetary consideration;
- financial supplies.