Commissioner publishes PSLA 2013/2 on GST treatment of charges under Division 81

Yesterday the Commissioner published PSLA 2013/2 (GA) “GST treatment of Australian fees or charges under Division 81 of the GST Act”

The practice statement applies from 1 July 2013 to Australian government agencies (local and shire councils, state and territory entities and Commonwealth entities) who self assess the GST classification of supplies under s 81-10 of the GST Act. The statement applies to Australian fees or charges listed in the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2011 (No.1) which are received as consideration for the supplies they make.

By way of background, Division 81 of the GST Act outlines the GST treatment of Australian taxes and Australian fees or charges received by Australian government agencies. From 1 July 2011 Division 81 was amended to enable Australian government agencies to self-assess the GST treatment of taxes, fees and charges. As from 1 July 2013, agencies must self-assess the GST treatment of all fees and charges (including those listed in the Treasurer’s Determination referred to above, which ceases to have effect from that date).

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