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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 38.250

Nominal consideration etc.

             (1)  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 * GST inclusive market value of the supply; or

                             (ii)  if the supply is not a supply of accommodation--is less than 50% of the GST inclusive market value of the supply.

             (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.

             (4)  Subsections (1) and (2) do not apply to a supply by a * gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30-120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an * endorsed charity; or

                             (ii)  a * government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a * gift-deductible purpose of the supplier.

Note:          This subsection denies GST-free status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST-free under this section if they relate to the principal purpose of the fund, authority or institution.



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