LOCAL GOVERNMENT (SA) FEES AND CHARGES
GUIDE TO DIVISION 81 INTERPRETATION
A project of the
Local Government Financial Management Group
and the
Local Government Association
December 2002
These Guidelines have been prepared on the basis of A New Tax System (Goods and Services Tax) (Exempt fees and
Charges) Determination 2002 and is current as at 28 October 2002. However the contents of this document should not be
taken as advice on the law. Councils should make their own enquiries and obtain their own independent advice in relation
to these issues. Norman Waterhouse, the Local Government Association and the Consultants to this project accept no
liability arising from the information in this document being incorrect, incomplete or misleading. To the extent permitted by
law, all terms (including conditions and warranties are excluded).
Contents
INTRODUCTION .................................................................................................1
HOW TO USE THESE GUIDELINES .................................................................2
Fees and Charges .........................................................................................2
Other Information ..........................................................................................2
Model Format ................................................................................................3
GST TERMINOLOGY .........................................................................................2
GST Free ........................................................................................................3
Input Taxed ....................................................................................................3
GST Exempt...................................................................................................3
Division 81 Determination ............................................................................3
TABLE OF FEES AND CHARGES ....................................................................4
GST COMMENTARY ........................................................................................22
GLOSSARY OF LEGISLATION .......................................................................42
Local Government (SA) Fees and Charges
Guide to Division 81 Interpretation, December 2002
INTRODUCTION
These Guidelines have been prepared to assist South Australian Councils apply the correct
treatment of the GST to Council fees and charges. It reflects the Local Government
Association’s interpretation of the relevant legislation. The Australian Tax Office has
reviewed these Guidelines and confirmed that they accurately reflect the ATO view on the
GST treatment of fees and charges. However, these Guidelines do not constitute any form
of statement or ruling by the Australian Tax Office.
With the introduction of A New Tax System (Goods and Services Tax) Act 1999 in July 2000,
Local Government was required to comply with the Federal Treasurer’s “Division 81”
determination of GST exempt fees and charges. Interpretation of the Division 81
determination has been made more complex as it requires a thorough knowledge of the
range of legislation under which Councils can raise fees and charges.
The Local Government Act 1999 also requires each Council to keep an up-to-date list of fees
and charges on public display and to take reasonable steps to bring the fee or charge or any
variation to that fee or charge to the notice of persons who may be affected.
In recognition of the complexity of the situation and the need for a consistent approach
across the sector, the Local Government Financial Management Group has successfully
obtained funding from the Local Government Research and Development Scheme to
prepare these guidelines.
The objectives of this project were to:





develop a schedule of the most common fees imposed by Council;
clarify the correct GST treatment in respect of each fee;
identify the appropriate legislation under which the fee is imposed;
provide appropriate advice on the more complex fees, such as fees to occupy road
reserves, caravan park charges etc; and
identify current fees and charges that are not included in the Division 81
determination that could, or should, be referred to the Treasurer for future inclusion.
This project has been undertaken by Johanna Churchill, assisted by Liz Dowd and Kim
Evans of Norman Waterhouse, and with the valuable support and contributions of 28
Councils. The project has been managed by a project management committee comprising
the Local Government Association’s Stuart Mathews, Kevin Powell from the City of Mitcham
and Brian Sincock from the Australian Tax Office.
All Councils were invited to provide information on the fees and charges they levy or collect
and from that information Norman Waterhouse has compiled these guidelines.
1
Local Government (SA) Fees and Charges
Guide to Division 81 Interpretation, December 2002
HOW TO USE THESE GUIDELINES
Fees and Charges
The following Table sets out the fees and charges levied by Local Government in South
Australia. The GST treatment of each fee/charge is set out as are other relevant references
to the GST and other legislation. The Table of Fees and Charges has been prepared on the
basis of grouping like charges across functional areas of necessity there has been some
editorial licence as Councils do not use consistency of language in describing the various
charges. It may be that in the Table of Fees and Charges an individual Council does not
recognise verbatim its description of a charge or levy, however the project management
committee is confident that all of the charges or levies imposed by the participating Councils
are covered.
Other Information
Further explanation of some issues are included in the GST Commentary segment of this
document. Cross references to that information are included where applicable in the Table
of Fees and Charges.
Terminology is consistent with that found in the principal legislation, A New Tax System
(Goods and Services Tax) Act 1999 and a glossary of other terminology is contained on the
last page of the Table of Fees and Charges.
Model Format
It was one of the objectives of the project to provide a “model list” which could be adapted by
Councils to suit their specific needs (for example with inclusion of the actual fee declared by
Council).
Whether or not Councils choose to adopt and adapt the Table of Fees and Charges, they
are encouraged to follow the format which has been used.
2
Local Government (SA) Fees and Charges
Guide to Division 81 Interpretation, December 2002
GST TERMINOLOGY
There are four categories of GST treatment of fees and charges. The Table of Fees and
Charges contains references to all four. Those categories are:
 GST free;
 Input taxed;
 GST exempt;
 Not subject to GST.
It is important that this distinction is understood as differing GST consequences arise in
relation to these different sorts of supplies.
GST Free
No GST is payable on the supply of GST free goods or services however an input tax credit
may be included on Council’s BAS returns for anything acquired or imported to make a GST
free supply.
Input Taxed
In contrast, an input taxed supply is not subject to GST and no input tax credits can be
included on Council’s BAS returns for anything acquired or imported to make an input tax
supply. Input tax fees and charges are designated as such under the ordinary operation of
GST law. An example of an input tax supply is residential housing.
GST Exempt
It is this category that is most important for this project. GST exempt fees and charges are
set out within a determination of the Commonwealth Treasurer and known as “Division 81
Fees and Charges”. These are mainly compulsory charges, fees and taxes which the
Commonwealth Treasurer has determined as a general principal should be outside the
scope of the GST legislation. The technical effect of the Division 81 Determination is to
deem the fees and charges not to be consideration for a taxable supply. The practical effect
is that no GST is payable on those fees and charges however input tax credits may still be
included on Council’s BAS returns. It should be noted that Division 81 Fees and Charges
themselves should not be included on BAS returns.
Not Subject to GST
Where amounts are entirely outside the scope of GST, they will be referred to in the
Guidelines as “Not subject to GST”. These amounts are not specifically exempted by the
legislation or by the Division 81 Determination because the GST legislation does not apply to
them in the first place. A common example is where a payment is received that is not for
any identifiable ‘supply’ (such as many fines). The practical effect is that no GST is payable
on those fees and charges but input tax credits may not be claimed. These amounts should
not be included on BAS returns.
Division 81 Determination
As discussed above, the “Division 81 Fees & Charges” Determination is a determination of
the Commonwealth Treasurer. Division 81 of the GST legislation provides that all
“Australian taxes, fees and charges” are subject to GST unless they are set out in the
Treasurer’s Determination as being exempt.
The Determination is
www.treasury.gov.au
updated
twice
a
year,
and
can
be
downloaded
from
3
Local Government (SA Fees and Charges
Table of Fees and Charges
TABLE OF FEES AND CHARGES
INDEX
COMMUNITY SERVICES ........................................................................................................... 5
DEVELOPMENT ......................................................................................................................... 9
ENVIRONMENT ........................................................................................................................ 11
HEALTH SERVICES ................................................................................................................. 13
INFORMATION SERVICES ...................................................................................................... 14
LICENCES AND PERMITS ……………………………………………………………………. .......... 15
MISCELLANEOUS…… ………………………………………………………………………….......... 18
Airport ……………………………………………………………………………………… ......... 18
Caravan Park ………………………………………………………………………………......... 18
Cemetery ……………….…………………………………………………………………........... 18
Electricity Supply …………………………………………………………………………......... 18
Rental ………………………………………………………………………………………. ......... 18
Sale Proceeds ……………………………………………………………………………........... 18
PRIVATE WORKS …………………………………………………………………………….. ............ 19
WASTE MANAGEMENT ……………………………………………………………………….. ......... 20
WATER SUPPLY ……………………………………………………………………….……….. ......... 21
4
Local Government (SA Fees and Charges
Table of Fees and Charges
COMMUNITY SERVICES
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
FURTHER
INFORMAT
-ION
Aged / Youth /
Disabled
Programmes
Activity & social
programmes
conducted for aged,
young & disabled
persons
Taxable
S188 LGA
Child Care
Provision of child care
services
GST Free
ANTS (FA)
(potentially)
S38-145
Courses &
Education
Community
educational,
recreational & craft
courses
Taxable
Home Assistance
Home assistance
services including
maintenance,
cleaning, home
security, respite care
and transport etc
GST Free
Road Safety
Road safety courses &
sessions
Taxable
S188 LGA
Transport Charter
Charter of community
bus or other transport
(with or without driver)
Taxable
S188 LGA
Transport Charter Bonds
Refundable security
bonds in relation to
vehicle hire
Taxable if
forfeited
S99-1
S188 LGA
refer
Chapter 10
Transport Charter Deposits
& Cancellation
fees
Deposits
refunded/absorbed on
full payment or
forfeited on
cancellation
Taxable if
forfeited
S99-1
S188 LGA
refer
Chapter 10
Transport Community Bus
Passage on
community bus or
other transport
Taxable
S188 LGA
Transport - Taxi
Use of Council taxi
service
Taxable
S188 LGA
Advertising Business
Space rental (tourist
information bay,
window display
boards, litter bins,
brochures & road
signage), newsletter
advertising & sign
writing
Taxable
S188 LGA
S38-30 (2)
S188 LGA
refer
Chapter 8
S188 LGA
refer
Chapter 7
S188 LGA
Only GST
Free if
Council
has HACC
funding for
the supply,
otherwise it
is Taxable
5
Local Government (SA Fees and Charges
Table of Fees and Charges
Advertising Special Events
Erection of banner
boards & other
advertising for special
events
Taxable
S188, S221,
S222 LGA
Blue Light Disco
Entry
Taxable
S188 LGA
CATV Services
Provision of common
antennae television
transmission service
Exempt
Loans
Council taking out loan
on behalf of clubs &
associations
Input Taxed
Admin Fee for
EFTPOS
Bank EFTPOS fees for
non bank customers
Taxable
Golf Course
Membership & round
fees
Taxable
Hire Bonds
Refundable cleaning &
security bonds in
relation to lease, hire &
rental arrangements
Taxable if
forfeited
Hire Buildings
Lease, hire or rental
(including long term
rental) of chambers,
halls, rooms & other
buildings including call
out fees
Taxable
Hire Deposits &
Cancellation Fees
Deposits
refunded/absorbed on
full payment or
forfeited on
cancellation
Taxable if
forfeited
Hire Insurance
Provision of insurance
for use of Council
property (may be by
way of increased hire
fee)
Taxable
Hire Key Deposits
Refundable key
deposits
Taxable if
forfeited
Hire Parks &
Reserves
Hire and site fees for
occupation of parks,
gardens & reserves
Hire Plant
Hire Recreation
S81-5
Det 13.1
S40-5
Chapter 10 of
LGA
S188 LGA
refer
Chapter 6
S188 LGA
S99-1
S99-1
S188 LGA
refer
Chapter 10
S188, S202
LGA
refer
Chapter 2
S188, S202
LGA
refer
Chapter 10
S188, S202
LGA
S99-1
S188 LGA
refer
Chapter 10
Taxable
S188, S202
LGA
refer
Chapter 2
Hire/rental of plant,
equipment & facilities
(such as bbq
equipment, sound
systems) including call
out fees
Taxable
S188 LGA
Lease, hire or rental
(including long term
rental) of sports
grounds & equipment
Taxable
S188, S202
LGA
6
Local Government (SA Fees and Charges
Table of Fees and Charges
Library fines
Lost/replacement
cards & items, overdue
books,
Not subject to
GST
Library fees
Reservations, interlibrary loans, internet &
computer training,
brochures, help
manuals, projector
sheets, disks and fund
raising products
Taxable
S188 LGA
Library – other
See also Office &
Professional Services
Library - Toy
All membership &
damaged/lost toys
Taxable
S188 LGA
Office - Duplicate
Photographs
Provision of duplicate
photographs
(ie.historical)
Taxable
S188 LGA
Office Laminating &
Binding
Provision of laminating
& binding services or
facilities
Taxable
S188 LGA
Office - Printing,
Photocopying,
Facsimile etc
Copies & extracts of
council agendas,
minutes, reports,
registers, policies,
codes of conduct,
financial statements
etc (including Council
electoral rolls)
Exempt
All other printing,
microfilming, photo
copying & facsimile
services or facilities
Taxable
S188 LGA
Office - Typing
Typing & word
processing services
Taxable
S188 LGA
Professional
Services
Provision of training
and other consulting
services &
professional advice
Taxable
S188 LGA
Publications
Sale of books, trail and
road maps
Taxable
S188 LGA
Recreation &
Swimming
Centres
Swimming pool
patronage including
for lessons and for
spectators, use of
spas, saunas, lockers
& crèches
Taxable
S188 LGA
Sale of Art
Commission on sale of
art works
Taxable
S188 LGA
(see also under
‘Information
Services’)
S188 LGA
(no supply)
S81-5
S188 LGA
Det 13.32
refer
Chapter 1
7
Local Government (SA Fees and Charges
Table of Fees and Charges
Sponsorship
Sponsorship moneys
in relation to memorial
property/engraved
property (benches,
gardens etc)
Taxable
S188 LGA
Tourism
Tours/admission to
tourist attractions
Taxable
S188 LGA
refer
Chapter 5
8
Local Government (SA Fees and Charges
Table of Fees and Charges
DEVELOPMENT
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
Bond Documents
Preparation &
administration of bond
documents
Taxable
Construction
Industry Training
Levy
Levy collected to fund
training in the building
& construction industry
Exempt
Advertising
Advertising in
newspaper as
required under the
Development Act
(category 3)
Taxable
Lodgement fees
Lodgement fees under
the Development Act
Exempt
Land division fee
under the
Development Act
Exempt
Registration of
private certifiers
Application for
registration of private
certifiers & annual
registration fee under
the Development Act
Exempt
Building rules
fees
Building rules fees
under the
Development Act
Taxable
Development Act
Development plan
assessment fee
Exempt
Public Notification
Fee
(category 2 & 3)
Public Notification Fee
(category 2 & 3) under
the Development Act
Exempt
Referral fees
Referral fees under the
Development Act
Exempt
Certificate of
Approval Fee
Certificate of Approval
Fee under the
Development Act
Exempt
Consent to
Development at
Variance with
Building Rules
Consent to
Development at
Variance with Building
Rules under the
Development Act
Taxable
Non-complying
Development Fee
Non-complying
Development Fee
under the
Development Act
Exempt
Land division fee
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
FURTHER
INFORMATION
S51 DA &
S188 LGA
S81-5
CITFA
Det 8.4
DA Schedule 6
1(7)
S81-5
Det 13.3
S81-5
Det 13.5
S81-5
Det 13.16
DA Schedule 6
1(1)
DA Schedule 6
1(3)(a)
Payable to
Minister not
Council
DA Schedule 6
1(8)(a),(b)&F
S81-5
Det 13.4
S81-5
Det 13.10
S81-5
Det 13.9
S81-5
Det 13.8
DA Schedule 6
1(2)(c)&(d)
DA Schedule 6
1(6)
DA Schedule 6
1(5)
DA Schedule 6
1(3)(c)
DA Schedule 6
1(9)
S81-5
Det 13.7
DA Schedule 6
1(4)
9
Local Government (SA Fees and Charges
Table of Fees and Charges
Application for
assignment of
classification of a
building
Application for
assignment of, or
change in,
classification of a
building under the
Development Act
Taxable
DA Schedule 6
2(a),(b)&F
Certificate of
Occupancy Fee
Certificate of
Occupancy Fee under
the Development Act
Taxable
DA Schedule 6
3
Application for
issue of Schedule
of Essential
Safety Provisions
Application for issue of
Schedule of Essential
Safety Provisions
under the
Development Act
Taxable
DA Schedule 6
4
Referral to
Building Rules
Assessment
Commission
Referral to Building
Rules Assessment
Commission under the
Development Act
Exempt
Statement of
Requirements
Fee
Statement of
Requirements Fee
under the
Development Act
Exempt
Enterprise Roads
Sale of land
Taxable
S188 LGA
Land
Management/
Water
Agreements
Private Water Services
Agreements & Land
Management
Agreements including
inspection, preparation
& administration
Taxable
S188 LGA S57
DA
Parking
Making car parking
spaces to
accommodate new
development in
business centre
Taxable
Developers’
Contributions
toward Street
Signs
Contributions by
developers towards
installation & kerbside
etching of street signs
Exempt
Developer’s Cash
Contributions
Levies imposed on or
made by developers
when creating land
divisions
Exempt
Developer’s “InKind”
Contributions
Non-cash contributions
made by developers
when creating land
divisions
Exempt
Installation of
Street Signs
Installation of
additional street signs
at ratepayers request
Taxable
S81-5
Det 13.11
DA Schedule 6
1(10)and/or
6(a)&(b)
Det 13.12
S81-5
Det 13.6
DA Schedule 6
1(3)(b)
S81-5
refer Chapter
2
refer Chapter
3
Det 13.17
S81-S
refer Chapter
3
Det 13.17
S81-S
refer Chapter
3
Det 13.17
S188 LGA
10
Local Government (SA Fees and Charges
Table of Fees and Charges
ENVIRONMENT
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
Animal Collars
Sale or hire of cat &
dog collars (including
citronella & anti
barking collars)
Taxable
S188 LGA
Animal Kennelling
Boarding of animals
Taxable
S188 LGA
Block Clearing
On site rubbish
removal & block
clearing
Taxable
SAMFSA
Cat & Pest
Control
Hire of cat/possum
traps & bird boxes
Taxable
S188 LGA
Dog Control
Impounding & dog
destruction
Exempt
S81-5
Det 13.22
DCMA
Schedule 2
Dog Expiations
Dog nuisance, attack,
harassment, injury,
wandering, presence
in schools, shops &
other areas, failure to
register, display
registration disc,
advice of change of
address or owner,
muzzle, leash, desex,
remove faeces
Exempt
S81-5
S43 DCMA
Dog registration
(desexed, nondesexed, working
dogs, guide dogs,
greyhounds registered
with SA DRCB),
advising of change of
address or owner and
disc replacement
Exempt
Fines & expiations in
relation to burning,
burning out of hours &
burning particular
material
Not subject to
GST
Expiations - By
Laws
Fines & expiations in
relation to Council bylaws
Expiations –
Littering
Fines & expiations in
relation to littering
Expiations –
Parking
Fines & expiations in
relation to stopping &
parking of motor
vehicles, double
parking & obstruction
of access
Dog Registration
Expiations –
Burning
FURTHER
INFORMATION
Det 13.22
S81-5
Det 13.22
DCMA
Schedule 2
S81-5
EP (Burning)
Policy 1994
Not Subject to
GST
(no supply)
Not subject to
GST
(No supply)
S81-5
S246 LGA
S81-5
S235 LGA &
EOA
Not subject to
GST
S81-5
ARR & PPAA
(no supply)
(no supply)
11
Local Government (SA Fees and Charges
Table of Fees and Charges
Impounding of
Vehicles
Impounding of vehicles
(including towing &
storage)
Exempt
Pest Control
Supply of mosquito
blocks
Taxable
Removal of
Property
Removal & storage of
property (i.e
Abandoned cars,
shopping trolleys, sign
boards etc)
Exempt
Removal of
Vegetation
Slash/burning & other
removal of vegetation
for fire prevention or
pest control purposes
Taxable
S81-5
Det 13.20
S188, S237
LGA
refer Chapter
1
S188 LGA
S81-5
Det 13.21
S188, S237
LGA
refer Chapter
1
S40 CFS or
APCA
12
Local Government (SA Fees and Charges
Table of Fees and Charges
HEALTH SERVICES
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
Fire Safety
Inspection and
reporting on fire safety
in nursing homes
Taxable
Provision of Food
Safe Handling
Kits & Videos
Provision of Food Safe
Handling Kits & Videos
Taxable
Inspection of
nursing homes
Inspection & reporting
on food safety in
nursing homes
Taxable
Fines - Food
Safety
Fines & expiations
under the Food Act
Not subject to
GST
GST
REFERENCE
LEGISLATIVE
AUTHORITY
FURTHER
INFORMATION
S188 LGA
S81-5
FA
(no supply)
Immunisation
Provision of
immunisation services
Taxable
Fines - Public &
Environmental
Health Act
Fines & expiations
under the Public &
Environmental Health
Act
Not subject to
GST
Application &
licence fees for
Supported
Residence
Application & licence
fees including
renewals & transfers
for Supported
Residence
Exempt
Fines - Supported
Residential
Facilities Act
Fines & expiations in
relation to the
Supported Residential
Facilities Act
Not subject to
GST
Retirement
Villages
Accommodation in
retirement village
Input Taxed
S188 LGA
S81-5
PEHA
S81-5
SRFA
refer Chapter
9
(no supply)
Det 13.18
S81-5
SRFA
(no supply)
S40-35
refer
Chapter 2
or
GST-free
S38-25(4)
ACA
cf Chapter
2.5
13
Local Government (SA Fees and Charges
Table of Fees and Charges
INFORMATION SERVICES
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
S81-5
S188 LGA
Council
Documents
Copies & extracts of
council agendas,
minutes, reports,
registers, policies,
codes of conduct,
financial statements &
other records &
documents (including
Council electoral rolls)
Exempt
Council
Documents Freedom of
Information
Freedom of
Information Act
applications in relation
to Council documents
Exempt
Provision of
general statistical
information
Provision of general
statistical information
& research/reporting
(including building
statistics, business
information & local
history)
Taxable
Searches
Rate searches (section
7 & 187), certificates of
liability & extracts from
assessment book
Exempt
Det 13.32
S81-5
FURTHER
INFORMATION
refer Chapter
1
LG (FOI) Regs
Det 13.25
S188 LGA
S81-5
LB(SC)A
Det 13.24 &
13.27
14
Local Government (SA Fees and Charges
Table of Fees and Charges
LICENCES AND PERMITS
FEE OR
CHARGE
Burning
Diving
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
Consent to carry out
burning
Exempt
S81-5
EP (Burning)
Policy 1994
Diving permits
Exempt
Det 13.34
S81-5
FURTHER
INFORMATION
S188 LGA
refer Chapter 1
S188 LGA
refer Chapter 1
S188, S221
LGA
refer Chapter 1
S188
refer Chapter 1
S188, S200
LGA
refer Chapter 1
S188, S232A
LGA
refer Chapter 1
S188, S202
LGA
refer Chapter 1
S188, S222
LGA
refer Chapter 1
Det 13.34
*Filming
Fee for filming
commercials & feature
films in Council area
Exempt if
raised under
S188(1)(f)
LGA
S81-5
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
Firewood
Fireworks
Gravel/Sand
Authority to collect
roadside firewood
Exempt
Authority to discharge
fireworks
Exempt
Authority to collect
gravel or sand from
Council pit
Exempt if
raised under
S188(1)(f)
LGA
S81-5
Det 13.34
S81-5
Det 13.34
S81-5
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
Horse Riding
Horse riding on
foreshore
Exempt
Marinas, Boat
Ramps & River
Access
Use of moorings,
marinas, boat ramp &
river access (including
fees for applications &
transfers)
Exempt
Mobile Vendors
Permit for mobile ice
cream & other food
vendors
Exempt if
raised under
S188(1)(f)
LGA
S81-5
Det 13.34
S81-5
Det 13.34
S81-5
refer Chapter 2
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
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Local Government (SA Fees and Charges
Table of Fees and Charges
Outdoor Dining
Permit for outdoor
cafes & dining inc
applications and
transfers
Exempt if
raised under
S188(1)(f)
LGA
S81-5
S188, S222
LGA
refer Chapter 1
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
Parking
Petrol Pumps
Parking permit
(including
replacement permit)
Exempt
Kerbside petrol pumps
Exempt if
raised under
S188(1)(f)
LGA
S81-5
ARR
Det 13.31
S81-5
S188, S222
LGA
refer Chapter 1
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
Road Closures
Road Rents
All applications &
consents (inc
advertising fees
charged) in relation to
temporary road
closures
Exempt
Commercial &
agricultural road rents
inc fees for agistment,
cropping and de
pasturing
Exempt if
raised under
S188(1)(f)
LGA
S81-5
Det 13.30
S81-5
LGA 1934 &
RTA
S188, S222
LGA
refer Chapter 1
S188 LGA
refer Chapter 1
S188 LGA
refer Chapter 1
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
Seed Collection
Authorisation for the
collection of seeds for
tree planting purposes
Exempt
Permit to occupy
Shacks
Permit allowing shacks
to be retained and
occupied on council
land (in addition to
rates)
Exempt
Taxi & Hire Car
Taxi & hire car
licenses including
application, renewal &
transfer
Exempt
S81-5
Det 13.34
S81-5
Det 13.34
S81-5
Det 13.29
refer Chapter 2
S667 LGA
1934
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Local Government (SA Fees and Charges
Table of Fees and Charges
Trading
Permit for trading or
displaying goods (i.e.
On street or in
shopping complex)
Exempt if
raised under
S188(1)(f)
LGA
S81-5
S188, S202,
S222 LGA
refer Chapter 1
S188, S221
LGA
refer Chapter 1
Det 13.34
Taxable raised
under
S188(1)(a)
LGA
Under Road
Pipelines
All application &
licence fees in relation
to under road pipe
laying. Refer to Private
Works for
reinstatement charges
& Development for
bonds
Exempt if
raised under
S188(1)(f)
LGA
S81-5
Det 13.34
Taxable if
raised under
S188(1)(a)
LGA
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Local Government (SA Fees and Charges
Table of Fees and Charges
MISCELLANEOUS
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
FURTHER
INFORMATI
ON
Airport
Landing charges,
terminal & parking
area rental,
advertising fees
Taxable
S188 LGA
refer Chapter
1
Caravan Park
Caravan park sites
/accommodation &
amenities
Taxable
S188 LGA
refer Chapter
2
Cemetery
Burial, cremation,
interment,
exhumation,
administration and
development
fees,maintenance
and grave digging
services, burial
enquiries &
searches, etc
Taxable
S188 LGA
Long term leases
Exempt if raised
under 188(1)(f)
Div 13.34
Licence, permit and
search fees
associated with the
Enfield and West
Terrace cemeteries
Exempt
Electricity Supply
Supply of electricity
including
connection,
disconnection and
meter readings
charged by Council
as Power Distribution
Authority under the
Roxby Downs
Indenture Ratification
Act
Rental
S81-5
EGCA
Det 6.65
WTCA
Taxable
S81-5
EA
Rental in relation to
private residences of
Council employees
Input Taxed
S40-35
Res Ten Act
Sale Proceeds of
residential
allotments
Sale of residential
allotments
Taxable
S188 LGA
Sale proceeds of
plant and
equipment
Sale of plant &
equipment
Taxable
S188 LGA
Sale Proceeds of
plants and mulch
Sale of plants &
mulch
Taxable
S188 LGA
Cemetery
refer Chapter
2
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Local Government (SA Fees and Charges
Table of Fees and Charges
PRIVATE WORKS
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
GST
REFERENCE
LEGISLATIVE
AUTHORITY
Footpaths,
Stormwater
Pipes, Culverts,
Inverts &
Crossovers
Works on footpaths,
stormwater pipes &
culverts & driveway
inverts, kerbing &
crossovers
Taxable
S213 LGA
Graffiti Removal
Graffiti removal
Taxable
S188 LGA
Nature Strips
Lawn and nature strips
on footpaths
Taxable
S188, S221
LGA
Other
Supply of labour, plant
& materials
Taxable
S188 LGA
Re-instatement
Reinstatement of
roads, foot paths,
paved areas & kerbing
after work carried out
by residents
Taxable
S188, S213
LGA
Street Tree
Removal
Removal of street
trees for driveway
construction
Taxable
S188 LGA
Truck Wash
Facilities
Use of truck wash
facilities & wash down
bays
Taxable
S188 LGA
FURTHER
INFORMATION
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Local Government (SA Fees and Charges
Table of Fees and Charges
WASTE MANAGEMENT
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
Dumps
All dump fees
CEDS service &
connection fees
CEDS service &
connection fees for
effluent
Applications for
septic tank
installations
GST
TREATMENT
GST
REFERENCE
Taxable
LEGISLATIVE
AUTHORITY
FURTHER
INFORMATION
S188 LGA
Exempt
Det 13.1
LGA
Applications for septic
tank installations &
upgrades (including
referrals to SA Health
Commission) &
inspection of septic
tanks
Exempt
S81-5
PEHA
Rubbish
Collection
Collection of green
waste, rubbish &
recyclables
Exempt
S81-5
(potentially)
Det 13.1
Sales
Sale of car wash mats
Taxable
S188 LGA
Sale of compost
bins & worm
farms
Sale of compost bins &
worm farms
Taxable
S188 LGA
Sale of rubbish &
recycling bins &
receptacles
Sale of rubbish &
recycling bins &
receptacles
Taxable
S188 LGA
Sales
Sale of paper &
recyclables
Taxable
S188 LGA
Sharps
Containers
Sale of needle/sharps
containers
Taxable
S188 LGA
refer Chapter
10
Storm Water
Drainage
Provision of
downstream storm
water drainage to a
developer in lieu of
Developer providing
infill drainage as part
of development
GST Free
S188 LGA
refer Chapter
4
Det 13.19
(potentially –
see Chapter 4)
S38-300
S188 LGA
Only exempt
if charged as
a rate under
Chapter 10
LGA,
otherwise it is
Taxable
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Local Government (SA Fees and Charges
Table of Fees and Charges
WATER SUPPLY
FEE OR
CHARGE
DESCRIPTION AND
COMMENTS
GST
TREATMENT
DIV 81 REF
Service Fees for
Water Supply
All service fees
charged to Developer
Exempt
S81-5
(potentially)
Det 13.1
Supply of Water
Supply of water
GST Free
LEGISLATIVE
AUTHORITY
FURTHER
INFORMATION
S188 LGA
Exempt if
charged as a
rate under
Chapter 10
LGA, otherwise
it is Taxable
S38-285
S188 LGA
refer Chapter 4
RDIRA
Exempt if
charged as a
rate under
Chapter 10
LGA, otherwise
it is Taxable
RDIRA
refer Chapter 4
(potentially –
see Chapter 4)
Service Fees
(Roxby Downs)
All service fees for
connection etc
charged under the
Roxby Downs
Indenture Ratification
Act
Exempt
S81-5
(potentially)
Det 13.1
Supply of Water
(Roxby Downs)
Supply of water under
Roxby Downs
Indenture Ratification
Act
GST Free
S38-285
(potentially,
see Chapter 4)
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GST COMMENTARY
INTRODUCTION: THE BASICS ................................................................................................... 23
CHAPTER 1: SECTION 188 OF THE LOCAL GOVERNMENT ACT ........................................... 25
CHAPTER 2: LAND ..................................................................................................................... 28
2.1
2.2
2.3
2.4
2.5
Sale ....................................................................................................................... 28
Lease ..................................................................................................................... 29
Margin Scheme..................................................................................................... 30
Caravan Parks ...................................................................................................... 32
Retirement Villages .............................................................................................. 33
CHAPTER 3: DEVELOPER’S CONTRIBUTIONS ........................................................................ 34
CHAPTER 4: WATER AND SEWERAGE .................................................................................... 35
CHAPTER 5: SPONSORSHIP, GRANTS AND APPLICATIONS ................................................. 36
CHAPTER 6: FINANCIAL SUPPLIES .......................................................................................... 37
CHAPTER 7: EDUCATION .......................................................................................................... 38
CHAPTER 8: CHILDCARE .......................................................................................................... 39
CHAPTER 9: IMMUNIZATION AND SHARPS CONTAINERS ..................................................... 40
CHAPTER 10: SECURITY BONDS .............................................................................................. 41
GLOSSARY OF LEGISLATION ................................................................................................... 42
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INTRODUCTION – THE BASICS
The basics of GST are conceptually very simple. The key elements of the GST system are as
follows.
In the course of its business an enterprise purchases goods/services and also sells its own
goods/services to others. GST applies to all of those transactions.
A business must remit GST to the Australian Tax Office (“ATO”) out of all the moneys it receives
for the taxable goods/services it sells.
In turn, the cost of the goods and services which the business purchases will include a component
of GST. The business will receive a credit (known as “an input tax credit”) for the GST component
of the goods/services it buys.
In other words, a business collects GST on its sales and pays GST on its purchases. The two
amounts are offset against each other and the balance remitted to the ATO. In this way, the GST
taxes the value added by a business.
Section 9-40 of A New Tax System (Goods and Services Tax) Act, 1999 (“the Act”) sets out that
GST will apply to a transaction if there is a “taxable supply”. Section 9-5 explains that there will be
a “taxable supply” when five factors are present. Those 5 factors are:
1.
A supply is made
Section 9-10 of the Act defines “supply” to include a supply of goods, a supply of services, a
supply of rights, a supply of advice or information, a supply of any interest in real property, or
an entry into any obligation (whether that obligation is to do something, to refrain from doing
something or to allow something to be done). The definition goes on to include the supply of
“any other thing”. Basically, any enforceable obligation can be a “supply”.
2.
The supply must be for consideration
The most obvious example of “consideration” is a fee or price. However, consideration can
include non-cash consideration such as in a barter arrangement or land swap, and
consideration may be voluntary. The consideration does not need to be made by the person
receiving the supply. (See Section 9 -15 of the Act).
3.
The supply must be made “in the course of an enterprise”
“Enterprise” is defined in Section 9-20 of the Act. An enterprise is an activity or series of
activities done:

in the form of a business;

in the form of an adventure or concern in the nature of trade;

on a regular or continuous basis in the form of a lease, licence or other grant of an
interest in property;

by a gift deductible fund;

by a charitable institution or by a trustee of charitable fund;

by a religious organization; or
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Local Government (SA Fees and Charges
GST Commentary

by a government or government body.
Exclusions are:

hobbies or recreational activities;

activities conducted by individuals and partnerships of individuals without a
reasonable expectation of profit or gain;

activities as an employee or other PAYE earner; and

activities as a member of a local governing body.
That is, a local government council is assumed to have an “enterprise” and everything it does
is taken to be in the course of that enterprise.
4.
The supply must be connected with Australia
Broadly speaking, a transaction which takes place wholly within Australia will be connected
with Australia, as will any transaction related to property (goods or land) which is located in
Australia. The rules are set out in greater detail in Section 9-25 of the Act.
5.
The entity making the supply is registered or required to be
In general, entities must be registered if they have an annual turn over of $50,000.00 per
annum or more ($100,000.00 for non-profit bodies).
If all of these 5 factors exist the supply is taxable and GST applies to
the transaction unless a special exemption applies.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 1 – SECTION 188 OF THE LOCAL GOVERNMENT ACT, 1999
Chapter 11 of the Local Government Act 1999 (“LG Act”) a council is permitted by sections 202,
221 and 222 to:
 grant a licence for alienation of local government land (s202);
 issue authorisations for the alteration of a public road (s221); and
 issue authorisations for permits for business purposes of public road (s222).
Under Chapter 10 of the LG Act a council is permitted to impose fees and charges. Section 188(1)
reads as follows:
“(1)
A council may impose fees and charges –
(a)
for the use of any property or facility owned, controlled, managed or
maintained by the council;
(b)
for services applied to a person at his or her request;
(c)
for carrying out work at a person’s request;
(d)
for providing information or materials or copies of or extracts from council
records;
(e)
in respect of any application to the council;
(f)
in respect of any authorisation, licence or permit granted by the council;
(g)
in respect of any matter for which another Act provides that a fee fixed
under this Act is to be payable;
(h)
in relation to any other prescribed matter.
(2)
Fees or charges under subsection (1)(a), (b) or (c) need not be fixed by reference to
the cost to the council.
(3)
A council may provide for(a)
specific fees and charges;
(b)
maximum fees and charges and minimum fees and charges;
(c)
annual fees and charges;
(d)
the imposition of fees or charges according to specified conditions or
circumstances;
(e)
the variation of fees or charges according to specified factors;
(f)
the reduction, waiver or refund, in whole or in part, of fees or charges.
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Local Government (SA Fees and Charges
GST Commentary
(4)
If(a) a fee or charge is fixed or prescribed by or under this or another Act in respect of a
particular matter; or
(b) this or another Act provides that no fee or charge is payable in respect of a
particular matter,
a council may not fix or impose a fee or charge in respect of that matter.
(5)
Fees and charges may be fixed, varied or revoked(a) by by-law; or
(b) by decision of the council.
(6)
The council must keep a list of fees and charges imposed under this section on public
display (during ordinary office hours) at the principal office of the council.
(7)
If a council(a) fixes a fee or charge under this section; or
(b) varies a fee or charge under this section,
the council must up-date the list referred to in subsection (6) and take reasonable steps to
bring the fee or charge, or the variation of the fee or charge, to the notice of persons who
may be affected.”
The GST Act provides that payments of taxes and charges which are charged by an Australian
government agency will be subject to GST unless they are specifically exempted by a
determination of the Treasurer pursuant to Division 81. The Determination exempts those fees and
charges imposed under Sub-section 188(1)(d), (e) or (f).
In short, the Determination only exempts fees and charges for providing:



information or materials or copies of or extracts from council records;
fees and charges in respect of any application to the council; and
fees and charges in respect of any authorisation, licence or permit granted by the council.
Thus, merely raising a fee or charge under section 188 of the LG Act does not satisfy all the criteria
of a fee or charge which is exempt under the Determination. The fee or charge must be raised
under subsection 188(1)(d), 188(1)(e), and 188(1)(f) of the LG Act . Thus, the council must
determine under which subsection of 188(1) the fee is raised so that they may determine if GST
applies to the fee or charge.
Example 1: Fee for a permit for a mobile ice cream vendor to operate in the residential streets of
the council area
A small business applies to council for a permit to operate a mobile ice cream vending van in the
local residential streets. Council issues a 6 month permit and imposes a fee under section 188(1).
The permit allows the operator to sell ice cream from a mobile van along the residential street of
the local district.
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Local Government (SA Fees and Charges
GST Commentary
Under section 188(1)(a) of the LG Act, the council may impose a fee for the use of any property or
facility owned, controlled, managed or maintained by the council. As the council maintains all
residential streets in the local area, it is reasonable to consider the fee has been raised under
section 188(1)(a).
A fee raised under section 188(1)(a) is not listed in the Determination, therefore the fee is subject
to GST.
Example 2: Fee for a licence to moor a private vessel on a private pier
A local resident applies for a 6 month licence to moor their private runabout to the private pier
located in front of their residence.
Council issues a 6 month licence and imposes a fee under section 188(1). The licence allows the
use of the pier subject to the adherence of safety regulations.
It is reasonable to determine that the granting of the licence is made under section 188(1)(f). This
is because the pier is not 'property or facility owned, controlled, managed or maintained by the
council'. A fee or charge raised under section 188(1)(f) is listed in the Determination therefore the
fee is exempt of GST.
Example 3: Improperly levied fee
If a fee, such as the fee discussed in Example 2, is not levied in accordance with the formal
requirements of section 188(1)(d), (e) or (f) it will NOT be GST exempt. For example, the fee must
be fixed by decision of council or by-law and must be publicly displayed. If these formal
requirements are not met, the fee has not been levied pursuant to section 188(1)(d), (e) or (f).
Rather, the fee has been raised without legislative authority, and is not exempted by the
Determination.
27
Local Government (SA Fees and Charges
GST Commentary
CHAPTER 2 – LAND
2.1
Sale of Land
A sale of land will generally be subject to GST. It is, simply, a supply for consideration and
GST applies unless there is a relevant exemption.
The most commonly used exemption in relation to the sale of land is for Residential
Premises.
Under the Act (Section 40-65), sales of residential premises are “input taxed” to the extent
that they are to be used predominantly for residential accommodation. There are two major
exceptions, being for sales of “new residential premises” and “commercial residential
premises”.
There are two parts to this exemption. First, the property must be “residential premises”.
Second, the sale is input taxed only to the extent that they are to be used predominantly for
“residential accommodation”.
The sale of residential premises will be ordinarily taxable if the premises amount to
“commercial residential premises” such as a hotel, caravan park or boarding house. An
exception may apply where the sale constitutes a supply of a going concern under Division
135 of the GST Act.
Residential premises will also be ordinarily taxable if they are “new residential premises”.
New residential premises are premises which have not previously been sold as residential
premises (whether created through substantial renovations or by complete construction or reconstruction). Residential premises are not considered “new residential premises” if for the
period of at least 5 years since the premises first became residential premises (either
through change in use, substantial renovation or being built) the premises have been used
only for making input tax supplies of residential rent.
It should be noted that vacant land cannot be “residential premises”. There is no specific
clause in the Act relating to vacant land. That is, there is no special provision to make the
sale of vacant land GST free or input taxed. If a sale of vacant land fulfils the criteria of a
“taxable supply” it will be ordinarily taxable.
More information is available from www.taxreform.ato.gov.au in the
Property and Construction Industry Partnership Issues Register,
and in GST Ruling 2000/20.
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GST Commentary
2.2
Lease of Land
In the same way that a sale of land is a supply of land to which GST applies, so is a lease of
land. That is, the rent and any outgoings will be subject to GST in the hands of the Lessor.
However, there are some exceptions to this general principal.
Transition Period
There are special provisions which apply to contracts which span 1 July 2000. If the lease
was entered into before 2 December 1998 or 8 July 1999 and there is “review opportunity”,
the lease may be GST free.
Long term leases
A supply of residential premises by way of long term lease is input taxed in the same way
that a sale of residential premises is input taxed. That is, the lease of the premises is input
taxed to the extent that the property is residential premises to be used predominantly for
residential accommodation, with the exception of commercial residential premises and new
residential premises.
A long term lease is a supply by way of lease, hire or licence for at least 50 years.
Residential Rent
Similarly, ordinary residential leases are also input taxed. Pursuant to Section 40-35 of the
Act, a supply of premises by way of lease, hire or licence is input taxed if it is a supply of
residential premises other than commercial residential premises. Special rules apply to
residential premises which are caravan parks. Those are set out at Chapter 2.4.
A supply of a berth at a marina that is by way of lease, hire or licence is input taxed as
residential rent if the berth is occupied by a ship used as a residence. The supply in either
case is input taxed only to the extent that the premises are to be used predominantly for
residential accommodation.
More information is available from www.taxreform.ato.gov.au in the Property and
Construction Industry Partnership Issues Register and in:
 Recipient Created Tax Invoice Determination 2000/37 in relation to recipient tax
invoices and renting;
 GST Determination 2000/10 in relation to outgoings payable by a commercial
tenant.
 GST Ruling 2000/35 in relation to Division 156, supplies and acquisitions made on
a progressive or periodic basis, and the erratum to that ruling;
 GST Ruling 2000/20 in relation to commercial residential premises;
 GST Ruling 2000/16 in relation to agreements spanning 1 July 2000; and
 The Property and Construction Industry Partnership Fact Sheet (NAT 5235) on how
to apply GST to suppliers of commercial accommodation.
See also the comments made in relation to Section 188 of the Local Government Act
1999 in Chapter 1 of this GST Commentary Notes in relation to charges levied by
Councils for the use of local government land.
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Local Government (SA Fees and Charges
GST Commentary
2.3
Margin Scheme
Under general GST principles, if you are registered or required to be registered and you
make a taxable supply of your property then you must pay GST on that supply. If you make
a taxable supply of real property, the GST payable is 1/11th of the price.
However, under Section 75-5 of the Act, if you make a taxable supply of real property by
selling a freehold interest in land, selling a strata unit or granting or selling a long term lease
(50 years or more) you can choose to use the “margin scheme” method of calculation
instead. The margin scheme is a special method of calculating GST in relation to the sale of
land (or lease for more than 50 years). It does not apply to any other interests in land (such
as other leases, easements or encumbrances).
The margin scheme may only be used if the relevant land was acquired before 1 July 2000,
or acquired after 1 July 2000 by a purchase under which GST was not calculated in the
ordinary manner. That is to say, to use the margin scheme you must have originally
purchased the land GST free, input taxed or under the margin scheme.
Under the margin scheme, GST is 1/11th of the “margin” for the supply. The intention of the
margin scheme is to ensure that GST is only payable on the increase in the value of the land.
The GST payable under the margin scheme can be a lot lower than under the ordinary
method of calculating GST. The margin scheme can apply to all types of property including
residential, commercial, retail and industrial.
How is the margin calculated?
If the land was held before 1 July 2000, the “margin” is the difference between the sale price
and the valuation of the land at a date required by GST Ruling 2000/21.
GST = Value - Sale Price
11
The valuation must comply with all requirements determined in writing by the Tax
Commissioner.
For land acquired after 1 July 2000, and certain conditions are satisfied, the margin is the
difference between the sale price and the price for which the land was originally acquired.
GST = Acquisition Price - Sale Price
11
In both cases if the sale price is lower than the value of the cost of acquisition (leaving a
negative margin) there is no GST. However, there is no provision for a negative amount of
GST.
How do you determine the value of land?
The value of land (for completed premises or land subdivision or projects) can be determined
in a number of ways. You can use the market value as certified by a professional valuer in
accordance with the Tax Commissioner’s requirements, or you can use the price in an “arms
length” sale contract if it was executed before 1 July 2000. Alternatively, you can use the
Surveyor-General’s site value or capital value.
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GST Commentary
Different rules about valuations apply to premises which were not completed on the valuation
date. If you use a valuer, they should provide a signed certificate which specifies a full
description of the property being valued, the valuation date, the date the valuer provides the
valuation, the market value of the property including the valuation approach and the valuation
calculation and the qualification to the valuer.
Why use the margin scheme?
Under the Act whether or not to use the margin scheme is the choice of the vendor.
However, the benefit (if any) is to the purchaser. The only benefit to the vendor in using the
margin scheme is indirect in that the purchase price to the purchaser is reduced. Assuming
that the vendor can and will pass on the GST under the terms of the contract, it makes no
difference to the vendor as to how much that GST will actually be. As a matter of practicality,
it is likely that a decision will be made by the purchaser. Some standard contracts effectively
reverse the position under the Act, by requiring the vendor to use the margin scheme if the
purchaser directs it to do so.
Also, because stamp duty is calculated on the GST inclusive purchase price, there will
generally be some stamp duty savings in using the margin scheme. On the other hand, the
purchaser (regardless of whether they are registered) will not be entitled to an input tax credit
for the GST under the margin scheme, meaning that the margin scheme is only attractive to
those who are not entitled to an input tax credit in any event. For this reason, if the margin
scheme is used a tax invoice should be not issued.
The margin scheme can also be attracted to developers who wish to on-sell using the margin
scheme, as they will only be able to do so if the original purchase of the land is under the
margin scheme.
More information is available from www.taxreform.ato.gov.au in
the Property and Construction Industry Partnership Issues
Register, and in GST Ruling 2000/21.
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2.4
Caravan Parks
As discussed under Chapter 2.2 in relation to residential leases, the lease, hire or licence of
commercial premises (which will include a caravan) is subject to GST. Their position is
somewhat more complicated in relation to caravan parks.
Under the Act, supplies of commercial accommodation are subject to GST, notwithstanding
that commercial accommodation is residential premises. For example, renting a house in the
suburbs for six months does not attract GST whereas renting a room at the hotel for a
weekend will attract GST.
Certain concessions have been made for supplies of “long term accommodation”, such as is
often the case in caravan parks. The supplier may choose not to apply the concessions and
input tax all supplies of long term accommodation instead.
Commercial accommodation is accommodation in commercial residential premises.
Commercial residential premises include hotels, motels, boarding houses, caravan parks and
camping grounds. You provide short term accommodation to an individual when they stay
for less than 28 continuous days in your premises. GST in relation to short term
accommodation applies at the ordinary rate.
You provide long term accommodation to an individual when they stay for 28 continuous
days or more in your premises. In that case, the supply is input taxed.
You provide predominantly long term accommodation if at least 70% of the individuals to
whom you provide commercial accommodation stay for 28 or more continuous days. You
may then choose either to treat your long term accommodation as input taxed and your short
term accommodation as ordinarily taxable and keep you accounting separate in that regard.
Alternatively you may apply certain special concessional treatments to the predominantly
long term accommodation. You may calculate the GST amount on half the price of the long
term accommodation from the beginning of the occupant’s stay.
If you provide long term accommodation to less than 70% of your guests, you do not provide
predominantly long term accommodation. However there is still a concession for the long
term accommodation that you do provide. The first 27 days are taxable in the same way as
short term accommodation (the ordinary 1/11th of the price). From the 28th day onwards you
calculate GST on half of the GST inclusive price of the accommodation.
More information is available from www.taxreform.ato.gov.au
and in:
 GST Ruling 2000/20 in relation to commercial residential
premises;
 GST Bulletin 2001/2 in relation to caravan parks; and
 Media Release NAT 01/70 in relation to the applied method for
caravan parks.
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2.5
Retirement Villages
Accommodation in a retirement village is only GST Free if the Council is an approved
provider of residential care services under Aged Care Act 1997 (S38-25).
Alternatively, the rent will be treated as input taxed if it is regarded as rent for non
commercial accommodation. If the rent is taken to be for commercial accommodation, it will
be taxable, subject to the special concessions for long term commercial accommodation.
More information is available from www.taxreform.ato.gov.au in
the Retirement Villages Industry Partnership Issues Register,
and in this GST Commentary under Chapters 2.2 and 2.4.
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CHAPTER 3 – DEVELOPER’S CONTRIBUTIONS
Contributions by Developers, both in cost and in kind, have been the subject of much debate as
regards GST. It is common practice for Developers to make such contributions, for example
towards infrastructure and open space, when creating land divisions.
In most states of Australia these Developer’s contributions are made pursuant to a specific
provision in the relevant equivalent of the Development Act. No such provision exists in the South
Australian Development Act, nor in the Local Government Act 1999. These contributions are
instead made by mutual agreement. As such, strictly speaking, Developer’s contributions in South
Australia are not eligible for inclusion on the Treasurer’s Division 81 Determination. Indeed, the
first few versions of that Determination did not seek to exempt South Australian Developer’s
contributions.
However, to achieve parity of treatment in like charges in each state, these contributions have now
been included in the Determination (Paragraph 13.17). Notwithstanding that, strictly, these
amounts may not be eligible for exemption under Division 81, it is clear that both the
Commonwealth Treasury and the ATO intend to treat these amounts as exempt, and Councils may
safely rely on that position. However, out of an abundance of caution Councils should ensure that
such contributions are not made pursuant to contracts which might make the contributions appear
more in the nature of, for example, a construction contract.
These provisions may not apply to the Local Government Act, which does not fall within the
definition of “Australian Government Agency”. They have been drafted with the specific intention of
clarifying ambiguities that have arisen at a State and Commonwealth level.
It should also be noted that at the date of issuance of these Guidelines, the Taxation Laws
Amendment Bill (No. 3) 2002 is before the Commonwealth Parliament. This Bill proposes, among
other things, to clarify the GST treatment of certain transactions involving a government body
during land development.
The amendments deal with situations where, as part of development approval, a developer
provides infrastructure or other works to a landowner. Such situations may arise where, for
example, a developer provides roads and sewage for an estate and these are transferred to public
ownership. As the GST rules stand, it is likely that for GST purposes that the supply of the right to
develop the land and the subsequent return of infrastructure would both be considered to be a
taxable supply and so subject to GST.
These provisions may not apply to the Local Government Act, which does not fall within the
definition of “Australian Government Agency”. They have been drafted with the specific intention of
clarifying ambiguities that have arisen at a State and Commonwealth level.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 4 – WATER AND SEWERAGE
Section 38-285 of the Act provides that a supply of water is GST free (provided it is not supplied in
a container or transferred into a container of less than 100 litres or such other quantity as specified
by the GST Regulations).
Section 28-290 of the Act provides that a supply of sewerage services is GST free. Sub-Section
38-290(3) goes on to provide that a supply that consists of servicing a domestic self contained
sewerage system is also GST free.
Section 38-295 provides that a supply of a service that consists of the emptying of a septic tank is
GST free.
Section 38-300 provides that a supply of a service that consists of draining stormwater is GST free.
More information is available from www.taxreform.ato.gov.au in
the Property and Construction Industry Partnership Issues
Register, and in GST Ruling 2000/25.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 5 – SPONSORSHIP, GRANTS AND APPROPRIATIONS
Many organizations receive funding or grants of financial assistance to carry out their activities.
The parties may think of this funding as a donation, sponsorship or gift. Under the ordinary rules of
GST set out in the Introduction to this commentary, if party is registered (or required to be
registered) for GST and it supplies something in exchange for a payment, it may have to remit GST
from that payment. As discussed in the Introduction, GST is payable if you make a taxable supply.
A supply will include any obligation to do something. Thus, the recipient of sponsorship (or a gift,
grant, donation etc) agrees to do something in exchange for the grant, GST will apply.
More information is available from www.taxreform.ato.gov.au in
the Charities Industry Partnership Issues Register and Fact
sheets, and in GST Ruling 2000/11 in relation to grants of financial
assistance.
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GST Commentary
CHAPTER 6 – FINANCIAL SUPPLIES
Section 40-5 of the Act provides that financial supplies are input taxed. Financial supplies include
the provision of bank accounts, loans, security transactions, superannuation funds, guarantees and
similar supplies.
More information is available from www.taxreform.ato.gov.au
and in:
 GST Ruling 2001/2 in relation to foreign conversations;
 GST Ruling 2002/22 in relation to apportionment of input
taxed credits for providers of financial supplies; and
 Recipient Created Tax Invoice Determinations 2000/48 and 49.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 7 – EDUCATION
Pursuant to Section 38-85 of the Act a supply is GST free if it is a supply of an education course.
An education course is defined to mean a pre-school, primary, secondary or tertiary course, and
also includes special education courses, adult and community education courses, professional or
trade courses, and others.
Adult education and community education courses and special education courses are carefully
defined in the Act. They are intended to cover specific kinds of courses for adults to add to their
employment skills and for children or students with disabilities. Hobby and recreational courses
are not likely to be GST free.
Advice should be taken before applying this exemption.
The relevant ruling suggests that suppliers of courses should consider whether the course is
similar to an accredited vocational education and training (VET) program pursuant to the Education
Minister’s determination of educational institutions and courses under Sub-Section 3(1) and 5D(1)
of the Student Assistance Act 1973.
More information is available on www.taxreform.ato.gov.au
under the Education Industry Partnership and in:
 GST Determination 7 in relation to apprentices and trainees;
and
 GST Rulings 2000 27 and 30.
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GST Commentary
CHAPTER 8 – CHILDCARE
Section 38 – 140 of the Act provides that a supply is GST free if it is a supply of childcare by a
registered carer within the meaning of Section 3 of A New Tax System (Family Assistance)
(Administration) Act 1999.
Section 38 –145 provides that a supply is GST free if it is a supply of childcare by an approved
childcare service within the meaning of Section 3 of A New Tax System (Family Assistance)
(Administration) Act 1999 or it is a supply of an excursion which is directly related to a supply of
childcare in that regard.
Section 38 – 150 provides that a supply is GST free if it is a supply of childcare by a supplier that is
eligible for funding, whether or not in respect of that particular supply, from the Commonwealth
under guidelines made by the Childcare Minister that relate to the funding of family day care,
occasional care, outside school hours care, vacation care or any other type of care determined in
writing by that Minister.
Section 38 –155 provides that supplies which are incidental and directly related to all of the above
will also be GST free.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 9 – IMMUNISATION AND SHARPS CONTAINERS
Further specific queries in relation to the issues of immunisation services and sharps containers, a
Private Ruling was sought from the ATO and received on 7 February 2002.
The conclusion which the Ruling reaches is that

A sharps container is not covered by any of the items listed in the written determination of the
Health Minister as being GST free health goods under Section 38-47 of the Act, and is as a
result taxable; and

Where Councils contract directly with individual patients to provide vaccination services, and
the services are provided by registered nurses and the nursing profession generally accepts it
as necessary for the appropriate treating of the patient, then the supply will GST free. Also,
vaccine supplied to the patient as an integral part of the vaccination service will be GST free.
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Local Government (SA Fees and Charges
GST Commentary
CHAPTER 10 – SECURITY DEPOSITS
Division 99 of the Act contains the provisions which relate to GST and security deposits.
A security deposit is an amount paid by the recipient of a supply pursuant to an agreement
whereby the deposit may be forfeited by the recipient to the supplier if the recipient defaults under
the Agreement.
Section 99-5 of the Act provides that a deposit held as security for the performance of an obligation
is not treated as consideration for a supply unless the deposit is forfeited on default or is applied as
all or part of the consideration for a supplier.
As a result, you do not account for GST or input tax credits when a deposit to which the Division
applies is received or provided. The supplier accounts for the GST payable in the tax period in
which the deposit is forfeited, or all or part of the deposit is applied as consideration for the
supplier. The recipient accounts for input tax credits in the tax period in which the deposit is
forfeited or the supplier applies a deposit as all or part of the consideration for a supplier.
When an amount of money represents a part payment or an instalment, rather than a security
deposit, then it will not be a payment to which Division 99 of the Act applies. In that case, that first
instalment will trigger GST liability on the whole contract price.
More information is available on www.taxreform.ato.gov.au
under Property and Construction Industry Partnership issue
register and in GST Determination 2000/1.
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GLOSSARY OF LEGISLATION
All statutory references are to A New Tax System (Goods and Services Tax) Act 1999, unless
reference is specifically made to the following Acts, Regulations and Determinations.
ACA
Aged Care Act 1997
ANTS(FA)
A New Tax System (Family Assistance) (Administration) Act 1999
APCA
Animal & Plant Control (Agricultural Protection & Other Purposes) Act
1986
ARR
Road Traffic (Road Rules - Ancillary & Miscellaneous Provisions)
Regulations 1999
CITFA
Construction Industry Training Fund Act 1993
DA
Development Act 1993
DCMA
Dog & Cat Management Act 1995
Det
ANTS Division 81 Treasurer’s Determination 2002
EGCA
Enfield General Cemetery Act 1944
EA
Electricity Act 1996
HCCA
Home & Community Care Act 1985
LB(SC)A
Land & Business (Sale & Conveyancing) Act 1994
LGA
Local Government Act 1999
LG(FOI) Regs
Local Government (FOI Fees & Charges) Regulations 1991
PEHA
Public & Environmental Health Act 1987
PPAA
Private Parking Areas Act 1986
RDIRA
Roxby Downs (Indenture Ratification) Act 1982
Res Ten Act
Residential Tenancies Act 1995
RTA
Road Traffic Act 1961
RVA
Retirement Villages Act 1987
SAMFSA
South Australian Metropolitan Fire Service Act 1936
SRFA
Supported Residential Facilities Act 1992
WTCA
West Terrace Cemetery Act 1976
42