GST Issue Worksheets
FOR ANSWERS TO THE FOLLOWING QUESTIONS, CLICK
ON ONE OF THE HEADINGS BELOW:
ACCOMMODATION
This issue paper relates to the GST status of
La Trobe University residential halls. The paper examines the intent
of the legislation, the impact of Division 87, the impact of the draft
ruling on commercial residential premises (noting that student residential
halls also supply accommodation to staff and students of other universities).
The discussion also considers the impact of La Trobe University gaining
endorsement as a charitable institution and the application of section
38-250 (relating to the non commercial activities of charities) of the
GST Act.
ACQUISITION OF EQUIPMENT
- What is the GST treatment of equipment purchased
for administration activites?
ADJUSTMENTS
- How are discounts treated?
- Is there a rebate available in respect of bad
debts?
- What are the GST implications of credit notes
provided for refunds?
- How are settlement discounts treated?
ADJUSTMENT
NOTES
- The requirement to issue GST adjustment notes?
ADULT &
COMMUNITY EDUCATION
-What impact does the GST ruling regarding Adult
and Community Education courses have on courses provided by La Trobe University?
ADVERTISING
- Is advertising in the educational newsletter
GST free or taxable?
- Does the liability vary in relation to what
is advertised?
BOOKS
- Is the GST paid on books purchased for
the professional library claimable for income tax purposes (The question
looks at an individual purchasing books and building up his/her own private
professional library.)
CABCHARGE SERVICES
- Will payments made to CabCharge include
a GST component? If they do, will CabCharge issue a tax
invoice to LTU?
CALCULATOR, GST
- Does Ernst & Young have access to a mini
GST calculator that could "coarsely" calculate net disposable
income before and after GST?
CAR PARKING FEES
- What is the GST treatment of car parking fees
charged to staff and students?
- What is the GST treatment of car parking fines
levied by the local council (for parking infringements incurred on La Trobe
University grounds?)
CASH PRIZES
- GST treatment of cash prizes to students
CASH
REGISTER RECEIPTS
- Will it be possible to modify a cash register
receipt in order to satisfy the tax invoice requirements?
- Are register receipts required to identify
the GST component as a separate line item?
- What are the GST implications on register receipts
at the bookshop and canteen?
- Is it preferable to have only one style of
tax invoice book for transaction/sales, irrespective of the value of the
transaction?
CATERING
- What is the GST impact of LTU catering
for conferences and meetings?
- What is the GST impact of LTU engaging
external parties to cater for conferences and meetings?
CHILD
CARE
- Is the provision of child care services
taxable?
COMPETITIONS
- What are the GST implications for prizes
such as books, gift vouchers, customer loyalty schemes etc?
- Does it constitute a supply of goods
for consideration?
- What is consideration in this case?
CONSIGNMENT
(GOODS ON)
- What are the GST implications for goods
held on consignment?
- What are the GST implications for goods
imported directly but not to bonded warehouses?
- What are the implications concerning
customs clearance?
CONTRACTS
Can contract prices be adjusted for GST post
1 July 2000 where the original contract fails to address the GST component?
CO-OPERATIVE
ADVERTISING
- What is the point of origin for the supply
of co-operative advertising?
- When is a supply of co-operative advertising
recognised?
CORPORATE CARDS
- Where intra-GST group transactions are
settled using a corporate card, will this have any impact on the
GST treatment of the transaction?
COUNSELLING
SERVICES
- Will counselling services provided by the campus
nurse be GST free?
COURSE
NOTES
- What are the GST implications for course notes?
- Will they qualify for the textbook rebate?
COURSE
MATERIALS
- How will charges for art materials be affected?
- What are the GST implications on practical
tools and materials?
- Will textbooks sold through the University
bookstore be GST free?
DEPOSITS
- Does a deposit trigger a GST liability?
DEPOSITS
(NON-REFUNDABLE)
- What is the GST treatment of a non-refundable
deposit?
DONATIONS
- What, if any, are the GST implications
for donations banked to an interest bearing trust account before
being transferred into a scholarship fund?
EDUCATION COURSES
- What are the different types of education courses?
- Which education courses are GST free and which
will be taxable?
- Does GST apply to continuing education?
- How are fees for miscellaneous subjects &
fees for continuing education subjects affected by the GST?
- What are the GST implications on bridging courses?
- What is the GST treatment of Life Saving &
First Aid courses?
- What is the treatment of single subject students
enrolling for external University?
EDUCATIONAL TEXTBOOK SUBSIDY SCHEME
- How does the Educational Textbook Subsidy
Scheme work?
ENTERTAINMENT
- What is the GST treatment of entertainment?
- How does this interact with FBT on entertainment?
- How does this interact with the blocking of
input tax credits arising from the provision of Division 8 of the ITAA?
EXTERNAL COURSE PROVIDERS
- What is the GST treatment of an educational
service provided by an external entity that is not primarily an education provider?
EXTERNAL EXAMS PROVIDED TO OTHER UNIVERSITIES
- The GST treatment of examinations
for students of other universities as part of their assessment program.
FIELD TRIPS
- Is the purchase of travel, food and accommodation
taxable?
- What are the GST implications of field trips?
FREIGHT
CHARGES
- Can GST be charged to freight for items returned
to supplier?
- Will GST be payable on postage charges to customers?
- When is freight recognized as a supply of service
for GST purposes?
GIFT VOUCHERS
- What are the implications for gift vouchers
issued pre 1/7/2000 but redeemed post 1/7/2000?
- Do you need to have specific GST advice printed
on these as the period for redemption is 12 months?
- What is the treatment for vouchers that have
a life of over 12 months, in particular vouchers supplied after 8 July
1999?
GOODS PURCHASED OVERSEAS
- What is the GST impact on goods purchased overseas
for research and teaching purposes?
GRADUATION FEE
- La Trobe University students are charged a
graduation ceremony fee, currently $55, that comprises:
Administration charge $16
Catering $9
Gown Hire $30
Will this fee attract GST?
GRANTS
- Are government grants taxable?
- What will be the GST treatment of grants received?
Will this treatment depend on the type or nature of the grant received?
- Will grants (both government and non government)
be grossed-up to account for GST?
HIRE
PURCHASE & LEASES
- How does the GST affect hire-purchase agreements?
- How will the GST impact upon vehicle leases?
INPUT TAX
CREDITS
- How are input tax credits claimed and what
is needed in order to claim them?
- Are input tax credits available in respect
of equipment purchased primarily for the provision of Award courses, but
could also be utilized for other purposes?
- Will input tax credits be available on supplies
used for private or domestic use?
INDIVIDUALS
& TAX CREDITS
- Are individuals (i.e.. students) allowed to
claim input tax credits (e.g.. For GST incurred on the purchase of books)?
LECTURE NOTES
- What are the GST implications on lecture
notes & anthologies?
These guidelines will be updated in accordance with the new Tertiary Education Ruling shortly.
MEDICAL SUPPLIES
- Can acquisition of medical equipment
be GST-free?
- Can acquisition of drugs and medicines
for the campus nurse be purchased GST-free? What if these drugs and
medicines are sold to students?
- What is the GST treatment of other supplies
provided by nursing or other health professionals as part of the treatment
of the individual?
MEMBERSHIP
OF CLUBS
- Are membership fees of non incorporated clubs
taxable under the GST?
MOTOR VEHICLES
- Given that La Trobe University is currently
Sales Tax exempt, is the cost of vehicles likely to increase or decrease
as a result of GST?
NON
DEDUCTIBLE EXPENSES
- How are non deductible expenses for income
tax purposes treated under GST legislation, given that the University is
an income tax exempt entity?
PERIODIC
& PROGRESSIVE SUPPLIES
- How are periodic and progressive supplies treated
from a transitional perspective?
PETTY CASH
- What information should be recorded in the
petty cash book?
PRECIOUS METALS
- Where is the GST treatment of precious
metals?
PROMOTIONAL
MATERIAL
- What are the GST implications on printing of
promotional materials for an award course?
PRICING GUIDELINES
- In relation to the ACCC pricing guidelines,
is it sufficient to apply the usual percentage margin to the cost price
of a supply?
These guidelines are no longer current - Updated
guidelines have been issued by the ACCC and will be published
ASAP.
POINT OF SUPPLY
- At what point is supply deemed to take place
for GST purposes? (i.e.. At what point is GST chargeable on a supply?)
PROVISION
OF EDUCATIONAL COURSES
- Can the University provide courses and programs
to primary and secondary schools as part of their curriculum and claim
input tax credits on the supply?
PUBLISHER
CONTRIBUTIONS
- What are the GST issues relating to publisher
contributions to book launching functions?
RECIPIENT CREATED TAX INVOICES
- In what situation can recipient created tax
invoices be issued?
REIMBURSEMENTS
- What will be the GST impact upon staff
expenditure reimbursement?
- How are academic reimbursements affected
in respect to income tax and the GST?
- What is the PAYG treatment of allowances
paid to staff?
- What is the difference in the treatment
of allowances and reimbursements after the introduction of the GST?
- Reimbursement of costs incurred by students - Can the University claim
input tax credits on student reimbursements?
ROUNDING
RULES AND CASH SETTLEMENTS- Updated March 2004
- How will GST be applied to transactions of
small value?
SECONDMENTS TO REGIONAL HOSPITALS
- GST Treatment of salary payments made to regional
hospitals
SOFTWARE RENEWAL AND MAINTENANCE LICENCE
-What is the GST treatment for the supply of
a Software Renewal and Maintenance Licence to La Trobe
University (La Trobe) where the software supply
company is located in the United Kingdom?
SPECIAL
ORDER DEPOSITS
- Where LTU Bookshop may accept special order
deposits from its customers.
STUDENT FEES
- How will the sale of academic records be affected
by the GST?
- How will the issue of replacement identification
cards for students be affected by the GST?
- How will the GST impact the issuance of testamurs
and replacement testamurs?
- Are enrolment application fees taxable?
- What is the GST impact upon the certification
of letter charges? (e.g.. letter stating student is enrolled)
- Are fees charged for borrowing tapes (e.g.
language) and photocopying GST-free?
- What is the GST treatment of application fees
and late enrolment fees?
- Are revival fees (fines) charged to lapsed
students by student services GST free?
- How will housing application fees be impacted
by the GST?
- What is the GST treatment of library fines
and library penalties?
- Is GST applicable on computer printed pages?
STUDENT LOAN APPLICATION
FEES
- What is the GST treatment of application
fees for student loans where the loans are not a financial
supply?
SUPPLIES (VARIOUS)
- What supplies will not fall within the definition
of an "education course" and therefore be taxabe supplies - counselling
services, fundraising activities, sports and recreational activities?
- Are activities peripheral to but in support
of core teaching activities (eg promotional activities, liaison with Schools
and external clients) GST exempt?
- What is the GST implication on non-education
student services (eg key deposits, printing and photocopying, course materials,
Higher Education Funding)?
- What are the GST implications on subscriptions,
memberships, professional development activities and maintenance (LTU is
supplier)?
SUPPLIES BY ADMINISTRATIVE
STAFF
- Treatment of various acquisitions in order
for La Trobe University to fulfil its obligation as a teaching and research
University.
TAX INVOICES
- What are the required format and information
requirements for tax invoices from 1 July 2000?
- What are the information requirements for tax
invoices issued pre 1 July 2000 for a supply made after that date?
- If an invoice is issued by a supplier which
is not a tax invoice, should payment be made at that time or withheld
until a tax invoice is received?
TAX INVOICES - Suitability
- What is the minimum size for the words
Tax Invoice? Is a watermark suitable?
THEATRE TICKETS
- What is the GST treatment on the sale of theatre
tickets?
- Does the GST treatment change when the tickets
are sold to students who are enrolled in a course provided by the Department
of Theatre & Drama?
- What is the mechanism for accounting for GST
on the sale of the theatre tickets?
TRANSITIONAL
PROVISIONS
- Does La Trobe University legally have to pay
the GST component of supplies purchased now, which extend beyond 1 July
2000 and are therefore taxable under the transitional period?
TRUST
DISTRIBUTIONS AND DIVDENDS
- What is the GST treatment of trust distributions
and dividends? How should these be accounted for in the Business
Activity Statement?
TUCKSHOPS
& CANTEENS
- What is the definition of a school tuckshop?
Does the GST-free concession apply to a University canteen?
VENDING
MACHINE & COMMISSIONS
- Are goods purchased from vending
machines taxable supplies?
VENDING MACHINES
- La Trobe University (LTU) owns and
operates vending machines. What are the implications
relating to this activity?
WEBSITE
TRANSACTIONS
- How does the GST affect royalty income under
contracts with LTU Malaysia?
- What about fees received for offshore teaching
and distance education materials?
- What are the GST regulations regarding Website
transactions for places within Australia and outside Australia?
- How will GST inclusive prices be shown on the
web?
WHOLESALE SALES TAX
- What are the requirements for claiming
a special credit for Wholesale Sales Tax incurred on trading stock at 1
July 2000?
- Is the special credit available for stationery
held at 1 July 2000, that has incurred Wholesale Sales Tax?
WHOLESALE SALES TAX - Special
credits for Alcoholic Beverages
- Can LTU claim a special credit for WST
borne on alcoholic beverages in stock?
WITHHOLDING TAX (PAYG
WITHHOLDING REQUIREMENTS)
- How are employment relationships impacted by
the GST?
- What are the GST implications for teaching
services supplied by a self-employed contractor engaged through a consultancy
firm?
- What are the GST implications for teaching
services supplied by a self-employed contractor engaged directly by La
Trobe University ?
- How will the PAYG Withholding System work when
a supplier does not quote an ABN? How will the University deal with non
registered contractors (e.g. SARA coaches, sessional lecturers, homestay
providers)?
- What is the PAYG treatment of payments to thesis
markers located overseas?