Notional GST dispute resolution for government entities

Overview

The notional GST dispute resolution process is a process for resolving disputes between a government entity and the ATO in respect of a notional GST issue.

This process does not apply to other disputes, even if the dispute is with a government entity.

What notional GST is

Notional GST refers to certain GST amounts which government entities are not legally required to pay, but which the Commonwealth, the states and the territories have agreed their government entities will pay. The table below outlines whether the amount is legal GST or notional GST.

Table: Legal and notional GST

Jurisdiction	Legal GST	Notional GST
Commonwealth	None	All GST All GST credits
States (including local government in each state)	GST (other than GST on property) All GST credits	GST on property
Australian Capital Territory	GST (other than GST on real property supplied on behalf of the Commonwealth) All GST credits (other than GST credits on acquisitions made on behalf of the Commonwealth)	GST on real property supplied on behalf of the Commonwealth GST credits on acquisitions made on behalf of the Commonwealth
Northern Territory (including local government in the Northern Territory)	All GST All GST credits	None

How to dispute an ATO position

Notional GST disputes can arise

• during an ATO engagement or assurance activity
• as a result of ATO advice or guidance.

If you don't agree with:

• an ATO position during your engagement or assurance activity, you can explore alternate dispute resolution (ADR) options if both parties agree
• the outcome of an ATO engagement or assurance activity, you can seek an ATO internal review – you can also explore ADR options as part of this review if both parties agree
• the outcome of ATO advice and guidance, you can seek an ATO internal review – you can explore ADR options as part of this review if both parties agree.

To seek an ATO internal review, you can use the process and forms for objections. Due to the nature of notional GST, the usual review options of objection and appeal may not be the most appropriate path for resolution of the issue in dispute. After you lodge your objection, you will be contacted to discuss the internal review options. One of these options may be the notional GST dispute resolution process described on the ATO legal database.

How to lodge a notional GST dispute resolution request as a government entity.