Lucky member draws
Monetary payments given as prizes in lucky member draws are treated in the same way as other monetary prizes, and are included when calculating the margin on gambling supplies.
If goods or services are provided as a prize you cannot include the value of the goods or services when calculating the margin. However, you can claim a GST credit for the GST charged by the supplier provided you hold a valid tax invoice.
Loyalty awards
Monetary payments given as loyalty awards are treated in the same way as other monetary prizes, and are included when calculating the margin on gambling supplies.
If goods or services are provided as loyalty awards you cannot include the value of the goods or services when calculating the margin. However, you can claim a GST credit for the GST charged by the supplier provided you hold a valid tax invoice.
No GST is payable if loyalty rewards, such as points, are exchanged or redeemed for food or beverage items.
Gift vouchers issued as prizes
The GST implications of awarding a gift voucher as a prize depend on the type of voucher.
You can claim a GST credit when GST is payable on the purchase of the voucher provided you hold a valid tax invoice.
You cannot claim a GST credit for a gift voucher with a stated monetary value if no GST was payable on the purchase of the voucher.
The voucher is not a monetary prize and is not included in calculating the margin on gambling supplies.
See also
- GSTR 2003/5 Goods and Services Tax: Vouchers.
Free meals and beverages
When ‘free’ meals and beverages are provided, such as ‘buy one meal, get another meal of equal or lesser value free’, the GST payable is calculated on the actual money paid for the meals or beverages.
If an external caterer operates at your premises the GST rules will vary depending on your arrangement with them. In most cases, if the external caterer provides you with a tax invoice you will be able to claim any GST charged as a GST credit.
The following examples apply where you operate your own catering facilities.
Example 1: Free tea and coffee
Free tea, coffee and biscuits are provided to patrons. No GST is payable on the provision of these complimentary goods.
End of example
Example 2: Meal special
Two roast dinners are sold for the price of one and the normal price is $16.50 per dinner. The patron pays $16.50 and receives two dinners. GST payable on the sale of the two dinners is $1.50 (that is, $16.50 × (1 ÷ 11)).
End of example
Example 3: Membership discount
A patron purchases a single roast dinner and presents a membership card which entitles them to a 10% discount. After applying the discount the patron is charged $14.85. GST payable on the sale of the dinner is $1.35 (that is, $14.85 × (1 ÷ 11)).
End of example