Goods and Services Tax Industry Issues
Charities Consultative Committee
Addendum - Non-commercial activities of charities, cost of supply and market value tests
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This Addendum amends the Non-commercial activities of charities, cost of supply and market value tests Industry issue to update relevant market values and examples.
The Non-commercial activities of charities, cost of supply and market value tests Industry issue is amended as follows:
- (a)
- Omit '2010'; substitute '2011'
- (b)
- Omit '2011'; substitute '2012'
Omit the dot points; number instead as 1., 2., 3.
Omit the paragraphs, substitute
165. Parramatta Community Care provides emergency housing in their Parramatta Hostel. In addition to the accommodation they provide breakfast and dinner. Their clients make a contribution of $100.00 per day. Using the benchmarks the market value for this supply is as follows:
| Sydney accommodation rate (table 1) | $183.00 |
| Breakfast and dinner ($23.10 + $44.50) (table 1) | $67.60 |
| Total benchmark market value/day | $250.60 |
The accommodation component is 73.02% of the total benchmark market value.
The meals component is 26.98% of the total benchmark market value.
The fee charged by Parramatta Community Care is apportioned as follows:
- a.
- The accommodation component is 73.02% of $100 ($73.02).
The meals component is 26.98% of $100 ($26.98).
166. Therefore, both the food and accommodation provided by Parramatta Community Care would be GST-free. This is because the consideration for the supply of the accommodation component ($73.02) is less than 75% of the benchmark market value for the accommodation ($183.00) and the consideration for the supply of the meals component ($26.98) is less than 50% of the benchmark market value for meals ($67.60).
167. Similar supplies (food and accommodation) are made by Parramatta Community Care for the same contribution of $100.00 in their Hostel located in Dubbo, NSW (a 'Tier 2' country centre rate):
| Dubbo accommodation rate (table 1 - Tier 2 country centre) | $107.00 |
| Breakfast and dinner ($20.65 + $40.65) (table 1) | $61.30 |
| Total benchmark market value/day | $168.30 |
The accommodation component is 63.58% of the total benchmark market value.
The meals component is 36.42% of the total benchmark market value.
The fee charged by Parramatta Community Care is apportioned as follows:
- a.
- The accommodation component is 63.58% of $100 ($63.58).
- b.
- The meals component is 36.42% of $100 ($36.42).
168. In this case the accommodation provided by Parramatta Community Care would be GST-free. This is because the consideration for the supply of the accommodation component ($63.58) is less than 75% of the benchmark market value for accommodation ($107.00). The food provided by Parramatta Community Care would be a taxable supply. This is because the consideration for the supply of the meals component ($36.42) is greater than 50% of the benchmark market value for meals ($61.30).'
Omit the paragraphs, substitute:
169. The WA Community Housing Group provides a two bedroom flat in Cannington to a single parent and two children. The client makes a contribution of $140.00 per week. Using these guidelines the market value for this supply is:
- Market value $318.75/week
170. In this example the supply by WA Community Housing Group would be GST-free because the consideration for the supply is less than 75% of the market value.
171. The Queensland Community Housing Group provide a one bedroom apartment to a single pensioner on Centrelink payments plus a small other income. The client makes a contribution of $200.00 per week. Using these guidelines for the market value the market value for this supply is as follows:
- Market value $262.50/week
172. This supply would be input taxed because the consideration is 76.2% of the market value.
Omit the paragraph, substitute:
173. A charity in Katherine NT provides home cooked midday meals to aged persons at the Community Centre. The clients make a contribution of $8.50 per meal. Using these guidelines the market value for this supply is as follows:
| Other country centre meal rate (lunch) | $23.60 |
| Market value | $23.60 |
(a). Omit Table 1; substitute
| Place | Accommodation | Breakfast | Lunch | Dinner | Incidentals |
|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | |
| Adelaide | 157.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Brisbane | 201.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Canberra | 145.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Darwin | 172.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Hobart | 117.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Melbourne | 173.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Perth | 164.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| Sydney | 183.00 | 23.10 | 25.90 | 44.50 | 16.85 |
| High cost* country centres | See note below | 23.10 | 25.90 | 44.50 | 16.85 |
| Tier 2 ** country centres | 107.00 | 20.65 | 23.60 | 40.65 | 16.85 |
| Other country centres | 92.00 | 20.65 | 23.60 | 40.65 | 16.85 |
(b). Omit Table 2; substitute:
| Country centre | $ | Country centre | $ |
|---|---|---|---|
| Albany (WA) | 118.20 | Horsham (VIC) | 113.00 |
| Alice Springs (NT) | 113.00 | Jabiru (NT) | 198.00 |
| Ballarat (Vic) | 122.50 | Kalgoorlie (WA) | 138.50 |
| Bendigo (VIC) | 122.00 | Karratha (WA) | 285.00 |
| Bright (VIC) | 113.00 | Katherine (NT) | 120.50 |
| Broome (WA) | 214.00 | Kununurra (WA) | 182.00 |
| Bunbury (WA) | 122.50 | Launceston (TAS) | 115.50 |
| Burnie (TAS) | 125.00 | Mackay (QLD) | 132.50 |
| Cairns (QLD) | 123.00 | Maitland (NSW) | 111.50 |
| Carnarvon (WA) | 146.30 | Mount Isa (QLD) | 158.50 |
| Christmas Island (WA) | 150.00 | Newcastle (NSW) | 132.50 |
| Cocos (Keeling) Island | 110.00 | Newman (WA) | 195.00 |
| Dalby (QLD) | 110.00 | Norfolk Island | 132.50 |
| Dampier (WA) | 174.40 | Port Hedland (WA) | 270.00 |
| Derby (WA) | 181.50 | Port Lincoln (SA) | 112.00 |
| Devonport (TAS) | 128.50 | Port Macquarie (NSW) | 115.00 |
| Echuca (VIC) | 122.30 | Queanbeyan (NSW) | 113.50 |
| Emerald (QLD) | 119.50 | Tamworth (NSW) | 111.00 |
| Esperance (WA) | 118.00 | Thursday Island (QLD) | 180.00 |
| Exmouth (WA) | 190.00 | Townsville (QLD) | 124.00 |
| Geelong (VIC) | 121.00 | Wagga Wagga (NSW) | 117.50 |
| Geraldton (WA) | 133.50 | Warrnambool (VIC) | 114.20 |
| Gladstone (QLD) | 118.50 | Weipa (QLD) | 138.00 |
| Gold Coast (QLD) | 135.00 | Whyalla (SA) | 118.00 |
| Halls Creek (WA) | 147.50 | Wilpena-Pound (SA) | 142.00 |
| Hervey Bay (QLD) | 119.00 | Wonthaggi (VIC) | 122.00 |
(c). Omit Table 3; substitute
| Ararat (VIC) | Kingaroy (QLD) |
| Armidale (NSW) | Mildura (VIC) |
| Bairnsdale (VIC) | Mount Gambier (SA) |
| Bathurst (NSW) | Mudgee (NSW) |
| Bordertown (SA) | Muswellbrook (NSW) |
| Broken Hill (NSW) | Naracoorte (SA) |
| Bundaberg (QLD) | Orange (NSW) |
| Castlemaine (VIC) | Port Augusta (SA) |
| Ceduna (SA) | Portland (VIC) |
| Coffs Harbour (NSW) | Renmark (SA) |
| Cooma (NSW) | Rockhampton (QLD) |
| Dubbo (NSW) | Roma (QLD) |
| Gosford (NSW) | Seymour (VIC) |
| Goulburn (NSW) | Swan Hill (VIC) |
| Hamilton (VIC) | Toowoomba (QLD) |
| Innisfail (QLD) | Wollongong (NSW) |
| Kadina (SA) |
(d). Omit Table 4; substitute
| Meal | Amount for capital cities and high cost country centres * $ |
Amount for centres other than capital cities and high cost country centres ** $ |
|---|---|---|
| Breakfast | 23.10 | 20.65 |
| Lunch | 25.90 | 23.60 |
| Dinner | 44.50 | 40.65 |
(e). Omit Table 5; substitute
| Locality | 4 or more bedrooms $ |
3 bedrooms $ |
2 bedrooms $ |
1 bedroom * $ |
|---|---|---|---|---|
| Adelaide | 462.50 | 318.75 | 250.00 | 168.75 |
| Brisbane | 512.50 | 387.50 | 337.50 | 262.50 |
| Canberra | 625.00 | 400.00 | 362.50 | 243.75 |
| Darwin | 643.75 | 443.75 | 393.75 | 275.00 |
| Hobart | 337.50 | 262.50 | 237.50 | 156.25 |
| Melbourne | 687.50 | 518.75 | 400.00 | 281.25 |
| Perth | 512.50 | 343.75 | 318.75 | 193.75 |
| Sydney | 1025.00 | 793.75 | 618.75 | 450.00 |
This Addendum applies on and from 1 January 2011.
Commissioner of Taxation
2 November 2011
References
Related Rulings/Determinations:
Non-commercial activities of charities, cost of supply and market value tests