Goods and Services Tax Ruling

GSTR 2002/2A11 - Addendum

Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Goods and Services Tax Ruling GSTR 2002/2 to:

make minor consequential updates to the definition of 'ATM' as part of the updates to Goods and Services Tax Ruling GSTR 2014/2 Goods and services tax: treatment of ATM service fees, credit card surcharges and debit card surcharges, to reflect the decision in Banktech Group Pty Ltd v Commissioner of Taxation [2023] AATA 3850
ensure currency of legislative and other citations
make editorial changes where required to meet accessibility requirements.

GSTR 2002/2 is amended as follows:

1. Paragraph 1

In footnote A1, after the first sentence, insert 'The'.

2. Paragraph 22

Omit 'provision and/or disposal'; substitute 'provision or disposal'.

3. Paragraph 26

In footnote 22A, omit 'subsection 40-5.09(4A)'; substitute 'subsection 40-5.09(5)'.

4. Paragraph 80A

(a) In footnote 38B, omit '(2010) 187 FCR 398; '.

(b) Omit the wording of the quote; substitute:

145. Although the subject matter in Yanner is very different indeed from that in these appeals, the discussion about the concept of "property" is helpful in the present context. First, Yanner shows that the meaning of the word "property" can be fixed by relevant context, and the rather narrow meanings given in the authorities cited by the respondents will not apply in all contexts. Secondly, the word "property" can be applied to different kinds of relationships between a person and a subject matter, and can be understood as referring to the degree of power that is recognised in law as power permissibly exercised over the thing.
146. Considering the text of the GST Act (especially ss 9-10 and 11-10) and the Regulations, it is apparent that the term "interest" is referable to a very broad conception of property. The words "anything" and "in any form" in regulation in 40-5.02 highlight this extensive scope. Further, as the Commissioner submitted, the examples of financial supplies in the table in regulation 40-5.09(3) include a range of items that would not fit the narrower definition of property urged by the respondents. The same can be said of the "examples of interest" attached to regulation 40-5.02. These examples are illustrative of the proposition in the joint judgment in Yanner mentioned above.

5. Paragraph 81

(a) Omit the wording of the quote; substitute:

It may be said categorically that alienability is not an indispensable attribute of a right of property according to the general sense which the word "property" bears in the law. Rights may be incapable of assignment, either because assignment is considered incompatible with their nature, as was the case originally with debts (subject to an exception in favour of the King) or because a statute so provides or considerations of public policy so require, as is the case with some salaries and pensions; yet they are all within the conception of "property" as the word is normally understood...

(b) After 'the purposes of Part IIIA of the ITAA', insert '1936'.

6. Paragraph 84

Omit dot points 4 to 10; substitute:

specified superannuation arrangements (table item 4 of subsection 40-5.09(3));
an annuity or allocated pension (table item 5 of subsection 40-5.09(3));
specified life insurance business or related reinsurance business (table item 6 of subsection 40-5.09(3));
a guarantee (table item 7 of subsection 40-5.09(3));
an indemnity (table item 7A of subsection 40-5.09(3));
credit under a hire purchase agreement entered into before 1 July 201243A (table item 8 of subsection 40-5.09(3));
Australian currency, currency of a foreign country, digital currency or an agreement to buy or sell any of these three things (table item 9 of subsection 40-5.09(3));

7. Paragraph 94

Omit 'can not'; substitute 'cannot'.

8. Paragraph 113

After 'are satisfied', insert a comma.

9. Paragraph 159

Omit both instances of 'P/L'; substitute 'Pty Ltd'.

10. Paragraph 171A

In footnote 69AAAA, omit 'subsection84-(2)'; substitute 'subsection 84-5(2)'.

11. Paragraph 185

Omit the dot points; substitute:

supplies of cheque and deposit forms to an ADI and special forms provided to account holders (table items 1 and 2 of section 40-5.12);
professional services, including information and advice in relation to a financial supply (table item 3 of section 40-5.12);
an interest in or under a payment system (table item 4 of section 40-5.12);
stored value cards not linked to an account with an ADI (table item 5 of section 40-5.12);
goods supplied in accordance with agreements under which the goods are leased, where the lessors dispose of their rights in the goods to the lessees, or the lessees have no obligation or option to acquire the rights of the lessors in the goods (table item 6 of section 40-5.12);
an option, right or obligation to make a taxable supply or acquire something the supply of which is a taxable supply, except a mortgage or charge mentioned in table item 3 of subsection 40-5.09(3) (table item 7 of section 40-5.12);
a supply made as a result of the exercise of an option or right, or the performance of an obligation to make a taxable supply or acquire something the supply of which is a taxable supply (table item 8 of section 40-5.12);
facilities for trading securities or derivatives and clearance and settlement of those trades (table item 9 of section 40-5.12);
insurance and reinsurance business (other than life insurance business) (table item 10 of section 40-5.12);
broking services (table item 11 of section 40-5.12);
management of the assets or liabilities of another entity (table item 12 of section 40-5.12);
debt collection services (table item 13 of section 40-5.12);
sales accounting services under a factoring arrangement (table item 14 of section 40-5.12);
trustee services (table item 15 of section 40-5.12);
custodian services in relation to money, digital currency, documents and other things (table item 16 of section 40-5.12);
currency with a market value that exceeds its stated value as legal tender (table item 17 of section 40-5.12);
bailment and floorplan arrangements (table item 18 of section 40-5.12);
goods supplied under a hire purchase agreement entered into on or after 1 July 2012 (table item 19 of section 40-5.12);
credit under a hire purchase agreement entered into on or after 1 July 2012 (table item 20 of section 40-5.12); and
a warranty for goods (table item 21 of section 40-5.12).

12. Paragraph 187

After 'deposits the fund into Marrakesh', omit 'Holdings's'; substitute 'Holdings'.

13. Paragraph 193

Omit 'agent/principal'; substitute 'agent and principal'.

14. Paragraph 206

Omit 'reward/loyalty point'; substitute 'reward or loyalty point'.

15. Paragraph 216

(a) Omit Table 1, including caption and footnote 92; substitute:

Table 1: Interpretation of expressions used in subsection 70-5.02(1)
Table item no Context of Expression Illustrative or Exhaustive
1 The service of ... performing a transaction in respect of an account ... including by using the following facilities Illustrative
2 Processing services ... including the following ... Illustrative
5 Processing services ... including ... Illustrative
6 Supplies to which the following ... relate Exhaustive
7 Processing ... of the following kind Exhaustive
8 Services to a third party mentioned in paragraph (b) in table item 6 ... including ... Illustrative
9 Arrangement ... including the following ... Illustrative
10 Securities and unit registry services ... including the following ... Illustrative
11 The following supplies Exhaustive
14 The following loan application ... services Exhaustive
15 The following loan management services Exhaustive
17 The following debt collection services Exhaustive
23 The following ... functions, including those functions for superannuation schemes ... Exhaustive
24 The following administrative functions ... including those functions for superannuation schemes ... Exhaustive
26 The following life insurance administration services ... Exhaustive
29 Trustee and custodial services ... including ... Illustrative
30 The following master custody services ... Exhaustive

(b) After Table 1, insert new Table 2 including caption:

Table 2: Interpretation of expressions used in subsection 70-5.02A(3)91A
Table item no. Context of Expression Illustrative or Exhaustive
1 Provision of senior management services, including the following: ... Illustrative
3 Provision of human resources support services, including the following: ... Illustrative
7 Performance of financial management service functions, including the following: ... Illustrative
13 Provision of legal services, including: ... Illustrative
15 Maintenance and operation of transaction processing systems (including communications and applications systems) Illustrative
(c) In the caption for new Table 2, after 'subsection 70-5.02A(3)', insert new footnote 91A:
91A. The conditions of subsection 70-5A(2) must also be met before the acquisition is a reduced credit acquisition. See paragraphs 218 to 219 of this Ruling for an explanation.

16. Paragraph 255

(a) Omit 'table items of 24(h) and 26(h)'; substitute 'table items 24(h) and 26(h)'.

(b) Omit 'table items of 24 and 26'; substitute 'table items 24 and 26'.

17. Paragraph 257

Omit the heading; substitute 'What is a financial supply facilitator?'

18. Paragraph 285

(a) Omit 'Transaction Banking & Cash Management'; substitute 'Transaction Banking and Cash Management'.

(b) Omit 'Inventory/receivables finance'; substitute 'Inventory or receivables finance'.

19. Paragraph 287

Omit the wording of the paragraph, including the table; substitute:

This is represented in Table 3 of this Ruling:
Table 3: Requirements for a financial supply in the Accounts table in Schedule 2 of this Ruling
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A2 Account opening, keeping, maintenance and service fees 40-5.09(3) Table item 1 Input taxed Subsection 40-5.09(4) may also apply

20. Paragraph 288A

In the second sentence, omit 'subsection 38-190(1)'; substitute 'subsection 38-190(1)'.

21. Paragraph 292

Omit the wording of the paragraph including the table; substitute:

This is represented in Table 4 of this Ruling:
Table 4: Incidental financial supplies in the Loan Transactions table in Schedule 2 of this Ruling
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
B48 Card insurance (supplied with card – no separate fee) 40-5.09(3) Table item 1 and 2 and 40-5.10 Input taxed Not applicable

22. Paragraph 295

Omit the wording of the paragraph, including the table; substitute:

This is represented in Table 5 of this Ruling:
Table 5: Requirements for a non-financial supply in the Fees and charges payable by a merchant for merchant operations table in Schedule 2 of this Ruling
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A102 Sales processed fee Section 9-5
40-5.12 item 4
Taxable Not applicable

23. Glossary of terms

(a) Omit the wording of the entry for 'Abbreviations'; substitute:

Abbreviations
Table 6: Legislation used in this Glosary of Terms
Act Name Abbreviation
Corporations Act 2001 Corporations Act
Superannuation Industry (Supervision) Act 1993 SIS Act
A New Tax System (Goods and Services Tax) Act 1999 GST Act
A New Tax System (Goods and Services Tax) Regulations 2019 GST Regulations
Income Tax Assessment Act 1936 ITAA 1936
Income Tax Assessment Act 1997 ITAA 1997

(b) Omit the wording of the entry for 'Account'; substitute:

For the purposes of table item 1 of subsection 40-5.09(3) and subsection 40-5.09(4), account means an account made available by an Australian ADI within the meaning of section 9 of the Corporations Act. For these purposes, it includes the following accounts:

savings or transaction accounts (including accounts linked to debit cards);
cheque accounts;
call accounts;
retirement savings accounts;
term deposits;
loan accounts; and
credit card accounts.

For the purposes of section 70-5.02, the meaning of account is not limited to Australian ADIs but extends to accounts provided by non-ADIs, as explained at paragraphs 202 to 206 of this Ruling.
It includes an account in relation to which the account holder (the customer) has the right to:

have the account maintained by the account provider (the provider);
repayment of the amount credited to the account by the provider; and
require the provider to act on directions by the customer that are in accordance with the arrangements, or any agreement, between the provider and the customer in relation to operation of the account.

The definition of account in the GST regulations does not extend to an 'account' that records non-monetary balances such as reward or loyalty point and 'frequent flyer' point balances.

(c) Under the entry for 'Allocated Pension/ Annuity':

(i)
omit the heading; substitute 'Allocated Pension or Annuity'.
(ii)
omit all instances of pension/annuity; substitute 'pension or annuity'.

(d) Under the entry for 'Assurance', omit 'life assurance/life insurance'; substitute 'life assurance or life insurance'.

(e) Omit the wording of the entry for 'Automatic Teller Machine (ATM)'; substitute:

ATM
The term 'ATM' or 'automatic teller machine' has its ordinary meaning, as set out in Goods and Services Tax Ruling GSTR 2014/2 Goods and services tax: treatment of ATM service fees, credit card surcharges and debit card surcharges.

(f) Under the entry for 'CHAMP', omit 'Australian Stock Exchange's'; substitute 'Australian Securities Exchange's'.

(g) Omit the wording of the entry for 'Clearing House Electronic Subregister System (CHESS)'; substitute:

Clearing House Electronic Sub-register System (CHESS)
A clearing and settlement system for equities involving the Australian Securities Exchange and the banking system. It provides for electronic transfer of title to securities and electronic payment rather than payment by cheque. Settlement for transactions between brokers must take place on the third business day after the date of the transaction (T+3).

(h) Under the entry for 'Debt Security', omit 'Australian Stock Exchange'; substitute 'Australian Securities Exchange'.

(i) Under the entry for 'Equity Security', omit 'Australian Stock Exchange'; substitute 'Australian Securities Exchange'.

(j) Omit the heading for the entry 'Floor Plan Arrangement/Finance'; substitute 'Floor Plan Arrangement or Finance'.

(k) Under the entry for 'Forfaiting', omit 'nonrecourse'; substitute 'non-recourse'.

(l) Omit the wording of the entry for 'Income Commission'; substitute:

Income Commission
Commission based fees calculated on the income derived from assets held, managed, or both, on behalf of another.

(m) Omit the wording of the entry for 'Interchange Fees'; substitute:

Interchange Fees
Payments and associated fees between participants in a payment system to cover operating costs and risks associated with Interchange.

(n) Under the entry for 'Investment Account Contract' and 'Investment-Linked Contract', omit 'death or on a specified date(s)'; substitute 'death or on a specified date or dates'.

(o) Under the entry for 'Loyalty Program':

(i)
omit 'customers to be loyal to the supplier(s)'; substitute 'customers to be loyal to the supplier or suppliers'
(ii)
omit 'require an application fee and/or annual fees'; substitute 'require an application fee or annual fees, or both'.

(p) Under the entry for 'Macroeconomics', omit 'GDP'; substitute 'gross domestic product'.

(q) Under the entry for 'Management Fee', omit all instances of 'manager(s)'; substitute 'managers'.

(r) Under the entry for 'Master Fund', omit 'underlying investment product(s)'; substitute 'underlying investment product or products'.

(s) Under the entry for 'Merchant', omit 'supplies goods and/or services'; substitute 'supplies goods, services or both'.

(t) Omit the heading for the entry 'Night Safe/Wallet'; substitute 'Night Safe or Wallet'.

(u) Under the entry for 'Prospectus', omit 'Australian Securities & Investments Commission'; substitute 'Australian Securities and Investments Commission'.

(v) Under the entry for 'Securities':

(i)
omit 'section 92(1) of the Corporations Act'; substitute 'subsection 92(1) of the Corporations Act'.
(ii)
after 'interests in a managed investment scheme; or' insert ellipsis on a new line
(iii)
after 'units of such share;', insert ellipsis on a new line.

(w) Under the entry for 'Settlement', after 'that is', insert a comma.

(x) Under the entry for 'Stored Value Card':

(i)
omit 'additional dollars/points'; substitute 'additional dollars or points'.
(ii)
omit 'and/or PIN'; substitute ', PIN or both'.

(y) Under the entry for 'Trailing Commission', omit 'investment and/or continued investment'; substitute 'investment or continued investment'.

(z) Under the entry for 'Trust Deed', omit 'trustee(s)'; substitute 'trustee or trustees,'.

24. Schedule 2 – Table of Contents

Omit the Table of Contents; substitute:

Table of Contents
Summary of fees and services – Transaction banking and cash management 136
     •  Accounts 136
          -  Passbook and transactions cards 138
          -  Cheques 138
          -  Vouchers, deposit and withdrawal slips 139
          -  Transfers 139
          -  Overdrafts 140
          -  Wallets or night safes 140
          -  Other 141
          -  Computer banking services 143
     •  Payments and funds transfer 144
          -  Fees and charges payable by a merchant for merchant operations 147
     •  Stored value and similar cards 149
     •  Deposit and investment 149
Summary of fees and services – Advances, Loans and Mortgages 150
     •  Loan transactions 150
     •  Credit and charge cards 152
     •  Mortgages and charges 153
     •  Debt and credit arrangements 156
Summary of fees and services – Trade Finance, Asset-Based Finance and Inventory-Based Finance 157
     •  Trade finance 157
     •  Asset-based finance 161
          -  Stamp duties and other State and Commonwealth duties 162
     •  Inventory or receivables finance 162
Summary of fees and services – Securities 164
Summary of fees and services – Guarantees and indemnities 170
Summary of fees and services – Currency 171
Summary of fees and services – Superannuation, Annuities and Allocated Pensions 173
     •  Superannuation 173
     •  Annuities or allocated pensions 174
Summary of fees and services – Derivatives 175
Summary of fees and services – Insurance 177
     •  Insurance services 177
Summary of fees and services – Advisory and Professional Services 180
     •  Advisory and professional services 180
     •  Financial planning 181
Summary of fees and services – Brokerage and Facilitator Services 183
Summary of fees and services – Trustee and Custodian Services 185
     •  Custody services 185
          -  Reporting and compliance services 188
          -  Safe Custody 189
     •  Personal trust and personal services 189
     •  Superannuation trustee services 193
     •  Corporate services 194
     •  Securitisation 195
Summary of fees and services – Funds Management 200
Summary of fees and services – Commodities and Collectibles 203
     •  Commodities 203
     •  Collectibles 203

25. SCHEDULE 2 – supplies of financial interests and related supplies by financial supply providers § and financial supply facilitators §

(a) Omit the wording from the References text box; substitute:

References
The tables below use the following style of abbreviations
"9-5" – means section 9-5 of the GST Act
"40-5.09" – means section 40-5.09
"40-5.09(3)" – means subsection 40-5.09(3)
"40-5.09(3) Item 1" – means Item 1 of subsection 40-5.09(3)
"40-5.12 Items 1 and 2" – means Items 1 and 2 of section 40-5.12
"40-5.09(4)" – means subsection 40-5.09(4)
"70-5.02(2) Item 6(c)" – means Item 6(c) of subsection 70-5.02(1)

(b) Omit the wording from the Notes text box; substitute:

Notes

1.
Fees, charges and payments received or charged for a supply are generally regarded as consideration (or part of the consideration) for a financial supply rather than a financial supply themselves. For example, interest payable on money loaned or deposited is generally regarded as part of the consideration for the use of money (a debt).
In this table the listed fees, charges and payments are given a GST status which technically corresponds to the supply for which they are given as consideration. For example, fees paid as part of the consideration for a loan are categorised as 'input taxed'. Where consideration is listed in the second column, the item (or legislative provision) that relates to it is listed in the third column.
2.
Some supplies (fees, charges, etcetera) may be covered by more than one item. The fact a supply appears under a particular heading in this Schedule does not mean that it cannot also be covered by another item, however that does not make it more than one supply. The fact something is not mentioned as being covered by an item does not mean that it is not or cannot be covered by that item.
3.
The supply of something is not a financial supply if it does not satisfy the requirements of section 40-5.09 or if it is mentioned within an item in section 40-5.12. Where this is the case, the table contains a reference to the relevant item in the GST regulations as well as the provision in the GST Act (if any) that determines its GST status. Items of this kind in the table are identified by the symbol "†".
4.
If something is said to be taxable, GST-free or input taxed, within column 4 of the table, it is assumed that the other conditions for a supply of that type are also met (for example, for a taxable supply, that the requirements of section 9-5 are able to be satisfied.) These items in the table are identified by the symbol "‡". The actual status will depend on all the facts and circumstances of the supply. Each transaction will need to be judged and its GST status determined by having regard to all the facts and circumstances particular to that case.
4A.
The fact that something is not specifically mentioned in Schedule 2 as being GST-free wholly or in part under subsection 38-190(1) does not mean it is not, or cannot be covered by that provision. Reference should be made to paragraph 288A of this Ruling.
5.
Any references to table item 1 of subsection 40-5.09(3) in column 3 of the table are only relevant to ADIs however most things covered by item 1 should apply (where relevant) to non-ADIs.
6.
Line numbers in column 1 are used for ease of reference to a particular item and have no legislative basis. The symbol "§" indicates that the term is defined in Schedule 1, which does not form part of the binding section of this Ruling.

26. Table A. Summary of fees and services – Transaction banking and cash management

(a) Omit the table, including the heading and footnote 114; substitute:

Summary of fees and services – Transaction banking and cash management
ACCOUNTS§
The following fees and charges listed in Table A.1: ACCOUNTS, by Australian ADIs§ as account provider to account holders, or by an ADI to a non-account holder for a fee of $1,000 or less.
Note: Where supplied to a non-account holder, the following conditions must also be met:

1.
item 1 in subsection 40-5.09(3) would have applied to that supply in relation to an account with the ADI; or
2.
the fee relates to an application to the ADI that, if accepted, would result in the creation of an account by the ADI.113C

If the fee or charge is greater than $1,000, the supply is taxable unless listed elsewhere.
The extent to which the supply of a transaction account is GST-free under table item 3 or table item 4(a) of subsection 38-190(1) is explained in GSTD 2020/1.
Table A.1: ACCOUNTS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A2 Account opening, keeping, maintenance and service fees 40-5.09(3) Item 1 Input taxed Not applicable
A3 Account application fees 40-5.09(3) Item 1
40-5.09(4)(b)
Input taxed The fee charged is in relation to application and input taxed. Even if bank to bank, if fee is $1,000 or less, paragraph 40-5.09(4)(b) will apply.
A4 Transaction fees 40-5.09(3) Item 1 Input taxed Not applicable
A5 Fees and charges for account transactions by ATM§, telephone or other electronic means 40-5.09(3) Item 1 Input taxed Not applicable
A6 Fees and charges for account transactions performed by accessing Internet banking services 40-5.09(3) Item 1 Input taxed Transactions must be in relation to an account with the ADI. Payment to a third party to provide a link to the Internet site of the ADI will be a separate (taxable) supply because the third party is not a financial supply provider§.
A7 Enquiry or account information fees 40-5.09(3) Item 1 Input taxed Not applicable
A8 Closure of account fee 40-5.09(3) Item 1 Input taxed Not applicable
A9 Preparation, reconciliation and replacement of account statement or duplicate statement 40-5.09(3) Item 1 Input taxed Not applicable
A10 Photocopies and facsimiles of account information 40-5.09(3) Item 1 Input taxed Not applicable
A11 Confirmation of account or accounts fee 40-5.09(3) Item 1 Input taxed Not applicable
A12 Deposit§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A13 Deposit§ splitting fees (money§ deposited is "split" and credited to a number of different accounts held by the same account holder) 40-5.09(3) Item 1 Input taxed Not applicable
A14 Withdrawal§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A15 Excess withdrawal§ fee 40-5.09(3) Item 1 Input taxed Not applicable
A16 Balance below minimum fees 40-5.09(3) Item 1 Input taxed Not applicable
A17 Direct debit§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A18 Dishonoured direct debit§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A19 Stopped payment fees 40-5.09(3) Item 1 Input taxed Not applicable
A20 Set-off§ fees 40-5.09(3) Item 1 Input taxed Not applicable
Table A.2: PASSBOOKS§ AND TRANSACTION CARDS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A21 Fees for issue and replacement of passbook 40-5.09(3) Item 1 Input taxed Not applicable
A22 Fees for issue and replacement of transaction card and PIN§ 40-5.09(3) Item 1 Input taxed Not applicable
A23 Fees for issue and replacement of debit, credit, charge and smart cards§ 40-5.09(3) Item 1 Input taxed Stored value cards§ not linked to accounts provided by an Australian ADI§ are not a financial supply§ under section 40-5.12 Item 5. See also Line Nos. A117 to A119 and B31 to B49.
Table A.3: CHEQUES§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A24 Fees for sales of standard cheque§ and deposit§ books 40-5.09(3) Item 1 Input taxed Printing of special forms and overprinting of standard forms are not input taxed as they are covered under section 40-5.12 item 2.
A25 Fees for cheques§ deposited 40-5.09(3) Item 1 Input taxed Not applicable
A26 Fees for post-dated cheques§ and clearing cheques§ 40-5.09(3) Item 1 Input taxed Not applicable
A27 Stopped cheque§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A28 Fees for early clearance of cheque§ 40-5.09(3) Item 1 Input taxed Not applicable
A29 Dishonoured cheque§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A30 Fees for cashing cheques§ and payment orders§ 40-5.09(3) Item 1 Input taxed Not applicable
A31 Fees for clearing bank cheques§ 40-5.09(3) Items 1 and 10 Input taxed A bank cheque§ is the provision of an interest in a security under subsection 40-5.09(3) Item 10; Schedule 2, clause 8, item 9 and definition of debenture§ in section 9 of the Corporations Act.
A32 Repurchase of bank cheque§ 40-5.09(3) Items 1 and 10 Input taxed A bank cheque§ is the provision of an interest in a security under subsection 40-5.09(3) Item 10; Schedule 2, clause 8, item 9 and definition of debenture§ in section 9 of the Corporations Act.
A33 Duplicate of bank cheque§ already issued 40-5.09(3) Items 1 and 10 Input taxed Not applicable
Table A.4: VOUCHERS§, DEPOSIT AND WITHDRAWAL SLIPS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A34 Information about deposit§ and withdrawal§ slips and credit or charge card§ vouchers§ used on account transactions 40-5.09(3) Items 1 and 2 Input taxed Not applicable
A35 Supply to customers of deposit§ books including those with identifying information (for example, real estate agents deposit§ book for tenant) 40-5.09(3) Item 1
40-5.12 Item 2
Input taxed If section 40-5.12 item 2 applies, this overrides section 40-5.09.
A36 Reconciliation of deposit§ and withdrawal§ slips and credit or charge card§ vouchers§ 40-5.09(3) Items 1 and 2 Input taxed Not applicable
A37 Retention and storage of deposit§ and withdrawal§ slips and credit or charge card§ vouchers§ 40-5.09(3) Items 1 and 2 Input taxed Not applicable
Table A.5: TRANSFERS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A38 Cash transfers, money orders§ and other forms of direct funds remittance 40-5.09(3) Item 1 Input taxed Not applicable
A39 Electronic transfer to another Australian ADI 40-5.09(3) Item 1 Input taxed Subsection 40-5.09(4) may also apply.
A40 International money§ transfer or telegraphic transfer§ 40-5.09(3) Item 1 Input taxed Where the transfer is undertaken as a transaction under the supply of a transaction account, GSTD 2020/1 will be relevant.

A separate supply of an international money transfer or telegraphic transfer is GST-free under table item 4 of subsection 38-190(1) when the overseas payee has a right to payment that must be exercised at an overseas bank – whether it is via a deposit into the overseas payee's overseas account, or right to request payment at a bank located overseas.

Table A.6: OVERDRAFTS§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A41 Unauthorised overdraft§ fee 40-5.09(3) Item 1 Input taxed Not applicable
A42 Overdraft§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A43 Maintenance of overdraft§ facility 40-5.09(3) Item 1 Input taxed Not applicable
Table A.7: WALLETS OR NIGHTSAFES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A44 Supply and use of wallets for night safe 40-5.09(3) Item 1 Input taxed Input taxed provided the contents in the wallet held by bank for safe custody§ and credited to the customer's account.

If not credited to the customer's account the supply of wallet and key for this facility will be taxable as a custodian§ service under item 16, section 40-5.12.

A45 Alternative or additional key to night safe or wallet§ 40-5.09(3) Item 1 Input taxed Input taxed provided the contents in the wallet held by bank for safe custody§ and credited to the customer's account.

If not credited to the customer's account the supply of wallet and key for this facility will be taxable as a custodian§ service under item 16, section 40-5.12.

A46 Fee for lost key to night safe or wallet§ 40-5.09(3) Item 1 Input taxed Input taxed provided the contents in the wallet held by bank for safe custody§ and credited to the customer's account.

If not credited to the customer's account the supply of wallet and key for this facility will be taxable as a custodian§ service under item 16, section 40-5.12.

A47 Supply of permanent wallet 40-5.09(3) Item 1,
40-5.09(4)(a)
Input taxed Input taxed provided the contents in the wallet held by bank for safe custody§ and credited to the customer's account.

If not credited to the customer's account the supply of wallet and key for this facility will be taxable as a custodian§ service under item 16, section 40-5.12.

Table A.8: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A48 Fee for negotiation§ of a clean bill§ of exchange§ 40-5.09(3) Items 1 and 10 Input taxed Not applicable
A49 Collection, handling and sorting of cash, and cheques§ (including lottery, art union proceeds, etcetera) 40-5.09(3) Item 1 Input taxed Limited to those types of collection handling and sorting services generally provided to account holders by account providers in connection with an account. Where done for a non-account holder, and NOT in relation to a payment system§, it may also be input taxed, if subsection 40-5.09(4) is satisfied. Collection, handling and sorting done in relation to a payment system§ is taxable under item 4, section 40-5.12 even if fee charged is $1,000 or less.
A50 Changing cash into different cash denominations 40-5.09(3) Item 1 Input taxed Not applicable
A51 Deposits to an account No provision, acquisition or disposal of an interest Not subject to GST Not applicable
A52 Withdrawals from an account No provision, acquisition or disposal of an interest Not subject to GST Not applicable
A53 Establishing, operating and terminating letters of credit 40-5.09(3) Items 2 and 10 Input taxed Not applicable
A54 Fee for collecting interest payments under a debenture§ on behalf of an account holder 40-5.09(3) Item 1 Input taxed Payment under a debenture§ may also be covered by items 2 and 10 of section 40-5.09.
A55 Sweep§ and zero balance facility§ fees 40-5.09(3) Item 1 Input taxed Not applicable
A56 Garnishee§ of accounts 40-5.09(3) Item 1 Input taxed Not applicable
A57 Nostro account§ (account held by Australian bank in foreign bank in foreign currency) See note Not subject to GST The account is supplied by a foreign bank, outside Australia and does not satisfy section 40-5.09. See paragraph 30 of this Ruling.
A58 Vostro account§ (account held by foreign bank in Australian bank in Australian currency) Subsection 38-190(1) Item 2 GST-free Supply is GST-free subject to section 38-190. See paragraphs 144 to 169 of this Ruling.
A59 Audit certificates, letters of identification and bankers opinions in relation to application for an account 40-5.09(3) Item 1
40-5.09(4)(b)
Input taxed Charge is in relation to application and input taxed. Even if bank to bank, if fee is $1,000 or less, paragraph 40-5.09(4)(b) will apply.
A60 Providing letter of identity to government statutory body (for example, Centrelink) for account holder 40-5.09(3) Item 1 Input taxed Not applicable
A61 Recovery§ of Commonwealth, State and Territory fees, duties and taxes incurred in relation to an account 40-5.09(3) Item 1

Examples for item 1 in 40-5.09(3) as set out in Schedule 2, clause 1, Item 15

No supply where recovery§
Input taxed where on-charged.
See paragraphs 181-186 of the Ruling for a discussion.
A62 Disbursements on-charged to customers as account-related fees 40-5.09(3) Item 1 Input taxed Not applicable
Table A.9: COMPUTER BANKING SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A64 Software licence fee (annual or once off) Section 9-5 Taxable Taxable not as a payment system§ but because service provided by the financial institution does not come within subsections 40-5.09 (3) or (4).
A65 Maintenance or software access fee (for maintenance and support services) Section 9-5 Taxable Taxable not as a payment system§ but because service provided by the financial institution does not come within subsections 40-5.09 (3) or (4).
A66 Support services (as and when required) Section 9-5 Taxable Taxable not as a payment system§ but because service provided by the financial institution does not come within subsections 40-5.09 (3) or (4).
A67 Fees for the reversal of amounts incorrectly deposited to an account (good value claims) and administration between financial institutions 40-5.09(3) Item 1 Input taxed Not applicable
A68 Fees charged to customer for extra cost of special printing of special forms Section 9-5
40-5.12 Item 2
Taxable Not applicable
A69 Fees charged to customer for extra cost of overprinting of standard forms Section 9-5
40-5.12 Item 2
Taxable Not applicable
A70 Fees charged to customer for bulk bank cheque§ printing and production (bill paying service) Section 9-5
40-5.12 Item 2
Taxable Not applicable
A71 Information about account or customer's dealing with bank under Subpoena§ Section 9-5 Taxable In relation to third party and not connected with an account.
A72 Fee for access to secure packet or envelope in safe custody§ facility or in bank branch safe where contents are not credited to customer's account Section 9-5
40-5.12 Item 16
Taxable The supply is taxable because item 16 of section 40-5.12 overrides subsection 40-5.09(4).
Table A.10: PAYMENT AND FUNDS TRANSFER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A73 Fees and charges of $1,000 or less for a clearing account§ for use within a day (intra day facility) made available by an Australian ADI§ for non-account holders 40-5.09(4)(a) Input taxed Not applicable
A75 Operation and maintenance: transfers between accounts 40-5.09(3) Item 1 Input taxed Account holders are not participants§ in a payment system§.
A76 Operation and maintenance: direct credits§ 40-5.09(3) Item 1 Input taxed Account holders are not participants§ in a payment system§.
A77 Operation and maintenance: direct debits§ 40-5.09(3) Item 1 Input taxed Account holders are not participants§ in a payment system§.
A78 Operation and maintenance: automatic and electronic funds transfers (such as telegraphic transfers§ and EFTPOS§) 40-5.09(3) Item 1 Input taxed A separate supply of an international money transfer is GST-free under table item 4 of subsection 38-190(1) when the payee's account is located outside Australia or collection or delivery of physical currency is to an overseas location.

Where the transfer is undertaken as a transaction under the supply of a transaction account, GSTD 2020/1 will be relevant.

A79 Use of ATM: fees charged by Australian ADIs§ to account holders for the use of an ATM 40-5.09(3) Item 1 Input taxed Where the ATM transaction is undertaken as a transaction under an account, GSTD 2020/1 will be relevant to determining the extent to which the supply of the account may be GST-free.
A79A Use of ATM: fees of $1,000 or less for the supply of ATM services mentioned in subsection 40-5.09(5) charged by an Australian ADI to a recipient who is not an account holder 40-5.09(5) Input taxed Not applicable
A79B Use of ATM: fees of $1,000 or less for the supply of ATM services mentioned in subsection 40-5.09(5) charged by an entity that is not an Australian ADI 40-5.09(5) Input taxed Not applicable
A80 Fees and charges to an account holder for real time gross settlement (RTGS) § 40-5.09(3) Item 1 Input taxed Access provided to an account provider in relation to an approved RTGS§ payment system§ is a taxable supply.
A81 Inward, outward clean collections§ (Collection of bills of exchange drawn on an Australian ADI§ by an overseas party) 40-5.09(3) Item 1 Input taxed Not applicable
A83 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for : charge, credit and debit card§ transactions Section 9-5
40-5.12 Item 4
Taxable Not applicable
A84 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for : cheque§ transactions Section 9-5
40-5.12 Item 4
Taxable Not applicable
A85 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for: internet banking Section 9-5
40-5.12 Item 4
Taxable Not applicable
A86 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for: Bank@Post§ Section 9-5
40-5.12 Item 4
Taxable Not applicable
A87 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for : SWIFT§ (Society for Worldwide Interbank Financial Telecommunications Payment Delivery System) Section 9-5
40-5.12 Item 4
Taxable Not applicable
A88 Fees charged by a financial supply facilitator§ to an account provider for processing, settling, clearing§ and switching transactions (in relation to a payment system§) for: Austraclear§ Section 9-5
40-5.12 Item 4
Taxable Not applicable
A89 Supply to other Australian ADIs§ for access to credit and debit electronic payments system Section 9-5
40-5.12 Item 4
Taxable Not applicable
A90 Fees and charges to an account provider in relation to an approved RTGS§ system Section 9-5
40-5.12 Item 4
Taxable Not applicable
A92 Fees and charges paid by participants§ in a payment system§ to operators to participate in a payment system: joint initiative or co-branding establishment fees§ Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A93 Fees and charges paid by participants§ in a payment system§ to operators to participate in a payment system: to affiliate (co-branded credit cards§) for processing credit card§ transactions Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A94 Fees and charges paid by participants§ in a payment system§ to operators to participate in a payment system: direct entry fees§ for bulk corporate payment services, including payments from lists Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A95 Fees and charges paid by participants§ in a payment system§ to operators to participate in a payment system: outsourced remittance and mail preparation services Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A96 Fees and charges paid by participants§ in a payment system§ to operators to participate in a payment system: outsourced cheque§ production Section 9-5
40-5.12 Items 2 and 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A97 Fees paid by participants in the BPAY§ scheme Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A98 Fees payable by participants to the operator under the BPAY§ Scheme Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A99 Fees payable by a participant to other participants under the BPAY§ Scheme Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§.
A100 Supply of a service by one participant§ in a payment system§ to another participant§ in the system in relation to charge, credit and debit card§ transactions Section 9-5
40-5.12 Item 4
Taxable Account holders are not (in that capacity) participants§ in a payment system§. Example in Schedule 3, clause 2, Item 3.
Table A.11: FEES AND CHARGES PAYABLE BY A MERCHANT FOR MERCHANT OPERATIONS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A102 Sales processed fee Section 9-5
40-5.12 Item 4
Taxable Not applicable
A103 Merchant§ annual fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A104 Merchant§ transaction fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A105 Merchant§ monthly processing fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A106 Merchant§ establishment fees§ Section 9-5
40-5.12 Item 4
Taxable Not applicable
A107 Imprinter and card terminal rental Section 9-5
40-5.12 Item 4
Taxable Not applicable
A108 Terminal installation and maintenance fee Section 9-5
40-5.12 Item 4
Taxable Not applicable
A109 Telecommunications line rental Section 9-5
40-5.12 Item 4
Taxable Not applicable
A110 Marketing fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A111 Risk management§ fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A112 Multi-currency fees Section 9-5
40-5.12 Item 4
Taxable Not applicable
A113 Payment system§ access and interchange§ facilities Section 9-5
40-5.12 Item 4
Taxable Not applicable
A114 Clearing§ and collection of funds on behalf of third parties Section 9-5
40-5.12 Item 4
Taxable Not applicable
A115 Operation of debit, credit and charge card§ payment facilities on behalf of third parties Section 9-5
40-5.12 Item 4
Taxable Not applicable
A116 Processing of account data Section 9-5
40-5.12 Item 4
Taxable Not applicable
Table A.12: STORED VALUE§ AND SIMILAR CARDS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A117 Stored value§ facility cards not linked to an account with an ADI Section 9-5
40-5.12 Item 5
Taxable For credit, debit and charge cards§ with ADIs, see Line Nos. A21 to 23. For cards with non-ADIs, see Line Nos. B31 to B49. For prepaid travel cards or similar cards that are denominated in a foreign currency, refer to Line No. F16.
A118 Stored value facility cards linked to an account with an ADI 40-5.09(3) Item 1 Input taxed See the Glossary for a definition of a stored value card§. For prepaid travel cards or similar cards that are denominated in a foreign currency refer to Line No. F16.
A119 Rent card§ (not a direct debit card§ and not linked to an ADI) Section 9-5
40-5.12 Item 5
Taxable Akin to a stored value facility card or prepayment not linked to an account with an ADI. If the card is linked to an ADI and more akin to a debit card, the facility will be input taxed.
Table A.13: DEPOSIT§ AND INVESTMENT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
A121 Fees and charges between Australian ADIs§ and account holders: interest payments (including contingent payments) 40-5.09(3) Item 1 Input taxed Payment of interest forms part of the consideration for a financial supply§.
A122 Fees and charges between Australian ADIs§ and account holders: early redemption penalties 40-5.09(3) Item 1 Input taxed Not applicable

(b) After List point 2 in the Note before Table A.1, insert footnote 113C:

113C Subsection 40-5.09(4) may apply to these fees where relevant and provided the conditions set out in the subsection are satisfied.

27. Table B. Summary of fees and services – Advances § , Loans § and Mortgages §

Omit the table, including the heading; substitute:

Summary of fees and services – Advances § , Loans § and Mortgages §
Table B.1: LOAN TRANSACTIONS: PROVISION OF CREDIT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
B2 Application fees 40-5.09(3) Items 1 and 2
40-5.09(4)
Input taxed Not applicable
B3 Approval fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B4 Establishment and agreement fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B5 Late payment or penalty fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B6 Rate lock fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B7 Administration fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B8 Participation fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B9 Discharge fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B10 Service fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B11 Commitment fees§ 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B12 Drawing and redrawing§ fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B13 Enquiry fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B14 Limit fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B15 Line of credit§ fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B16 Statement and voucher§ fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B17 Settlement§ fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B18 Document inspection fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B19 Early repayment fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B20 Restructure fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B21 Interest payments 40-5.09(3) Items 1 and 2 Input taxed Payment of interest forms part of the consideration for a financial supply§.
B22 Early repayment penalties 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B23 Other loan§ or advance§ related fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B24 Dishonour fee 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B25 Fee for moving to or from variable or fixed interest rate 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B26 Disbursements on-charged to customers as account-related fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B27 Advancement of principal§ Not consideration for provision, acquisition or disposal of an interest under 40-5.09(3) Not subject to GST Advancement and repayment of principal§ occurs under an agreement for a loan§ (a financial supply§) but is not itself a financial supply§; that is, it is not itself the provision, acquisition or disposal of an interest in or under item in subsection 40-5.09(3).
B28 Repayment of principal§ Not consideration for provision, acquisition or disposal of an interest under 40-5.09(3) Not subject to GST Not applicable
B29 Fees and charges by pawnbrokers§ to establish, maintain and discharge loan§ 40-5.09(3) Item 2 Input taxed Depending on facts, fee payable on collection of the goods may be for loan§ administration or storage. If paid for storage – the fee is consideration for a taxable supply. As it is for separate consideration it is not an incidental financial supply.
B30 Fees, charges and payments related to loans§ made to Australian residents in foreign currency 40-5.09(3) Items 1 and 2 Input taxed Not applicable
Table B.2: CREDIT§ AND CHARGE CARDS§: PROVISION OF CREDIT AND CHARGE CARDS
Note: The extent to which the supply of a credit card facility is GST-free under table item 4 of subsection 38-190(1) is explained in GSTD 2017/1.

Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
B32 Application fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B33 Establishment and closing fee 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B34 Additional card (same holder) fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B35 Additional (or second) cardholder fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B36 Replacement card fees and any associated courier costs 40-5.09(3) Items 1 and 2 Input taxed Courier costs may be taxable if charged for separately.
B37 Interest payments 40-5.09(3) Items 1 and 2 Input taxed Payment of interest forms part of the consideration for a financial supply§.
B38 Increase and exceed limit fees 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B39 Fee for not making a payment by due date 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B40 Fee for duplicate card statement or voucher§ 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B41 Annual credit card§ fee 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B42 Foreign currency to Australian currency conversion fee 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B43 Over the counter and cash advance§ fee 40-5.09(3) Items 1 and 2 Input taxed Not applicable
B44 Fee for effecting an ATM§ transaction 40-5.09(3) Items 1 and 2 and 40-5.09(5) Input taxed Not applicable
B45 Revolving credit§ facility fee 40-5.09(3) Item 2 Input taxed Not applicable
B46 Loyalty program§ membership (supplied with card – no separate fee) 40-5.09(3) Items 1 and 2
40-5.10
Input taxed GSTR 2012/1 provides guidance on the GST implications of certain loyalty programs.
B47 Loyalty program§ membership (supplied for separate fee) Section 9-5
40-5.10
Taxable Not incidental to the supply of an account under section 40-5.09. May be composite depending on the particular facts.

GSTR 2012/1 provides guidance on the GST implications of certain loyalty programs.

B48 Card insurance (supplied with card – no separate fee) 40-5.09(3) Items 1 & 2
40-5.10
Input taxed Not applicable
B49 Card insurance (supplied for separate fee) Section 9-5
40-5.10
Taxable Not incidental to the supply of an account under section 40-5.09. May be composite depending on the particular facts.
Table B.3: MORTGAGES§ AND CHARGES§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
B50 Mortgage§ over land, premises or chattel§ 40-5.09(3) Item 3 Input taxed Not applicable
B52 Mortgage over a chattel: assignment§ or reassessment of asset fees 40-5.09(3) Item 3 Input taxed Not applicable
B53 Mortgage over a chattel: registration of interest in the asset 40-5.09(3) Item 3 Input taxed Not applicable
B54 Mortgage§ over a share§ or bond§ 40-5.09(3) Item 3 Input taxed Not applicable
B55 Switching of mortgages 40-5.09(3) Item 3 Input taxed Not applicable
B56 Charge§ over the assets of a company 40-5.09(3) Item 3 Input taxed Not applicable
B57 Fees and charges for documentation of the mortgage§ facility supplied by the mortgagee§ to the mortgagor§ 40-5.09(3) Item 3 Input taxed Not applicable
B58 Legal fees for preparing mortgage – other than when included as an on-charge by the mortgagee§ Section 9-5 Taxable Not applicable
B60 Activities in relation to a charge§ or mortgage§ over real or personal property: valuation of the collateral§ or security for a credit or an advance§ 40-5.09(3) Item 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B61 Activities in relation to a charge§ or mortgage§ over real or personal property: allowing mortgagor§ to inspect mortgage§ and security documents held by mortgagee§ 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B62 Activities in relation to a charge§ or mortgage§ over real or personal property: making loan§ available on an ongoing basis 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B63 Activities in relation to a charge§ or mortgage§ over real or personal property: allowing more than one drawing down against mortgage§ loan§ account§ 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B64 Activities in relation to a charge§ or mortgage§ over real or personal property: duplicate statements or statements outside the normal cycle for loan§ 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B65 Activities in relation to a charge§ or mortgage§ over real or personal property: on-charge§ of costs to insure risk under loan§ or facilities secured by mortgage§ 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B66 Activities in relation to a charge§ or mortgage§ over real or personal property: registration of mortgage§ with Land Titles Office 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B67 Activities in relation to a charge§ or mortgage§ over real or personal property: changes to certificate of title; for example, to update encroachments, to note subsequent borrowing, etcetera 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B68 Activities in relation to a charge§ or mortgage§ over real or personal property: moving to or from variable or fixed interest rate 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B69 Activities in relation to a charge§ or mortgage§ over real or personal property: change to the mortgage§ to reflect changes to mortgaged property 40-5.09(3) Items 2 and 3 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B70 Activities in relation to a charge§ or mortgage§ over real or personal property: draw down facility 40-5.09(3) Item 2 Input taxed Assumes the services are provided as part of the supply of the charge§ or mortgage§ by the financial supply provider§ and not by a third party.
B71 Activities in relation to a charge§ or mortgage§ over real or personal property: discharge of mortgage§ 40-5.09(3) Item 3 Input taxed Only where a fee is not provided for under the mortgage. Otherwise a consequence of the mortgage§ rather than a separate supply; that is, not itself the provision, acquisition or disposal of an interest in an item under the regulations.
B72 Recovery§ of Commonwealth, State and Territory fees, duties and taxes 40-5.09(3) Item 3
See note
No supply if recovered
Input taxed if on-charged
See paragraphs 191 to 197 of the Ruling for a discussion about recovery§ and on-charge§.
B73 Recovery§ of loan§ protection and title insurance 40-5.09(3) Item 3
see note
No supply if recovered§
Input taxed if on-charged§
See paragraphs 191 to 197 of the Ruling for a discussion about recovery§ and on-charge§.
B74 Recovery§ of professional and third party costs in connection with a mortgage§ 40-5.09(3) Item 3
see note
No supply if recovered§
Input taxed if on-charged§
See paragraphs 191 to 197 of the Ruling for a discussion about recovery§ and on-charge§.
B75 Fee charged for production and inspection of title and mortgage§ documents for purposes other than under compulsion of law (for example, subpoena§) 40-5.09(3) Item 3 Input taxed Not applicable
B76 Fee charged for production and inspection of title and documents produced under compulsion of law (for example, by subpoena§) Section 9-5 Taxable Not provided in connection with the mortgage§ and therefore not covered by subsection 40-5.09(3) item 3 or section 40-5.10.
B77 Sale of debtor's property by mortgagee§ in possession (where sale by debtor would not have been a taxable supply under subsection 105-5(1)) Subsection 105-5(1)
Section 9-5
Div 38
Div 40
Not a taxable supply Varies according to fact situation The GST status of the sale varies depending on the facts; for example, the sale may be input taxed, GST-free or 'out of scope' depending on the particular facts.
B78 Sale of debtor's property by mortgagee§ in possession (where sale by debtor would not have been a taxable supply because of subsection 105-5(3)) Subsection 105-5(3)
Section 9-5
Div 38
Div 40
Not a taxable supply The GST status of the sale varies depending on the facts; for example, the sale may be input taxed, GST-free or 'out of scope' depending on the particular facts.
B79 Sale of debtor's property by mortgagee§ in possession (where sale by debtor would have been a taxable supply) Section 105-5(1)
40-5.12 Item 8
Div 105
Taxable Not applicable
Table B.4: DEBT§ AND CREDIT ARRANGEMENTS§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
B80 Right to an income stream that is an interest in or under a debt§ 40-5.09(3) Item 2 Input taxed Not applicable
B81 Establishing, operating and terminating letters of credit 40-5.09(3) Item 2 Input taxed Not applicable

28. Table C. Summary of fees and services – Trade Finance, Asset-Based Finance and Inventory-Based Finance

(a) Omit the table, including the heading and footnote 115; substitute:

Summary of fees and services – Trade Finance, Asset-Based Finance and Inventory-Based Finance
Table C.1: TRADE FINANCE: PROVISION OF IMPORT DOCUMENTARY LETTERS OF CREDIT (SERVICE PROVIDED BY AUSTRALIAN BANK TO AUSTRALIAN IMPORTER – GUARANTEES DEBT§)
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C2 Establishment and termination fees 40-5.09(3) Item 2 Input taxed Not applicable
C3 Issuance fees 40-5.09(3) Item 2 Input taxed Not applicable
C4 Document handling fees 40-5.09(3) Item 2 Input taxed Not applicable
C5 Acceptance fees§ 40-5.09(3) Item 2 Input taxed Not applicable
C6 Amendment fees 40-5.09(3) Item 2 Input taxed Not applicable
C7 Reimbursement fees 40-5.09(3) Item 2 Input taxed Not applicable
C8 Extension and increase fees 40-5.09(3) Item 2 Input taxed Not applicable
Table C.2: TRADE FINANCE: PROVISION OF EXPORT DOCUMENTARY LETTERS OF CREDIT (SERVICE PROVIDED TO OVERSEAS BANK BY AUSTRALIAN BANK)
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C10 Document handling fees Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

C11 Advising fees Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

C12 Negotiation fees§ Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

C13 Discrepancy fees Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

C14 Without Recourse§ fees Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

C15 Assignment fees Section 38-190 GST-free The GST status of the supply for which the fee, etcetera is paid may vary depending on the facts of the supply – that is:
•  where the supply satisfies section 38-190, it is GST-free
•  if the supply is by financial supply facilitator it is taxable.

If it is the provision, acquisition or disposal of a financial interest by a financial supply provider it is input taxed.

Table C.3: TRADE FINANCE: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C16 Fees and charges relating to collections and remittance services related to export transactions (service provided by Australian bank to Australian exporter), for example, amendment and dishonour fees Section 38-190
Section 40-5.09
Section 9-5
See note
Input taxed or Taxable depending on whether as provider or facilitator The supply is input taxed where the bank takes a principal interest in debt§.

The supply is taxable if the bank acts as facilitator.

The supply is not GST-free as it is not within section 38-190.

C17 Fees and charges relating to collections and remittance services related to import transactions (bank providing service to overseas bank) Section 38-190 GST-free Not applicable
C18 Fees and charges relating to trade guarantees (including bills of lading guarantees) or bonds§ 40-5.09(3) Item 7 Input taxed Not applicable
C19 Fees, charges and payments relating to forfaiting§ 40-5.09(3) Item 2 Input taxed Not applicable
Table C.4: ASSET-BASED FINANCE114A
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C20 Payments relating to the sale of goods Section 9-5 Taxable Not applicable
C22 Fees and charges for the supply of finance under a hire purchase§ agreement entered into before 1 July 2012 for the supply of goods where the credit charge is not disclosed to the recipient of the goods: hire charges, rent or instalments Section 9-5 Taxable Not covered by item 8 of subsection 40-5.09(3) because interest component is not separately disclosed.
C24 Fees and charges for the supply of finance under a hire purchase§ agreement entered into before 1 July 2012 for the supply of goods where the credit charge is disclosed to the recipient of the goods: hire charges, rent or instalments Section 9-5
40-5.09(3) Item 8
Taxable or Input taxed Only credit component is financial supply§. Principal component is taxable.
C25 Fees and charges for the supply of finance under a hire purchase§ agreement entered into before 1 July 2012 for the supply of goods where the credit charge is disclosed to the recipient of the goods: credit charges, including interest and associated fees 40-5.09(3) Item 8 Input taxed Fees associated with the provision of an interest in credit under the hire purchase§ arrangement are input taxed; for example, an establishment fee§
C25A The fees and charges for the supply of goods and finance under a hire purchase§ agreement entered into on or after 1 July 2012 Section 9-5
40-5.12 Items 19 and 20
Taxable Schedule 3, clause 7, item 1
C26 Assignment§ or reassessment of asset fees under a hire purchase agreement entered into before 1 July 2012 40-5.09(3) Item 8 Input taxed To the extent that the fee relates to the credit component it is input taxed.
C26A Assignment§ or reassessment of asset fees under a hire purchase agreement entered into on or after 1 July 2012 Section 9-5
40-5.12 Items 19 and 20
Taxable Schedule 3, clause 7, item 1
C27 Fees and charges for deferred purchase by the purchaser including hire charges, rent or instalments Section 9-5 Taxable Not applicable
C28 Fees and charges for leases§ by the lessee including lease§ charges, rent or instalments Section 9-5
40-5.12 Item 6
Taxable Not applicable
Table C.5: STAMP DUTIES AND OTHER STATE AND COMMONWEALTH DUTIES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C29 On-charging of stamp duties and other Government taxes and charges associated with the supply of goods under an HP agreement Section 9-5 Taxable (that is, relates to transfer of title to the goods) An 'on-charged' stamp duty, tax or charge loses its character (as a tax fee or charge that is not taxable under Div 81) and becomes an input to the underlying supply of the good. See paragraphs 195 to 196 of the Ruling.
Table C.6: INVENTORY OR RECEIVABLES FINANCE
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
C30 Receivables factoring§ and accounts receivable financing§ fees and charges levied by the seller 40-5.09(3) Item 2 Input taxed Fees or charges levied by the seller for services provided by the seller are taxable.
C31 Fees and charges levied by the financier for the assignment§ or sale of receivables (that is, fee for assignment of debt§) or loans§ secured over receivables 40-5.09(3) Item 2 Input taxed Fees or charges levied by the financier for services provided by the financier are taxable.
C32 Floor plan and inventory financing transactions fees and charges Section 9-5
40-5.12 Item 18
Taxable Not applicable
C33 Sales accounting services under a factoring§ arrangement Section 9-5
40-5.12 Item 14
Taxable Not applicable
C34 Fees and charges for factoring§ of taxi vouchers§ by taxi drivers 40-5.09(3) Item 2 Input taxed Not applicable
C35 Fees and charges relating to bailment§ Section 9-5
40-5.12 Item 18
Taxable Not applicable
C36 Fees and charges for floor plan arrangements§ Section 9-5
40-5.12 Item 18
Taxable Not applicable
C37 Establishment fees§ and charges for receivables factoring§ and invoice financing arrangements 40-5.09(3) Item 2 Input taxed Not applicable
C38 Settlement§ fees for receivables factoring§ and invoice financing accounts 40-5.09(3) Item 2 Input taxed Not applicable
C39 Fees and charges for export receivables factoring§ and invoice financing arrangements 40-5.09(3) Item 2 Input taxed Not applicable
C40 Fees and charges for import receivables factoring§ and invoice financing arrangements Section 38-190 GST-free Not applicable

(b) After ASSET-BASED FINANCE in the Heading for Table C.4, insert new footnote 114A:

114A See Line No. C29 re treatment of stamp duties.

29. Table D. Summary of fees and services – Securities §

Omit the table, including the heading; substitute:

Summary of fees and services – Securities §
Table D.1: SECURITIES§: SUPPLIED BY A FINANCIAL SUPPLY PROVIDER§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
D2 Bonds§ and bearer instruments (securities)§, including funeral bonds that are securities 40-5.09(3) Item 10(a) Input taxed Not applicable
D3 Bonds§, stocks or debentures§ issued by a government entity 40-5.09(3) Item 10(a) Input taxed Not applicable
D4 Shares§ in a body 40-5.09(3) Item 10 Input taxed Not applicable
D4A Shares in a corporate collective investment vehicle (CCIV) 40-5.09(3) Item 10 Input taxed A share in a CCIV is a security under the Corporations Act. However, for tax purposes, a share referable to a CCIV sub-fund is taken to be a unit in a unit trust (the CCIV sub-fund trust). See Subdivision 195-C of the ITAA 1997.
D5 Debentures§ or convertible notes§ issued by a body 40-5.09(3) Item 10(a) Input taxed Not applicable
D6 A document issued by an individual that would be a debenture§ if issued by a body corporate 40-5.09(3) Item 10(b) Input taxed Not applicable
D7 Promissory notes§ and bills of exchange 40-5.09(3) Item 10(a) Input taxed Subparagraph (c)(iii) and paragraph (d) of the definition of debenture§ in section 9 of the Corporations Act.

Given as an example of item 10 in Schedule 2, clause 9, item 8.

D8 Dealings in floating rate notes§, commercial bills§, commercial paper§, extendable bill investments and other financial instruments (for example, assignment§, acceptance or discounting) 40-5.09(3) Item 10 Input taxed Given as an example of item 10 in Schedule 2, clause 9, item 6.
D9 Bank cheques§ 40-5.09(3) Item 10 Input taxed Subparagraph (c)(i) of the definition of debenture§ in section 9 of the Corporations Act.
Schedule 2, clause 9, item 9.
D10 Structured notes§ 40-5.09(3) Item 10 Input taxed Given as an example of item 10 in Schedule 2, clause 9, item 4.
D11 Subordinated notes§ 40-5.09(3) Item 10 Input taxed Given as an example of item 10 in Schedule 2, clause 9, item 3.
D12 Fixed income securities§ 40-5.09(3) Item 10 Input taxed Not applicable
D13 Payment of dividends§ No provision, acquisition or disposal of an interest Not subject to GST Payment of a dividend§ is not regarded as consideration for a supply by shareholders for GST purposes however this does not mean that it may not be consideration for another supply; for example, if forgone in exchange for shares.§
Table D.2: SECURITIES§: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
D14 Interests in or under the capital of a partnership 40-5.09(3) Item 10(d) Input taxed See GSTR 2003/13 for general law partnerships. A supply of a financial interest under table item 10(d) of subsection 40-5.09(3) does not arise in situations involving tax law partnerships – see GSTR 2004/6.
D15 Cash distributions from a partnership No provision, acquisition or disposal of an interest Not subject to GST Not applicable
D16 Interests in or under the capital of a trust§ 40-5.09(3) Item 10(d) Input taxed Not applicable
D17 Cash distributions from a trust No provision, acquisition or disposal of an interest Not subject to GST Not applicable
D18 Time share§ schemes 40-5.09(3) Item 10(c) Input taxed Paragraph (b) of the definition of managed investment scheme§ in section 9 of the Corporations Act.
D18A Company title§ schemes 40-5.09(3) Item 10 Input taxed Not applicable
D19 Securities lending§ by a financial supply provider§ 40-5.09(3) Item 10 Input taxed Not applicable
D20 Securities lending§ agency fees Section 9-5 Taxable Not applicable
D21 Money orders§ and postal notes 40-5.09(3) Item 10 Input taxed Not applicable
Table D.3: SECURITIES§: MANAGED INVESTMENT SCHEMES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
D23 Retail and wholesale managed funds 40-5.09(3) Item 10 Input taxed Where a scheme is not registered as a managed investment scheme§, or is not entitled to regulatory relief from being registered, the supply of an interest in such a scheme will still be covered by this item.
D24 An interest in an Investor Directed Portfolio Service (IDPS) such as:

-
wrap accounts§
-
member discretionary masterfunds

or IDPS-like arrangements

40-5.09(3) Item 10 See notes In each case it is necessary to consider whether or not an enterprise is being carried on in respect of the product. Where the IDPS amounts to an entity that is carrying on an enterprise, an interest in the IDPS will be an input taxed supply.
D25 Mortgage investment schemes§ 40-5.09(3) Item 10 Input taxed Where a scheme is not registered as a managed investment scheme§, or is not entitled to regulatory relief from being registered, the supply of an interest in such a scheme will still be covered by this item.
D26 An interest in a scheme in which all of the members are bodies corporate that are related to each other and to the body corporate that promotes the scheme 40-5.09(3) Item 10(c) Input taxed Paragraph (e) of the definition of managed investment scheme§ in section 9 of the Corporations Act.
D27 An interest in a scheme operated by an Australian ADI§ in the ordinary course of its banking business§ 40-5.09(3) Item 10(c) Input taxed Paragraph (i) of the definition of managed investment scheme§ in section 9 of the Corporations Act.
D28 An interest in a barter§ scheme under which each participant may obtain goods or services from another participant for consideration that is wholly or substantially in kind rather than in cash 40-5.09(3) Item 10(c) Input taxed Paragraph (k) of the definition of managed investment scheme§ in section 9 of the Corporations Act.

Supplies of goods or services between participants are not interests in the scheme.

D29 An interest in a scheme that is operated by a co-operative company registered under Part VI of the Companies (Co-operative) Act 1943 of Western Australia or under a previous law of Western Australia that corresponds to that part 40-5.09(3) Item 10(c) Input taxed Paragraph (m) of the definition of managed investment scheme§ in section 9 of the Corporations Act.
D30 Fees and charges for borrowing and lending securities§ through a repurchase (repo) or reverse repurchase§ (reverse repo§), including stock lending 40-5.09(3) Item 10 Input taxed Where a scheme is not registered as a managed investment scheme§, or is not entitled to regulatory relief from being registered, the supply of an interest in such a scheme will still be covered by this item.
Table D.4: SECURITIES§: SECURITISATION ARRANGEMENT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
D32 Assignment§ of an income stream 40-5.09(3) Item 2 Input taxed Not applicable
D33 Issue of bond§ or debenture§ 40-5.09(3) Item 10 Input taxed Not applicable
D34 Rating service§ 40-5.09(3) Item 10 Input taxed If the rating service is provided separately and constitutes an aim in itself, the supply will be taxable under item 3, section 40-5.12.
D35 Co-ordinating the issue of debt securities by the special purpose vehicle§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
D36 Arrangement by a financial supply facilitator§ of the provision, acquisition or disposal of an interest in a security (for example, broking services) Section 9-5
40-5.12 Item 11
Taxable Not applicable
D37 An investor's contribution to a managed investment scheme (including entry fees§ debited from the investor's contribution to the scheme) for the investor's acquisition of an interest in a managed investment scheme§ 40-5.09(3) Item 10 Input taxed When a member makes a contribution to a managed investment scheme, the total contribution made is consideration for the interest in the scheme. When part of that contribution is then debited by the scheme from the member's account or investment as an entry fee, there is no further supply made to the investor by the scheme.

When entry fees are payable in other circumstances, such as the investor making a payment to an entity other than the managed investment scheme entity, the GST treatment of these arrangements needs to be considered on a case-by-case basis. For example, as established in Hance v Commissioner of Taxation [2008] FCAFC 196, some agricultural managed investment schemes may be structured so that investors carry on individual enterprises, and some fees payable may be consideration for taxable supplies.

D37A Exit fees§ debited by the scheme from a member's investment in the scheme when the investor makes a disposal of their interest in a managed investment scheme§ Not consideration for the provision, acquisition or disposal of an interest Not subject to GST When exit fees are included in the calculation of the consideration paid by the managed investment scheme for the member's disposal of the interest in the scheme, they are not separately treated as consideration for the member's disposal of an interest in a managed investment scheme or for any other supply to the member.

However, when exit fees are payable in other circumstances, such as the investor making a payment to an entity other than the managed investment scheme entity, the GST treatment of these arrangements needs to be considered on a case-by-case basis.

D38 Ongoing management (or similar) fees that are debited by the scheme against the investor's account in the managed investment scheme§ Not consideration for the provision, acquisition or disposal of an interest Not subject to GST This is an element of calculating the return to an investor rather than consideration for any supply made by a managed investment scheme§ to an individual member.
D39 Clearance and settlement§ of securities§ or derivatives§ 40-5.12 Item 9 Taxable Not applicable
D40 Facilities for trading securities§ or derivatives§ 40-5.12 Item 9 Taxable Not applicable
D41 Underwriting§ of securities§ (for example, shares§ or debentures§) as financial supply provider§ 40-5.09(3) Items 10 and 11 Input taxed Underwriting§ involves a number of different activities. Where the underwriter agrees to place or take up securities it is unable to place, the fee will be both for supplies it makes as a financial supply provider and a financial supply facilitator. Only that part relating to the supplies as a financial supply provider will be input taxed. The fee will need to be apportioned into its taxable and input taxed components. (Paragraphs 91 to 98 of this Ruling discuss mixed and composite supplies.)
D42 Best endeavours underwriting§ Section 9-5 Taxable Not the provision of an interest mentioned in the table in subsection 40-5.09(3).

30. Table E. Summary of fees and services – Guarantees § and indemnities §

Omit the table, including the heading; substitute:

Summary of fees and services – Guarantees § and indemnities §
Table E.1: GUARANTEES§ AND INDEMNITIES§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
E1 An indemnity§ that is not a contract of insurance 40-5.09(3) Item 7A Input taxed Prior to 1 July 2012, an indemnity was covered by subsection 40-5.09(3) Item 7
E2 A surety bond that is a guarantee§ 40-5.09(3) Item 7 Input taxed Not applicable
E3 A performance bond that is not a contract of insurance 40-5.09(3) Item 7
40-5.09(3) Item 7A
Input taxed A guarantee is covered by Item 7.

An indemnity is covered by Item 7A. Prior to 1 July 2012, an indemnity was covered by Item 7.

E4 Bank guarantees§ and bonds§ 40-5.09(3) Item 7
40-5.09(3) Item 7A
Input taxed A guarantee is covered by Item 7.

An indemnity is covered by Item 7A. Prior to 1 July 2012, an indemnity was covered by Item 7.

E5 Establishing, operating and terminating letters of credit 40-5.09(3) Item 2 Input taxed Not applicable
E6 Warranty for goods 40-5.12 Item 21
Section 9-5
Taxable Prior to 1 July 2012, a warranty for goods was excluded from being a financial supply§ by Item 7 of subsection 40-5.09(3).

31. Table F. Summary of fees and services – Currency

Omit the table, including the heading; substitute:

Summary of fees and services – Currency
Table F.1: CURRENCY: RELATING TO AUSTRALIAN CURRENCY, THE CURRENCY OF A FOREIGN COUNTRY, DIGITAL CURRENCY, OR AN AGREEMENT TO BUY OR SELL ANY OF THESE 3 THINGS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
F2 Conversion of foreign to domestic currency 40-5.09(3) Item 9 Input taxed Not applicable
F3 Foreign currency drafts§ 40-5.09(3) Item 9 Input taxed A separate supply of a foreign currency draft is GST-free under table item 4 of subsection 38-190(1) when the draft must be presented to a bank outside Australia.

Where the foreign currency draft is a transaction under the supply of a transaction account, GSTD 2020/1 will be relevant.

F4 Foreign currency notes§ where the recipient intends to use the notes outside of Australia Subsection 38-190(1) Item 4 GST-free If the recipient of the notes intends to use the notes in Australia (for example, to on supply the notes to another entity in Australia), the supply of the notes to the recipient will not be GST free, but will be input taxed under item 9 of subsection 40-5.09(3).
F5 Fees for travellers cheques§ issued by principal§ 40-5.09(3) Item 9 Input taxed GST-free under table item 4 of subsection 38-190(1) when payee intends to use travellers cheques while located outside Australia.
F6 Fees for repurchase of travellers cheques§ by principal§ 40-5.09(3) Item 9 Input taxed Not applicable
F7 International cheques§ 40-5.09(3) Item 9 Input taxed A separate supply of an international cheque is GST-free under table item 4 of subsection 38-190(1) when the cheque must be presented at a bank outside Australia.

Where the international cheque is a transaction under the supply of a transaction account, GSTD 2020/1 will be relevant.

F8 Forward contracts§ for transactions to buy or sell foreign currency 40-5.09(3) Items 9 and 11 Input taxed GST-free under table item 4 of subsection 38-190(1) when currency is delivered to an overseas account.
F9 Options§ to buy or sell foreign currency 40-5.09(3) Items 9 and 11 Input taxed The supply of a call option will be GST-free if the delivery of currency on exercise of option would itself be a GST-free supply (that is, a forex spot delivered to an overseas account) (paragraph 9-30(1)(b)).
F10 Collection, negotiation§ and endorsement§ of instruments (including cheques§) for payment in foreign currency, including message services 40-5.09(3) Item 9 Input taxed Not applicable
F11 Purchase and sale of cash 40-5.09(3) Item 9 Input taxed Not applicable
F11A Purchase and sale of digital currency 40-5.09(3) Item 9 Input taxed Not applicable
F12 Changing cash into different denominations 40-5.09(3) Item 9 Input taxed Not applicable
F13 Fees levied by agent for travellers cheques§ distributed by agent acting on behalf of issuer Section 9-5 Taxable Where the supply of the travellers cheque (Line No. F5) is GST-free under table item 4 of subsection 38-190(1), the supply of the service by the agent will also be GST-free under table item 4.
F14 Fees levied by agent acting on behalf of issuer for the services of facilitating the repurchase of travellers cheques§ Section 9-5 Taxable Not applicable
F15 Fees and charges for the purchase or sale of Australian currency or the currency of a foreign country for an amount exceeding the stated legal tender value (other than precious metals§) Section 9-5
40-5.12 Item 17
Taxable This item refers to money of numismatic§ interest; that is, it is intended to be collected rather than currency bought and sold for use as currency.
F16 Supply of prepaid travel cards or similar cards issued by an Australian ADI loaded with Australian or foreign currency Subsection 38-190(1) Item 4 GST-free Only GST-free to the extent the card is intended to be used when the cardholder is outside Australia and the cardholder's physical presence outside Australia is integral to the transaction. To the extent the supply is not GST-free, it will be input taxed under Item 1 or Item 9 of subsection 40-5.09(3).

32. Table G. Summary of fees and services – Superannuation, Annuities & Allocated pensions §

Omit the table, including the heading; substitute:

Summary of fees and services – Superannuation, Annuities and Allocated pensions §
Table G.1: SUPERANNUATION
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
G1 Capital contributions to a regulated superannuation fund§, an approved deposit§ fund§, a pooled superannuation trust§ or a public sector superannuation scheme§ within the meaning of the Superannuation Industry (Supervision) Act 1993, or an RSA (retirement savings account) within the meaning of the Retirement Savings Accounts Act 1997 40-5.09(3) Item 4 Input taxed Not applicable
G2 [Omitted.] [Omitted.] [Omitted.] [Omitted.]
G3 Ongoing management (or similar) fees§ that are debited against the member's account in the superannuation fund§ Not consideration for the provision, acquisition or disposal of an interest Not subject to GST This is an element of calculating the return to a member rather than consideration for any supply made by a superannuation fund§ to an individual member.
G5 Fees, charges or payments relating to rollover bonds§ charged to a superannuation fund: management service fees Section 9-5
40-5.12 Item 12
Taxable Not applicable
G6 Fees, charges or payments relating to rollover bonds§ charged to a superannuation fund: transfer (fund switch) fees Section 9-5
40-5.12 Item 12
Taxable Not applicable
G7 Fees, charges or payments relating to rollover bonds§ charged to a superannuation fund: cheque§ issuing fees Section 9-5
40-5.12 Item 12
Taxable Not applicable
Table G.2: ANNUITIES OR ALLOCATED PENSIONS§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
G8 Capital contributions, rollovers§, fees or other payments to superannuation funds§ to establish a pension or allocated pensions§ 40-5.09(3) Item 5 Input taxed Not applicable
G9 Capital contributions, rollovers§, fees or other payments to superannuation funds§ to establish an annuity§ or allocated annuity§ 40-5.09(3) Item 5 Input taxed Not applicable

33. Table H. Summary of fees and services – Derivatives §

Omit the table, including the heading; substitute:

Summary of fees and services – Derivatives §
Table H.1: DERIVATIVES§: FORWARD CONTRACTS§, FUTURES CONTRACTS§, SWAP CONTRACTS AND OPTIONS§ CONTRACTS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
H2 The price of debt securities§ or debt securities index values or interest rates 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(a).
H3 Foreign exchange or currency values or currency index values 40-5.09(3) Items 9 and 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(b).
H4 Share§ or stock prices or equity index values 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(c).
H5 Credit spreads§ or credit events, including:
-  default;
-  other forms of financial distress; and
-  credit index values
40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(d).
H6 Macroeconomic indicators or variables 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(e).
H7 Climatic events or indexes 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 1(f).
Table H.2: DERIVATIVES§: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
H8 Commodity derivatives§ that involve no option, right or obligation to delivery of a commodity 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 2.

Refer to Line Nos. N1 to N5 in relation to commodity transactions, deliverable wool futures and forward contracts (or options over such futures or contracts).

H9 Reciprocal repurchase agreements§ 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 3.
H10 Options§ over input taxed supplies of precious metals§ 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 4.
H11 Securities§ lending agreements 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 5.
H12 Initial and variation margins§ in respect of exchange traded futures contracts§ 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 6.
H13 Cash settlement§ of a derivative§ over the counter or on the exchange rather than the physical delivery of the underlying taxable assets 40-5.09(3) Item 11 Input taxed Given as an example of item 11 in Schedule 2, clause 10, item 7.

Refer to Line Nos. N1 to N5 in relation to commodity transactions, deliverable wool futures and forward contracts (or options over such futures or contracts).

H14 Derivatives structuring fees Section 9-5 Taxable Not applicable
H15 Warrants§ 40-5.09(3) Item 11 Input taxed Not applicable

34. Table I. Summary of fees and services – Insurance

Omit the table, including the heading; substitute:

Summary of fees and services – Insurance
Note: Life insurance business means business that consists of issuing of life policies; issuing of sinking fund policies; undertaking of liability under life policies; undertaking of liability under sinking fund policies; and any related business§. It includes business declared to be life insurance business.
Table I.1: INSURANCE SERVICES: LIFE INSURANCE BUSINESS§ (TO WHICH SUBSECTION 9(1) OF THE LIFE INSURANCE ACT 1995 APPLIES)
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
I2 A contract of insurance that provides for the payment of money§ on the death of a person or on the happening of a contingency dependent on the termination or continuance of human life 40-5.09(3) Item 6 Input taxed Related business includes business relating to the investment, administration and management of the assets of a statutory fund.

Given as an example of item 6 in Schedule 2, clause 4, item 1.

I3 A contract of insurance that is subject to payment of premiums§ for a term dependent on the termination or continuance of human life 40-5.09(3) Item 6 Input taxed Given as an example of item 6 in Schedule 2, clause 4, item 2.
I4 A contract of insurance that provides for the payment of an annuity§ for a term dependent on the continuance of human life 40-5.09(3) Item 6 Input taxed Given as an example of item 6 in Schedule 2, clause 4, item 3.
I5 A continuous disability policy§ (within the meaning of section 9A of the Life Insurance Act 1995) 40-5.09(3) Item 6 Input taxed Given as an example of item 6 in Schedule 2, clause 4, item 5.
I6 A contract that provides for the payment of an annuity§ (in excess of the term prescribed in the Life Insurance Regulations) for a term, not dependent on the continuance of human life 40-5.09(3) Item 6 Input taxed Given as an example of item 6 in Schedule 2, clause 4, item 4.
I7 An investment account contract§ or an investment-linked contract§ (within the meaning of section 14 of the Life Insurance Act 1995) 40-5.09(3) Item 6 Input taxed Given as an example of item 6 in Schedule 2, clause 4, item 6.
I8 Related reinsurance§ business 40-5.09(3) Item 6 Input taxed Not applicable
I9 Life insurance business§ declared to be life Insurance business under subsection 12(2) section 12A or 12B of the Life Insurance Act 1995, or related reinsurance§ business 40-5.09(3) Item 6 Input taxed Not applicable
Table I.2: INSURANCE SERVICES: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
I10 A funeral bond that is a contract of life insurance 40-5.09(3) Item 6 Input taxed Not applicable
I11 A contract of consumer credit insurance within the meaning of the Insurance Contracts Act 1984 Division 78 Taxable This is not a continuous disability policy§ and therefore is not a life policy§ within the meaning of the Life Insurance Act 1995.
I12 A contract of private health insurance Subsection 38-55(1) GST-free A health insurance policy is not a continuous disability policy§ within the meaning of the Life Insurance Act 1995.
I13 A contract of insurance against liability to pay for services supplied by ambulance Subsection 38-55(2) GST-free Not applicable
I14 A contract of insurance for indemnification against (continuous) disability 40-5.09(3) Item 6 Input taxed Not applicable
I15 A contract of insurance that provides for the payment of income benefits during the absence of a person from work due to temporary disability (e.g., salary continuance insurance§) Section 9-5
40-5.12 Item 10
Taxable Salary continuance insurance§ is not continuous disability insurance within the meaning of the Life Insurance Act 1995.
I16 A contract of insurance for indemnification against casualty or property damage (including public liability or third party damage) Section 9-5
40-5.12 Item 10
Taxable Not applicable
I17 Brokerage§ of insurance (including initial or trailing commissions§) Section 9-5
40-5.12 Item 11
Taxable Not applicable
I18 A contract of insurance for indemnification against credit risk or credit losses Section 9-5
40-5.12 Item 10
Taxable Not applicable
I19 Compensation paid to a beneficiary of an insurance policy covering credit risk or credit losses 40-5.12 Item 10
and Division 78
Taxable Not applicable

35. Table J. Summary of fees and services – Advisory & Professional services

Omit the table, including the heading; substitute:

Summary of fees and services – Advisory and Professional services
Table J.1: ADVISORY AND PROFESSIONAL SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
J1 Advice by a legal practitioner in the course of professional practice Section 9-5
40-5.12 Item 3
Taxable Not applicable
J2 Advice by an accountant in the course of professional practice Section 9-5
40-5.12 Item 3
Taxable Not applicable
J3 Advice by a taxation practitioner including preparation of tax returns and business activity statements Section 9-5
40-5.12 Item 3
Taxable Not applicable
J4 Advice by an actuary§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
J5 Rating services for securitisation§ vehicles Section 9-5
40-5.12 Item 3
Taxable Not applicable
J6 Advisory services about syndicated loan§ facilities Section 9-5
40-5.12 Item 3
Taxable Not applicable
J7 Advice about corporate finance transactions Section 9-5
40-5.12 Item 3
Taxable Not applicable
J8 Advice about financial and investment alternatives Section 9-5
40-5.12 Item 3
Taxable Not applicable
J9 General financial advice other than about the operation of accounts or the granting of credit Section 9-5
40-5.12 Item 3
Taxable Not applicable
J10 Valuation services provided by a professional valuer to a financial supply provider§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table J.2: FEES AND CHARGES FOR ADVICE, RESEARCH, INFORMATION, ANALYSIS OR OTHER SIMILAR SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
J12 Mergers and acquisitions Section 9-5
40-5.12 Item 3
Taxable Not applicable
J13 Corporate restructuring Section 9-5
40-5.12 Item 3
Taxable Not applicable
J14 Fund raising Section 9-5
40-5.12 Item 3
Taxable Not applicable
J15 Risk management§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
J16 Financial management, corporate management, business strategy and management Section 9-5
40-5.12 Item 3
Taxable Not applicable
J17 Industry or market structure products Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table J.3: FINANCIAL PLANNING
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
J18 Advice and administration services for estate planning Section 9-5
40-5.12 Item 3
Taxable Not applicable
J19 Assessment of financial position and facilitating financial transactions Section 9-5
40-5.12 Item 3
Taxable Not applicable
J20 Advising on investment strategies and portfolio planning Section 9-5
40-5.12 Item 3
Taxable Not applicable
J21 Facilitating financial structures and planning Section 9-5
40-5.12 Item 3
Taxable Not applicable
J22 Portfolio analysis and review Section 9-5
40-5.12 Item 3
Taxable Not applicable

36. Table K. Summary of fees and services – Brokerage § & Facilitator Services

Omit the table, including the heading; substitute:

Summary of fees and services – Brokerage § and Facilitator Services
Table K.1: BROKERAGE§ AND FACILITATOR SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
K1 Brokerage§, Commission§ or both Section 9-5
40-5.12 Item 11
Taxable Not applicable
K2 Origination fees Section 9-5
40-5.12 Item 11
Taxable Not applicable
K4 Services by a broker or financial supply facilitator§: procuring counterparties to a financial supply§ transaction (for example, syndicated loans§) Section 9-5
40-5.12 Item 11
Taxable Not applicable
K5 Services by a broker or financial supply facilitator§: arranging deposit§, loan§ and securities§ transactions Section 9-5
40-5.12 Item 11
Taxable Not applicable
K6 Services by a broker or financial supply facilitator§: arranging asset based finance, trade finance and inventory or receivable finance transactions Section 9-5
40-5.12 Item 11
Taxable Not applicable
K7 Services by a broker or financial supply facilitator§: arranging financial transactions Section 9-5
40-5.12 Item 11
Taxable Not applicable
K8 Services by a broker or financial supply facilitator§: arranging commodity transactions Section 9-5
40-5.12 Item 11
Taxable Not applicable
K9 Fees and charges for arranging insurance or risk indemnification transactions Section 9-5
40-5.12 Item 11
Taxable Not applicable
K11 Underwriting§ by a financial supply facilitator§: advisory services Section 9-5
40-5.12 Item 3
Taxable Underwriting§ of a security (for example, a share§ or debenture§) may be input taxed if the underwriter agrees to take up securities§ it is unable to place.
K12 Underwriting§ by a financial supply facilitator§: CHESS§ sponsorship Section 9-5
40-5.12 Item 11
Taxable Underwriting§ of a security (for example, a share§ or debenture§) may be input taxed if the underwriter agrees to take up securities§ it is unable to place.
K13 Underwriting§ by a financial supply facilitator§: nominee§ or custodian services Section 9-5
40-5.12 Item 16
Taxable Underwriting§ of a security (for example, a share§ or debenture§) may be input taxed if the underwriter agrees to take up securities§ it is unable to place.
K14 Underwriting§ by a financial supply facilitator§: arrangement of scrip loan facilities Section 9-5
40-5.12 Item 9 or 11
Taxable Underwriting§ of a security (for example, a share§ or debenture§) may be input taxed if the underwriter agrees to take up securities§ it is unable to place.

37. Table L. Summary of fees and services – Trustee § and custodian services

Omit the table, including the heading; substitute:

Summary of fees and services – Trustee § and custodian services
Table L.1: CUSTODY§ SERVICES: CORE CUSTODY SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L2 Clean payments made on behalf of another entity Section 9-5
40-5.12 Item 16
Taxable Not applicable
L3 Settling and undertaking of securities§ transactions at the direction of the custodian§ client Section 9-5
40-5.12 Item 16
Taxable Not applicable
L4 Collecting income and other payments with respect to the securities§ in the fund Section 9-5
40-5.12 Item 16
Taxable Not applicable
L5 Proxy voting§ Section 9-5
40-5.12 Item 16
Taxable Not applicable
L6 Portfolio reporting – settlement§ activity, recurrent reporting Section 9-5
40-5.12 Item 16
Taxable Not applicable
L7 Option§ trading services made on behalf of another entity Section 9-5
40-5.12 Item 16
Taxable Not applicable
L8 Cheque§ drawing Section 9-5
40-5.12 Item 16
Taxable Not applicable
L9 Asset reconciliation§ Section 9-5
40-5.12 Item 16
Taxable Not applicable
L10 Daily cash reconciliation and reporting Section 9-5
40-5.12 Item 16
Taxable Not applicable
L11 Acting as escrow agent§ Section 9-5
40-5.12 Item 16
Taxable Not applicable
L12 Clearing§ and settling securities§ or derivatives§ trades Section 9-5
40-5.12 Item 9
Taxable Not applicable
L13 Transaction authorisation (acting as nominee§ under Power of Attorney§) Section 9-5
40-5.12 Items 3 and 16
Taxable Not applicable
L14 Opening and maintaining bank accounts to facilitate settlement§ of security transactions Section 9-5
40-5.12 Item 16
Taxable This is a fee for a service and distinct from the fee charged by an ADI to open an account which is a financial supply§ under item 1 of subsection 40-5.09(3).
Table L.2: CUSTODY§ SERVICES: MASTER CUSTODY SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L16 Maintenance of accounting records Section 9-5
40-5.12 Item 16
Taxable Item 12 of section 40-5.12 may also apply
L17 Pricing of securities§ Section 9-5
40-5.12 Item 16
Taxable Item 12 of section 40-5.12 may also apply
L18 Taxation reporting Section 9-5
40-5.12 Items 3 and 16
Taxable Item 12 of section 40-5.12 may also apply
L19 Mandate§ monitoring Section 9-5
40-5.12 Item 16
Taxable Item 12 of section 40-5.12 may also apply
L20 Trade execution monitoring Section 9-5
40-5.12 Item 16
Taxable Item 12 of section 40-5.12 may also apply
Table L.3: CUSTODY§ SERVICES: ACCOUNTING AND ADMINISTRATION SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L22 Portfolio performance analysis Section 9-5
40-5.12 Item 16
Taxable Not applicable
L23 Risk management§ reporting Section 9-5
40-5.12 Item 16
Taxable Not applicable
L24 Management accounting Section 9-5
40-5.12 Items 3 and 12
Taxable Not applicable
L25 Cash management Section 9-5
40-5.12 Items 3 and 12
Taxable Not applicable
L26 Unit registry§ services Section 9-5
40-5.12 Items 3, 12 and 16
Taxable Not applicable
L27 Statutory accounts preparation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L28 Tax return (including BAS) preparation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L29 Preparation of Superannuation returns Section 9-5
40-5.12 Item 3
Taxable Not applicable
L30 Maintenance or access to property portfolio database Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.4: REPORTING AND COMPLIANCE SERVICES: TAXATION REPORTS AND ACCOUNTS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L32 Foreign Investment Fund§ (FIF) compliance Section 9-5
40-5.12 Item 3
Taxable Not applicable
L33 Reconciliation of accounting income to taxable income Section 9-5
40-5.12 Item 3
Taxable Not applicable
L34 Taxable income report Section 9-5
40-5.12 Item 3
Taxable Not applicable
L35 Performance analysis Section 9-5
40-5.12 Item 3
Taxable Not applicable
L36 Performance reporting including risk analysis Section 9-5
40-5.12 Item 3
Taxable Not applicable
L37 Statutory accounts Section 9-5
40-5.12 Item 3
Taxable Not applicable
L39 Superannuation funds§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
L40 Unit trusts§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
Table L.5: SAFE CUSTODY
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L41 Rental of safety deposit§ boxes Section 9-5
40-5.12 Items 3 and 16
Taxable Not applicable
L42 Safe custody§ of money§, documents and other things Section 9-5
40-5.12 Items 3 and 16
Taxable Not applicable
Table L.6: PERSONAL TRUST§ AND PERSONAL SERVICES: LEGAL SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L44 Preparation of Power of Attorney§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
L45 Deed§ preparation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L46 Will preparation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L47 Applications for probate§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
L48 Applications for letters of administration Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.7: PERSONAL TRUST§ AND PERSONAL SERVICES: TRUST AND ESTATE ADMINISTRATION SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L50 Trustee§ fee Section 9-5
40-5.12 Item 15
Taxable The fee charged by the trustee§ will be taxable regardless of how it is calculated.
L51 Management fee§ charge for internal common funds§ See note Varied See note May vary depending on structure of internal common funds§ ; that is, whether the management services are supplies individually to each beneficiary or contributor to the common fund or to an entity being the trustee of the common fund. Subject to individual ATO decision (for example, private ruling).
L52 Fee for transferring intestate assets Section 9-5
40-5.12 Item 15
Taxable Not applicable
L53 Co-trustees commission§ Section 9-5
40-5.12 Item 15
Taxable Not applicable
Table L.8: PERSONAL TRUST§ AND PERSONAL SERVICES: PERSONAL SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L55 Fees for holding or managing capital assets on behalf of another entity Section 9-5
40-5.12 Item 12
Taxable Not applicable
L56 Income commission§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
L57 Third party cheque§ fees Section 9-5 Taxable Not applicable
L58 Initial and trailing commissions§ Section 9-5 Taxable Not applicable
L59 Management fee§ charge for internal common funds§ See note Varied See note May vary depending on structure of internal common funds§. Subject to individual ATO decision (for example, private ruling) see Line No. L51.
Table L.9: PERSONAL TRUST§ AND PERSONAL SERVICES: SERVICES TO INVESTMENT FUNDS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L61 Third party prospectus§ management fees§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
L62 Application processing fee Section 9-5
40-5.12 Item 12
Taxable Not applicable
L63 Initial or trailing commissions§ Section 9-5 Taxable Not applicable
Table L.10: PERSONAL TRUST§ AND PERSONAL SERVICES: PROVISION OF PROFESSIONAL SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L65 Directors fee Section 9-5
40-5.12 Item 3
Taxable Not applicable
L66 Secretarial fee Section 9-5
40-5.12 Item 3
Taxable Not applicable
L67 Registered office fee§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
L68 Taxation fee Section 9-5
40-5.12 Item 3
Taxable Not applicable
L69 Accountancy fee Section 9-5
40-5.12 Item 3
Taxable Not applicable
L70 Land tax return fee Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.11: PERSONAL TRUST§ AND PERSONAL SERVICES: SERVICES PERFORMED BY STATUTORY TRUSTEE ORGANISATIONS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L72 Property inspection Section 9-5
40-5.12 Item 3
Taxable Not applicable
L73 Property valuation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L74 Property management Section 9-5
40-5.12 Item 3
Taxable Not applicable
L75 Acting as Trustee§ Section 9-5
40-5.12 Item 15
Taxable Not applicable
L76 Strata management Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.12: SUPERANNUATION TRUSTEE§ SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L77 Trusteeship of corporate superannuation funds§ Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L78 Trusteeship of Public Offer superannuation funds§ Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L79 Manage investment strategy Section 9-5
40-5.12 Items 3, 12 and 15
Taxable Not applicable
L80 Manage accounts and records Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L81 Prepare client statements Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L82 Document security Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L83 Act as approved trustee§ Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L84 Collect and process dividends§ or interest Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L85 Effecting the transfer of title to securities§ Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L86 Receive or take up entitlement issues Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L87 Purchase or sell investments Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L88 Record investments purchase or sale transactions Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L89 Reconcile bonus shares, rights issues, dividends§ Section 9-5
40-5.12 Items 12 & 15
Taxable Not applicable
Table L.13: CORPORATE SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L90 Compliance advice Section 9-5
40-5.12 Items 3 and 15
Taxable Not applicable
L91 Prepare superannuation and taxation returns (including BAS) Section 9-5
40-5.12 Items 3 and 15
Taxable Not applicable
L92 CHESS§ or CHAMP§ administration Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L93 Provide and confirm buy or sell instructions through CHESS§ or CHAMP§ Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
L95 Trustee§ services provided in acting as trustee§ for structured finance funds Section 9-5
40-5.12 Item 15
Taxable Not applicable
L96 Trustee§ services provided in acting as trustee§ of a unit trust§ Section 9-5
40-5.12 Item 15
Taxable Not applicable
L97 Trustee§ services provided in acting as trustee§ of debenture§ and note issues Section 9-5
40-5.12 Item 15
Taxable Not applicable
L98 Trustee§ services provided in acting as trustee§ for security bonds Section 9-5
40-5.12 Item 15
Taxable Not applicable
L99 Trustee§ services provided in acting as trustee§ of a trust§ or other entity Section 9-5
40-5.12 Item 15
Taxable Given as an example of item 15 in Schedule 3, clause 6, item 1.
L100 Trustee§ services provided in acting as trustee§ under a will or settlement§ Section 9-5
40-5.12 Item 15
Taxable Given as an example of item 15 in Schedule 3, clause 6, item 2.
L101 Trustee§ services provided in acting as mortgage§ custodian§ Section 9-5
40-5.12 Item 16
Taxable Not applicable
L103 Statutory accounts preparation Section 9-5
40-5.12 Item 3
Taxable Not applicable
L104 Compliance services§ Section 9-5
40-5.12 Item 3
Taxable Not applicable
L105 Preparation of financial plans Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.14: SECURITISATION: SERVICES PROVIDED IN ACTING AS TRUSTEE§ OVER A UNIT TRUST§ STRUCTURE FOR MORTGAGE BACKED§ AND ASSET BACKED§ SECURITISATION§ PROGRAMS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L107 Review of legal documentation Section 9-5
40-5.12 Items 3 and 15
Taxable Not applicable
L108 Activity of acquiring title to mortgages§ Section 9-5
40-5.12 Item 15
Taxable This is distinct from gaining an interest in the mortgage§ as financial supply provider under table item 3 of section 40-5.09(3).
L109 Maintenance of trust§ bank accounts in the Trustee's name Section 9-5
40-5.12 Item 15
Taxable Not applicable
L110 Holding authorised investments in the Trustee's name Section 9-5
40-5.12 Item 15
Taxable Not applicable
L111 Maintaining trust§ ledger accounts in accordance with the Trust Deed§ Section 9-5
40-5.12 Item 15
Taxable Not applicable
L112 Safekeeping of physical securities§ and documents evidencing title to assets and maintenance of electronic records or depository balances Section 9-5
40-5.12 Item 15
Taxable Not applicable
L113 Settling all funds received from the relevant assets in accordance with the Trust Deed§ Section 9-5
40-5.12 Item 15
Taxable Not applicable
L114 Ensuring prompt payment to bondholders, either in certified form on a register or on a nominated depository Section 9-5
40-5.12 Item 15
Taxable Not applicable
L115 Appointing auditors Section 9-5
40-5.12 Item 15
Taxable Not applicable
Table L.15: SECURITISATION: SERVICES IN ACTING AS SECURITY TRUSTEE§ FOR MORTGAGE BACKED AND ASSET BACKED SECURITISATION§ PROGRAMS
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L117 Hold charge over assets of special purpose vehicle to secure payment to bondholders Section 9-5
40-5.12 Item 15
Taxable The acquisition of the mortgage§ or charge over the assets of the special purpose vehicle by the security trustee§ (in their own right) may be a financial supply§ if the other requirements of section 40-5.09 are met.
L118 Acting as custodian§ of assets of special purpose vehicle Section 9-5
40-5.12 Item 15
Taxable The acquisition of the mortgage§ or charge over the assets of the special purpose vehicle by the security trustee§ (in their own right) may be a financial supply§ if the other requirements of section 40-5.09 are met.
L119 Registrar services and maintenance of securities§ register Section 9-5
40-5.12 Item 15
Taxable The acquisition of the mortgage§ or charge over the assets of the special purpose vehicle by the security trustee§ (in their own right) may be a financial supply§ if the other requirements of section 40-5.09 are met.
Table L.16: SECURITISATION: SERVICES IN ACTING AS BARE TRUSTEE§ OR MORTGAGE§ DOCUMENT CUSTODIAN§
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L121 Holding documentation in safe custody§ Section 9-5
40-5.12 Items 15 and 16
Taxable Not applicable
L122 Input documentation on to document tracking system Section 9-5
40-5.12 Item 15
Taxable Not applicable
L123 Tracking relevant documents Section 9-5
40-5.12 Item 15
Taxable Not applicable
L124 Reviewing correctness of relevant documents Section 9-5
40-5.12 Item 15
Taxable Not applicable
L125 Obtaining approval from the beneficiary of the bare trust§ to execute or release documentation Section 9-5
40-5.12 Item 15
Taxable Not applicable
L126 Arranging for signatories to execute releases Section 9-5
40-5.12 Item 15
Taxable Not applicable
L127 Forwarding documentation to the appropriate party Section 9-5
40-5.12 Item 15
Taxable Not applicable
Table L.17: SECURITISATION: OTHER
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L129 Fees and charges for coordinating the issue of debt securities§ by the special purpose vehicle Section 9-5
40-5.12 Item 12
Taxable See Line No. D32.
L130 Fees and charges for servicing loan§ assets including loan management and debt§ collection services Section 9-5
40-5.12 Items 12 and 13
Taxable Not applicable
L131 Fees and charges for the provision of liquidity facilities, swaps§, letters of credit and other financial accommodation 40-5.09(3) Items 2 and 11 Input taxed Not applicable
L132 Fees and charges for the issue of debt§ or equity securities§ to investors 40-5.09(3) Item 10 Input taxed Not applicable
L133 Rating services for securitisation§ vehicles Section 9-5
40-5.12 Item 3
Taxable Not applicable
Table L.18: SECURITISATION: SECURITISATION§ ARRANGEMENT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
L135 Assignment§ of an income stream 40-5.09(3) Item 2 Input taxed See Line No. D32.
L136 Issue of bond§ or debenture§ 40-5.09(3) Item 10 Input taxed See Line No. D33.
L137 Rating service§ 40-5.09(3) Item 10 Input taxed If the rating service is provided separately and constitutes an aim in itself, the supply will be taxable under item 3, section 40-5.12. See Line Nos. D34 and L133.

38. Table M. Summary of fees and services – Funds management

Omit the table, including the heading; substitute:

Summary of fees and services – Funds management
Table M.1: FUNDS MANAGEMENT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
M1 Fees and charges for managing an asset portfolio or funds under management Section 9-5
40-5.12 Item 12
Taxable Not applicable
M2 Fees and charges for administration of an asset portfolio or funds under management Section 9-5
40-5.12 Item 12
Taxable Not applicable
M3 Acting as the trustee of an entity Section 9-5
40-5.12 Items 12 and 15
Taxable Not applicable
Table M.2: FUNDS MANAGEMENT: INVESTMENT PORTFOLIO ADMINISTRATION SERVICES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
M5 Maintaining account holder records and associated accounting Section 9-5
40-5.12 Item 12
Taxable Not applicable
M6 Processing of contributions and returns Section 9-5
40-5.12 Item 12
Taxable Not applicable
M7 Storage and retrieval of archived documents Section 9-5
40-5.12 Item 12
Taxable Not applicable
M8 Statement processing and bulk mailing Section 9-5
40-5.12 Item 12
Taxable Not applicable
M9 Rental of safety deposit§ boxes Section 9-5
40-5.12 Item 16
Taxable Not applicable
M10 Clean payments made on behalf of another entity Section 9-5
40-5.12 Item 12
Taxable Not applicable
M11 Settling and undertaking of securities§ transactions at the direction of the custodian§ client Section 9-5
40-5.12 Item 12
Taxable Not applicable
M12 Collecting income and other payments with respect to the securities§ in the fund Section 9-5
40-5.12 Item 12
Taxable Not applicable
M13 Proxy voting§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
M14 Portfolio reporting – settlement§ activity, recurrent reporting Section 9-5
40-5.12 Item 12
Taxable Not applicable
M15 Option§ trading services performed on behalf of another entity Section 9-5
40-5.12 Item 12
Taxable Not applicable
M16 Fees charged by a funds manager for opening and maintaining bank accounts to facilitate settlement§ of security transactions Section 9-5
40-5.12 Item 12
Taxable Not applicable
M17 Safekeeping of physical securities§ and maintaining electronic records of depository balances Section 9-5
40-5.12 Item 16
Taxable Not applicable
Table M.3: FUNDS MANAGEMENT: ACCOUNTING AND ADMINISTRATIVE SERVICES FOR FUNDS UNDER MANAGEMENT
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
M19 Maintenance of accounting records Section 9-5
40-5.12 Item 12
Taxable Not applicable
M20 Pricing of securities§ Section 9-5
40-5.12 Item 12
Taxable Not applicable
M21 Taxation reporting Section 9-5
40-5.12 Item 12
Taxable Not applicable
M22 Mandate§ monitoring Section 9-5
40-5.12 Item 12
Taxable Not applicable
M23 Trade execution monitoring Section 9-5
40-5.12 Item 12
Taxable Not applicable
M24 Portfolio performance analysis Section 9-5
40-5.12 Item 12
Taxable Not applicable
M25 Risk management§ reporting Section 9-5
40-5.12 Item 12
Taxable Not applicable

39. Table N. Summary of fees and services – Commodities and Collectibles

Omit the table, including the heading; substitute:

Summary of fees and services – Commodities and Collectibles
Note: Refer to Line Nos. H8 and H13 in relation to:

commodity derivatives involving no option, right or obligation to delivery
cash settled derivatives.

Table N.1: COMMODITIES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
N1 Purchase and sale of commodities Section 9-5 Taxable Not applicable
N2 Deliverable wool futures and forward contracts§ Section 9-5
40-5.12 Item 7
Taxable Schedule 3, clause 3 item 1.
N3 Deliverable wheat futures and forward contracts§ Section 9-5
40-5.12 Item 7
Taxable Schedule 3, clause 3 item 2.
N4 Options§ over a deliverable wool future or forward contract§ Section 9-5
40-5.12 Item 7
Taxable Schedule 3, clause 3 item 3.
N5 Options§ over deliverable wheat futures and forward contracts§ Section 9-5
40-5.12 Item 7
Taxable Schedule 3, clause 3 item 3.
Table N.2: COLLECTIBLES
Line no. Supply, service or consideration GST Regulation or GST Act GST status Notes
N6 Collector's piece (other than precious metals§) Section 9-5 Taxable Excluded from the definition of money§ in section 195-1 of the GST Act and not included as a financial supply§ in any item under regulation.
N7 Investment articles (other than precious metals§) Section 9-5 Taxable Excluded from the definition of money§ in section 195-1 of the GST Act and not included as a financial supply§ in any item under regulation.
N8 Item of numismatic§ interest (other than precious metals§) Section 9-5 Taxable Excluded from the definition of money§ in section 195-1 of the GST Act and not included as a financial supply§ in any item under regulation.
N9 Currency the market value of which exceeds its stated value as legal tender in the country of issue (other than precious metals§) Section 9-5
40-5.12 Item 17
Taxable Excluded from the definition of money§ in section 195-1 of the GST Act and not included as a financial supply§ in any item under regulation.

This Addendum applies from both before and after its date of issue.

Commissioner of Taxation
20 November 2024

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

References

ATO references:
NO 1-W39TGPE

ISSN: 2205-6157

Business Line:  ISP


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).