What is a supply?

GST comes into play when a supply is made, which covers a multitude of situations e.g.
  • supplying goods
  • providing services, advice or information
  • granting, assigning or surrendering real property
  • creating, granting, transferring, assigning or surrendering any right
  • financial services
  • entering into an obligation to do something, refrain from doing something or tolerate something or releasing somebody from such an obligation
  • any combination of these

  • A supply has the following characteristics:
  • is for consideration [can be in kind rather than monetary]
  • is made in the course or furtherance of an enterprise
  • is connected with Australia
  • the supplier is a registered person

  • Supplies fall into three broad bands:

    1. Taxable
    This would apply to the majority of supplies, which would be subject to a 10% charge.
    2. GST – free
    These are supplies where the supplier does not charge GST but is entitled to claim GST credits on things it acquires to make the supply.
    Such supplies include : exports, international travel, health, education, food [with complicated exceptions] and certain charitable activities.

    See the Goods & Services Tax Ruling [GSTR] 2001/1 which details supplies that are GST free for tertiary education courses.
    3. Input taxed
    These are supplies where the supplier does not charge GST but is not entitled to claim GST credits on things it acquires to make the supply.
    Such supplies include: financial services and residential rent [exceptions apply to non-commercial rent supplied by charitable institutions].

    The majority of educational courses supplied by the University will be GST free.

    We have provided an easy to use table to help determine whether a supply is taxable, GST-free or input taxed.

    What is an acquisition?

    The ability to claim GST credits hinges on whether a creditable acquisition has been made. Such an acquisition must:
  • be solely or partly for a creditable purpose i.e. carrying on an enterprise
  • relate to a taxable supply to you
  • you must be liable to provide consideration
  • you must be registered

  • In order to claim a GST credit for an acquisition over $50 [$55 inclusive of GST] it is necessary to be in position of a valid tax invoice. For acquisitions of less than $50, the ATO have relaxed the legislation and GST credits can be claimed on acquisitions that are normally taxable supplies even if no tax invoice available.