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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 38.250 Nominal consideration etc.

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 38.250

Nominal consideration etc.

  (1)   A supply is GST - free if:

  (a)   the supplier is an * endorsed charity, a * gift - deductible entity or a * government school; and

  (b)   the supply is for * consideration that:

  (i)   if the supply is a supply of accommodation--is less than 75% of the * GST inclusive market value of the supply; or

  (ii)   if the supply is not a supply of accommodation--is less than 50% of the GST inclusive market value of the supply.

  (2)   A supply is GST - free if:

  (a)   the supplier is an * endorsed charity, a * gift - deductible entity or a * government school; and

  (b)   the supply is for * consideration that:

  (i)   if the supply is a supply of accommodation--is less than 75% of the cost to the supplier of providing the accommodation; or

  (ii)   if the supply is not a supply of accommodation--is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.

  (4)   Subsections   (1) and (2) do not apply to a supply by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section   30 - 120 of the ITAA 1997, unless:

  (a)   the supplier is:

  (i)   an * endorsed charity; or

  (ii)   a * government school; or

  (iii)   a fund, authority or institution of a kind referred to in paragraph   30 - 125(1)(b) of the ITAA 1997; or

  (b)   each purpose to which the supply relates is a * gift - deductible purpose of the supplier.

Note:   This subsection denies GST - free status under this section to supplies by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST - free under this section if they relate to the principal purpose of the fund, authority or institution.

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