Changes to the GST treatment of Government charges
The GST treatment of government taxes and charges is changing. In the past, the Treasurer would specifically list, in an annual determination, each government tax and charge that is GST-free.
The tax laws regarding this system were amended in 2011, but a transitional period was allowed so that government charges listed on the Treasurer’s determination were still exempt until 30 June 2013.
The ATO has reminded taxpayers that the Treasurer’s current determination listing government charges that are exempt from GST will no longer apply from 1 July 2013.
This means that, from 1 July 2013, taxpayers must review all their government charges to self-assess whether GST is payable.