ARTICLE · 10 JULY 2008

GST And Forfeited Deposits

Hunt & Hunt

Explore more from Hunt & Hunt

FCT –v– Reliance CarpetCo Pty Limited is of interest to people selling properties because it was the first GST case heard in the High Court and involved the forfeiture of a deposit.

AustraliaTax

Author LinkedIn connections

FCT –v– Reliance Carpet Co Pty Limited is of interest to people selling properties because it was the first GST case heard in the High Court and involved the forfeiture of a deposit.

Facts

The purchaser of a property failed to settle in time and the sale contract was rescinded and the deposit forfeited to the vendor. The purchaser's accountant requested a tax invoice for the forfeited deposit. The vendor declined to provide a tax invoice on the basis that the deposit was retained as damages in part satisfaction of the vendor's loss and was not consideration for a taxable supply. The vendor was assessed for GST on the forfeited deposit, and objected to the assessment.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Spotlight On The Australian Tax Landscape: Three Recent Developments

Corrs Chambers Westgarth

Foreign Resident CGT Changes And Implications For M&A Transactions

Herbert Smith Freehills Kramer LLP

JONES DAY PRESENTS®: Navigating Australia's Toughening Tax Controversy Landscape (Video)

Navigating Australia's Toughening Tax Controversy Landscape (Video)

Changes To Tasmanian Duty And Land Tax

Herbert Smith Freehills Kramer LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a

Holding Redlich

Minimum Tax On Discretionary Trusts: What The Exposure Draft Means For Trustees

The Australian Government has released exposure draft legislation for a proposed 30% minimum tax on discretionary trusts, effective from 1 July 2028. Trustees now face three strategic pathways: remain within the minimum tax regime, restructure using transitional rollover relief, or elect into the new excluded election trust (EET) regime with restricted distribution flexibility.

Holding Redlich

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.

Corrs Chambers Westgarth

Federal Budget 2026–27: Key Tax Changes And What Clients Need To Know

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.

Bartier Perry Solicitors

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth

Holding Redlich

ATO audit warning - family trust elections - when an interposed entity election is appropriate

It is important to determine whether your arrangements within your family trusts are compliant with schedule 2F of the ITAA.

Pointon Partners

Australian Federal Budget 2026-2027–Key Tax Measures And Instant Insights

The Australian Federal Budget for 2026-2027 introduces sweeping reforms to the tax system, including a controversial 30% minimum tax on discretionary trusts, abolition of the 50% CGT discount in favor of cost base ...

Property Taxes In Victoria Series: Land Tax

Land tax is an annual tax on land ownership in Victoria, assessed on the total unimproved (which is the value of the land alone, without considering any improvements) value of taxable land that you own in the state.

The ATO’s Firmer Approach To Small Business Debt Collection

The Australian National Audit Office's recent review of the ATO's management of small business collectable debt reveals significant findings that will reshape how tax authorities approach debt recovery. With small business debt reaching $35.9 billion and the ATO accepting all eight recommendations for reform, advisers and business owners face a new landscape of firmer collection activity and heightened accountability. Understanding these changes and their implications for unpaid tax liabilities, director pe

The law, defences and penalties for tax fraud and tax evasion in Australia

There are important differences between the terms tax fraud, tax evasion and tax avoidance.

Sydney Criminal Lawyers