On 2 November 2011 the Australian Taxation Office released Draft
GST Ruling GSTR 2011/D4: Grants of Financial Assistance (the
"Draft Ruling"). The draft ruling represents a
substantial rewrite of an earlier ruling on the same topic, GSTR
2000/11 (the "Old Ruling"), and follows numerous court
decisions which have both challenged and developed the ATO's
interpretation of the GST law.
Both providers and recipients of grants should review their GST
treatment in light of the Draft Ruling, as some aspects of the
ATO's interpretation of the law have changed, particularly in
the areas of peripheral supplies and tripartite arrangements.
Arrangements covered by the Draft Ruling
The Draft Ruling has similar scope to the Old Ruling, and covers
grants of financial assistance by organisations such as
governments, government bodies, not-for-profit bodies, charities
and other entities. It classifies grants into payments for:
