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Re: ACMA Federal Governement Grant

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Do i include a grant for GST Turnover for Jobkeeper, that is received from a federal government agency ACMA (Australian Community & Media Authority)  It includes GST.  The grant is only paid when a taxable supply is made in this case for website costs from a supplier and then the Grant is paid to the client.  The amount of the grant is equal to this invoice.  Do I include the grant for GST Turnover as i am under the impression that it may be excluded based on the following comment in 

 

*  sales that are not made for payment (unless a taxable supply to an associate)

 

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Most helpful response

Dynamo

Replies 1

@kjhos1 

 

It states the following under the Law Companion Ruling (LCR) 2020/1

 

Government payments made to you that are not consideration for a supply are not
included in calculating your GST turnover. Whether a government grant is consideration
for a supply is considered in Goods and Services Tax Ruling GSTR 2012/2 Goods and
Services tax: financial assistance payments 

 

For example, the following government payments are not consideration for a supply and therefore not included in GST turnover

- JobKeeper payment
- cash flow boost payment
- the Early Childhood Education & Care Relief Package paid to approved
child care providers

- payment of grants to an entity where the entity has no binding obligations to do anything or does not provide goods and services in return for the monies.

Here is the link to the Law Companion Ruling:

 

https://www.ato.gov.au/law/view/pdf/pbr/lcr2020-001.pdf

 

 

 

2 REPLIES 2

Most helpful response

Dynamo

Replies 1

@kjhos1 

 

It states the following under the Law Companion Ruling (LCR) 2020/1

 

Government payments made to you that are not consideration for a supply are not
included in calculating your GST turnover. Whether a government grant is consideration
for a supply is considered in Goods and Services Tax Ruling GSTR 2012/2 Goods and
Services tax: financial assistance payments 

 

For example, the following government payments are not consideration for a supply and therefore not included in GST turnover

- JobKeeper payment
- cash flow boost payment
- the Early Childhood Education & Care Relief Package paid to approved
child care providers

- payment of grants to an entity where the entity has no binding obligations to do anything or does not provide goods and services in return for the monies.

Here is the link to the Law Companion Ruling:

 

https://www.ato.gov.au/law/view/pdf/pbr/lcr2020-001.pdf

 

 

 

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Replies 0

By far the most relevant and accurate information on anything related to eligibility from anything on the forum...including from the ATO.

 

So indebted to you for sharing.  Was on the phone for an hour only to be told I would have to submit a letter to the Commissioner