Updated 19 October, 2001

AVCC GST Library - to provide the higher education sector with easy access to up to date information regarding the GST to assist Universities prepare for GST implementation. (Australian Vice-Chancellors' Committee)
Library-Related Questions.
Official Sites (Government)
Legislation
Frequently Asked Questions.
GST Made Easy.

Official Sites (Government)

The New Tax System.  Tax Reform Unit, Australian Taxation Office (ATO)
Charities and Non-profit organisations
Publications Index
(Booklets, Fact Sheets, GST Bulletins, GST Determinations and Rulings, Miscellaneous Rulings, Other Useful GST Information)
Rulings
GSTR 2000/D11 - Goods and Services Tax: when consideration is provided and received for various payment instruments (DRAFT)
GSTR 2000/30 - Goods and Services Tax: supplies that are GST - free for pre-school, primary and secondary education courses
GSTR 2000/D15 - Goods and services tax: foreign exchange rates that work out the consideration for a taxable supply (DRAFT) - see also  http://www.rba.gov.au/Statistics/exchange_rates.html  for RBA official exchange rates
GSTR 2000/31 - Goods and services tax: supplies connected with Australia
GSTR 2000/17 - Goods and services tax: tax invoices
Bulletins
GSTB 2000/3 - How you calculate and pay GST on a progressive or periodic supply that spans 1 July 2000
Determinations
GSTD 2000/3: Goods and Services Tax: transitional arrangements: to what extent is the supply of services made on or after 1 July 2000, where the supply spans that date?
Publications
Higher Education and Training (Nat 2995) - industry publication on the implementation of the GST.  Australian Tax Office
HECS and the GST.  Higher Education Contribution Scheme. (ATOassist)
(Exempt Taxes, Fees and Charges) Determination 2000 (as gazetted on 1 March 2000) (Treasury) (AU)
Media Releases & Speeches.  Australian Taxation Office (ATO)
GST for Advisors is a comprehensive training and development tool designed by the Tax  Office to provide tax professionals with the fundamental information they need to know about  the GST.
The Tax Reform Planner  -  a month by month view of Tax Reform developments.
GST Start-up Assistance Office
Pay-as-You-Go  - includes procedures for withholding
ATOassist - general tax assistance for business | individuals | tax practitioners
Business Entry Point - a service to Australian businesses to make it easier to deal with government - an initiative of the Australian Federal Government, and all States and Territories. [Register here from November 1999 for The New Tax System]
Australian Competition and Consumer Commission - GST site

Links to the legislation for The New Tax System (from SCALEplus http://scaleplus.law.gov.au at the  Australian Attorney General's Department.)

Explanatory Memoranda.
A New Tax System (Commonwealth-State Financial Arrangements) Bill 1999 (EMs not available)
A New Tax System (Commonwealth-State Financial Arrangements) Bill 1999, Supplementary EM [PDF]
A New Tax System (Commonwealth-State Financial Arrangements— Consequential Provisions) Bill 1999, EM [PDF]
A New Tax System (Commonwealth-State Financial Arrangements— Consequential Provisions) Bill 1999, Supplementary EM [PDF]
A New Tax System (Taxation Laws Amendment) Bill (No. 1) 1999, EM [PDF]
A New Tax System (Taxation Laws Amendment) Bill (No. 1) 1999, Supplementary EM [PDF]

The following questions relate specifically to university library services in Australia.  The answers must not be considered as a legal opinion.  No responsibility is taken for their accuracy or otherwise, although all care is taken, and reputable persons and organisations have been consulted in their drafting.

Preamble.  The Australian Vice-Chancellors' Committee (AVCC) employed Ernst & Young (see also presentations by E&Y) to provide advice on the implications and implementation of GST management processes for Australian universities.  Ernst & Young prepared a report, which has been recently updated, and have run a series of seminars in universities discussing how the implementation can be approached in each institution.  Representatives of the participating universities were advised how to ensure that this information could be transmitted throughout their institutions.  Some universities chose not to participate in the seminars (ANU, Bond, CSU, Adelaide).

The AVCC is not intending to issue any guidelines to universities on a single approach, but it is understood that discussion is being held among the universities within some States in an attempt to address the issues collectively.  Consequently CAUL members will need to be aware of the policy and processes within their own institution.

Some definitions:
GST-liable: you pay, and reclaim, GST on goods and services used to produce the good or service and you charge GST on the good or service to the recipient.  This is the standard arrangement for most things.  In these cases the GST charged to the recipient should be higher than the GST reclaimed on the inputs and hence the ATO collects money in net terms.

GST-free: you pay, and reclaim, GST on goods and services used to produce the good or service but you do not charge GST on the good or service to the recipient. This is for some special cases only such as education courses, health, food.  In these cases the ATO is refunding money (money it received from whoever provided the inputs. Hence ATO neither gains nor loses).

Input taxed: category you should not have to worry about.  Applies to financial and accommodation services.   You pay, but do not reclaim, GST on goods and services used to produce the financial or accommodation service but you do not charge GST on the financial or accommodation service to the recipient. 

Frequently asked questions - DOFA GST Unit

• Q.  Education courses leading to recognised awards are GST-free.  Research is not GST free. How do you determine which purchases of library books and journals for research and/or teaching are GST-free?
• A.  There is no requirement to differentiate between research and teaching for library purchases.  GST paid on all such purchases can be claimed back from the Tax Office (ATO). The difference between GST-free services and GST-liable services is that GST is charged on the latter but not the former. In both cases all GST paid on purchases needed to provide the good or service can be reclaimed.

• Q.  Summer schools and courses offered on a not-for-award basis eg continuing education, bridging courses, etc are likely to attract a GST on their fees.  How do you determine which purchases of library books and journals and which library services are GST-free?
• A.  Although universities will be required to collect a GST on any fees for such courses, it is not necessary to differentiate between books and journals which may or may not be used in those courses.  GST paid on all such purchases can be claimed back from the Tax Office (ATO).
• A GST will be applied to all purchases sourced from Australian vendors or agents.  This can be claimed back from the ATO.
• Q.  Already some invoices for annual subscriptions are showing a pro rata GST, but there is no mechanism in place to claim it back.  Do I pay the whole invoice now, or pay the GST component only when it is able to be claimed back?
• A.  Your university will be establishing its own policy for handling of invoices for which a part is GST-liable.  This policy might be inter alia:
• pay the whole invoice now, but keep track of such invoices for claiming after July 1, 2000.
• pay  pro rata until 30 June, 2000 and pay the rest after July 1, 2000
• pay the invoice minus the GST component, and pay the rest after July 1, 2000.
• Q.  How will I know if the vendor is passing on the reduced costs engendered by the removal of the Wholesale Sales Tax (WST)?
• A.  You should ask the vendor, especially if there appears to be no reduction in the price, or if the increase in the subscription does not appear to be less.  It may be that the trickle-down effects of the removal of the WST will not appear until 2001 or even later, but it is sensible to ask.  The Australian Competition and Consumer Commission (ACCC) will be monitoring the situation.
• Q.  Which universities are implementing which policy?
• A.  ????
• Q.  The GST is not payable at source on goods and services purchased directly from foreign vendors.  The GST may or may not be levied by Customs depending on the mode of entry into Australia (post, sea or air cargo) and on the value of the goods.  How do I know which items attract a GST?
• A.  All GST payable on goods and services is claimable from the ATO.  It is simplest to assume that every item (including electronic services) attracts a GST, which is then claimable.  In the case of imports the purchaser is required to pay GST on the import. At present it is to be paid when passing customs. However the legislation allows for regulations to allow payment at the same time as the importer pays or reclaims GST to or from the ATO. Assuming the regulations are made this means that the university will simply record the notional amount on both sides of the reporting ledger (GST paid and GST reclaimed).
• Q.  Consolidation services will charge a GST on their services as well as the items they supply.  Can this be claimed back?
• A.  The GST on all goods and services may be claimed back.  The amount payable and claimable is based on the total amount charged on the invoice, whether goods or services.
• Q.  How will the GST affect consortium purchases such as those handled by the CAUL Office?
• A.  When CAUL purchases a consortium subscription it will be responsible for the GST payment to the ATO.  CAUL will invoice each institution for its share of the subscription cost, including the GST component.  Each institution will then claim the GST component from the ATO.  The effect is GST-neutral both to CAUL and to the institution.
• Q.  Will the GST have to be levied on photocopying services, library fines, library membership fees, services to other libraries, including inter-library loan and document delivery?
• A.  It is unlikely that photocopying will be deemed to be an educational service so a GST must be charged and payable to the ATO.
• A.  Library fines are subject to a GST.
• A.  Library membership fees are subject to a GST.
• A.  Services to other libraries, including inter-library loan and document delivery are subject to a GST.
• Q.  Is it necessary to issue an invoice when supplying an inter-library loan if the charge is less than $50?
• A.  No invoice is required. The amount of GST charged can still be reclaimed. The amount is assumed to be 1/11 of the amount paid. Issuing and receiving an invoice in these cases may ease record keeping.
• Q.  The standard cost of an inter-library loan is $12 even though this is understood to be less than the real value of the service.  Does the GST apply to the charge of the service or the value of the service?
• A.  It is likely to apply to the charge, unless the service has been deliberately undervalued as a means of avoiding some part of the GST.
• Q.  Is it necessary for each library to obtain its own ABN (Australian Business Number) in order to manage its GST transactions?
• A.  Each university will decide which of its units will need a unique ABN and which units will use the university's ABN.  It is likely that many will chose to handle GST transactions centrally, except for special units such as commercial arms, etc.

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This site is written, compiled and maintained by Diane Costello, Executive Officer, CAUL.