The case concerned how gambling operators calculate wagers by non-residents, the global GST amount under Division 126 of the GST Act and whether the restriction in s 105-65 of the Taxation Administration Act 1953 applied to the overpaid GST.
The Court held that, when calculating the global GST amount under s 126-10 of the GST Act, "total monetary prizes" includes monetary prizes paid to non-resident customers. The Court also held that s 105-65 did not apply because it could not be said that the overpayments made by the taxpayers arose because supplies were treated as taxable supplies, or arrangements were treated as giving rise to taxable supplies, to any extent.
Legislative amendments which took effect from 24 March 2010 make it clear that, for tax periods commencing on or after 24 March 2010, both wagers made by, and monetary prizes paid to, non-residents are excluded from the calculation of the global GST amount.
The Commissioner states in his Decision Impact Statement that MT 2010/1 will be amended. GSTR 2002/3 will also be reviewed to ensure it reflects what amounts should be taken into account in calculating total monetary prizes for tax periods commencing prior to 24 March 2010 and tax periods commencing on or after 24 March 2010.