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Rights or rewards: GST and loyalty programs in Australia

Published on 01 Oct 11 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

Until the recent release of a draft GST ruling, the only public document from the Australian Taxation Office which considered the GST consequences arising from transactions under a loyalty reward program was a media release issued by the Commissioner in 2000. There have, however, been a number of private rulings issued on the subject to particular taxpayers. In addition, a number of VAT cases dealing with loyalty programs which have been handed down in the United Kingdom recently have highlighted the lack of guidance in Australia. The Commissioner's recent draft ruling, GSTR 2011/D3, released on 24 August 2011, now provides the Australian Taxation Office's public view of how transactions under loyalty reward programs should be treated for GST purposes.

This article analyses the draft ruling, the differences between this now public view of the Commissioner to prior private rulings, and examines the possible consequences of these differences for the loyalty program industry.

Author profile:

Jadie Teoh CTA
Jadie is a Senior Associate at Ahshurst. Current at 05 September 2013 Click here to expand/collapse more articles by Jadie Teoh.
 
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