Issue
Does the payment of general rates to the entity, a local government, constitute the payment of an ‘Australian tax’, for the purposes of subsection 81-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Decision
Yes, the payment of general rates to the entity constitutes the payment of an ‘Australian tax’, for the purposes of subsection 81-5(1) of the GST Act. As a consequence, the payment is not consideration and general rates are not subject to goods and services tax (GST).
ATO ID 2012_87 _ Legal database – payment of rates constitutes the payment of an Australian tax FOI pdf