GST and the provision of financial planning advice to an Australian client

Is the entity, a tax agent, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides financial planning advice to its Australian client?

Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it provides financial planning advice to its Australian client.

The entity is a tax agent. The entity provides financial planning advice to its Australian client for which it charges a fee.

The entity is registered for goods and services tax (GST). The entity provides the advice in the course of an enterprise that the entity carries on in Australia.

Under section 9-5 of the GST Act, an entity makes a taxable supply if : • it makes the supply for consideration; • it makes the supply in the course or furtherance of an enterprise that it carries on; • the supply is connected with Australia; and • it is registered, or required to be registered for GST.

Section 9-10 of the GST Act defines 'supply'. Paragraph 9-10(2)(b) of the GST Act states that a supply includes a supply of services. In this case, the entity provides financial planning advice to its client. Therefore, the entity is making a supply of services as defined in section 9-10 of the GST Act.

'Consideration' is defined in subsection 9-15(1) of the GST Act to include any payment, act or forbearance in connection with, in response to or for the inducement of a supply of anything. In this case, the entity's client pays the entity a fee when the entity provides financial planning advice. This payment is consideration as defined in subsection 9-15 (1) of the GST Act.

The entity is registered for GST and the supply meets the other positive requirements of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it provides financial planning advice to its Australian client.