GST and beach access tracks

Is the entity, an importer, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports tracks to enable access to the beach?

Yes, the entity is making a taxable importation under section 13-5 of the GST Act when it imports tracks to enable access to the beach.

The entity is an importer. The entity imports access tracks. The tracks are laid on sand to make paths which allow access to the beach for wheelchairs, pedestrians, strollers, cyclists and light vehicles.

The entity enters the tracks for home consumption (within the meaning of the Customs Act 1901 ). The access tracks are not non-taxable importations under Part 3-2 of the GST Act.

The entity is registered for goods and services tax (GST).

Under section 13-5 of the GST Act, an entity makes a taxable importation if the goods are imported and the entity enters the goods for home consumption (within the meaning of the Customs Act 1901). However, paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation if it would have been a supply that was GST-free or input taxed if it had been a supply. This means that where the supply of the goods within Australia would be GST-free then the importation of these goods is a non-taxable importation.

Therefore, the importation of access tracks which enable access to the beach will be a non-taxable importation if the supply of the access tracks within Australia would be GST-free.

Under subsection 38-45(1) of the GST Act, the supply of a medical aid or appliance is GST-free where the medical aid or appliance: • is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations); • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.

In relation to Schedule 3, the only items of relevance in this case are Item 106 in the table in Schedule 3 which lists 'accessories associated with wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities' and Item 56 in the table in Schedule 3 which lists 'wheelchair ramp'.

However, regardless of whether the beach access tracks could potentially be covered by either of these two Items in the table in Schedule 3, the beach access tracks in question provide beach access for strollers, pedestrians, cyclists and light vehicles as well as wheelchairs. Accordingly, it is considered that these beach access tracks are not specifically designed for people with an illness or disability and are widely used by people without an illness or disability.

Therefore, the supply of the beach access tracks is not GST-free under subsection 38-45(1) of the GST Act.

The importation by the entity meets the positive limbs of section 13-5 of the GST Act. Furthermore, the importation is neither a non-taxable importation under Part 3-2 of the GST Act nor would it have been GST-free under Division 38 of the GST Act or input taxed under Division 40 of the GST Act had the importation been a supply. Therefore, the entity is making a taxable importation under section 13-5 of the GST Act when it imports tracks to enable access to the beach.

Date of Amendment Part Comment 9 April 2019 Throughout Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .

Date of Amendment | Part | Comment

9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .