GST and the supply of a security and safety assessment of goods to be transported overseas

Is the supply of a security and safety assessment of goods to be transported overseas within the definition of 'loading or handling of goods' under paragraph (a) of item 5A in the table in subsection 38-355(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Yes. The entity is making a supply of 'loading or handling of goods' under paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act when it provides a security and safety assessment of goods to be transported overseas.

The entity is an international freight carrier.

The entity provides a security and safety assessment of goods together with the transport of those goods overseas.

Subsection 38-355(1) of the GST Act provides the circumstances under which supplies of transport and other related matters will be treated as GST-free. Specifically, paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act concerns supplies of loading and handling of goods undertaken during the course of international transport of those goods.

'Handling' is not defined in the GST Act. The term 'handling' is defined in The Macquarie Dictionary , [Multimedia], version 5.0.0, 1/10/01 as '...3. the process of packing, moving, carrying or transporting something.'

It is considered that the security and safety assessment provided by the entity amounts to 'handling' of the goods as per the definition in The Macquarie Dictionary because it is part of the process of transporting the goods overseas.

Accordingly, the supply of a security and safety assessment of goods will fall within the meaning of 'loading or handling of goods' in paragraph (a) of item 5A in the table in subsection 38-355(1) of the GST Act.