Finance Circular 2004/04

Guidance on GST and employee entitlements

Purpose

This Finance Circular applies to agencies under the Financial Management and Accountability Act 1997 (FMA Act agencies) and to Commonwealth authorities under the Commonwealth Authorities and Companies Act 1997. This Finance Circular replaces Finance Circular 2003/06 "Advice on the Application of the Goods and Services Tax to transfers of government employees' entitlements".

In summary, this Finance Circular:

  • Describes two Interpretative Decisions (IDs) issued by the Australian Taxation Office (ATO), ATO ID 2003/1182 "GST and transfer of long service leave entitlements" and ATO ID 2004/362 "GST and transfer of annual leave, annual leave loading, flexitime and sick leave entitlements", which together provide that payments made in relation to transfers of government employee entitlements are not subject to Goods and Services Tax (GST); and
  • Recommends that FMA Act agencies and Commonwealth authorities consider the application of ATO ID 2003/1182 and ATO ID 2004/362 (the decisions) to their circumstances.

While the ATO's Government Technical Team [External Site] is the appropriate point of reference for queries relating to the decisions, Attachment A to this Circular provides answers to some frequently asked questions regarding the application of the decisions.

Full Publication

Guidance on GST and employee entitlements PDF version [PDF Document 47 KB]
Guidance on GST and employee entitlements RTF version [RTF Document 1.1 MB]

Copyright Notice

© Commonwealth of Australia 2004
This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. Requests and inquiries concerning reproduction and rights should be addressed to Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca [External Site]

Contact for information on this page: finframework@finance.gov.au