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Taxation

Goods and Services Tax (GST)

Contents of this page

Introduction

From 1 July 2000 a Goods and Services Tax (GST) applies which affects all consumers and enterprises. The definition of 'enterprise' for GST purposes includes the University.

The GST taxes goods and services imported into or supplied in Australia (with limited exceptions). A supply is taxable if it includes;-

And if it is;-

Unless it is;-

As a consequence, the University will be involved in;-

GST and the University of Newcastle

In very general terms the University as a registered enterprise will be required to pay the Taxation Commissioner 1/11 of all considerations received (cash or kind) for providing any supply in the furtherance of the enterprise unless that supply is GST Free or Input Taxed

Although Education is listed as GST-Free, the legislation, as currently written, only refers to award courses. Continuing education courses are therefore not GST free nor are subjects that are done only to the gain entrance to an award course. This may change.

The only other "income" received by the University on which GST is not liable are rents for University Housing (special rules apply) and investment income. Donations can be GST-Free but only under very strict guidelines.

With the exception of "Input Taxed" supply the University will be able to claim back from the Tax Commissioner all GST paid on goods and services (supplies) used in the furtherance of the enterprise.

The University's ABN is 15 736 576 735.

The University is endorsed as an "Income Tax Exempt Charity" and a "Deductable Gift Recipient".

GST Impact on Students

The following costs are GST-free;-

The following student costs are GST-liable;-

GST Codes

For GST Rate codes and examples please refer to the Use of GST Rate Codes - Examples.

What is a Valid Tax Invoice for Claiming GST Credits?

Tax invoices must include certain information. If you use an incorrect or incomplete tax invoice to claim a GST credit, the GST credit may not be allowed.

Tax invoices for taxable sales that total less than $1,000 must include:

1.
the words 'tax invoice' stated prominently
2.
the name of the seller
3.
the Australian business number (ABN) of the seller
4.
the date of issue of the tax invoice
5.
a brief description of the things sold
6.
the GST-inclusive price of the taxable sale, and
7.
the GST amount. This can be shown separately or, where the GST to be paid is exactly 1/11 of the total price, as a statement along the lines of 'Total price includes GST'.

Example: sales of less than $1,000

Windows to Fit Pty Ltd issued a tax invoice for the sale of window frames with a total price of $825 (including GST).

Tax Invoice for less than $1000

Tax invoices for taxable sales that total $1,000 or more must include:

1.
the words 'tax invoice' stated prominently
2.
the name of the seller
3.
the ABN of the seller
4.
the date of issue of the tax invoice
5.
the name of the buyer
6.
the address or ABN of the buyer
7.
the quantity of the goods or the extent of services sold
8.
a brief description of the things sold
9.
the GST-inclusive price of the taxable sale, and
10a.
when GST to be paid is exactly 1/11 of the total price, a statement along the lines of 'The total price includes GST', or
10b.
the GST amount.

Example: sales of $1,000 or more

Windows to Fit Pty Ltd issued a tax invoice for the sale of another lot of window frames, this time with a total price (includin GST) of $8,250.

Tax Invoice for greater than $1000

Taxable and non-taxable sales

If the tax invoice is for a taxable sale and either a GST-free or input taxed sale, the tax invoice must also show:

  • each taxable sale
  • the amount of GST to be paid (for the taxable sales), and
  • the amount to be paid for the total sale.