-->

Public perspective



    In the 2010-11 Federal Budget, the Government announced that it will implement the Board of Taxation’s recommendation with effect from 1 July 2012 to make services made to a non-residents in Australia GST-free provided that the non-resident would be able to claim an input tax credit if it was registered.
    Executive Summary
    • As a matter of fundamental constitutional principle, no parties, not even the State acting by its Executive Government arm, can purport to bind the Parliament in respect of its legislative action.
    • It follows that the Executive Government cannot by contract promise to compensate a taxpayer in respect of a liability to tax imposed by statutes.

    In the much anticipated Federal Court decision, the Victorian Department of Transport (“DOT”) was held to be entitled to input tax credits for subsidy payments to taxi-cab operators for its services to severely disabled passengers under the Multi Purpose Taxi Program (MPTP).  The decision of the case seems to be pulling the applicability of GST rules for Government departments positively towards commercial businesses.