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Generally, where research is provided to an overseas entity and is not supplied to an Australian entity, the transactions are treated as GST-free. GST code E for export.


The Following claims from AUSAID is GST free

  • Claims from AUSAid for award course fees supplied by the University;
  • (OSHC) Health insurance payments made by the University and claimed from AUSAID

The Following claims from AUSAID is subject to GST

  • charges for administration/management fees to AUSAID

Claims currently made by the University to AUSAID is under an agreement with AUSAID that was signed pre July 1999. There has been no renewal of contract nor any new contract signed. The claims under the old pre 1999 Agreement are out of scope of GST (GST code NA)

In kind contribution from Research Grantor are subject to GST

When the University receives in kind contribution (non cash payment) from research grantor, the University is not liable for GST on the non cash consideration for the taxable research supply. The University has sought a Taxation Ruling to clarify this issue, at present the Ruling is not final and is limited to ARC Linkage Grants Only. When the Final Ruling is issued by the ATO, the University will seek to extend the interpretation mto all similar arrangements. However, the following will still apply to all other arrangements:

The GST inclusive market value of the laboratory facilities from MU and the staff support from XYZ has been mutually agreed at the commencement of the grant at arms length at $11,000. Company XYZ must be registered for GST.

MU is making a laboratory facilities supply to XYZ for consideration equal to the market value of the staff support from XYZ. MU’s GST liability is 1/11th of $11K, the market value of the consideration (that is staff support received from XYZ)

XYZ is making a supply to MU of staff support for consideration equal to the market value of the laboratory facilities. Company XYZ’s GST liability is 1/11th of $11K, the market value of the consideration (that is the laboratory facilities from MU).

Both the University and the company are entitled to claim the input tax credit on their payments, establishing a revenue neutral result to the Tax Office for the tax period, provided the exchange of tax invoices takes place in the same tax period. To facilitate this, MU can enter into a Recipient Created Tax Invoice (RCTI) agreement with company XYZ , for their supply of staff support to MU.

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