Annual GST Certificate for 2017–18
This bulletin is to remind local governments that they must, by no later than 15 September 2018, give the Director-General of the Department of Local Government, Racing and Multicultural Affairs (the Department) a certificate stating that the local government has paid notional Goods and Services Tax (GST) for the 2017–18 financial year.
The Annual GST Certificate is required:
- section 215 of the Local Government Regulation 2012
- section 205 of the City of Brisbane Regulation 2012 for Brisbane City Council
The Section 228(7) Local Government Act 2009 and section 213(3) of the City of Brisbane Act 2010 defines notional GST as an amount that a local government may pay under section 5 of the GST and Related Matters Act 2000
Section 15(aa) of the Local Government (Financial Assistance) Act 1995 (Cwlth) requires the State to withhold an amount equivalent to unpaid notional GST payments from the respective Financial Assistance Grant payments and pay them to the Commonwealth.
This Commonwealth requirement is reflected in section 228(6) of the Local Government Act 2009 and section 213(2) of the City of Brisbane Act 2010, which prescribe that the Minister for Local Government must not distribute to a local government an amount equal to notional GST if the local government has not paid the notional GST.
In order that the State can meet its obligations under the above-mentioned legislation, it needs to ensure that a local government has paid its notional GST. The term ‘has paid notional GST’ is interpreted as meaning ‘has paid all notional GST due’.
Please note the term ‘has paid all notional GST due’ goes hand in hand with the ability to claim GST input tax credits. That is, while government bodies may in fact receive net GST credits, this can only occur after accounting properly for all gross GST input tax credits and gross GST payments.
The primary method the State uses to ensure a local government has paid notional GST is to require a certificate to be supplied to the Department’s chief executive by each local government. Whilst the certificate is seen as evidence that a local government has paid notional GST, it could be displaced by evidence to the contrary. This might be provided by auditors or may come from other sources.
If no certificate is provided, the State will need to ascertain by other means that the GST the local government is required to pay, has been paid. If the GST has not been paid, the amount will need to be quantified before the Financial Assistance Grant can be paid to that local government. Otherwise the State could be in breach of the Commonwealth legislation.
Annual GST advice
The chief executive of the department seeks advice by 15 September 2018 regarding notional GST payments by local governments for the period 1 July 2017 to 30 June 2018.
This advice will then be provided to Queensland Treasury for confirmation with the Commonwealth.
Form of Annual GST Certificate
The form of the annual certificate is not prescribed. The following form will meet the requirements for this year.
The following form will meet the requirements for Brisbane City Council for this year.
Any further enquiries on this matter should be addressed to:
Sustainability Team, Local Government and Regional Services
Finance and Funding
Department of Local Government, Racing and Multicultural Affairs
PO Box 15009
City East QLD 4002