What is the GST treatment of body corporate levies with respect to administration and sinking funds over the transition period?
ATO Position Under section 7 A New Tax System (Goods and Services Tax Transition) Act 1999 ( the Transition Act), GST is payable on a supply to the extent that it is made on or after 1 July 2000. Section 6 of the Transition Act sets out the general time of supply rule for determining when a supply or acquisition is made for the purposes of that Act. Specifically, section 6(4) provides that a supply or acquisition of services is made when the services are performed. However, this general rule is modified when the supply is made over a specified period. Under section 12 where a supply, under an agreement or enactment, is made for a period or progressively over a period that begins before 1 July 2000 and ends on or after 1 July 2000, the supply is taken to be made continuously and uniformly throughout that period. This is whether the supply is made at regular intervals or not. The payment of a body corporate levy is consideration for the supply or acquisition of that service. Where there
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