Why is GST applied to Membership Rewards program fees but not American Express Card fees?
A. Application of GST differs for different goods and services. The GST legislation provides that GST will not be charged on financial services, but will be charged on other goods & services. The provision of Credit and Charge Cards are classified as the provision of financial services and are therefore not subject to GST . Participation in the Membership Rewards program is not a financial service and is therefore subject to GST. Q7. Will GST apply to redemption of Rewards? A. No. The Australian Taxation Office has ruled that GST will not apply to goods and services acquired by Australians from loyalty programs. Hence, there is no GST on redemption of goods and services from the American Express Membership Rewards program. Q8. Will GST apply to the purchase of Points Top-Up? A. Yes. A GST of 10% will apply to the purchase of Membership Rewards points as part of the American Express Points Top-Up program. Q9.Will GST be added to my insurance premium? A. Whether GST is charged on your in
