## What is a scholarship?

When we say 'scholarship' we mean the following types of payments:

- a scholarship
- a bursary
- an educational allowance
- educational assistance.

A scholarship can be a one-off payment, or a series of payments over one or more years as either:

- an amount of money you receive
- a payment made on your behalf.

Scholarship payments help you with your educational expenses or other requirements. For example, payments may include:

- offsets for tuition fees
- a regular amount for general living costs – such as travel or boarding
- allowances to cover particular costs – such as uniforms and textbooks.

Scholarship payments may be [exempt income](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/scholarship-payments#Exemptincomefromascholarship) (not taxable income). You need to work out if your scholarship payment is either wholly or partially assessable or exempt income.

If your scholarship is **not** exempt, you need to include it as income in your tax return.

Scholarship money comes from any number of sources such as a university, government, a business or an individual philanthropist. You might receive your scholarship payment directly from the source or through an administrator which is often your university.

Your scholarship agreement will set out:

- the amounts you receive
- when you will receive payments
- any conditions that apply to continue to get the scholarship
- what you can spend the money on (in some cases).

You generally apply for a scholarship by submitting an application. It is usually granted on merit or some process involving specific criteria.

A scholarship is not a loan. There are no repayment requirements.

### Example: scholarship arising from charitable bequest

Jenny is a full-time student doing an undergraduate degree. She applies for and wins the 'Fearless Journalist' award. This gives her fortnightly payments over the course of her degree which she uses to pay for her HECS-HELP debt and text books.

The 'Fearless Journalist' award is from investment income that comes from capital donated in the Will of Jack Jones. The payments go to the most meritorious applicant in the journalist course at Williams University, who shows the most potential to succeed in fearless journalism.

The money Jenny receives for the award is a scholarship.

End of example
## Exempt income from a scholarship

For a scholarship payment to be exempt from paying tax, you must meet **all** of the following conditions:

- The payment can't be an excluded government payment (for example, Austudy, Youth Allowance or ABSTUDY).
- There is no [requirement for you to do work](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/scholarship-payments#Workrequirement) (either as an employee or contract for labour, now or in the future).
- You are a [full-time student at a school, college or university](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/scholarship-payments#Fulltimestudentataschoolcollegeorunivers).
- The scholarship is provided to you principally for [educational purposes](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/scholarship-payments#Educationalpurposes).

Your scholarship provider may be able to tell you if your scholarship is exempt or assessable income. In some cases, they will already have sought advice from us.

To help you work out if your scholarship is exempt or assessable income you can use the [Is my scholarship taxable?](https://www.ato.gov.au/calculators-and-tools/is-my-scholarship-taxable) tool.

### Work requirement

Your scholarship payment is not exempt income if, as a condition of the scholarship, you work or will work in the future for the person or organisation funding the scholarship. This includes work:

- as an employee or under a contract for labour
- that is done without a contract or any other form of legal relationship.

#### Example: requirement to work as employee – not exempt income

Henry receives a Delilah Limited scholarship for university students. The scholarship has certain conditions. The payments are conditional on Henry achieving a minimum grade each semester. Henry must submit a copy of his academic record to Delilah Limited each semester.

There may also be a requirement for Henry to complete paid vacation employment with Delilah Limited during the scholarship term. The scholarship payment depends on him working under the terms set out by Delilah Limited.

If Henry completes his studies successfully, Delilah Limited may offer him a position. If Henry does not accept the position, he may need to repay some or all of the scholarship. Delilah Limited also has the right of first refusal should Henry need to do other work experience as part of his course.

The scholarship payments are not exempt income. Henry may need to become Delilah Limited’s employee, at their discretion, for a period set out in the scholarship agreement.

End of example
### Full-time student at a school, college or university

For your scholarship payment to be exempt income you must be studying full-time at a school, college or university. You do not need to be physically at the school, college or university but must be studying a full-time load.

#### Example: part time university study – scholarship payment not exempt

Kirra receives a scholarship from her local government. The scholarship is available to women in their second or third year of study who are doing a science degree at a local university.

Under the scholarship agreement, Kirra receives $1,000 to assist her to pay for education expenses.

Kirra studies part-time.

Even though Kirra is doing a university degree, her scholarship payments are not exempt income because she is not studying full-time.

End of example

### Educational purposes

For your scholarship payment to be exempt income, it must be provided to you principally for educational purposes. This includes education at a place of learning such as a university campus or a full-time degree provided online, and can also include a component of work experience.

Work experience at the premises of an organisation is for your education as long as your education is the most important factor for the work experience (and not the output you are producing). If you are working alongside employees and producing outputs that a similarly experienced employee or contractor would produce, your scholarship would generally not be considered as being provided principally for educational purposes.

End of example

#### Example: work experience requirement as part of the course – exempt income

The AAA University has a veterinary course that requires all students to complete work experience with a qualified practitioner as part of the course's qualification requirements.

A select number of students in the course receive a scholarship from the university. The scholarship payments go to students throughout the length of the course, including when students do their work experience.

The students gain work experience from their participation at the practitioner's clinics in a six-month period. Students do not provide normal vet services to the owners of the animals.

The scholarship payments are exempt because they are provided principally for educational purposes.

End of example

#### Example: scholarship requires work experience – exempt income

Megan receives a vacation scholarship from her university funded by WalesCo, an external organisation. A panel consisting of representatives from both the university and WalesCo, select the scholarship recipient.

Under the scholarship agreement, Megan receives 4 equal payment instalments over 2 years. In return, she must complete 10 weeks of professional vacation work experience with WalesCo each year. Megan can select when she will carry out the work experience and the hours she will attend. She rotates between departments within WalesCo to give her an insight and enable her to observe and learn from the various projects WalesCo undertakes.

The scholarship agreement states there is no requirement for Megan to become an employee of WalesCo, and nor is Megan an employee. She remains enrolled in full-time study during the time she is doing the work experience.

Megan’s scholarship is exempt income. The benefit of Megan’s work is limited (both by time, and is not concentrated on one project). This demonstrates that WalesCo is not engaging Megan for her work output, but to assist her in her education by providing work experience.

End of example

#### Example: company sponsored PhD study – not exempt income

Diego resigns as an employee of Alpha Co to do a full-time study course. He is completing research for a PhD which involves an area in which Alpha Co has a commercial interest. Diego had been part of a team working on this project before resigning.

Diego applies for and wins a research scholarship that Alpha Co funds. The scholarship administration is done by the university. The university pays weekly support for Diego during his study.

Diego works alongside Alpha Co's current employees. Alpha Co's expectation is for him to produce the same output and contribute in the same way as those employees.

Diego's weekly support payments are not exempt income. The scholarship is not provided principally for educational purposes. Instead, Alpha Co benefits from his participation as Diego is producing outputs that an employee or contractor with similar experience would produce while he is completing his PhD.

End of example
## Scholarship payments specifically exempt from tax

The following education and training payments are specifically exempt from tax. You don't need to include these in your tax return.

- Payments under a Commonwealth scheme for assistance of secondary education or the education of isolated children.
- Grants from the Australian-American Educational Foundation – the Fulbright Commission.
- Endeavour research fellowships and Executive Awards.

## Scholarship payments and your tax return

If your scholarship is **taxable**:

- you need to show your scholarship amount as assessable income in your tax return
- you should advise your scholarship provider that your scholarship is assessable income for tax purposes.

The scholarship provider may need to withhold tax from your periodic payments depending on:

- the information you provide on your tax file number (TFN) declaration
- the amount paid to you.

If your scholarship is **not taxable** (exempt income):

- you don't include your scholarship amount as assessable income in your tax return
- you should advise your scholarship provider

- that your scholarship is exempt income
- they don't need to withhold tax from your periodic payments.


Hustlin’ every day?

With the cost of living going up, more people are finding creative ways to make money on the side. While the added income can be a welcomed boost, it's important to know what you need to do when it comes to tax and what you need to declare.

We’re here to break down some tax tips so you can stay on top of things while enjoying that extra dough.

### Okay but first - what even is a side hustle?

A side hustle is work you do outside of your primary job for extra income.

Side hustles come in many forms – some of the ones we’ve seen lately are content creators on platforms like Twitch or OnlyFans, the sharing economy, drop shipping, gig economy work, freelancing, or even animal breeders.

To break it down a bit further, a side hustle could be:

### To declare, or not declare, that is the question

**If your side hustle is a [business this opens in a new window ](https://www.ato.gov.au/Business/Starting-your-own-business/Are-you-in-business-/)**, big or small, then you need to make sure all your tax, super and Australian business register obligations are met – this includes things like keeping good and accurate records and lodging and paying when required.

As a business you’ll need to declare [income this opens in a new window ](https://www.ato.gov.au/Business/Income-and-deductions-for-business/Assessable-income/What-income-to-include/) you earn from your side hustles. You can claim some [deductions this opens in a new window ](https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/) too.

**If you’re a sole trader** with more than one business, you’ll use the same ABN for each. For example, you run a hair dressing business, and are an influencer on the side, you’d use the same ABN for both.

Sole traders declare all income on their individual tax return. If you lodge online with myTax, select ‘[you were a sole trader this opens in a new window ](https://www.ato.gov.au/Individuals/Income-deductions-offsets-and-records/Income-you-must-declare/Business-partnership-and-trust-income/#Incomeasanindividualrunningabusiness)‘.

If you’re not a sole trader [different rules apply this opens in a new window ](https://www.ato.gov.au/Business/Starting-your-own-business/Business-structures---key-tax-obligations/). And if you’re [not a business this opens in a new window ](https://www.ato.gov.au/Business/Starting-your-own-business/Are-you-in-business-/#Whenyourenotinbusiness)? We have information on that too.

### What about other tax stuff? Do I need to pay GST or apply for an ABN?

Long story short, you don’t need an ABN unless you register for GST. However, getting an ABN is free and can make running your business or enterprise easier, so you may decide to apply for an ABN before it's required. For example:

Before you apply for an ABN, check if you're [entitled to have one this opens in a new window ](https://www.abr.gov.au/business-super-funds-charities/applying-abn/abn-entitlement). Once you have your ABN, you must [keep your ABN details up to date this opens in a new window ](https://www.abr.gov.au/business-super-funds-charities/updating-or-cancelling-your-abn/update-your-abn-details), and cancel your ABN if you close your business.

If you have a [GST turnover this opens in a new window ](https://www.ato.gov.au/Business/GST/Registering-for-GST/#WorkingoutyourGSTturnover) of $75, 000 or more in a 12-month period from a business you carry on, including your side hustle, you’ll need to register for GST. Remember, if you’ve received products and services instead of money for your activities these may count as income. You’ll need to include their value when working out your GST turnover.

If your side hustle is [ride-sourcing this opens in a new window ](https://www.ato.gov.au/General/Sharing-economy-and-tax/ride-sourcing/) you need to register for GST from the day you start, regardless of how much you earn.

### Will having a side hustle affect my current job?

Having a side hustle while working another job is totally fine! You’ll just have to remember a couple of things:

### How do I make sure I’m paying enough tax to prevent a debt?

If you’re earning income outside of employment you’ll need to pay tax yourself. How much tax exactly? Well, that’s worked out by whichever [tax bracket this opens in a new window ](https://www.ato.gov.au/Rates/Tax-rates---Australian-residents/?=Redirected_URL) your total combined income puts you in.

Let’s look at PAYG instalments a little more. PAYG instalments make it easy to plan ahead by prepaying tax throughout the year. It also helps you keep a healthy cash flow. Instalment amounts are based on your business and investment income, not your salary and wages.

Check out our article for info on how to enter the [PAYG instalment](https://community.ato.gov.au/s/article/a07RF000004SgisYAC/answers-to-your-payg-instalment-questions) system.

What if your salary or wages are increasing? We have [tax tables this opens in a new window ](https://www.ato.gov.au/Rates/Tax-tables/) and a [tax withheld calculator this opens in a new window ](https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC/questions#TWC/questions) so you can check your employer is withholding enough tax. If you think they should be withholding more, you can submit a [withholding declaration this opens in a new window ](https://www.ato.gov.au/forms/withholding-declaration/).


## Conditions of release of super

You can withdraw your super when you:

- turn 65 (even if you haven’t retired)
- reach [preservation age](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/super-withdrawal-options#Preservationage) and

- retire or
- start a [transition to retirement income stream](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/retirement-withdrawal-lump-sum-or-income-stream) while continuing to work
- satisfy an [early access](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super) requirement.

Retirement means you have ceased gainful employment either:

- when you were 60 years old or over
- before you turned 60 years old and you have reached your preservation age – the fund trustee must be satisfied you have no intention of becoming employed again in the future.

See [Retirement withdrawal – lump sum or income stream](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/retirement-withdrawal-lump-sum-or-income-stream).

### Preservation age

Your preservation age is the age at which you can access your super if you're retired (or start a transition to a retirement income stream).

(Your preservation age is not the same as your pension age. Check with [Services AustraliaExternal Link](https://www.servicesaustralia.gov.au/individuals/services/centrelink/age-pension/who-can-get-it) for the age pension eligibility requirements.)

Your preservation age depends on when you were born, as set out in this table.

Preservation age based on date of birth

Date of birth

Preservation age

Before 1 July 1960

55

1 July 1960 – 30 June 1961

56

1 July 1961 – 30 June 1962

57

1 July 1962 – 30 June 1963

58

1 July 1963 – 30 June 1964

59

From 1 July 1964

60

## Accessing your super early

In very limited circumstances, you can access your super early:

- on [medical, compassionate, hardship and incapacity grounds](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early)
- under the [First home super saver scheme](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme) – to withdraw voluntary contributions you've made to your super
- if you're a [temporary resident](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/how-superannuation-applies-to-temporary-residents) and are leaving Australia
- if your super account balance is [less than $200](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early) and your employment is terminated, or you have a 'lost super' account with a balance less than $200.

## Super death benefits

When a person dies, in most cases their super fund pays their remaining super interest to their nominated beneficiary.

Super paid after a person's death is called a [super death benefit](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/superannuation-death-benefits).

## Illegal early access schemes

It is illegal to withdraw your super for any reason other than when it is allowed by the superannuation law – that is, when you satisfy a condition of release.

Beware of people promoting early-access schemes. Participating in [illegal early-access schemes](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/illegal-early-access-to-super) will cost you a lot more than the super you withdraw.


## What to do when you acquire an asset

When you acquire a capital gains tax (CGT) asset, you should establish your acquisition date and share of ownership, and start keeping records.

This will help you work out your capital gain or loss correctly, so you pay the correct amount of CGT when you dispose of the asset.

## Acquisition date

Generally, the acquisition date is when you become the owner of the asset – for example, when you purchase it.

However, there are 2 common situations where your acquisition date might differ from the date you become the owner:

- **When you buy an asset under contract and do not take immediate possession.** This commonly happens with real estate. In this case, your acquisition date is the date on the contract, not when you settle.
- **When you inherit a CGT asset.** In this case, the acquisition date is the date of death of the former owner.

You should establish the date of acquisition because you will need it to work out your CGT when you dispose of the asset.

It is important because:

- CGT does not apply if you owned the asset before CGT started on 20 September 1985 (but major improvements to a property since 20 September 1985 may be subject to CGT)
- the rules for working out a capital gain or loss have changed over time
- to qualify for the CGT discount you need to own the asset for at least 12 months.

## Joint ownership

If you share ownership of an asset with others, each person makes a capital gain or loss.

There are 2 types of shared ownership:

- tenants in common
- joint tenants.

### Tenants in common

Tenants in common are 2 or more people who co-own an asset in defined shares. The shares may be unequal.

When a CGT event occurs (such as selling the asset), the individuals split the capital gain or loss between them according to their share of ownership.

#### Example: tenants in common

Lui and Monica own a rental property as tenants in common.

Lui has a 20% share and Monica has an 80% share.

Lui and Monica decide to sell their rental property. They make a capital gain of $200,000.

Lui and Monica split the capital gain according to their share of ownership:

- Lui has a capital gain of $40,000 (20%)
- Monica has a capital gain of $160,000 (80%).

End of example### Joint tenants

Joint tenants have equal shares in the asset. Therefore, each person has an equal share of any capital gain or loss from a CGT event.

When one joint tenant dies, their share in the asset is [acquired in equal shares by the surviving joint tenants](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/inherited-property-and-cgt/co-ownership-and-right-of-survivorship).

#### Example: joint tenants

Carmen and Joe own a rental property as joint tenants.

They decide to sell their rental property. They make a capital gain of $68,000.

Carmen and Joe each has a capital gain of $34,000 (50%).

End of example### Partnerships

For CGT purposes, a partnership does not own an asset. Instead, each partner owns a proportion of the asset.

When a CGT event occurs, the partners use their proportion to work out their capital gain or loss.

## Keeping records

You must keep records of all transactions or events that are relevant to working out your capital gain or loss.

### What to record

Your records must be in English or be translatable to English.

Keep the following records:

- receipts or contracts of purchase or transfer
- evidence of any stamp duty on the purchase or transfer
- details of interest on money you borrowed relating to the asset
- records of agent, accountant, legal and advertising costs
- receipts of insurance costs, rates and land taxes
- market valuations
- receipts of maintenance, repair and modification costs
- bank accounts showing brokerage fees on shares
- receipts or contracts of sale or transfer.

You should also keep records to establish whether you have claimed an income tax deduction for an item of expenditure. If you have claimed a deduction, you can't include the amount in the cost base of the asset.

For more information, see [Keeping CGT records](https://www.ato.gov.au/forms-and-instructions/guide-to-capital-gains-tax-2025/about-capital-gains-tax/keeping-cgt-records).

### How long to keep records

Keep records for 5 years after the year that the CGT event occurs.

#### Example: keeping records for 5 years

Liz sold some shares in September 2024 and made a capital gain.

This means the CGT event happened in the 2024–25 financial year.

Liz needs to keep purchase and sale records of the shares until the end of the 2029–30 financial year (30 June 2030).

End of example#### Net capital loss

If you have a net capital loss for the year, you should keep records of the loss. You can use the loss to offset a capital gain in a later year.

There is no time limit on how long you can carry forward a net capital loss.

Once you have offset the loss against a capital gain, you should keep records of the CGT event that resulted in the loss.

Keep records for a further:

- 2 years for individuals and small and medium businesses
- 4 years for other taxpayers.

### Missing or destroyed records

If you don't have records for your CGT assets, there are ways you can get the information you need. If you:

- **bought a property**, ask your solicitor or estate agent to give you copies of the records
- **made improvements to an investment property**, ask the builder for a copy of the receipt for payment
- **bought shares in a company or units in a managed fund**, ask your stockbroker or investment adviser to give you the relevant information
- **received an asset as a gift**, ask a professional valuer to tell you what the market value would have been
- **lost your records in a natural disaster**, we can [help you reconstruct them](https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/support-in-difficult-times/tax-and-super-support-in-difficult-times/reconstructing-your-tax-records).


## When to cancel your GST registration

You or your registered tax or BAS agent **must** cancel your GST registration within 21 days of:

- selling or closing your business
- changing your business structure – this includes changing from a partnership to a company, unless the old business carries on another business.

You can choose to cancel your GST registration if your GST turnover is below the threshold for compulsory registration, **unless** you:

- are a taxi driver (including ride-sourcing or chauffeur services)
- represent an incapacitated entity who is registered or required to be registered for GST – for example, an individual who is bankrupt or a company in liquidation
- are an Australian resident who acts as an agent for a non-resident that is registered (or required to be registered) for GST.

To confirm you no longer require your GST registration or for information on thresholds and working out your GST turnover, refer to [Registering for GST](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst).

If you are a non-resident business, see [Non-resident businesses and GST](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/non-resident-businesses-and-gst).

## Effect on other registrations

If you are [pausing or permanently closing your business](https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-time/tax-time-toolkits/tax-time-toolkit-small-business/small-business-guides/pausing-or-permanently-closing-your-business) (you can also refer to the [Pausing or permanently closing your business fact sheetThis link will download a file](https://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52dhttps://www.ato.gov.au/api/public/content/f3e8b5d81b11459b999669fefe820dac?v=1acea52d)), you must still meet your tax and superannuation lodgment, reporting and payment obligations.

Cancelling your GST registration may affect some, but not all your other registrations.

When you cancel your GST registration, your fuel tax credit, luxury car tax (LCT) and wine equalisation tax (WET) registrations will also be automatically cancelled.

You must keep lodging activity statements if you:

- are registered for pay as you go (PAYG) withholding
- have entered into PAYG instalments
- have fringe benefits tax (FBT) obligations.

## Cancellation date

The date you choose to cancel your GST registration should be the last day you want to be registered.

We usually cancel your GST registration from the date you choose.

You cannot:

- cancel your registration retrospectively if you were still operating on a GST-registered basis after the date you chose
- continue to operate on a GST-registered basis after your cancellation date
- cancel if you have already lodged an activity statement for the period containing the date of cancellation.

## How to cancel your GST registration

You can cancel your GST registration and any other roles or registrations together or separately:

- through [Online services for business](https://www.ato.gov.au/online-services/businesses-and-organisations-online-services/profile-in-online-services-for-business#Addupdateorcancelataxtype)
- through your registered tax or BAS agent
- by phone on **13 28 66** – between 8.00am and 6.00pm, Monday to Friday
- by completing the *Application to cancel registration* (NAT 2955) through [Order publications](https://www.ato.gov.au/about-ato/contact-us/order-publications) and posting it to us.

Registered tax agents can use Online services for agents [to update or cancel a client's tax registration](https://www.ato.gov.au/tax-and-super-professionals/digital-services/online-services-for-agents/online-services-for-agents-user-guide/profile/tax-registrations).

### Simplified GST registration

If you are a non-resident business registered under the [simplified GST registration](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/non-resident-businesses-and-gst/simplified-gst-registration) system, your authorised contact can [email](mailto:AustraliaGST@ato.gov.au) us to [cancel your registration](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/non-resident-businesses-and-gst#Cancelyourregistration).

## Cancelling your Australian business number (ABN)

If you are cancelling your GST registration because you [restructured your business, sold it or closed it down](https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/changing-selling-or-closing-your-business), you must also [cancel your ABN registrationExternal Link](https://www.abr.gov.au/business-super-funds-charities/updating-or-cancelling-your-abn/cancel-your-abn) within 28 days.

If you're a company registered with the [Australian Securities & Investments Commission (ASIC)External Link](https://www.asic.gov.au/), but no longer carry on a business, you can choose to keep your ABN registration, but you must cancel your GST registration.

If you're cancelling your GST registration, consider your other Australian tax and super obligations before cancelling your ABN.

When you cancel your ABN, your GST, LCT, WET and fuel tax credits registrations will also be cancelled. You will not receive any future activity statements unless you have PAYG withholding or PAYG instalments.

You can cancel your ABN online through the [Australian Business RegisterExternal Link](https://abr.gov.au/mynewkey) (ABR).


# Work out if the PSI rules apply to you

If you have received personal services income (PSI), you need to determine if the PSI rules apply to that income.

**Last updated **23 November 2022

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If you have worked out that the [income you have received is PSI](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/income-that-is-psi), the next step is to work out whether the PSI rules apply to you.

To do this, you need to work out if you are a personal services business (PSB) in the year that you received PSI.

You can [self-assess as a PSB](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/self-assessing-as-a-psb) if you:

- meet the [results test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/results-test) in relation to at least 75% of your PSI, or
- meet one of the other PSB tests and less than 80% of your PSI is from the same entity and its associates.

The other PSB tests are [Unrelated clients test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/unrelated-clients-test), the [Employment test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/employment-test), and the [Business premises test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/business-premises-test).

If you're a company, partnership or trust and you have more than one individual generating PSI, the self-assessment rules and PSB tests need to be applied to each individual. It is possible for one individual to conduct a PSB but not another.

If you are unable to self-assess as a PSB for a particular income year, you may be able to [apply for a PSB determination](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/working-out-if-the-psi-rules-apply/self-assessing-as-a-psb/apply-for-a-psb-determination) (PSBD) in some circumstances.

If you self-assess as a PSB, or have a PSBD, then the PSI rules will not apply to the PSI you receive in that income year. See [What to do if the PSI rules don't apply](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/what-to-do-if-the-psi-rules-don-t-apply) for more information.

If you are unable to self-assess as a PSB, and do not have a PSBD for the relevant income year, the PSI rules will apply. See [What to do when the PSI rules apply](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/what-to-do-when-the-psi-rules-apply) for more information.

The PSI rules will not affect:

- the contractual relationships between you and your clients or customers – for example, you do not become an employee or stop being a contractor
- your entitlement to an Australian business number (ABN) or registration for goods and services tax (GST)
- whether you are still considered to be running a business.

You may find this [flow chart](https://www.ato.gov.au/law/view/document?DocID=DTR/TR2021D2/NAT/ATO/00001&anchor=H252#H252) useful in determining whether the PSI rules apply to you or your business.

If you are still unsure, you may need to [seek further advice](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/seek-further-advice-about-psi) from us or a registered tax professional.


## Eligibility for DASP

If you've worked in Australia on a temporary visa, you may have accumulated superannuation that has been paid by your employer under the compulsory super guarantee.

You may be eligible to have this super (and any earnings and other contributions) paid to you (less tax) as a departing Australia superannuation payment (DASP) after you leave.

Generally, you can claim a DASP if all the following apply:

- you accumulated superannuation while [working](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia) in Australia on a temporary resident visa issued under the *Migration Act 1958* (excluding Subclasses 405 and 410)
- your visa has ceased to be in effect (expired or cancelled)
- you have [left Australia](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/returning-to-your-home-country) and you do not hold any other active Australian visa
- you're not an Australian or New Zealand citizen, or a permanent resident of Australia (if you're a New Zealand citizen leaving Australia permanently, you may be able to [transfer your super to New Zealand](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/foreign-super-funds/trans-tasman-retirement-savings-transfers)).

While you can't claim a DASP until after you've left Australia, we strongly recommend you get all the information you need and start your application before you leave. It may be difficult for you to start the process once you have left.

## Locating your super

If you've worked for multiple employers, you may have more than one super account and these may be with different super funds.

If you're not sure where your super is, you can search for it by:

- using the [DASP online application systemExternal Link](https://applicant.tr.super.ato.gov.au/applicants/default.aspx?pid=1) once you've met eligibility requirements and provided your TFN
- using [ATO online services](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/keeping-track-of-your-super/keeping-track-of-your-super-online) or the ATO app (after creating a myGov account and linking to the ATO)
- [phoning us](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp/help-with-the-dasp-online-application-system).

Employers are required to make super contributions on a quarterly basis, so you should check with your employer that all contributions have been paid into your fund before submitting your application.

If you don't apply for your DASP, your super fund will transfer your super money to the ATO as unclaimed super money, if both:

- it has been 6 months or more since you left Australia
- your visa has ceased to be in effect.

You may be able to claim [ATO-held super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/keeping-track-of-your-super/ato-held-super) as DASP.

## How to claim your super

You can apply for a DASP via either:

- the [DASP online application systemExternal Link](https://applicant.tr.super.ato.gov.au/applicants/default.aspx?pid=1) – for both super fund and ATO-held super
- a paper form

- for super held by a super fund, use [Application for a departing Australia superannuation payment form](https://www.ato.gov.au/forms-and-instructions/departing-australia-super-payment-application) (NAT 7204) – send this form **directly to the super fund**
- for ATO-held super, use [Application for payment of ATO-held superannuation money](https://www.ato.gov.au/forms-and-instructions/superannuation-application-for-payment-of-ato-held-super) (NAT 74880) – send this form to the address listed on the form
- by [authorising someone](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp#Authorisingsomeonetoclaimonyourbehalf) to claim on your behalf.

Before submitting your DASP application, check with your employer to confirm they have paid all the super they are required to.

### Online applications

You can use the [DASP online application systemExternal Link](https://applicant.tr.super.ato.gov.au/applicants/default.aspx?pid=1) free of charge

The DASP online system will automatically confirm your immigration status online with the Department of Home Affairs – you don't need to apply for a Certification of Immigration Status from the Department of Home Affairs unless directed by your super fund. You can start and save your online application while you are still in Australia and have all the relevant information handy.

You can only submit a DASP application when you've left Australia and do not hold an active visa. For further information on visa cessation, including cancellation, once you have departed Australia, see [Cancelling a visa (homeaffairs.gov.au)External Link](https://immi.homeaffairs.gov.au/visas/cancelling-a-visa).

Take note of the information you enter when you start your online application. You'll need the same details to resume your saved application after you leave Australia.

Where the value of your super money is $5,000 or more, your super fund may require certified copies of your proof of identification documents.

It's much easier to certify documents while you are in Australia. As there are specific rules on who can certify documents, we recommend you do this before you leave. Check with your super fund to confirm what documents are required.

For more information on how to use the system, see [Help with the DASP online application system](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp/help-with-the-dasp-online-application-system).

### Paper applications

For **super held by a super fund**, you need to complete the [Application for departing Australia superannuation payment form](https://www.ato.gov.au/forms-and-instructions/departing-australia-super-payment-application) (NAT 7204) and send one to each of your super funds.

If you're applying on a paper form, your super fund may charge you a fee depending on the value of your super money. Your super fund will also require certified copies of your proof of identification documents.

It's much easier to certify documents while you are in Australia. As there are specific rules on who can certify documents, we recommend you do this before you leave. Check with your super fund to confirm what documents are required.

For **ATO-held super**, use the [Application for payment of ATO-held superannuation money](https://www.ato.gov.au/forms-and-instructions/superannuation-application-for-payment-of-ato-held-super) (NAT 74880) and send it directly to us. There are no costs for paper applications sent to the ATO.

#### Super value of $5,000 or more

For super accounts with a balance of $5,000 or more, paper applications to super funds may require a *Certification of Immigration Status* from Home Affairs, which charges a fee to issue this certificate. They will email it directly to you and the super funds you nominate.

Request a *Certificate of Immigration Status* from Home Affairs using [Form 1194 Certification of Immigration Status (PDF 290KB)This link will download a file](https://immi.homeaffairs.gov.au/form-listing/forms/1194.pdf).

#### Super value of less than $5,000

For super accounts with a balance of less than $5,000, you can provide evidence that you have left Australia and your visa has expired without completing the *Certification of Immigration Status*.

Ask your super fund what evidence you need to provide. If you're not able to provide the evidence yourself, your super fund may ask you for a *Certification of Immigration Status* from Home Affairs before they can process your application.

If you have held a WHM visa and haven't applied for a *Certification of Immigration Status* from Home Affairs, you'll need to provide your visa information on the paper application. This may be checked against Home Affairs records and your application may take longer to process if it doesn't match.

### Authorising someone to claim on your behalf

You can authorise someone else to apply for your DASP. They can act on your behalf and update your information, so consider carefully who you allow to represent you.

Your representative will need a written authority from you before they can submit your DASP application.

You can nominate either:

- a tax agent with full registration or conditional registration for the purpose of claiming DASP with the Tax Practitioners Board
- another person if you use a DASP paper form.

Registered tax agents can claim DASP on your behalf through the [DASP online intermediary application system](https://www.ato.gov.au/tax-and-super-professionals/digital-services/departing-australia-superannuation-payments-dasp-online-system).

Anyone applying on your behalf using a paper form will have to satisfy your super fund they have the authority to claim on your behalf. Ask your super fund what documents they require.

### Applying for super of a deceased temporary resident

If you believe you may be entitled to receive the super benefits of a deceased temporary resident, you can't use the application system to apply.

To [apply for super held](https://www.ato.gov.au/forms-and-instructions/departing-australia-super-payment-application) by a fund for a deceased temporary resident, contact the fund directly.

If you believe you're entitled to claim super held by the ATO for a deceased temporary resident, complete the relevant [ATO-held super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/keeping-track-of-your-super/ato-held-super) form. You'll also need to complete the [Application for payment of ATO-held superannuation money for a deceased person cover sheetThis link will download a file](https://www.ato.gov.au/api/public/content/a07fc028-e1dc-42e2-a3d8-a29ca0efbb42_c184812d_4029_43c3_8403_b9243168272a_pdf) (NAT 75530) and send it directly to us.

## Returning to Australia after claiming DASP

### Returning to Australia later on a new visa

Claiming a DASP will not affect any future visa applications.

### Returning to Australia permanently

If you've returned to Australia as a permanent resident and your super fund has transferred your super to us as 'former temporary resident – unclaimed super', you can either:

- transfer this money back to an Australian super fund
- apply for it to be paid to you directly, if you've met all the eligibility requirements.

Either way, the payment is still considered a DASP and is subject to the relevant DASP tax rate.

To transfer your super back to a super fund, phone our superannuation enquiries line on **13 10 20**.

To apply for a DASP when you have returned to Australia permanently, use the [Application for payment of ATO-held superannuation money](https://www.ato.gov.au/forms-and-instructions/superannuation-application-for-payment-of-ato-held-super) (NAT 74880) and send it directly to us.

## How and when DASP is paid

Your DASP will generally be paid within 28 days of your completed application being received. It may take longer if you submit an incomplete application or are asked to provide additional supporting documents.

There are 3 payment options:

- electronic funds transfer (EFT) to an Australian bank account
- Australian dollar cheque
- international money transfer (IMT) – only for applications to super funds.

Not all super funds offer IMT. Fees and charges (including currency conversion) may apply, so check with your fund to see what payment options are available.

EFT is usually the most effective payment option, and you should consider keeping your Australian bank account open to receive your DASP.

Confirm with your Australian bank that you will be able to arrange the money to be paid to an account in your home country.

For ATO-held super, you can only choose EFT to an Australian bank account in your name or a cheque.

## How DASP is taxed

A final DASP tax will be withheld from your payment when it is made. The payment may be made up of 2 components, taxable and tax free.

Different tax rates apply to [working holiday maker (WHM) visa](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp#Whatareworkingholidaymakervisas) holders.

DASP tax rates

Payment component

DASP ordinary tax rate (for non-WHM)

DASP WHM tax rate

Tax-free component

Nil

Nil

Taxable component – taxed element

35%

65%

Taxable component – untaxed element

45%

65%

The payer of the DASP must issue you a DASP payment summary within 14 days of making the payment. The DASP payment summary will tell you the amount of DASP tax that was withheld and the amount paid to you.

DASP payment summaries issued by the ATO will have an '**H**' indicator at the DASP type when the DASP WHM tax rate was applied. The indicator will be blank where the DASP ordinary tax rate was applied.

### How tax rates are applied

The DASP tax rate will be determined by each super fund individually, as each fund is making a separate payment.

Each super fund will assess your application and determine the tax rate to apply based on the information it holds in relation to your contributions.

If you have held a WHM visa, your super fund will check whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the fund will apply the DASP WHM tax rate. If it doesn’t, the fund will apply the DASP ordinary tax rates.

The different DASP tax rates that may apply are summarised below:

- If you have never held a WHM visa – the DASP ordinary tax rates apply.
- If you have only ever held a WHM visa and associated bridging visas – the DASP WHM tax rate applies.
- If you held both a WHM visa and another type of visa – the tax rate that applies will depend on whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the DASP WHM tax rate will apply to the entire amount. If it does not, the DASP ordinary tax rates will apply.

It doesn't matter when you held a WHM visa. The DASP WHM tax rate applies if you have ever held a 417 or 462 and associated bridging visas and the DASP includes amounts attributable to super contributions made while you held the relevant visa.

The DASP WHM tax rate applies to the entire payment, including any super you may have earned while working under a different visa.


You must account to your client for money or other property you may receive from your client or on their behalf that you hold on trust for them. This is one of your obligations as a registered tax practitioner under the Code of Professional Conduct (Code item 3).

A trust generally arises when you receive money or other property from a client or on behalf of a client. This could include:

**tax refunds or other payments received from the Australian Taxation Office (ATO) on behalf of your clients**

**money received from clients for specific purposes, such as setting up a company or paying a tax liability.**

A trust relationship can arise from express or implied arrangements between you and your client.

## Ways you can account for money or other property held on trust

Some ways you can account for money or other property held on trust for a client include:

- keeping your personal or business funds separate from any trust money, most preferably through the use of a separate bank account
- keeping accurate and up-to-date records of any dealings in relation to the money or other property held on trust
- using a letter of engagement with your clients to expressly set out details about how money or other property held on trust will be dealt with
- seeking prompt instructions from clients about how and where to pay money or other property received on their behalf, and then paying or providing that money or other property to the client in a timely manner
- passing tax refunds on to clients within 14 days unless there are exceptional circumstances or some agreement between you and your client to the contrary
- promptly answering any questions clients raise about money or other property held on trust
- allowing clients access to any records relating to money or other property held on trust
- reconciling the trust records and reporting to clients on an appropriate periodic basis, in the circumstances, to ensure that they are correct and up to date
- maintaining up-to-date policies and procedures of the practice in relation to the handling of client money or other client property
- applying money or other property lawfully in accordance with the directions of the client, and telling the client what has been done.

The above list is not exhaustive, and you should consider what steps are appropriate depending on the nature and size of your practice.


Remote work is on the rise! So, you’ve got the chance to work from anywhere in the world, but do you know the tax and super rules? If you’re employed remotely, stay one step ahead of tax time and find out what you need to know to get your tax return right.

### I work remotely in Australia for a foreign employer – how am I taxed?

If you’re working in Australia for an overseas employer the first thing to check is your [tax residency](https://community.ato.gov.au/s/article/a07RF00000GjNz8YAF/working-out-your-tax-residency-and-what-it-means-for-you). This decides how you’re taxed.

**If you’re an Australian resident for tax purposes:**

**If you’re a foreign or temporary resident for tax purposes:**

**If you’re a contractor and not an employee, you’ll need to:**

### I’m moving overseas and continuing to work remotely for an Australian business – what do I need to know?

When leaving Australia, what you need to do all comes down to your tax residency. Work out your tax residency by using the relevant [residency decision tool this opens in a new window ](https://www.ato.gov.au/Calculators-and-tools/Work-out-your-tax-residency/). Keep in mind, your residency may change!

If you **remain an Australian resident for tax purposes**, it’s likely your income will be deemed Australian-sourced. This means your employer will continue to withhold tax and pay super as normal while you’re out of the country.

If / when you’re **no longer an Australian resident for tax purposes**, your Australian employer won’t have any Australian tax or super requirements. Your income will be considered foreign-sourced. This means you won’t have to file an Australian tax return.

The easiest way to manage your tax affairs while overseas is with our [online services this opens in a new window ](https://www.ato.gov.au/general/online-services/). To keep using myGov and your linked services, make sure to [change your sign in options this opens in a new window ](https://www.servicesaustralia.gov.au/before-you-go-overseas-and-leave-australia?context=60040#a2:~:text=international%20lines.-,Check%20your%20myGov%20Account%20settings,to%20make%20sure%20you%20can%20access%20myGov%20while%20you%E2%80%99re%20travelling%20overseas.,-You%E2%80%99ll%20either%20need) *before* you leave.

Check out our info for [Australians living overseas this opens in a new window ](https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Australians-living-overseas/) for more.

### I’m a foreign resident employee working remotely overseas for an Australian business – do I need to lodge an Australian tax return?

Short answer – no. Employers don’t tax your income if you aren’t an Australian resident for tax purposes. If you’re paid into a bank account with an overseas address, you don’t need to worry about lodging an Australian tax return.


## Inheriting money and assets

There are no inheritance or estate taxes in Australia.

However, you may have tax obligations for the assets you inherit:

- [capital gains tax](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax) may apply if you dispose of an asset inherited from a deceased estate
- income tax applies as usual to any dividends or rental income from shares or property you inherited.

## Receiving income of a deceased estate

Until the deceased person's estate is finalised, it may continue to earn income. For example, the estate may have income from a rental property or other investments.

If you become [presently entitled](https://www.ato.gov.au/individuals-and-families/deceased-estates/doing-trust-tax-returns-for-the-deceased-estate/when-a-beneficiary-is-presently-entitled-to-income) to income of the deceased estate, you need to include it in your tax return.

If this happens, the legal personal representative (LPR) of the estate should provide you with the necessary information to complete your tax return.

## Receiving a super death benefit

If the deceased person had super, the super fund's trustee will work out who will receive benefits. Super paid after a person's death is called a 'super death benefit'.

The tax on a [super death benefit](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/tax-on-super-benefits#ato-Taxonsuperdeathbenefits) depends on:

- whether you were a dependant of the deceased under tax law
- whether it is paid as a lump sum or income stream
- whether the super is tax-free or taxable (and whether the super fund has already paid tax on the taxable component)
- your age and the age of the deceased person when they died (for income streams).

To find out about your entitlement you will need to contact the super fund trustee directly.


## Procedures for disclosing protected information under Schedule 1 to the Taxation Administration Act 1953

### Overview

1. The procedures and instructions set out in this document have been developed to satisfy the Commissioner's obligations under section 355–335 of Schedule 1 to the *Taxation Administration Act 1953* (TAA).
2. Section 355-335 of Schedule 1 to the TAA requires the Commissioner to issue and publish instructions about the procedures to be followed by taxation officers when disclosing protected information under:
- section 355-55 (disclosures to Ministers)
- section 355-65 (disclosures for other government purposes)
- section 355-70 (disclosures for law enforcement and related purposes).
3. All references to legislation in this document are to Schedule 1 to the TAA, unless otherwise indicated.

### Background

1. The tax law secrecy provisions in Division 355 of Schedule 1 to the TAA apply to protected information. Protected information is defined to mean information that was disclosed or obtained under or for the purposes of a taxation law (other than the *Tax Agent Services Act 2009*), which relates to the affairs of an entity (including but not limited to the entity's tax affairs), and which identifies, or is reasonably capable of being used to identify, that entity.
2. To be protected information, the information need not relate to a living individual, but can relate to any entity as defined in section 960-100 of the *Income Tax Assessment Act 1997*, that is:
- an individual
- a body corporate
- a body politic
- a partnership
- any other unincorporated association or body of persons
- a trust
- a superannuation fund
- an approved deposit fund.
3. Protected information may be contained in written documents, conversations, electronic recordings, transcripts or any other form in which information can be recorded. It includes information obtained directly from a taxpayer or information generated by us (for instance, through collating or cross-referencing information from a variety of sources).
4. It is an offence under section 355–25 for a tax officer to disclose protected information to another entity, other than to the entity who the information is about, or that entity's covered entity (as defined in subsection 355-25(2)), unless the disclosure is permitted under one of the exceptions in Division 355.
5. A tax officer who proposes to disclose protected information under one of the exceptions in Division 355 must always ensure that their disclosure will fit the requirements stipulated in the exception they propose to apply.
6. The table items in sections 355–55, 355–65 and 355–70 are exhaustive lists of circumstances in which disclosures of protected information may be made under each section and tax officers must observe the defined terms in each section. Any proposed disclosure under these sections must fit one of the table items in the relevant section for a tax officer to make a proposed disclosure.
7. For disclosures under the exceptions in sections 355–55, 355–65 or 355–70, a tax officer must follow the instructions in this document.

## Before protected information can be disclosed by us to a Minister

### Introduction

1. Division 355 permits a tax officer to disclose protected information to Ministers in the circumstances and for the purposes set out in the table in subsection 355–55(1). These are:
- to enable any Minister to exercise a power or perform a function under a taxation law (table item 1)
- to enable the Minister to respond directly to the entity the information is about in relation to a representation made by that entity to either the Minister or another member of Parliament (table item 2)
- to the Minister for the purpose of informing decisions made under the Compensation for Detriment Caused by Defective Administration Scheme (table item 3)
- to the Finance Minister, for the purpose of the making, or possible making, of an act of grace payment connected to the administration of a taxation law, or the waiver or possible waiver of a tax debt (table item 4)
- to any Minister for the purpose of determining whether to make an ex-gratia payment, or administering such a payment (table item 5)
- to specified Ministers for the purpose of enabling them to discharge specified responsibilities, but only where the disclosure is of information contained in the Register of Foreign Ownership of Agricultural Land or the Register of Foreign Ownership of Water Entitlements (table item 6).

### Process

1. The following paragraphs in this section list the process that tax officers must follow before disclosing protected information to a Minister under section 355–55.
2. Ensure that you are authorised to make the disclosure.
- Section 355–55 permits any tax officer to lawfully disclose protected information under section 355–55.
- Tax officers must also comply with any policies determined by their business line regarding minimum classification levels for making disclosures to recipients of a kind listed in subsection 355–55(1). The Taxation Authorisation Guidelines are available to tax officers on our intranet.
3. Consult with Parliamentary Services in Corporate Relations, or a Parliamentary business line coordinator.
- A tax officer who proposes to disclose protected information to a Minister must consult Parliamentary Services in Corporate Relations, or a Parliamentary business line coordinator. A list of Parliamentary business line coordinators is available to tax officers on our intranet.
- Further information is available to tax officers on our intranet, in the Providing Services to Treasury Portfolio Ministers and Parliament Chief Executive Instruction.
4. Determine whether one of the table items in section 355–55 will apply to the proposed disclosure.
- Ensure that the proposed recipient of the protected information is an entity described in column 2 of the table item that will be relied on.
- Ensure that the purpose for which the information would be disclosed fits the lawful purpose for disclosure set out in column 3 of the table item that will be relied on.
- The table items are an exhaustive list of circumstances in which disclosures of protected information may be made under section 355–55. They are not examples. The proposed disclosure must fit one of the table items in order to be permitted under section 355–55.
- Any defined terms in section 355–55 must be carefully observed in assessing the application of the table items in that section.
- Note there are some other very limited circumstances in which protected information may be disclosed to a Minister apart from under section 355–55. The processes set out in this CMPI apply only to those disclosures of protected information to Ministers that are made under section 355–55. An example is that protected information about a Minister's own affairs as a taxpayer may be provided to that Minister, consistent with section 355–25.
- Details of all circumstances in which protected information may be disclosed to a Minister, both under section 355–55 and apart from under section 355–55, are set out in Law Administration Practice Statement PS LA 2004/9 Disclosing information about the affairs of a taxpayer to Ministers.
5. Obtain senior officer agreement.
- If a tax officer who proposes to disclose protected information under section 355–55 is not the Commissioner, a Second Commissioner, an SES employee or acting SES employee of the ATO, they must obtain agreement that the disclosure of protected information is covered by the table item in section 355–55 they propose to apply, from
- the Commissioner
- a Second Commissioner
- an SES employee or acting SES employee of the ATO, who is not the disclosing tax officer's direct supervisor.
- The Parliamentary coordinator who is managing the relevant work item seeks senior officer agreement by submitting to them an approvals and agreement template which specifies the table item in section 355–55 under which protected information will be disclosed.
- The senior officer from whom agreement is sought checks that the statutory criteria for the particular table item identified on the template has been satisfied.
- The senior officer indicates on the template that they agree that the proposed disclosure is covered by the nominated table item and notifies the Parliamentary coordinator that agreement has been given.
6. Record senior officer agreement.
- The document recording the senior officer agreement should be attached to the relevant work item in the Parliamentary Workflow System, prior to returning the work item to Parliamentary Services for disclosure to the Minister.

## Before protected information can be disclosed by us for other government purposes

### Introduction

1. Division 355 permits a tax officer to disclose protected information for other government purposes set out in tables 1 to 7 in section 355–65. These are:
- Table 1: Records or disclosures relating to social welfare, health and safety
- Table 2: Records or disclosures relating to superannuation or finance
- Table 3: Records or disclosures relating to corporate regulation, business, research or policy
- Table 4: Records or disclosures relating to other taxation matters
- Table 5: Records or disclosures relating to rehabilitation or compensation
- Table 6: Records or disclosures relating to the environment
- Table 7: Records or disclosures relating to miscellaneous matters.

### Process

1. The following paragraphs in this section list the process that tax officers must follow before disclosing protected information for other government purposes under section 355–65.
2. Ensure that you are authorised to make the disclosure.
- Section 355–65 permits any tax officer to lawfully disclose protected information under section 355–65.
- However, tax officers must comply with any policies determined by their business line regarding minimum classification levels for making disclosures to recipients of a kind listed in section 355–65. The Taxation Authorisation Guidelines are available to tax officers on our intranet.
3. Determine whether one of the table items in section 355–65 will apply to the proposed disclosure.
- Ensure that the proposed recipient of the protected information is an entity described in column 2 of the table item that will be relied on.
- Ensure that the purpose for which the information would be disclosed fits the lawful purpose for disclosure set out in column 3 of the table item that will be relied on.
- The table items are an exhaustive list of circumstances in which disclosures of protected information may be made under section 355–65. They are not examples. The proposed disclosure must fit one of these table items in order to make a disclosure under section 355–65.
- Any defined terms in section 355–65 must be carefully observed in assessing the application of the table items in that section.
4. Comply with any Memorandum of Understanding (MOU) that applies to the proposed disclosure.
- Identify and comply with any MOU that applies to a proposed disclosure of protected information to a particular recipient. A MOU cannot authorise any disclosure of protected information that is not consistent with the secrecy provisions in taxation law. But it may stipulate agreed conditions for information disclosure, such as timeframes for responding to requests, or agency contacts through which requests and disclosures are to be directed.
- Refer to the table of MOUs maintained by Corporate Relations, available to tax officers on our intranet.
- Direct any questions about compliance with a particular MOU to the MOU manager listed in the Corporate Relations MOU table available to tax officers on our intranet or identified in the MOU itself.

## Before protected information can be disclosed by us for law enforcement and related purposes

### Introduction

1. Division 355 permits a tax officer to disclose protected information to the entities and for the purposes set out in the table in section 355–70. These are:
- to an authorised law enforcement agency officer, or a court or a tribunal, for the purpose of investigating a serious offence, or enforcing a law, the contravention of which is a serious offence, or the making, or proposed or possible making, of a proceeds of crime order, or supporting or enforcing a proceeds of crime order (table item 1)
- to an authorised ASIO officer, for the purpose of performing ASIO's functions under subsection 17(1) of the *Australian Security Intelligence Organisation Act 1979* (table item 2)
- to a Project Wickenby officer, or a court or tribunal, for or in connection with a purpose of the Project Wickenby taskforce (made before 1 July 2015, or a later prescribed day) (table item 3)
- to a taskforce officer of a prescribed taskforce, or a court or tribunal, for or in connection with a purpose of the prescribed taskforce (made within the time limit, if any, prescribed by the regulations) (table item 4)
- to a Royal Commission in respect of which Letters Patent issued by the Governor-General declare that the Royal Commission is a Royal Commission to which this table item applies, or a member of such a Royal Commission, for the purpose of the Royal Commission conducting its inquiry (table item 5)
- to a Royal Commission of a State or a Territory prescribed by the regulations for the purposes of this table item, a commission of inquiry of a State or a Territory prescribed by the regulations for the purposes of this table item, or a board of enquiry of a State or a Territory prescribed by the regulations for the purposes of this table item, for the purpose of investigating a serious offence, or enforcing a law the contravention of which is a serious offence, or the making, or proposed or possible making, of a proceeds of crime order, or supporting or enforcing a proceeds of crime order (table item 6).

### Process

1. The following paragraphs in this section list the process that tax officers must follow before disclosing protected information for law enforcement and related purposes under section 355–70.
2. Consult the Information Disclosure Team in the Integrated Compliance business line.
- A tax officer who proposes to disclose protected information under section 355–70 must consult with the Information Disclosure Team in Integrated Compliance.
- Disclosure templates provided by the Information Disclosure Team must be completed.
- The disclosure must be approved by the Information Disclosure Team.
- The Information Disclosure Team will arrange all necessary authorisations and agreements without which disclosures under section 355–70 cannot be made. They also ensure that statutory reporting requirements in relation to section 355–70 are met.
3. Ensure that you are authorised to make the disclosure.
- A tax officer other than the Commissioner or Second Commissioner can only disclose protected information under section 355-70 if they have been delegated to do so by the Commissioner, or if they have been authorised to do so by the Commissioner or one of the Commissioner's delegates. Only certain SES officers have a delegation from the Commissioner to disclose protected information and to authorise other tax officers to disclose protected information under section 355–70. This is an additional requirement that applies to this exception only. Note this is a separate requirement to the senior officer agreement set out in paragraph 28.
- A tax officer who has not been authorised to do so by the Commissioner or Commissioner's delegate must not disclose any protected information under section 355–70.
- All inquiries about authorisations for the purposes of section 355–70 must be directed to the Information Disclosure Team in Integrated Compliance.
4. Determine whether one of the table items in section 355–70 will apply to the proposed disclosure.
- Ensure that the proposed recipient of the protected information is an entity described in column 2 of the table item that will be relied on.
- Ensure that the purpose for which the information would be disclosed fits the lawful purpose for disclosure set out in column 3 of the table item that will be relied on.
- The table items are an exhaustive list of circumstances in which disclosures of protected information may be made under section 355–70. They are not examples. The proposed disclosure must fit one of the table items to be permitted to make a disclosure under section 355–70.
- The defined terms in section 355–70 must be carefully observed in assessing the application of the table items in that section.
5. Comply with any Memorandum of Understanding (MOU) that applies to the proposed disclosure.
- Identify and comply with any MOU that applies to a proposed disclosure of protected information to a particular recipient. A MOU cannot authorise any disclosure of protected information that is not consistent with the secrecy provisions in taxation law. But it may stipulate agreed conditions for information disclosure, such as timeframes for responding to requests, or agency contacts through which requests and disclosures are to be directed.
- Refer to the table of MOUs maintained by Corporate Relations, available to tax officers on our intranet.
- Direct any questions about compliance with a particular MOU to the MOU manager listed in the MOUs Corporate Relations table available to tax officers on our intranet or identified in the MOU itself.
6. Obtain senior officer agreement.
- If a tax officer who proposes to disclose protected information under section 355–70 is not the Commissioner, a Second Commissioner, an SES employee or acting SES employee of the ATO, they must obtain agreement that the disclosure of protected information is covered by the table item in section 355-70 they propose to apply, from:
- the Commissioner
- a Second Commissioner
- an SES Employee or acting SES employee of the ATO.
- Senior officer agreement is sought by the Information Disclosure Team, by submitting a disclosure checklist on which the statutory criteria for the relevant table item are listed and checked off by a member of the Information Disclosure Team.
- The senior officer from whom agreement is sought checks that the statutory criteria for the particular table item have been satisfied.

The senior officer electronically signs the checklist to indicate that they agree that the proposed disclosure is covered by the table item indicated in the disclosure checklist and notifies the Information Disclosure Team that agreement has been given.


## When pay slips should be given

Pay slips have to be given to an employee within 1 working day of pay day, even if an employee is on leave.

## How pay slips should be given

Pay slips have to be in either electronic form or hard copy. Electronic pay slips must have the same information as paper pay slips.

## What a pay slip should have on it

Pay slips have to cover details of an employee’s pay for each pay period. Below is a list of what to include:

- employer’s and employee’s name
- employer’s Australian Business Number (if applicable)
- pay period
- date of payment
- gross and net pay
- if the employee is paid an hourly rate:
- the ordinary hourly rate
- the number of hours worked at that rate
- the total dollar amount of pay at that rate
- any loadings (including casual loading), allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee’s ordinary hourly rate. For example, a note could be included on a pay slip that the hourly rate incorporates the relevant casual loading.
- the pay rate that applied on the last day of employment
- any deductions from the employee's pay, including:
- the amount and details of each deduction
- the name, or name and number of the fund / account the deduction was paid into
- any superannuation contributions paid for the employee’s benefit, including:
- the amount of contributions made during the pay period (or the amount of contributions that the employer intends to make)
- the name, or the name and number, of the superannuation fund the contributions were (or will be) made to.

When an employer is required to give a new employee a pay slip within 14 days of their first pay day, they don’t have to include the superannuation fund name or number if:

- the employee hasn’t notified the employer of their choice of superannuation fund
- the employer hasn’t been able to obtain the employee’s stapled superannuation fund details from the Australian Taxation Office (ATO).

For more information, visit the ATO’s website [Stapled super funds for employers](https://www.ato.gov.au/Business/Super-for-employers/Setting-up-super-for-your-business/Offer-employees-a-choice-of-super-fund/Request-stapled-super-fund-details-for-employees/).

### Leave balances on pay slips

While it's best practice to show an employee's leave balances on their pay slip, it’s not a requirement.

Leave that can be shown on a pay slip includes:

- annual leave
- sick and carer’s leave
- long service leave.

Employers do need to tell employees their leave balances if they ask for it.

## Paid family and domestic violence leave on pay slips

There are rules about how information about paid family and domestic violence leave must be reported on pay slips and what information must not be included. This is to reduce the risk to an employee’s safety when accessing paid family and domestic violence leave.

Employers need to keep a record of leave balances and any leave taken by employees. However, pay slips must not mention paid family and domestic violence leave, including any leave taken and leave balances.

An amount paid to an employee for taking paid family and domestic violence leave has to be recorded on a pay slip as:

- ordinary hours of work, or
- another kind of payment for performing work, such as an allowance, bonus or overtime payment.

However, if an employee requests it, their employer can record time taken as paid family and domestic violence leave as another type of leave on their pay slip (for example, annual leave).

If an employee has taken a period of paid family and domestic violence leave, it is best practice for their employer to record this on their pay slip in a way that makes the pay slip look as close as possible to how it would have looked if the employee had not taken the leave.

### Example: Recording paid family and domestic violence leave on a pay slip

Jamie works in a warehouse for a large supermarket.

Jamie requests to take one day of paid family and domestic violence leave. On that day, Jamie would have worked 7 ordinary hours, including 3 hours in a cool room that would attract a cold work allowance.

Jamie’s employer issues them a pay slip that includes the 7 ordinary hours and 3 hours of the cold work allowance for that day, instead of recording that period as paid family and domestic violence leave. This means Jamie’s pay slip looks the same as it would have looked if Jamie hadn’t taken the leave at all.

## Request for pay slips

If as an employee, you don’t receive a pay slip, we encourage you to talk to your employer. Find step-by-step advice on how to start this process at [I'm not getting pay slips](https://www.fairwork.gov.au/workplace-problems/common-workplace-problems/im-not-getting-pay-slips).

You can also check out our [online learning course on having difficult conversations](https://www.fairwork.gov.au/node/2187) for tips on how to approach your employer.

Employers who give proper pay slips are able to keep good records that can be easily found if needed.

## What happens if pay slips aren't given or don't have the right information

Fair Work Inspectors can give employers a fine, called an [infringement notice](https://www.fairwork.gov.au/about-us/compliance-and-enforcement/infringement-notices), if they:

- don't include the right information on a pay slip
- don't issue pay slips at all or within 1 working day of paying employees.

It’s unlawful for employers to give pay slips that they know are false or misleading.

Employers can also be penalised if we choose to [take a matter to court](https://www.fairwork.gov.au/about-us/compliance-and-enforcement/litigation). In some cases, employers who have not given pay slips may have to prove to a court that they didn't underpay an employee.

### Tips for employers

- Issue pay slips in an easily printable format.
- Make sure employees can access and print their pay slips in private.
- Pay slips should be written in plain English and simple to understand.


## Main GST-free products and services

Most basic foods, some education courses and some medical, health and care products and services are GST-free, often referred to as exempt from GST.

Things that are GST-free include:

- most basic food
- some education courses, course materials and related excursions or field trips
- some medical, health and care services
- some menstrual products
- some medical aids and appliances
- some medicines
- some childcare services
- some religious services and charitable activities
- supplies of accommodation and meals to residents of retirement villages by certain operators
- cars for disabled people to use, when certain requirements are met
- water, sewerage and drainage
- international transport and related matters
- precious metals
- sales through duty-free shops
- grants of land by government
- farmland
- international mail
- exports
- sales of businesses as going concerns
- some telecommunications supplies
- eligible emissions units.

**See also**

- [GST food list](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/gst-and-food/detailed-food-list)
- [GST Rulings and Determinations](https://www.ato.gov.au/single-page-applications/legaldatabase#Law/table-of-contents) and search the topic you are interested in

## Exports of goods

Exported goods are GST-free if they are exported from Australia within 60 days of one of the following, whichever occurs first:

- the supplier receives any payment for the goods
- the supplier issues an invoice for the goods.

In the case of goods paid for by instalments, the payment or invoice must be for the final instalment.

Suppliers can apply to us to extend the 60-day period.

## Other exports

Other exports generally include supplies of things other than goods for consumption outside Australia, such as:

- services
- various rights
- other professional services.

A supply of a service is usually GST-free if the recipient of the service is outside Australia.

There are specific rules that determine if the supply is GST-free.

**See also**

- [GSTR 2019/1](https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20191/NAT/ATO/00001&PiT=99991231235958) *Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia)*
- [GSTR 2018/2](https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20182/NAT/ATO/00001&PiT=99991231235958) *Goods and services tax: supplies of goods connected with the indirect tax zone (Australia)*
- [GSTR 2002/6](https://www.ato.gov.au/law/view/document?docid=GST/GSTR20026/NAT/ATO/00001) *Exports of goods*
- [GST definitions](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/definitions)

## Sale of a business as a going concern

The sale of a business as a going concern is GST-free if **all** the following apply:

- before the sale, the buyer and seller agree in writing that the sale is of a going concern
- the buyer is registered or required to be registered for GST
- everything necessary for the business to continue operation is supplied to the buyer
- the seller carries on the business until the day it is sold (date of settlement)
- payment is made for the sale.

**See also**

- [Sale of a business as a going concern – supporting information](https://www.ato.gov.au/individuals-and-families/your-tax-return/if-you-disagree-with-an-ato-decision/object-to-a-decision/what-to-include-in-your-objection/supporting-information-to-provide/gst/sale-of-a-business-as-a-going-concern)
- [GSTR 2002/5](https://www.ato.gov.au/law/view/document?docid=GST/GSTR20025/NAT/ATO/00001) *When is a 'supply of a going concern' GST-free?*
- [GST definitions](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/definitions)

## Cars, car parts and leasing

If you are eligible to purchase a car GST-free, you are also entitled to:

- lease a car GST-free, providing you meet the other conditions relating to intended use
- purchase car parts (such as batteries, tyres and disc brake pads) GST-free.

Petrol, oil or accessories such as mudflaps are not GST-free.

If you satisfy the eligibility criteria, complete a *Declaration for an exemption of GST on a car or car parts* and present it to your car or car parts supplier.

An eligible veteran with a disability can also get an approved form from the Department of Veterans’ Affairs to apply for a rebate on the purchase of a motorcycle and motorcycle parts.

If you do not have a declaration for exemption before you purchase your car or car parts, the dealer or supplier may charge you GST. You may be able to get a refund of the GST after you have purchased your car or car parts. However, it is simpler for you if you provide the declaration before you make your purchase. Under tax law, we are unable to provide you with a direct refund of the GST you paid on either your car or car parts.

**Find out about**

- [Purchasing a car](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/when-to-charge-gst-and-when-not-to/gst-free-sales#Leasingacar)
- [Leasing a car](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/when-to-charge-gst-and-when-not-to/gst-free-sales#Leasingacar1)
- [Car parts](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/when-to-charge-gst-and-when-not-to/gst-free-sales#Carparts)

**See also**

- [Eligibility for tax concessions on cars for people with a disability](https://www.ato.gov.au/people-with-disability/tax-concessions-on-cars-for-people-with-disability)
- [Medical aids and car appliances](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/gst-and-health/supply-of-services-through-a-third-party?page=7)
- [Declaration for an exemption of GST on a car or car parts – person with a disability who is gainfully employed](https://www.ato.gov.au/forms-and-instructions/gst-free-car-person-with-a-disability-who-is-gainfully-employed)
- [Declaration for an exemption of GST on a car or car parts – disabled veterans](https://www.ato.gov.au/forms-and-instructions/gst-free-car-disabled-veterans)
- [Motorcycle GST rebate schemeExternal Link](https://www.dva.gov.au/health-and-treatment/help-cover-healthcare-costs/help-your-vehicle-costs/motorcycle-gst-rebate) (for disabled veterans)

### Purchasing a car

An eligible person is exempt from paying GST on a car up to the value of the '[car limit](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/assets-and-exclusions#Carcostlimit)'.

The 'car limit' figure is set annually. You must pay GST on any amount above that limit.

The value of the car you purchase does not include the value of any modifications made solely to adapt the car for you to drive or be driven in.

If the value of a modified car exceeds the car limit, you must pay GST on the value above the car limit. You do not pay GST on the value of the modifications made to the car.

**See also**

- [Car cost limit for depreciation](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/assets-and-exclusions#Carcostlimit) (the car limit is the same as the car cost limit for depreciation)
- [LCT modifications for people with a disability](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/luxury-car-tax/when-lct-doesn-t-apply/modifications-for-people-with-a-disability)

### Leasing a car

If you are eligible to purchase a car GST-free, then you can also lease a car GST-free, if **both** of the following apply:

- the lease is for a minimum of two years, or you use the car to travel 40,000 kilometres from the date you lease it
- you intend to use the car for the prescribed purpose for the whole of that period – for example, an eligible person with a disability must also plan to use the car for their personal transport to or from gainful employment for the whole period.

#### Novation arrangements

Under a novation arrangement, you may agree with the lessor and the finance company to take over all or part of the lessee's rights and obligations under a lease.

Whether a car is GST-free under a novation arrangement depends on the type of arrangement you entered.

If you lease it under a **partial** novation arrangement the car is GST-free. Under a partial novation lease your employer does not lease the car, but you lease it directly.

If it is subject to a **full** novation arrangement the car is not GST-free. Under a full novation arrangement your employer leases the car.

**See also**

- [Vehicles purchased under novated leases](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/gst-and-vehicles-purchased-under-novated-leases)

### Car parts

If you are eligible to purchase a car GST-free, you are also entitled to purchase certain car parts GST-free, including items such as:

- batteries
- disc brake pads
- tyres
- oil filters
- petrol filters
- liquid petroleum gas (LPG) conversion kits
- spark plugs
- water and fuel pumps
- radiator hoses
- windscreens
- head and tail-light globes.

Items that are not car parts are not GST-free, these include:

- oil and grease
- paint
- hydraulic fluid
- radiator or petrol additives
- refrigerant gas
- brake fluid
- petrol.

Accessories are not car parts and are not GST-free, these include:

- spoilers
- mudflaps
- pin striping
- roof racks
- CD players.

Parts that are not specifically for cars are not GST-free. For example, parts specifically for trucks, vans, buses, motorcycles and other machinery.

Car parts purchased by a business for sale to eligible people are not GST-free for the business.

The business:

- must pay GST when it purchases the car parts and can later claim a GST credit (if registered for GST) on their activity statement
- can sell the car parts GST-free to eligible people when presented with a completed declaration.

Car parts supplied to you during a repair of your car, and the cost of labour services in fitting those parts to your car, are GST-free. This is because the supply of car parts and labour to an eligible person is treated as a single GST-free ‘sale of car parts’.

If car parts are supplied to you when you service your car and those parts are integral to the servicing of your car then those parts and the labour services in fitting those parts are not GST-free. A car service, which typically involves mostly labour services with some integral parts, such as spark plugs or filters, is a taxable sale and incurs GST.

Start of exampleExample 1: GST-free sale of car parts

John has a current certificate of medical eligibility. He goes to an automotive parts and accessories store where he purchases spark plugs and brake pads for his car. The spark plugs and brake pads are GST-free for John. If John later has the spark plugs and brake pads fitted by a mechanic, the labour will be a taxable sale because it is a separate supply of labour, not a sale of car parts.

End of example

Start of exampleExample 2: GST-free sale of car parts including labour for fitting the parts

Justine sells tyres to Madge for a price that includes the cost of the labour associated with fitting and balancing the tyres. Madge also needs the brake pads in her car replaced. Madge has a current certificate of medical eligibility. The sale and fitting of the tyres and the brake pads are GST-free.

End of example

Start of exampleExample 3: Taxable car parts sold as part of a service

Anna has a current certificate of medical eligibility. She takes her car to the mechanic for a routine service. In the course of the service, the mechanic changes the spark plugs in Anna’s car. The sale of spark plugs is integral to the car service and, as such, is not a GST-free sale of car parts but a taxable supply of labour services.

End of example

Start of exampleExample 4: GST-free sale of car parts including labour in fitting those parts made during a car service

Jim has a current certificate of medical eligibility. He takes his car to the mechanic for a routine service, including changing the spark plugs. During the course of the service, the mechanic finds that the exhaust system needs to be replaced. While the service itself, including the fitting of spark plugs, is not a GST-free sale of car parts, the sale and fitting of the exhaust system is GST-free.


On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025.

This measure is now law.

Under the measure small businesses with an aggregated turnover of less than $10 million, can deduct:

- the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025
- an amount included in the second element (cost addition) of eligible depreciating asset's cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:

- the first amount of second element cost incurred after the end of the income year in which the asset was written off; and
- less than $20,000.

The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off.