SLDL and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between SLDL and the Commissioner of Taxation concerning the application of goods and services tax (GST) to gambling supplies.

The primary legal issue before the Tribunal was how to calculate the GST payable on gambling supplies, specifically in circumstances where there was a calculation of global GST amounts based on total amounts wagered and total monetary prizes.

Deputy President McCabe P reasoned that the relevant provisions of the *A New Tax System (Goods and Services Tax) Act 1999* (Cth) required a specific method for calculating GST on gambling supplies. The Tribunal determined that the GST payable was to be calculated by reference to the margin, which is the difference between the total amounts wagered and the total monetary prizes paid out. This approach ensures that GST is levied on the net revenue of the gambling operator, rather than the gross turnover.