Notice of Rulings 23 July 2025
The Commissioner of Taxation, Rob Heferen, gives notice by notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public rulings, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
GSTD 2025/1 | Goods and services tax: supplies of food of a kind marketed as a prepared meal | This Determination explains our view on the circumstances in which products are food of a kind ‘marketed as a prepared meal’. This Determination applies both before and after its date of issue. |
GSTR 2025/1 | Goods and services tax: supplies of things (other than goods or real property) made to non-residents but provided to another entity in Australia | This Ruling is about the operation of subsection 38-190(3) of the A New Tax System (Goods and Services Tax) Act 1999. That subsection negates, in certain circumstances, the GST-free status that would otherwise apply to a supply covered by table item 2 of subsection 38-190(1). Under that item, supplies of things (other than goods or real property) made to non-residents are GST-free if the requirements of that item are met. This Ruling applies both before and after its date of issue, subject to the commencement and application of each Act to which it refers. |
GSTR 2025/2 | Goods and services tax: supplies of things (other than goods or real property) where effective use or enjoyment of the supply takes place outside Australia | This Ruling examines the circumstances in which the effective use or enjoyment of a supply takes place outside Australia for the purposes of paragraph (b) of table item 3 of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999. This Ruling applies both before and after its date of issue, subject to the commencement and application of each Act to which it refers. |
PR 2025/9 | Utmost International Isle of Man Limited – Executive Investment Account | This Ruling sets out the income tax consequences for entities specified in the Ruling in connection with a life insurance policy (referred to as an Executive Investment Account) issued by Utmost International Isle of Man Limited and subject to the Executive Investment Account Policy Terms. This Ruling applies to entities specified in the Ruling from 1 July 2025. |
NOTICE OF ADDENDA |
Ruling number | Subject | Brief description |
CR 2025/16 | The Trustee for Protect Severance Scheme No 2 – workers in receipt of severance payments | This Ruling is being amended to update the criteria for payments assessable as employment termination payments. This Addendum applies from 1 January 2025 to 30 June 2030. |
GSTII FL1 Detailed Food List | Detailed Food List | This Ruling is being amended to: - align entries with Goods and Services Tax Determination GSTD 2025/1 Goods and services tax: supplies of food of a kind marketed as a prepared meal
- add new food and beverage product lines
- merge similar entries
- delete duplicate entries, and
- combine similar entries.
This Addendum applies to tax periods both before and after its date of issue. As the Addendum applies both before and after its date of issue, both the pre-addendum wording of the Ruling and the revised wording in the Addendum will apply for overlapping periods of time. In these circumstances, entities can choose to rely on either version when applying the Ruling during that period. |
TR 2004/18 | Income tax: capital gains: application of CGT event K6 (about pre-CGT shares and pre-CGT trust interests) in section 104-230 of the Income Tax Assessment Act 1997 | This Ruling is being amended to: - reflect the view that only one capital gain may arise in circumstances where paragraphs 104-230(2)(a) and (b) of the Income Tax Assessment Act 1997 are both satisfied, and
- clarify which property is taken into account in calculating the capital gain under subsection 104-230(6) of that Act.
This Addendum applies both before and after its date of issue. |
Overview
The Commissioner of Taxation, Rob Heferen, has issued a notice of public rulings and addenda under the Taxation Administration Act 1953, providing clarification on various aspects of goods and services tax (GST) and income tax. The notice includes rulings on the GST treatment of supplies of food marketed as prepared meals, supplies made to non-residents but used in Australia, and supplies where effective use or enjoyment occurs outside Australia. Additionally, it addresses the income tax consequences for entities in connection with a specific life insurance policy and updates the criteria for payments assessable as employment termination payments. The notice also amends previous rulings to align with new determinations and to clarify the application of capital gains tax provisions. These rulings and addenda aim to ensure taxpayers have clear guidance on their tax obligations and are applicable both before and after their issuance, subject to the relevant legislation's commencement and application.
Scope and Application
The Commissioner of Taxation, Rob Heferen, has issued public rulings that provide clarification on various aspects of taxation, including Goods and Services Tax (GST) and income tax. The rulings apply to businesses and individuals involved in transactions specified within the rulings, such as supplies of food marketed as a prepared meal, supplies of things to non-residents provided to another entity in Australia, and supplies where effective use or enjoyment takes place outside Australia. These rulings also cover the income tax consequences for specific entities with life insurance policies and the criteria for payments assessable as employment termination payments. The rulings apply both before and after their date of issue, subject to the commencement and application of the relevant Acts. Entities can choose to rely on either the pre-addendum or revised wording during overlapping periods. The geographic reach of these rulings is national, applying across Australia, and they extend to subordinate instruments as specified.
Key Provisions
The Commissioner of Taxation has issued a notifiable instrument (F2025N00589) on 23 July 2025, announcing several public rulings and an addendum. The main operative sections of this instrument include GSTD 2025/1, GSTR 2025/1, GSTR 2025/2, PR 2025/9, CR 2025/16, and GSTII FL1 Detailed Food List. These rulings provide guidance on various tax issues, such as the GST implications of supplying food marketed as prepared meals, the GST treatment of supplies to non-residents, and the application of capital gains tax (CGT) events. The addendum to CR 2025/16 updates the criteria for assessing employment termination payments, and the detailed food list under GSTII FL1 is being revised to align with the new determination on prepared meals. Each of these documents provides clarity on how specific tax laws apply to particular circumstances, ensuring taxpayers can comply with their obligations.
The obligations imposed by these rulings and the addendum are primarily on taxpayers and entities involved in the activities described. For example, GSTD 2025/1 requires businesses to correctly identify and classify food supplies marketed as prepared meals for GST purposes. GSTR 2025/1 and GSTR 2025/2 mandate that supplies to non-residents and supplies used or enjoyed outside Australia be correctly assessed for GST liability. PR 2025/9 outlines the tax consequences for entities involved in the specified life insurance policy. CR 2025/16, with its addendum, requires employers to correctly assess and report employment termination payments. Finally, GSTII FL1 Detailed Food List necessitates businesses to align their records with the updated food list for GST purposes. These obligations ensure that taxpayers are aware of their responsibilities and can correctly apply the relevant tax laws.
The notifiable instrument also highlights potential offences, penalties, or consequences for non-compliance. Under the Taxation Administration Act 1953, failure to comply with the rulings or addendum could result in penalties. For example, incorrect classification of GST on prepared meals could lead to fines or additional tax liabilities. Similarly, misapplying the guidance in GSTR 2025/1 or GSTR 2025/2 could result in incorrect GST assessments, with potential penalties for underpaid GST. Non-compliance with PR 2025/9 could lead to incorrect tax treatment of life insurance policy investments, resulting in additional tax liabilities. Finally, incorrect assessment of employment termination payments under CR 2025/16 could result in fines or additional tax liabilities. The maximum penalties for these offences are not specified in the text but would be determined according to the relevant tax laws.