consideration provided either for the supply or in connection with the exercise of the right or option; or
(ii) if there is no such additional consideration — there is no consideration for the supply; and
(b) making a gift to a non-profit body is not the provision of consideration; and
(c) a payment made by a *government related entity to another government related entity is not the provision of consideration if the payment is specifically covered by an appropriation under an *Australian law.
9-20 Enterprises
(1) An enterprise is an activity, or series of activities, done:
(a) in the form of a *business; or
(b) in the form of an adventure or concern in the nature of trade; or
(c) on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or
(d) by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30-B of the Income Tax Assessment Act 1997 and to which deductible gifts can be made; or
(da) by a trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or
(e) by a charitable institution or by a trustee of a charitable fund; or
(f) by a religious institution; or
(g) by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or
(h) by a trustee of a fund covered by item 2 of the table in section 30–15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN.
(2) However, enterprise does not include an activity, or series of activities, done:
(a) by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or
Note: Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services.
(b) as a private recreational pursuit or hobby; or
(c) by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30–15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or
(d) as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12–45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies).
(3) For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities:
(a) being in the form of a *business within the meaning of paragraph (1)(a); or
(b) being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b).
(4) This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.
Withholding payments covered
Item
Provision
Subject matter
1
Section 12-35
Payment to employee
2
Section 12-40
Payment to company director
3
Section 12-45
Payment to office holder
4
Section 12-60
Payment under labour hire arrangement, or specified by regulations
9-25 Supplies connected with Australia
Supplies of goods wholly within Australia
(1) A supply of goods is connected with Australia if the goods are delivered, or made available, in Australia to the *recipient of the supply.
Supplies of goods from Australia
(2) A supply of goods that involves the goods being removed from Australia is connected with Australia.
Supplies of goods to Australia
(3) A supply of goods that involves the goods being brought to Australia is connected with Australia if the supplier either:
(a) imports the goods into Australia; or
(b) installs or assembles the goods in Australia.
Supplies of real property
(4) A supply of *real property is connected with Australia if the real property, or the land to which the real property relates, is in Australia.
Supplies of anything else
(5) A supply of anything other than goods or *real property is connected with Australia if:
(a) the thing is done in Australia; or
(b) the supplier makes the supply through an *enterprise that the supplier *carries on in Australia; or
(c) all of the following apply:
(i) neither paragraph (a) nor (b) applies in respect of the thing;
(ii) the thing is a right or option to acquire another thing;
(iii) the supply of the other thing would be connected with Australia.
Example: A holiday package for Australia that is supplied overseas might be connected with Australia under paragraph (5)(c).
When enterprises are carried on in Australia
(6) An *enterprise is carried on in Australia if the enterprise is carried on through:
(a) a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936); or
(b) a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.
9-30 Supplies that are GST-free or input taxed
GST-free
(1) A supply is GST-free if:
(a) it is GST-free under Division 38 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be GST-free under paragraph (a).
Input taxed
(2) A supply is input taxed if:
(a) it is input taxed under Division 40 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
Note: If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11–15 and 15–10).
Supplies that