This interpretation statement considers the application of section 5(6D) of the Goods and Services Tax Act 1985. Section 5(6D) broadly provides that when a payment in the nature of a grant or subsidy is paid on behalf of the Crown or by a public authority to a person in respect of their taxable activity, then that payment is deemed to be consideration for a supply of goods and services in the course or furtherance of the taxable activity.

CA ANZ supports the publication of the statement. CA ANZ also suggests some aspects of the item be reviewed, simplified and clarified with additional references.