The draft statement sets out the Commissioner’s view on the meaning of “taxable activity” under section 6 of the Goods and Services Tax Act 1985. The statement aims to clarify the concept of a taxable activity, which has been discussed in various public items, but often in specific contexts such as land subdivisions, horse racing, or horse breeding. The draft statement provides a more general application of the term.

Overall, CA ANZ supports the publication of the statement, recognising its value as a resource for taxpayers and advisers. However, CA ANZ recommends that paragraph 8 be removed from the final statement and provides reasons for this position.