GST Input Tax: Provision of subsidised services

Key requirements

The childcare and training examples distinguish grants to the provider from assistance awarded to the customer. A provider grant enabling a lower price generally leaves GST on the reduced fee. A customer grant paying part of the customer’s bill leaves GST on the full service fee, even where the agency transfers funds directly to the provider. Identify the award recipient using the grant terms, not merely the payment route. This page explains the service-price side; it does not itself grant full input-tax recovery on expenditure incurred for subsidised activity. Consult the grants guidance separately for business and non-business attribution. Retain award evidence with the invoice so the subsidy deduction and the GST base are transparent.