Supply of transaction account GST-free to extent of use outside Australia

The ATO has released Draft Goods and Services Tax Determination GSTD 2020/D1, setting out the Commissioner’s proposed view on the extent to which the supply of a transaction account is GST-free under table items 3 or 4(a) in s 38-190(1) of the GST Act. It provides that such supplies (which are generally an input taxed financial supply) will be GST-free to the extent that the account holder’s effective use or enjoyment of the transaction account takes place outside of Australia.