Hornsby Council has lost its High Court case, challenging the validity of council GST payments.
After the council paid $3100 notional GST on the sale of a vehicle, it argued that the GST liability was a tax on property belonging to the state and that it was invalid.
AAP reports that the court heard the council could choose to pay the notional GST immediately, or have future grant payments reduced by the same amount.
The court found unanimously that the council’s inclusion of the notional GST in its BAS was not compelled by federal law, and dismissed the case.