3.3 Recipient Created Tax Invoice and Remittance Advice
Where an organisation is registered for GST and the services being provided are taxable supply, GST will be added to payments at the time payment is made. The service agrerement schedules 2 and 3 do not contain GST.
GST is not added to funding paid to government entities.
Where GST is added to payments, a detailed Recipient Created Tax Invoice (RCTI) is issued to the organisation, according to Australian Taxation Office (ATO) requirements. More information about GST is available at section 4.15.
DHS and DEECD will only issue an RCTI when a valid RCTI Agreement is in place between the organisation and the department.
All organisations, regardless of whether they are registered for GST, will receive a detailed remittance advice, which includes:
- total current payment
- GST payable
- total paid year-to-date (YTD)
- GST paid YTD
- outstanding amount.
This information enables organisations to better manage payments received from the department and reconcile and track payments more efficiently. Organisations can access their remittance advice via secure logon on the Funded Agency Channel at https://fac.dhs.vic.gov.au