Australia: GST treatment on refunds under container deposit scheme

Guidance for material recovery facility operators regarding GST treatment on refunds 

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July 17, 2025

The Australian Taxation Office (ATO) on July 15, 2025, issued guidance for material recovery facility operators regarding the goods and services tax (GST) treatment on refunds received under a container deposit scheme.

According to the ATO, material recovery facility operators process mixed recyclables from homes and businesses for reuse or recycling and may participate in container deposit schemes to obtain refunds on eligible beverage containers.

The ATO clarified that GST is applicable if the operator provides something of value in exchange for receiving refunds under the scheme. Examples include agreeing to recycle eligible containers under a specific scheme or recycling in compliance with a particular scheme.

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