The ATO clarified that entities offering value in exchange for scheme refunds may be liable for GST.
The Australian Taxation Office (ATO) issued guidance on 15 July 2025, regarding GST treatment for material recovery facility operators participating in container deposit schemes.
These operators, who process recyclables for reuse or recycling, may be eligible to receive refunds for certain beverage containers.
A material recovery facility operator processes mixed recyclables from homes and businesses for reuse or recycling. They may also participate in a container deposit scheme as part of their business and obtain refunds on eligible beverage containers they recycle or send for recycling.
The ATO clarified that if an entity provides something of value in exchange for receiving refunds under a scheme, they may be liable for GST. Typically, the act of providing value occurs through the recycling activities undertaken as part of their participation in the scheme. Examples of such value exchange include agreeing to recycle eligible containers under a specific scheme or recycling eligible containers in compliance with the requirements of that scheme.
