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News 15/12/2005   

Tax blow to fee bundling hopes
Ria Voorhaar
 
The Australian Tax Office has dashed hopes that agents would be allowed to include service fees and travel in a single credit-card transaction.

The ATO has ruled that the ABN of both the supplier and the travel agent must be attached to any transaction in order to meet GST requirements.

In the wake of further Qantas commission cuts announced last week, the decision is a blow for AFTA, which has lobbied to remove the need for agents to enter a customer’s credit card details twice. The federation wanted a transaction involving a service fee and an airfare to appear as one item on a statement.

If the ATO had approved the single-transaction request, Qantas said it was prepared to alter its back-office system to accept bundled payments for all e-tickets.

AFTA chief executive Mike Hatton said the credit card companies were now working on a solution to offer clients enhanced transaction information such as PNR, passenger name, departure date and destination to enable easy reconciliation between airfare and service fee.

Hatton said he was expecting to hear back from the credit card companies in the new year.

15 December 2005


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