Examples 1 & 2 of Public Policy Rulings 1999/2

Example 1

An applicant performs concerts free of charge for an overseas client. The only ‘income’ it receives for offsetting tour expenses is from an Australian airline which provides free overseas travel. If the airline provides free travel through its arrangements with the applicant (say sponsorship), the applicant is still considered to have provided a ‘free sample’. However, if the airline provides free travel through arrangements made with the overseas recipient of the ‘free sample’ (say the overseas sponsor or a festival organiser), it will not be a ‘free sample’.

Example 2

An applicant performs concerts at an overseas festival. It contracts with the festival organisers to provide the free services. The festival organisers use a separate company to manage festival events. This company arranges for the applicant to have free accommodation for the festival activities. In this case the applicant is considered to have received some non-cash amount in relation to providing the services and Austrade will not assess expenses under ‘free samples’.
(c) Australian Trade Commission