What is the GST treatment of travel booked using frequent flyer points?
GST does not apply to the award of frequent flyer points, or to the goods or services supplied on redemption of points, as there is no consideration. However, GST will apply to the supply to the extent that any additional amount is paid.
Under frequent flyer programs, members accumulate points by undertaking air travel and making other purchases. When sufficient points have been acquired, they can be redeemed for other goods or services.