The vocabulary of gift vouchers, the way the ATO and ACCC use it

A prepaid token - physical or digital - that entitles the holder to goods or services up to a specified value. In Australia, gift vouchers must be redeemable for at least three years under the Australian Consumer Law in most cases. Also commonly called a gift card.

Functionally identical to a gift voucher under Australian Consumer Law. Coverage depends on how the card, voucher or credit is supplied; statutory exceptions apply. VoucherGrid uses “gift voucher” as the primary term.

A voucher that meets the Division 100 requirements, including a stated monetary value and a right to supplies up to that value. Its sale is generally not taxable under those rules; GST on redemption depends on the underlying supply. A dollar label alone does not determine the treatment.

A voucher outside the face value voucher rules, such as an entitlement to a named service. Ordinary GST rules apply to its supply; taxability and attribution depend on the transaction and accounting basis. Naming a service does not make a GST-free supply taxable.

Money received for goods or services not yet delivered. When a customer buys a $100 gift voucher, that $100 is a liability - deferred revenue - not income. Revenue is generally recognised as the promised goods or services are supplied, with separate rules for breakage. GST timing is a different question. See AASB 15.

Australian Accounting Standards Board standard 15: Revenue from Contracts with Customers. Requires businesses to recognise revenue when performance obligations are satisfied - for gift vouchers, this is generally on redemption, with separate guidance for unexercised rights (breakage) in paragraphs B44-B47.

The portion of voucher value not redeemed. AASB 15 permits recognition of expected breakage in proportion to redemptions when its conditions are met; otherwise recognition waits until redemption becomes remote. Expiry alone is not a universal accounting trigger. GST increasing adjustments follow a separate test.

The outstanding obligation associated with unredeemed vouchers. Face-value balances, the accounting contract liability and cash received are different measures: GST, refunds, redemptions and recognised breakage can affect them differently. Classification as current or non-current depends on the applicable accounting requirements.

Under section 100-15, an unredeemed face value voucher can give rise to an increasing adjustment when its reserve is written back to income, if the statutory conditions are met. The adjustment is generally 1/11 of the qualifying amount. Expiry alone does not establish that the write-back happened.

The form Australian businesses use to report GST, PAYG, and other tax obligations to the ATO. Gift voucher GST treatment - particularly the timing difference between face value and non-face value vouchers - directly affects how and when amounts are reported on the BAS.

Australian Competition and Consumer Commission. Enforces the gift card rules under the Australian Consumer Law, including the three-year minimum expiry requirement and the prohibition on post-purchase fees.

The national consumer protection framework that includes rules on gift voucher expiry, prohibited fees, and required disclosures. The applicable rule, exceptions and penalties depend on the conduct and legislation; consult the ACCC guidance and obtain advice for your circumstances.

Since 1 November 2019, most gift vouchers sold in Australia must be redeemable for at least three years from the date of purchase. The ACCC lists exceptions - including some promotional vouchers, employee reward cards, loyalty programs, certain reloadable cards, and a handful of other categories - but for an ordinary paid gift voucher sold to a customer, three years is the floor.

Credit issued to a customer, for example after a return or as compensation. Do not assume every store credit has the same legal treatment as a purchased gift voucher. Check the circumstances of issue, the terms and any consumer-guarantee rights before setting expiry.

When a customer uses only part of a gift voucher’s value in a single transaction. The remaining balance stays active until the voucher is fully redeemed or expires. Accurate partial redemption tracking is one of the most common operational challenges for businesses managing vouchers manually.

A payment model where customer payments settle to the merchant’s own Stripe account rather than being held by the platform. VoucherGrid uses Stripe Connect, meaning voucher payments settle to the business’s Stripe account and flow to its bank account - with no VoucherGrid commission on voucher sales.

A chronological record of recorded events such as voucher creation, delivery, redemption, resend and void. VoucherGrid uses append-only audit events and integrity checks to support investigation. An audit trail supports evidence; it is not a guarantee that every external event is recorded or a certification of compliance.