AN 2015/36 - Explanatory statement
COMMONWEALTH OF AUSTRALIA
A New Tax System (Goods And Services Tax) Act 1999
Explanatory Statement
General Outline of Instrument1. This determination is made under subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901.
2. The determination allows an extension of time for a Public Utility Provider who is an electricity retailer to issue an adjustment note.
3. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Date of effect4. The determination commences on the day after registration.
5. The determination does not apply retrospectively.
What is this instrument about6. The purpose of this determination is to outline the extension of time that the Commissioner has determined for a Public Utility Provider who is an electricity retailer to issue an adjustment note.
7. A Public Utility Provider who is an electricity retailer would normally issue tax invoices to their customers for the provision of services over a period of about 3 months. The issuing of the tax invoice would generally follow the reading of the recipient's meter.
8. Under paragraph 29-75(2)(b) of the A New Tax System (Goods and Services Tax) Act 1999, if a gas retailer has issued a tax invoice and becomes aware of an adjustment to the taxable supply, and it's before an adjustment note is requested by the recipient, the gas retailer must give the recipient an adjustment note within 28 days.
9. However, under subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999, the Commissioner can specify a different number of days in relation to certain circumstances.
10. Therefore, under this determination the gas retailer has the earlier of 98 days from becoming aware of an adjustment or when they issue the next tax invoice, to issue an adjustment note to the recipient.
11. This extension of time only applies if the customer did not request an adjustment note. If the customer did request an adjustment note then the normal timeframe of 28 days from receipt of the request would apply.
What is the effect of this instrument12. The effect of this determination is to provide extra time for a Public Utility Provider who is an electricity retailer to issue an adjustment note where there is no customer's request for an adjustment note.
13. Compliance cost impact: minor- there will be no or minimal impacts for both implementation and ongoing compliance costs. The legislative instrument is minor or machinery in nature.
Background14. This determination replaces the A New Tax System (Goods and Services Tax) Act 1999 Extension of Time to issue An Adjustment Determination (No. 78) 2000. The replaced instrument is repealed on the commencement of this determination.
Consultation15. Section 18 of the Legislative Instruments Act 2003 specifically provides for circumstances where consultation may not be necessary or appropriate. One of those circumstances is where the instrument is considered minor or machinery in nature, and does not substantially change the law.
16. There is no substantive change from the previous instrument therefore the instrument is considered minor or machinery in nature.
17. As such, no further consultation has been undertaken in the development of this instrument.
Statement of Compatibility with Human Rights
This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative InstrumentThis Legislative Instrument allows a Public Utility Provider who is an electricity retailer to extend the time in which they must issue an adjustment note to the earlier of when the next invoice would normally issue or 98 days from when they became aware of the adjustment. Generally a supplier would be required to issue an adjustment note within 28 days of becoming aware of the adjustment, however, the Commissioner can specify a different number of days in certain circumstances.
Human rights implicationsThis Legislative Instrument does not engage any of the applicable rights or freedoms as it is considered to be minor or machinery in nature and does not substantially change the law.
ConclusionThis Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
15 September 2015
James O'Halloran
Deputy Commissioner of Taxation
AN 2015/36 - Legislative Instrument
Legislative References:
A New Tax System (Goods And Services Tax) Act 1999
the Act
Legislative Instruments Act 2003
the Act
Human Rights (Parliamentary Scrutiny) Act 2011
the Act