Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 (52 of 2016)

Schedule 2   GST treatment of cross-border transactions between businesses

Part 1   Cross-border supplies that are not connected with the indirect tax zone

A New Tax System (Goods and Services Tax) Act 1999

2   Subsection 9-25(6)

Repeal the subsection, substitute:

Supplies of goods involving installation or assembly services

(6) If a supply of goods (other than a *luxury car) (the actual supply ) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:

(a) the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;

(b) the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.

Note 1: The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9-26 applies.

Note 2: The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13.

Note 3: For the price of the separate supplies, see subsection 9-75(4).