Treasury Laws Amendment (GST Integrity) Act 2017 (76 of 2017)
Schedule 1 GST and valuable metals
A New Tax System (Goods and Services Tax) Act 1999
6 After Division 85
Insert:
Division 86 - Valuable metals
86-1 What this Division is about
The GST on taxable supplies of goods consisting wholly or partly of valuable metal can be "reverse charged" to the recipients.
86-5 "Reverse charge" on supplies of goods consisting of valuable metal
(1) The GST on a *taxable supply of goods is payable by the *recipient of the supply, and is not payable by the supplier, if:
(a) the goods consist wholly or partly of *valuable metal; and
(b) the recipient is *registered or *required to be registered; and
(c) either:
(i) at the time of the supply, the market value of the goods does not exceed the *valuable metal threshold; or
(ii) the supplier and the recipient agree, in writing, that the GST on the supply be payable by the recipient.
(2) Subsection (1) does not apply to a *taxable supply of goods if the supply is in a class of supplies determined under subsection (3).
Determination
(3) For the purposes of subsection (2), the Commissioner may, by legislative instrument, determine that subsection (1) does not apply to a specified class of supplies.
(4) In making a determination under subsection (3), the Commissioner may have regard to the following:
(a) the likelihood that *recipients and suppliers of that class of supply will otherwise comply with their obligations under the *GST law, and the risk of GST not being paid on *taxable supplies in that class if recipients do not pay the GST;
(b) the costs for recipients and suppliers of that class of supplies to comply with subsection (1);
(c) any other relevant matters.
Effect of this section on other sections
(5) This section has effect despite sections 9-40 (which is about liability for the GST), 48-40, 51-30 and 83-5 (which are about who is liable for GST).
86-10 The valuable metal threshold
(1) The market value of goods consisting wholly or partly of *valuable metal exceeds the valuable metal threshold at a time if, at that time:
(a) unless paragraph (b) applies - the market value of the goods exceeds the market value of the valuable metal in the goods by at least the specified percentage (see subsection (4)); or
(b) if the goods consist of goods ( separate goods ), each of which:
(i) consist wholly or partly of valuable metal; and
(ii) can be separately supplied;
the market value of each of the separate goods exceeds the market value of the valuable metal in those particular separate goods by at least the specified percentage.
Market value of goods and valuable metal
(2) For the purposes of subsection (1), the market value of goods or *valuable metal in goods:
(a) is to be worked out disregarding any amount of GST:
(i) that is payable on the supply of the goods or metal; or
(ii) if there is no supply of valuable metal - that would be payable if there were a supply of valuable metal; and
(b) either:
(i) unless subparagraph (ii) applies - is the market value of the goods or metal within the ordinary meaning of the expression; or
(ii) if the Commissioner has determined under subsection (3) one or more methods for working out the market value of goods or metal - the market value of the goods or metal worked out using any one of those methods.
(3) The Commissioner may, by legislative instrument, determine one or more methods of working out the market value of goods or *valuable metal for the purposes of subparagraph (2)(b)(ii).
Specified percentage
(4) For the purposes of subsection (1), the specified percentage is:
(a) if the Minister determines a percentage under subsection (5) - that percentage; or
(b) otherwise - 10%.
(5) The Minister may, by legislative instrument, determine a percentage for the purposes of paragraph (4)(a).
Effect of section
(6) To avoid doubt, this section does not affect how goods that consist of goods that can be separately supplied are otherwise treated for the purposes of this Act.
86-15 Recipients who are members of GST groups
(1) If section 86-5 applies to a *taxable supply but the *recipient of the supply is a *member of a *GST group, the GST on the supply:
(a) is payable by the *representative member; and
(b) is not payable by the member (unless the member is the representative member).
(2) This section has effect despite sections 48-40, 51-30 and 86-5 (which are about who is liable for GST).
86-20 Recipients who are participants in GST joint ventures
(1) If section 86-5 applies to a *taxable supply but the *recipient of the supply is a *participant in a *GST joint venture and the supply is made, on the recipient's behalf, by the *joint venture operator of the GST joint venture in the course of activities for which the joint venture was entered into, the GST on the supply:
(a) is payable by the joint venture operator; and
(b) is not payable by the participant.
(2) This section has effect despite sections 48-40, 51-30 and 86-5 (which are about who is liable for GST).
86-25 The amount of GST on "reverse charged" supplies of goods consisting of valuable metal
(1) The amount of GST on a supply to which section 86-5, 86-15 or 86-20 applies is 10% of the *price of the supply.
(2) This section has effect despite section 9-70 (which is about the amount of GST on taxable supplies).