Second Reading Speech
BY THE TREASURER THE HON P COSTELLO MPI move that the Bill now be read a second time
This Bill is part of the package of Bills that will give effect to the Goods and Services Tax component of the New Tax System proposed by the Government. It will need to be read together with the other Bills in this package and with the Act it amends, the Taxation Administration Act 1953.
The purpose of this Bill is to provide for the administration of the Goods and Services Tax.
The Commissioner of Taxation will have the general administration of the GST law and GST-specific machinery provisions will be contained in a new Part to the Taxation Administration Act.
The Bill will provide for the usual collection and recovery procedures that the Commissioner employs. The Commissioner will have the same powers as under other taxation laws to gather information necessary to ensure compliance with the GST laws. Moreover, the Commissioner and taxation officers will, as they are under other taxation laws, be bound to keep GST information confidential and to disclose it only for the purpose of carrying out taxation functions or for other purposes expressly provided for in the law.
The Bill will also provide a mechanism for self-assessing GST payers to correct errors in their GST returns or to avail themselves of objection and review rights if they disagree with the Commissioner's interpretation of the GST law. Assessments of GST will be made by the Commissioner if there is reason to believe that a liability to GST has not been correctly returned.
As part of the framework of measures to encourage voluntary compliance with the GST law a combination of new and existing penalties will apply to breaches of the various obligations the law will place on participants in the GST system.
GST payers will be able to rely on written advice and rulings given by the Commissioner. Underpayments of GST and associated penalties will not be payable if the Commissioner's interpretation of the law as expressed in public rulings or private rulings or advice is relied on. This will promote certainty in the GST system.
Full details of the measures in the Bill are contained in the explanatory memorandum circulated to Honourable Members.
I commend the Bill to the House.