Tax Laws Amendment (Small Business Measures) Act 2004 (134 of 2004)
Schedule 1 Annual lodgment and payment
A New Tax System (Goods and Services Tax) Act 1999
11 Before Division 153
Insert:
Division 151 - Annual tax periods
Table of Subdivisions
151-A Electing to have annual tax periods
151-B Consequences of electing to have annual tax periods
151-1 What this Division is about
In some cases, you may elect to have annual tax periods. You will then lodge GST returns, and pay amounts of GST or receive refunds of GST, on an annual basis (which better matches your obligation to lodge an income tax return).
Subdivision 151-A - Electing to have annual tax periods
151-5 Eligibility to make an annual tax period election
You are eligible to make an *annual tax period election if:
(a) you are not *required to be registered; and
(b) you have not made any election under section 162-15 to pay GST by instalments (other than such an election that is no longer in effect).
151-10 Making an annual tax period election
(1) You may, by notifying the Commissioner in the *approved form, make an *annual tax period election if you are eligible under section 151-5.
(2) Your election takes effect from:
(a) the start of the earliest tax period for which, on the day on which you make your election, your *GST return is not yet due (taking into account any further period the Commissioner allows under paragraph 31-8(1)(b) or 31-10(1)(b)); or
(b) the start of such other tax period as the Commissioner allows, in accordance with a request you make in the *approved form.
Note: Refusing a request to allow your election to take effect from the start of another tax period is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
151-15 Annual tax period elections by representative members of GST groups
(1) A *representative member of a *GST group cannot make an *annual tax period election unless each *member of the GST group is eligible under section 151-5.
(2) If the *representative member makes such an election, the *annual tax period applying to the representative member also applies to each member.
151-20 When you must make your annual tax period election
(1) You must make your *annual tax period election:
(a) if the tax periods applying to you are *quarterly tax periods - on or before 28 October in the *financial year to which it relates; or
(b) in any other case - on or before 21 August in that financial year.
(2) However:
(a) if:
(i) during the *financial year but after 28 October in that financial year, you became eligible under section 151-5 to make an *annual tax period election; and
(ii) this subsection had not applied to you before; and
(iii) your *current GST lodgment record is not more than 6 months; or
(b) if the financial year started on 1 July 2004 and the Commissioner determines in writing that this paragraph applies;
you must make your election on or before the first day, after becoming eligible under section 151-5 or after the Commissioner’s determination, on which you would, but for this Division, be required to give a *GST return to the Commissioner.
(3) The Commissioner may, in accordance with a request you make in the *approved form, allow you to make your election on a specified day occurring after the day provided for under subsection (1) or (2).
Note: Refusing a request to be allowed to make an election on a specified day under this subsection is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
151-25 Duration of an annual tax period election
General rule
(1) Your election ceases to have effect if:
(a) you revoke it by notifying the Commissioner in the *approved form; or
(b) the Commissioner disallows it under subsection (3); or
(c) on 31 July in a *financial year, you are *required to be registered; or
(d) in a case where you are the *representative member of a *GST group - the membership of the GST group changes.
Your election also ceases to have effect at the end of your concluding tax period under section 27-40, or at the end of a tax period applying to you to which subsection 151-55(1) applies.
Revocation
(2) A revocation of your election is taken to have had, or has, effect:
(a) if you notify the Commissioner on or before 28 October in a financial year - from the start of that *financial year; or
(b) if you notify the Commissioner after 28 October in a financial year - from the start of the next financial year.
Disallowance
(3) The Commissioner may disallow your election if, and only if, the Commissioner is satisfied that you have failed to comply with one or more of your obligations under a *taxation law.
Note: Disallowing your election is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
(4) A disallowance of your election is taken to have had effect:
(a) if the Commissioner notifies you of the disallowance during the *financial year in which your election first took effect - from the start of the tax period in which it first took effect; or
(b) if the Commissioner notifies you of the disallowance on or before 28 October during a later financial year - from the start of that later financial year; or
(c) if the Commissioner notifies you of the disallowance after 28 October during a later financial year - from the start of the financial year immediately following that later financial year.
Becoming subject to a requirement to register
(5) If paragraph (1)(c) applies, your election is taken to have ceased to have effect from the start of the *financial year referred to in that paragraph.
Subdivision 151-B - Consequences of electing to have annual tax periods
151-40 Annual tax periods
(1) While an *annual tax period election that you have made has effect, each *financial year is a tax period that applies to you.
(2) However, if your *annual tax period election takes effect on a day that is not the start of a *financial year, the period from when your annual tax period election takes effect until the end of the financial year in which it takes effect is a tax period that applies to you.
(3) A tax period under this section is an annual tax period .
(4) This section has effect despite sections 27-5, 27-10 and 27-30 (which are about tax periods).
151-45 When GST returns for annual tax periods must be given
(1) You must give your *GST return for an *annual tax period to the Commissioner:
(a) if you are required under section 161 of the *ITAA 1936 to lodge a return in relation to a year of income corresponding to, or ending during, an annual tax period applying to you - within:
(i) the period, specified in the notice published in the Gazette under that section, for you to lodge as required under that section; or
(ii) such further time as the Commissioner has permitted for you to lodge as required under that section; or
(b) if paragraph (a) does not apply - on or before the 28 February following the end of the annual tax period.
Note: Section 388-55 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for giving the GST return.
(2) This section has effect despite sections 31-8 and 31-10 (which are about when GST returns must be given).
151-50 When payments of net amounts for annual tax periods must be made
(1) If the *net amount for an *annual tax period applying to you is greater than zero, you must pay the net amount to the Commissioner on or before the day on which, under section 151-45, you are required to give to the Commissioner your *GST return for the annual tax period.
(2) This section has effect despite section 33-5 (which is about when payments of net amounts must be made).
151-55 An entity’s concluding annual tax period
(1) If any of the following occurs:
(a) an entity who is an individual dies;
(b) an entity ceases to *carry on any *enterprise;
(c) an entity’s *registration is cancelled;
during an *annual tax period applying to the entity, the annual tax period is not affected by the death, cessation or cancellation.
(2) This section has effect despite section 27-40 (which is about an entity’s concluding tax period).
(3) However, this section does not affect the application of section 27-40 if:
(a) an entity who is an individual becomes bankrupt; or
(b) an entity that is not an individual goes into liquidation or receivership or for any reason ceases to exist.
151-60 The effect of bankruptcy, liquidation or receivership etc.
(1) If:
(a) an entity who is an individual becomes bankrupt; or
(b) an entity that is not an individual goes into liquidation or receivership or for any reason ceases to exist;
the entity must give the *GST return, for the *annual tax period that ends because of the bankruptcy, liquidation, receivership or cessation, to the Commissioner:
(c) on or before the 21st day of the month following the end of the annual tax period; or
(d) within such further period as the Commissioner allows.
(2) If the *net amount for the *annual tax period is greater than zero, the entity must pay the net amount to the Commissioner on or before the 21st day of the month following the end of the annual tax period.
(3) This section has effect despite sections 151-45 (which is about when GST returns for annual tax periods must be given) and 151-50 (which is about when payments of net amounts for annual tax periods must be made).
151-65 The effect of changing the membership of GST groups - end of the annual tax period
(1) If you are a *member of a *GST group whose membership changes during an *annual tax period applying to you, the annual tax period ends when the membership of the GST group changes.
(2) The *representative member of the *GST group must give the *GST return for the *annual tax period to the Commissioner:
(a) on or before the 21st day of the month following the end of the annual tax period; or
(b) within such further period as the Commissioner allows.
(3) If the *net amount for the *annual tax period is greater than zero, the *representative member of the *GST group must pay the net amount to the Commissioner on or before the 21st day of the month following the end of the annual tax period.
(4) This section has effect despite sections 151-40 (which is about annual tax periods), 151-45 (which is about when GST returns for annual tax periods must be given) and 151-50 (which is about when payments of net amounts for annual tax periods must be made).
151-70 The effect of changing the membership of GST groups - tax periods for the remainder of a financial year
(1) If an *annual tax period applying to you ends under section 151-65 other than at the end of a *financial year, the remainder of that financial year constitutes one or more tax periods applying to you.
(2) Those one or more tax periods are the tax periods that would have applied to you, in respect of the remainder of the *financial year, if this Division had never applied.
(3) However, if the *annual tax period ends other than immediately before the start of a tax period referred to in subsection (2), that tax period so referred to is taken to start immediately after the end of the annual tax period.
(4) Subsection (3) has effect despite sections 27-5, 27-10 and 27-15 (which are about tax periods).