A New Tax System (Goods and Services Tax) Act 1999
Chapter 1 - Introduction
Part 1-1 - Preliminary
Division 1 - Preliminary
1-1
Short title
This Act may be cited as the A New Tax System (Goods and Services Tax) Act 1999.
1-2
Commencement
(1)
This Act commences on 1 July 2000.
(2)
(Repealed by No 154 of 1999)
S 1-2(2) repealed by No 154 of 1999, s 3 and Sch 1 item 1, effective 11 November 1999. S 1-2(2) formerly read:
(2)
However, if, before the day on which this Act would (but for this subsection) commence under subsection (1), there have not been appropriated, for the purposes of the programs referred to in the second column of an item in the table:
(a)
in respect of the financial year starting on 1 July 2000 - the amount referred to in the third column of that item; and
(b)
in respect of the financial year starting on 1 July 2001 - the amount referred to in the fourth column of that item; and
(c)
in respect of the financial year starting on 1 July 2002 - the amount referred to in the fifth column of that item; and
(d)
in respect of the financial year starting on 1 July 2003 - the amount referred to in the sixth column of that item;
this Act commences on, and tax is not payable under the *GST law until, the day on which the last of those amounts to be appropriated for those purposes has been appropriated under an Act.
Amounts to be appropriated
Program
Financial years
2000/01
2001/02
2002/03
2003/04
($ million)
($ million)
($ million)
($ million)
1
Book industry assistance plan
60
60
60
60
2
Supported Accommodation Assistance Program
15
15
15
15
Total
75
75
75
75
1-3
Commonwealth-State financial relations
The Parliament acknowledges that the Commonwealth:
(a)
will introduce legislation to provide that the revenue from the GST will be granted to the States, the Australian Capital Territory and the Northern Territory; and
(b)
will maintain the rate and base of the GST in accordance with the Agreement on Principles for the Reform of Commonwealth-State Financial Relations endorsed at the Special Premiers' Conference in Canberra on 13 November 1998.
1-4
States and Territories are bound by the GST law
The *GST law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.
S 1-4 inserted by No 176 of 1999, s 3 and Sch 1 item 1, effective 1 July 2000.
Part 1-2 - Using this Act
Division 2 - Overview of the GST legislation
2-1
What this Act is about
This Act is about the GST.
It begins (in Chapter 2) with the basic rules about the GST, and then sets out in Chapter 3 the exemptions from the GST and in Chapter 4 the special rules that can apply in particular cases.
It concludes with definitions and other interpretative material.
Note:
The GST is imposed by 6 Acts, the most important of which are:
(a) the A New Tax System (Goods and Services Tax Imposition - General) Act 1999; and
(b) the A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999; and
(c) the A New Tax System (Goods and Services Tax Imposition - Excise) Act 1999.
S 2-1 amended by No 10 of 2005, s 3 and Sch 1 item 3, by substituting ``6 Acts, the most important of which are'' for ``3 Acts'', effective 1 July 2005.
2-5
The basic rules (Chapter 2)
Chapter 2 has the basic rules for the GST, including:
• when and how the GST arises, and who is liable to pay it;
• when and how input tax credits arise, and who is entitled to them;
• how to work out payments and refunds of GST;
• when and how the payments and refunds are to be made.
2-10
The exemptions (Chapter 3)
Chapter 3 sets out the supplies and importations that are GST-free or input taxed.
2-15
The special rules (Chapter 4)
Chapter 4 has special rules which, in particular cases, have the effect of modifying the basic rules in Chapter 2.
Note:
There is a checklist of special rules at the end of Chapter 2 (in Part 2-8).
2-20
Miscellaneous (Chapter 5)
Chapter 5 deals with miscellaneous matters.
2-25
Interpretative provisions (Chapter 6)
Chapter 6 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.
2-30
Administration, collection and recovery provisions in the Taxation Administration Act 1953
Schedule 1 to the Taxation Administration Act 1953 contains provisions relating to the administration of the GST, and to collection and recovery of amounts of GST.
S 2-30 amended by No 39 of 2012, s 3 and Sch 1 item 31, by substituting "Schedule 1 to the Taxation Administration Act 1953 contains" for "Parts 3-10, 4-15 and 5-5 in Schedule 1 to the Taxation Administration Act 1953 contain", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 2-30 amended by No 74 of 2010, s 3 and Sch 2 item 1, by substituting ", 4-15 and 5-5" for "and 4-15", effective 1 July 2010.
S 2-30 amended by No 73 of 2006, s 3 and Sch 5 item 66, by substituting "Parts 3-10 and 4-15 in Schedule 1 to the Taxation Administration Act 1953 contain" for "Part VI of the Taxation Administration Act 1953 contains", effective 1 July 2006.
Division 3 - Defined terms
3-1
When defined terms are identified
(1)
Many of the terms used in the law relating to the GST are defined.
(2)
Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in "*enterprise". The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 195-1.
3-5
When terms are not identified
(1)
Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.
(2)
Terms are not asterisked in the non-operative material contained in this Act.
Note:
The non-operative material is described in Division 4.
S 3-5(3) amended by No 2 of 2015, s 3 and Sch 4 item 24, by substituting the table, applicable to a tax period that commences on or after 1 July 2015. The table formerly read:
Common definitions that are not asterisked
Item
This term:
1
acquisition
2
amount
3
Australia
4
Commissioner
5
entity
6
goods
7
GST
8
import
8A
individual
9
input tax credit
10
tax period
11
thing
12
supply
13
you
S 3-5(3) amended by No 176 of 1999, s 3 and Sch 1 item 2, by inserting table item 8A, effective 1 July 2000.
3-10
Identifying the defined term in a definition
Within a definition, the defined term is identified by
bold italics.
Division 4 - Status of Guides and other non-operative material
4-1
Non-operative material
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.
This other material falls into 2 main categories.
4-5
Explanatory sections
One category is the explanatory section in many Divisions. Under the section heading ``What this Division is about'', a short explanation of the Division appears in boxed text.
Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 182-10.
4-10
Other material
The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.
Chapter 2 - The basic rules
Division 5 - Introduction
5-1
What this Chapter is about
This Chapter sets out the basic rules for the GST. In particular, these rules will tell you:
• where liability for GST arises;
• where entitlements to input tax credits arise;
• how the amounts of GST and input tax credits are combined to work out the amount payable by you or to you;
• when and how that amount is to be paid.
5-5
The structure of this Chapter
The diagram on the next page shows how the basic rules in this Chapter relate to each other. It also shows their relationship with:
• the exemptions (Chapter 3) - these provisions exempt from the GST what would otherwise be taxable; and
• the special rules (Chapter 4) - these provisions modify the basic rules in particular situations, often in quite limited ways.
For taxable supplies and creditable acquisitions, see Part 2-2.
For taxable importations and creditable importations, see Part 2-3.
7-5
Net amounts
Amounts of GST and amounts of input tax credits are set off against each other to produce a *net amount for a tax period (which may be altered to take account of *adjustments).
For net amounts (including adjustments to net amounts), see Part 2-4.
The amount *assessed as being the *net amount for a tax period is the amount that the entity must pay to the Commonwealth, or the Commonwealth must refund to the entity, in respect of the period.
For payments and refunds (and GST returns), see Part 2-7.
Note 1:
For assessment of net amounts, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.
Note 2:
Refunds may be set off against your other liabilities (if any) under laws administered by the Commissioner.
S 7-15 amended by No 39 of 2012, s 3 and Sch 1 items 32 to 34, by substituting "amount *assessed as being the *net amount" for "*net amount", inserting Note 1 and substituting "Note 2" for "Note", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Part 2-2 - Supplies and acquisitions
Division 9 - Taxable supplies
9-1
What this Division is about
GST is payable on taxable supplies. This Division defines taxable supplies, states who is liable for the GST, and describes how to work out the GST on supplies.
Subdivision 9-A - What are taxable supplies?
9-5
Taxable supplies
You make a
taxable supply if:
(a)
you make the supply for *consideration; and
(b)
the supply is made in the course or furtherance of an *enterprise that you *carry on; and
(c)
the supply is *connected with the indirect tax zone; and
S 9-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (c), applicable to a tax period that commences on or after 1 July 2015.
9-10
Meaning of supply
(1)
A
supply is any form of supply whatsoever.
(2)
Without limiting subsection (1),
supply includes any of these:
(a)
a supply of goods;
(b)
a supply of services;
(c)
a provision of advice or information;
(d)
a grant, assignment or surrender of *real property;
(e)
acreation, grant, transfer, assignment or surrender of any right;
(f)
a *financial supply;
(g)
an entry into, or release from, an obligation:
(i)
to do anything; or
(ii)
to refrain from an act; or
(iii)
to tolerate an act or situation;
(h)
any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).
S 9-10(2) amended by No 176 of 1999, s 3 and Sch 1 item 3, by omitting "However, it does not include a supply of *money unless the money is provided as *consideration for a supply that is a supply of money.", effective 1 July 2000.
(3)
It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply.
(3A)
For the avoidance of doubt, the delivery of:
(a)
livestock for slaughtering or processing into *food; or
(b)
game for processing into *food;
under an arrangement under which the entity making the delivery only relinquishes title after food has been produced, is the supply of the livestock or game (regardless of when the entity relinquishes title). The supply does not take place on or after the subsequent relinquishment of title.
However,
supply does not include:
(a)
a supply of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b)
a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
S 9-10(4) substituted by No 118 of 2017, s 3 and Sch 1 item 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 9-10(4) formerly read:
(4)
However, a supply does not include a supply of *money unless the money is provided as *consideration for a supply that is a supply of money.
S 9-10(4) inserted by No 176 of 1999, s 3 and Sch 1 item 4, effective 1 July 2000.
9-15
Consideration
(1)
Consideration includes:
(a)
any payment, or any act or forbearance, in connection with a supply of anything; and
(b)
any payment, or any act or forbearance, in response to or for the inducement of a supply of anything.
(2)
It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply.
(2A)
It does not matter:
(a)
whether the payment, act or forbearance was in compliance with an order of a court, or of a tribunal or other body that has the power to make orders; or
(b)
whether the payment, act or forbearance was in compliance with a settlement relating to proceedings before a court, or before a tribunal or other body that has the power to make orders.
For the avoidance of doubt, the fact that the supplier is an entity of which the *recipient of the supply is a member, or that the supplier is an entity that only makes supplies to its members, does not prevent the payment, act or forbearance from being consideration.
S 9-15(3) repealed by No 75 of 2012, s 3 and Sch 2 item 1, applicable, and taken to have applied, from 1 July 2012. S 9-15(3) formerly read:
(3)
However:
(a)
if a right or option to acquire a thing is granted, then:
(i)
the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or
(ii)
if there is no such additional consideration - there is no consideration for the supply; and
(b)
making a gift to a non-profit body is not the provision of consideration; and
(c)
a payment made by a *government related entity to another government related entity is not the provision of consideration if the payment is specifically covered by an appropriation under an *Australian law.
S 9-15(3) amended by No 177 of 1999, s 3 and Sch 1 item 2, by substituting "a *government related entity to another government related entity" for "an *Australian government agency to another Australian government agency" in para (c), effective 1 July 2000.
S 9-15(3) amended by No 176 of 1999, s 3 and Sch 1 item 5, by substituting "making" for "a payment made as" in para (b), effective 1 July 2000.
9-17
Certain payments and other things not consideration
(1)
If a right or option to acquire a thing is granted, then:
(a)
the
consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or
(b)
if there is no such additional consideration - there is no consideration for the supply.
(2)
Making a gift to a non-profit body is not the provision of
consideration.
(3)
A payment is not the provision of
consideration if:
(a)
the payment is made by a *government related entity to another government related entity for making a supply; and
(b)
the payment is:
(i)
covered by an appropriation under an *Australian law; or
(ii)
made under the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time; or
(iii)
made under another agreement entered into to implement the National Health Reform Agreement; and
(c)
the payment is calculated on the basis that the sum of:
(i)
the payment (including the amounts of any other such payments) relating to the supply; and
(ii)
anything (including any payment for any act or forbearance) that the other government related entity receives from another entity in connection with, or in response to, or for the inducement of, the supply, or for any other related supply;
does not exceed the supplier's anticipated or actual costs of making those supplies.
(4)
A payment is not the provision of
consideration if the payment is made by a *government related entity to another government related entity and the payment is of a kind specified in regulations made for the purposes of this subsection.
(5)
This section applies despite section 9-15.
S 9-17 inserted by No 75 of 2012, s 3 and Sch 2 item 2, applicable, and taken to have applied, from 1 July 2012.
9-20
Enterprises
(1)
An
enterprise is an activity, or series of activities, done:
(a)
in the form of a *business; or
(b)
in the form of an adventure or concern in the nature of trade; or
(c)
on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or
(d)
by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30-B of the *ITAA 1997 and to which deductible gifts can be made; or
(da)
by a charity; or
(f)
(Repealed by No 169 of 2012)
(g)
by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or
(h)
by a trustee of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN.
S 9-20(1) amended by No 169 of 2012, s 3 and Sch 2 item 69, by substituting para (e) for paras (e) and (f), effective 3 December 2012. Paras (e) and (f) formerly read:
(e)
by a charitable institution or by a trustee of a charitable fund; or
(f)
by a religious institution; or
S 9-20(1) amended by No 12 of 2012, s 3 and Sch 6 item 68, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997" in para (d), effective 21 March 2012.
S 9-20(1) amended by No 80 of 2006, s 3 and Sch 10 item 3, by inserting para (h), applicable and taken to have applied, in relation to tax periods starting, or that started, on or after 1 July 2005.
S 9-20(1) amended by No 92 of 2000.
(2)
However,
enterprise does not include an activity, or series of activities, done:
(a)
by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or
Note:
Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services.
(b)
as a private recreational pursuit or hobby; or
(c)
by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or
(d)
as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12-45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies).
S 9-20(2) amended by No 101 of 2006, s 3 and Sch 2 item 13, by substituting "paragraph 12-45(1)(e)" for "subsection 12-45(3)" in para (d), effective 14 September 2006.
S 9-20(2) amended by No 80 of 2006, s 3 and Sch 10 item 4, by inserting ", or of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN" in para (c), applicable and taken to have applied, in relation to tax periods starting, or that started, on or after 1 July 2005.
S 9-20(2) amended by No 92 of 2000 and No 178 of 1999.
For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities:
(a)
being in the form of a *business within the meaning of paragraph (1)(a); or
(b)
being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b).
A supply of goods is
connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.
S 9-25(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "
the indirect tax zone" for "
Australia" and "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 9-25(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "the indirect tax zone" for "Australia" and "
the indirect tax zone" for "
Australia", applicable to a tax period that commences on or after 1 July 2015.
A supply of goods that involves the goods being brought to the indirect tax zone is
connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.
S 9-25(3) amended by No 52 of 2016, s 3 and Sch 2 item 1, by substituting "imports the goods into the indirect tax zone." for all the words after "the supplier", applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. All the words after "the supplier" formerly read:
either:
(a)
imports the goods into the indirect tax zone; or
(b)
installs or assembles the goods in the indirect tax zone.
S 9-25(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "the indirect tax zone" for "Australia" (wherever occurring) and "
the indirect tax zone" for "
Australia", applicable to a tax period that commences on or after 1 July 2015.
A supply of goods that is an *offshore supply of low value goods is
connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84-C.
A supply of *real property is
connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.
S 9-25(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone" for "
Australia" and "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 9-25(4) amended by No 176 of 1999, s 3 and Sch 1 item 6, by inserting ", or the land to which the real property relates,", effective 1 July 2000.
Supplies of anything else
(5)
View history reference
A supply of anything other than goods or *real property is
connected with the indirect tax zone if:
(a)
the thing is done in the indirect tax zone; or
A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).
Note:
A supply that is connected with the indirect tax zone under this subsection might be GST-free if it is consumed outside the indirect tax zone: see section 38-190. For more rules about supplies that are GST-free, see Division 38.
S 9-25(5) amended by No 52 of 2016, s 3 and Sch 1 items 1 and 2, by inserting para (d) and the note, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 9-25(5) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone" for "
Australia", "the indirect tax zone" for "Australia" (wherever occurring) in para (a), (b) and (c), and "for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c)." for "for Australia that is supplied overseas might be connected with Australia under paragraph (5)(c)." in the example, applicable to a tax period that commences on or after 1 July 2015.
S 9-25(5) amended by No 77 of 2005, s 3 and Sch 3 items 1 and 2, by omitting "either" after "with Australia if" and inserting para (c), applicable to supplies made on or after 1 October 2005.
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).
S 9-25(6) substituted by No 52 of 2016, s 3 and Sch 2 item 2, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. S 9-25(6) formerly read:
When enterprises are carried on in the indirect tax zone
(6)
An *enterprise is
carried on in the indirect tax zone if the enterprise is carried on through:
(a)
a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936) in the indirect tax zone; or
(b)
a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.
S 9-25(6) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "
the indirect tax zone" for "
Australia" and "1936) in the indirect tax zone" for "1936)" in para (a), applicable to a tax period that commences on or after 1 July 2015.
An entity is an
Australian consumer of a supply made to the entity if:
(a)
the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of
Australia in the *ITAA 1997 includes the external Territories); and
(b)
the entity:
(i)
is not *registered; or
(ii)
if the entity is registered - the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.
Note:
Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84-100.
S 9-25(7) inserted by No 52 of 2016, s 3 and Sch 1 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
9-26
Supplies by non-residents that are not connected with the indirect tax zone
(1)
A supply is notconnected with the indirect tax zone if:
(a)
the supplier is a *non-resident; and
(b)
the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and
(c)
the supply is covered by an item in this table:
Offshore supplies that are not connected with the indirect tax zone
Item
Topic
These supplies are
notconnected with the indirect tax zone …
1
Inbound intangible supply
a supply of anything other than goods or *real property if:
(a)
the thing is done in the indirect tax zone; and
(b)
the *recipient is an *Australian-based business recipient of the supply.
2
Intangible supply between non-residents
a supply of anything other than goods or *real property if:
(a)
the thing is done in the indirect tax zone; and
(b)
the *recipient is a *non-resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.
3
Supply between non-residents of leased goods
a supply by way of transfer of ownership of leased goods if:
(a)
the *recipient is a *non-resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(b)
the lessee:
(i)
made a *taxable importation of the goods before the supply was made; and
(ii)
continues to lease the goods on substantially similar terms and conditions after the supply is made.
4
Supply by way of continued lease of goods from item 3
a supply made by way of lease if:
(a)
the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and
(b)
the lease is the lease referred to in subparagraph (ii) of that paragraph.
Note:
This subsection does not apply to supplies made by a non-resident through a resident agent if they have agreed it is not to apply: see section 57-7.
(2)
An entity is an
Australian-based business recipient of a supply made to the entity if:
(a)
the entity is *registered; and
(b)
an *enterprise of the entity is *carried on in the indirect tax zone; and
(c)
the entity's acquisition of the thing supplied is not solely of a private or domestic nature.
Note:
If a supply is not connected with the indirect tax zone, the Australian-based business recipient may be subject to a reverse charge: see Subdivision 84-A.
(3)
This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).
S 9-26 inserted by No 52 of 2016, s 3 and Sch 2 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. No 54 of 2016, s 3 and Sch 2 items 26 and 27 contain the following saving provisions:
26 Saving - previous interpretation preserved
The amendments of Division 72 of the A New Tax System (Goods and Services Tax) Act 1999 do not affect by implication the interpretation of that Act before the amendments.
27 Existing agreements: no opportunity to review
(1)
The amendments do not apply in relation to a supply if:
(a)
a written agreement specifically identifies the supply and identifies the consideration in money, or a way of working out the consideration in money, for the supply; and
(b)
the agreement was made before the commencement of this Schedule; and
(c)
the supplier is registered or required to be registered.
(2)
Subitem (1) does not apply to a supply to the extent (if any) that it is made on or after the earlier of the following:
(a)
if a review opportunity (within the meaning of section 13 of the A New Tax System (Goods and Services Tax Transition) Act 1999) arises on or after the commencement of this Schedule - when that opportunity arises;
(b)
if the supplier and the recipient of the supply agree in writing that the amendments made by this Schedule should apply from a time - that time.
9-27
When enterprises are carried on in the indirect tax zone
(1)
An *enterprise of an entity is
carried on in the indirect tax zone if:
(a)
the enterprise is *carried on by one or more individuals covered by subsection (3) who are in the indirect tax zone; and
(b)
any of the following applies:
(i)
the enterprise is carried on through a fixed place in the indirect tax zone;
(ii)
the enterprise has been carried on through one or more places in the indirect tax zone for more than 183 days in a 12 month period;
(iii)
the entity intends to carry on the enterprise through one or more places in the indirect tax zone for more than 183 days in a 12 month period.
(2)
It does not matter whether:
(a)
the entity has exclusive use of a place; or
(b)
the entity owns, leases or has any other claim or interest in relation to a place.
(3)
This subsection covers the following individuals:
(a)
if the entity is an individual - that individual;
(b)
an employee or *officer of the entity;
(c)
an individual who is, or is employed by, an agent of the entity that:
(i)
has, and habitually exercises, authority to conclude contracts on behalf of the entity; and
(ii)
is not a broker, general commission agent or other agent of independent status that is acting in the ordinary course of the agent's business as such an agent.
S 9-27 inserted by No 52 of 2016, s 3 and Sch 2 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
9-30
Supplies that are GST-free or input taxed
GST-free
(1)
A supply is
GST-free if:
(a)
it is GST-free under Division 38 or under a provision of another Act; or
(b)
it is a supply of a right to receive a supply that would be GST-free under paragraph (a).
A supply is
input taxed if:
(a)
it is input taxed under Division 40 or under a provision of another Act; or
(b)
it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
Note:
If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11-15 and 15-10).
S 9-30(2) substituted by No 177 of 1999, s 3 and Sch 1 item 4, effective 1 July 2000. S 9-30(2) formerly read:
Input taxed
(2)
A supply is
input taxed if it is input taxed under Division 40.
Note:
If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11-15 and 15-10).
Supplies that would be both GST-free and input taxed
(3)
To the extent that a supply would, apart from this subsection, be both *GST-free and *input taxed:
(a)
the supply is GST-free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or
(b)
the supply is input taxed and not GST-free, if that provision requires the supplier to have so chosen.
Note:
Subdivisions 40-E (School tuckshops and canteens) and 40-F (Fund-raising events conducted by charities etc.) require such a choice.)
S 9-30(3) amended by No 169 of 2012, s 3 and Sch 2 item 70, by substituting "charities" for "charitable institutions" in the note, effective 3 December 2012.
S 9-30(3) substituted by No 92 of 2000, s 3 and Sch 1 item 1, effective 1 July 2000. S 9-30(3) formerly read:
GST-free overrides input taxed
(3)
If, apart from this subsection, a supply would be both wholly *GST-free and wholly *input taxed, then the supply is taken to be GST-free and not input taxed.
Supply of things used solely in connection with making supplies that are input taxed but not financial supplies
(4)
A supply is taken to be a supply that is *input taxed if it is a supply of anything (other than *new residential premises) that you have used solely in connection with your supplies that are input taxed but are not *financial supplies.
S 9-30(4) amended by No 92 of 2000, s 3 and Sch 11 item 4, by inserting "(other than *new residential premises)" after "anything", effective 1 July 2000.
S 9-39 amended by No 77 of 2017, s 3 and Sch 1 item 2, by substituting table item 7, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 7 formerly read:
7
Offshore supplies other than goods or real property
Division 84
S 9-39 amended by No 52 of 2016, s 3 and Sch 2 item 3A, by inserting table item 8AA, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 9-39 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 11, column headed "For this case …", applicable to a tax period that commences on or after 1 July 2015.
S 9-39 amended by No 74 of 2010, s 3 and Sch 1 items 46 and 47, by repealing table item 5B and inserting table item 12A, applicable to tax periods starting on or after 1 July 2010. Table item 5B formerly read:
5B
Income tax-related transactions
Division 110
S 9-39 amended by No 67 of 2003, s 3 and Sch 11 items 1 and 2, by inserting table items 3A and 8B, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-39 amended by No 97 of 2002, s 3 and Sch 1 items 1 and 9, by inserting table items 9A and 5B, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-39 amended by No 92 of 2000, s 3, Sch 1 item 1A and Sch 4 item 1, by inserting table items 1A and 5A, effective 1 July 2000.
S 9-39 amended by No 178 of 1999, s 3 and Sch 1 item 53, by inserting table item 12, effective 22 December 1999.
S 9-39 amended by No 177 of 1999, s 3 and Sch 1 items 5 and 6, by inserting table items 8A, 13 and 14, effective 1 July 2000.
S 9-39 amended by No 176 of 1999, s 3 and Sch 1 item 7, by inserting ", fees and charges" in table item 8, effective 1 July 2000.
Subdivision 9-B - Who is liable for GST on taxable supplies?
9-40
Liability for GST on taxable supplies
You must pay the GST payable on any *taxable supply that you make.
9-69
Special rules relating to liability for GST on taxable supplies
S 9-69 amended by No 77 of 2017, s 3 and Sch 1 item 3, by substituting table item 4, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4 formerly read:
4
Offshore supplies other than goods or real property
Division 84
S 9-69 amended by No 76 of 2017, s 3 and Sch 1 item 1, by inserting table item 6, effective 27 June 2017.
S 9-69 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 4A, column headed "For this case …", applicable to a tax period that commences on or after 1 July 2015.
S 9-69 amended by No 118 of 2009, s 3 and Sch 1 item 1, by inserting table item 4B, effective 1 July 2000.
S 9-69 amended by No 92 of 2000, s 3 and Sch 3 item 1, by inserting table item 4A, effective 1 July 2000.
Subdivision 9-C - How much GST is payable on taxable supplies?
9-70
The amount of GST on taxable supplies
The amount of GST on a *taxable supply is 10% of the *value of the taxable supply.
9-75
The value of taxable supplies
(1)
The
value of a *taxable supply is as follows:
Price ×
10
11
where:
price is the sum of:
(a)
so far as the *consideration for the supply is consideration expressed as an amount of *money - the amount (without any discount for the amount of GST (if any) payable on the supply); and
(b)
so far as the consideration is not consideration expressed as an amount of money - the *GST inclusive market value of that consideration.
Example:
You make a taxable supply by selling a car for $22,000 in the course of carrying on an enterprise.
The value of the supply is:
$22,000 ×
10
11
= $20,000
The GST on the supply is therefore $2,000 (i.e. 10% of $20,000).
In working out under subsection (1) the value of a *taxable supply made in a *tax period, being a supply that is a *fringe benefit, the price is taken to be the sum of:
(a)
to the extent that, apart from this subsection, paragraph (a) of the definition of
price in subsection (1) would be applicable:
(i)
if the fringe benefit is a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the *recipient's payment made in that period; or
(ii)
if the fringe benefit is a benefit other than a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the *recipients contribution made in that period; and
(b)
to the extent that, apart from this subsection, paragraph (b) of the definition of
price in subsection (1) would be applicable:
(i)
if the fringe benefit is a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the recipient's payment made in that period; or
(ii)
if the fringe benefit is a benefit other than a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the recipients contribution made in that period.
Despite subsection (1), if a supply of goods (the
actual supply) is to be treated as separate supplies because of subsection 9-25(6) or 84-79(2), then the
price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.
S 9-75(4) amended by No 77 of 2017, s 3 and Sch 1 item 4, by inserting "or 84-79(2)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 9-75(4) inserted by No 52 of 2016, s 3 and Sch 2 item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
9-80
The value of taxable supplies that are partly GST-free or input taxed
the
value of the part of the actual supply that is a taxable supply is the proportion of the value of the actual supply that the taxable supply represents.
S 9-80(1) amended by No 92 of 2000, s 3 and Sch 11 item 4A, by omitting ``(worked out as if it were solely a taxable supply)'' after ``value of the actual supply'', effective 1 July 2000.
The value of the actual supply, for the purposes of subsection (1), is as follows:
*Price of the actual supply × 10
10 + Taxable proportion
where:
taxable proportion is the proportion of the value of the actual supply that represents the value of the *taxable supply (expressed as a number between 0 and 1).
In working out the *value of a *taxable supply, any amount of the *consideration for the supply that is expressed in:
(a)
a currency other than Australian currency; or
(b)
*digital currency;
is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.
S 9-85(2) substituted by No 118 of 2017, s 3 and Sch 1 item 2, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. No 118 of 2017, s 3 and Sch 1 item 3 contains the following transitional provision:
3 Transitional - preserving existing determinations
An instrument made under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 that is in force immediately before the commencement of this Schedule continues in force (and may be dealt with) as if it had been made under that subsection as amended by this Schedule.
S 9-85(2) formerly read:
(2)
In working out the *value of a *taxable supply, any amount of the *consideration for the supply that is expressed in a currency other than Australian currency is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.
One taxable supply recorded on an invoice
(1)
If the amount of GST on a *taxable supply that is the only taxable supply recorded on a particular *invoice would, apart from this section, be an amount that includes a fraction of a cent, the amount of GST is rounded to the nearest cent (rounding 0.5 cents upwards).
Several taxable supplies recorded on an invoice
(2)
If 2 or more *taxable supplies are recorded on the same *invoice, the total amount of GST on the supplies is:
(a)
what would be the amount of GST if it were worked out by:
(i)
working out the GST on each of the supplies (without rounding the amounts to the nearest cent); and
(ii)
adding the amounts together and, if the total is an amount that includes a fraction of a cent, rounding it to the nearest cent (rounding 0.5 cents upwards); or
(b)
the amount worked out using the following method statement:
Method statement
Step 1.
Work out, for each *taxable supply, what would, apart from this section, be the amount of GST on the supply.
Step 2.
If the amount for the supply has more decimal places than the number of decimal places allowed by the accounting system used to work out the amount, round the amount (up or down as appropriate) to that number of decimal places.
Note: Subsection (4) gives further details of this rounding.
Step 3.
Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.
Step 4.
If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).
(3)
Whether to use paragraph (2)(a) or paragraph (2)(b) to work out the total amount of GST on the supplies is a matter of choice for:
(a)
the supplier if the amount is being worked out to ascertain the supplier's liability for GST; or
(b)
the *recipient of the supplies if the amount is being worked out to ascertain the recipient's entitlement to input tax credits.
(4)
In applying step 2 of the method statement in subsection (2), if:
(a)
the number of decimal places in the amount for the supply exceeds by one decimal place the number of decimal places allowed by the accounting system used to work out the amount; and
(b)
the last digit of the amount (before rounding) is 5;
the amount is rounded upwards to that number of decimal places.
Taxable supplies divided into items
(5)
If one or more *taxable supplies recorded on the same *invoice are divided into 2 or more items:
(a)
subsection (1) does not apply; and
(b)
subsection (2) applies as if each such item represented a separate taxable supply.
Taxable supplies recorded on documents other than invoices
(6)
If one or more *taxable supplies, none of which are recorded on an *invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.
There are other laws that may affect the amount of GST on taxable supplies. For example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule).
S 9-99 amended by No 77 of 2017, s 3 and Sch 1 item 5, by substituting table item 4A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4A formerly read:
4A
Offshore supplies other than goods or real property
Division 84
S 9-99 amended by No 76 of 2017, s 3 and Sch 1 item 2, by inserting table item 8A, effective 27 June 2017.
S 9-99 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table items 4AA and 7, column headed "For this case …", applicable to a tax period that commences on or after 1 July 2015.
S 9-99 amended by No 34 of 2014, s 3 and Sch 2 item 1, by inserting table item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 9-99 amended by No 74 of 2010, s 3 and Sch 2 item 2, by inserting the note at the end, effective 1 July 2010.
S 9-99 amended by No 67 of 2003, s 3 and Sch 11 item 3, by inserting table item 2A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-99 amended by No 92 of 2000, s 3, Sch 3 item 2 and Sch 4 item 2, by inserting table items 1A and 4AA, effective 1 July 2000.
S 9-99 amended by No 176 of 1999, s 3 and Sch 1 items 10 and 11, by inserting table item 4A and repealing table item 6, effective 1 July 2000. Item 6 formerly read: "6 Second-hand goods Division 66".
Division 11 - Creditable acquisitions
11-1
What this Division is about
You are entitled to input tax credits for your creditable acquisitions. This Division defines creditable acquisitions, states who is entitled to the input tax credits and describes how to work out the input tax credits on acquisitions.
11-5
What is a creditable acquisition?
You make a
creditable acquisition if:
(a)
you acquire anything solely or partly for a *creditable purpose; and
(b)
the supply of the thing to you is a *taxable supply; and
(c)
you provide, or are liable to provide, *consideration for the supply; and
(d)
you are *registered, or *required to be registered.
11-10
Meaning of acquisition
(1)
An
acquisition is any form of acquisition whatsoever.
(2)
Without limiting subsection (1),
acquisition includes any of these:
(a)
an acquisition of goods;
(b)
an acquisition of services;
(c)
a receipt of advice or information;
(d)
an acceptance of a grant, assignment or surrender of *real property;
(e)
an acceptance of a grant, transfer, assignment or surrender of any right;
(f)
an acquisition of something the supply of which is a *financial supply;
(g)
an acquisition of a right to require another person:
(i)
to do anything; or
(ii)
to refrain from an act; or
(iii)
to tolerate an act or situation;
(h)
any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).
S 11-10(2) amended by No 176 of 1999, s 3 and Sch 1 item 12, by omitting "However, it does not include an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money.", effective 1 July 2000.
However,
acquisition does not include:
(a)
an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b)
an acquisition of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
S 11-10(3) substituted by No 118 of 2017, s 3 and Sch 1 item 4, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 11-10(3) formerly read:
(3)
However, an acquisition does not include an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money.
S 11-10(3) inserted by No 176 of 1999, s 3 and Sch 1 item 13, effective 1 July 2000.
11-15
Meaning of creditable purpose
(1)
You acquire a thing for a
creditable purpose to the extent that you acquire it in *carrying on your *enterprise.
(2)
However, you do not acquire the thing for a creditable purpose to the extent that:
(a)
the acquisition relates to making supplies that would be *input taxed; or
(b)
the acquisition is of a private or domestic nature.
(3)
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.
S 11-15(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 11-15(3) substituted by No 156 of 2000, s 3 and Sch 1 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 11-15(3) formerly read:
(3)
To the extent that an acquisition relates to making *financial supplies through an *enterprise, or a part of an enterprise, that you *carry on outside Australia, the acquisition is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:
(a)
the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and
(b)
you do not *exceed the financial acquisitions threshold.
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:
(a)
the acquisition relates to making a *financial supply consisting of a borrowing (other than through a *deposit account you make available); and
S 11-15(5) amended by No 12 of 2012, s 3 and Sch 3 item 4, by inserting "(other than through a *deposit account you make available)" after "borrowing" in para (a), applicable in relation to acquisitions made on or after 1 July 2012.
S 11-15(5) inserted by No 92 of 2000, s 3 and Sch 5 item 2, effective 1 July 2000.
11-20
Who is entitled to input tax credits for creditable acquisitions?
You are entitled to the input tax credit for any *creditable acquisition that you make.
11-25
How much are the input tax credits for creditable acquisitions?
The amount of the input tax credit for a *creditable acquisition is an amount equal to the GST payable on the supply of the thing acquired. However, the amount of the input tax credit is reduced if the acquisition is only *partly creditable.
Note:
The basic rule for working out the GST payable on the supply is in Subdivision 9-C. However, the GST payable may be affected by other provisions in:
(a) this Act (for a list of provisions, see section 9-99); and
(b) other GST laws (for example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule)).
S 11-25 amended by No 74 of 2010, s 3 and Sch 2 item 3, by inserting the note at the end, effective 1 July 2010.
11-30
Acquisitions that are partly creditable
(1)
An acquisition that you make is
partly creditable if it is a *creditable acquisition to which one or both of the following apply:
(a)
you make the acquisition only partly for a *creditable purpose;
(b)
you provide, or are liable to provide, only part of the *consideration for the acquisition.
(2)
(Repealed by No 176 of 1999)
S 11-30(2) repealed by No 176 of 1999, s 3 and Sch 1 item 15, effective 1 July 2000. S 11-30(2) formerly read:
(2)
However, the acquisition is not *partly creditable if:
(a)
it was made for a *creditable purpose except to the extent (if any) that the acquisition relates to making *financial supplies; and
(b)
your *annual turnover of financial supplies does not exceed either:
(i)
$50,000 or such other amount specified in the regulations; or
(ii)
5% of your *annual turnover (treating supplies that are input taxed as part of your annual turnover).
(3)
The amount of the input tax credit on an acquisition that you make that is *partly creditable is as follows:
Full input
tax credit
×
Extent of creditable
purpose
×
Extent of
consideration
where:
extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of creditable purpose is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.
full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.
(4)
For the purpose of working out the extent of the *consideration, so far as the consideration is not expressed as an amount of *money, take into account the *GST inclusive market value of the consideration.
(5)
The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which a *creditable acquisition is for a *creditable purpose.
S 11-99 amended by No 77 of 2017, s 3 and Sch 1 items 6 and 7, by inserting table item 7A and substituting table item 8A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 8A formerly read:
8A
Offshore supplies other than goods or real property
Division 84
S 11-99 amended by No 20 of 2010, s 3 and Sch 1 item 1, by inserting table item 16, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 11-99 amended by No 118 of 2009, s 3 and Sch 1 item 2, by inserting table item 10A, effective 1 July 2000.
S 11-99 amended by No 134 of 2004, s 3 and Sch 2 item 1, by inserting table item 1B, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 11-99 amended by No 67 of 2003, s 3 and Sch 11 items 4 and 5, by inserting table items 2A and 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 11-99 amended by No 156 of 2000, s 3 and Sch 6 item 1, by repealing table item 12, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 12 formerly read: "12 Returnable containers Division 93".
S 11-99 amended by No 156 of 2000, s 3 and Sch 3 item 1, by substituting table item 3A, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. Table item 3A formerly read: "3A Financial supplies (acquisitions and importations to provide fringe benefits) Division 71".
S 11-99 amended by No 92 of 2000, s 3, Sch 1 item 1B, Sch 4 item 3 and Sch 5 item 2A, by inserting table items 1A, 3A and 6A, effective 1 July 2000.
S 11-99 amended by No 176 of 1999, s 3 and Sch 1 item 16, by inserting table item 8A, effective 1 July 2000.
Part 2-3 - Importations
Division 13 - Taxable importations
13-1
What this Division is about
GST is payable on taxable importations. This Division defines taxable importations, states who is liable for the GST and describes how to work out the GST on importations.
Note 1:
This Division applies whether or not you are registered.
Note 2:
Things other than goods that are supplied overseas for use in the indirect tax zone (and are therefore in that sense "imported") are not taxable importations, but they can attract GST under Subdivision 84-A.
S 13-1 amended by No 52 of 2016, s 3 and Sch 1 item 10, by substituting "Subdivision 84-A" for "Division 84" in note 2, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 13-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in note 2, applicable to a tax period that commences on or after 1 July 2015.
You make a
taxable importation if:
(a)
goods are imported; and
(b)
you enter the goods for home consumption (within the meaning of the Customs Act 1901).
However, the importation is not a taxable importation to the extent that it is a *non-taxable importation.
Note:
There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.
S 13-5(2) repealed by No 176 of 1999, s 3 and Sch 1 item 17, effective 1 July 2000. S 13-5(2) formerly read:
(2)
You make an
importation of goods into Australia if:
(a)
you enter the goods for home consumption (within the meaning of the Customs Act 1901); and
(b)
at the time they are so entered for home consumption, you are the owner (within the meaning of that Act) of the goods.
S 13-5(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
13-10
Meaning of non-taxable importation
An importation is a
non-taxable importation if:
(a)
it is a non-taxable importation under Part 3-2; or
(b)
it would have been a supply that was *GST-free or *input taxed if it had been a supply.
13-15
Who is liable for GST on taxable importations?
You must pay the GST payable on any *taxable importation that you make.
13-20
How much GST is payable on taxable importations?
(1)
The amount of GST on the *taxable importation is 10% of the *value of the taxable importation.
(2)
The
value of a *taxable importation is the sum of:
(a)
the *customs value of the goods imported; and
(ba)
the amount paid or payable for a supply to which item 5A in the table in subsection 38-355(1) applies, to the extent that the amount:
(i)
is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and
Note:
Division 81 excludes certain taxes, fees and charges from the provision of consideration.
(ii)
is not already included under paragraph (a) or (b); and
S 13-20(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b)(i), applicable to a tax period that commences on or after 1 July 2015.
S 13-20(2) amended by No 41 of 2011, s 3 and Sch 4 item 1, by substituting para (ba)(i), applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading. Para (ba)(i) formerly read:
(i)
is not a tax, fee or charge to which subsection 81-5(2) applies; and
S 13-20(2) amended by No 91 of 2010, s 3 and Sch 1 item 1, by inserting para (ba), effective 29 June 2010. No 91 of 2010, s 3 and Sch 1 item 16 contains the following application provision:
16 Application
(1)
The amendments made apply to:
(a)
supplies made on or after 1 July 2010; and
(b)
taxable importations made on or after 1 July 2010.
(2)
Despite paragraph (1)(a), the amendments made do not apply to a supply of services to the extent that the supply relates to a taxable importation made before 1 July 2010.
S 13-20(2) amended by No 176 of 1999, s 3 and Sch 1 items 18 to 20, by substituting "*customs value" for "customs value (for the purposes of Division 2 of Part VIII of the Customs Act 1901)" in para (a), substituting subpara (b)(i), and inserting para (d), effective 1 July 2000. Subpara (b)(i) formerly read:
If an amount to be taken into account under paragraph (2)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.
S 13-20(2A) amended by No 91 of 2010, s 3 and Sch 1 item 2, by inserting "or (ba)" after "paragraph (2)(b)", effective 29 June 2010. For application provision, see history note under s 13-20(2).
S 13-20(2A) inserted by No 156 of 2000, s 3 and Sch 2 item 1, applicable to importations into Australia on or after 12 October 2000.
The Commissioner may, in writing:
(a)
determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (2)(b); and
(b)
determine the way in which the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is to be worked out for the purposes of that paragraph; and
(c)
in relation to importations of a specified kind or importations to which specified circumstances apply - determine that:
(i)
the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of paragraph (2)(b), to be zero; or
(ii)
the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is taken, for the purposes of that paragraph, to be zero.
S 13-20(3) amended by No 91 of 2010, s 3 and Sch 1 item 3, by substituting paras (b) and (c) for para (b), effective 29 June 2010. For application provision, see history note under s 13-20(2). No 91 of 2010, s 3 and Sch 1 item 15 states that:
15 Existing determinations under paragraph 13-20(3)(b)
A determination under paragraph 13-20(3)(b) of the A New Tax System (Goods and Services Tax) Act 1999, that was in force immediately before 29 June 2010, continues in force after 29 June 2010 as if it were a determination under subparagraph 13-20(3)(c)(i) of that Act as inserted by this Act [No 91 of 2010].
Para (b) formerly read:
(b)
in relation to importations of a specified kind or importations to which specified circumstances apply, determine that the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of that paragraph, to be zero.
S 13-20(3) inserted by No 176 of 1999, s 3 and Sch 1 item 21, effective 1 July 2000.
For a *taxable importation that you make, you may choose to treat the amount under paragraph (2)(b), (or, if paragraph (2)(ba) applies, the sum of the amounts under paragraphs (2)(b) and (ba)), as an amount equal to:
(a)
the percentage prescribed by the regulations of the *customs value of the goods imported; or
(b)
if no percentage is prescribed - 10% of their customs value.
S 13-20(4) inserted by No 52 of 2016, s 3 and Sch 2 item 22, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
However, subsection (4) does not apply if:
(a)
you are not *registered; or
(b)
the *local entry of the goods is a *taxable dealing in relation to *wine; or
(c)
the importation of the goods is a *taxable importation of a luxury car.
S 13-20(5) inserted by No 52 of 2016, s 3 and Sch 2 item 22, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
13-25
The value of taxable importations that are partly non-taxable importations
If an importation (the
actual importation) is:
(a)
partly a *taxable importation; and
(b)
partly a *non-taxable importation;
the
value of the part of the actual importation that is a taxable importation is the proportion of the value of the actual importation (worked out as if it were solely a taxable importation) that the taxable importation represents.
13-99
Special rules relating to taxable importations
Chapter 4 contains special rules relating to taxable importations, as follows:
Checklist of special rules
Item
For this case …
See:
1
GST groups
Division 48
2
GST joint ventures
Division 51
3
Importations without entry for home consumption
Division 114
4
Representatives of incapacitated entities
Division 58
5
Resident agents acting for non-residents
Division 57
6
Valuation of re-imported goods
Division 117
Note:
There are other laws that may affect the amount of GST on taxable importations. For example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule).
S 13-99 amended by No 74 of 2010, s 3 and Sch 2 item 4, by inserting the note at the end, effective 1 July 2010.
S 13-99 amended by No 118 of 2009, s 3 and Sch 1 item 3, by inserting table item 4, effective 1 July 2000.
S 13-99 amended by No 156 of 2000, s 3 and Sch 2 item 2, by substituting "re-imported goods" for "taxable importations of goods that were exported for repair or renovation" in table item 6, applicable to importations into Australia on or after 12 October 2000.
S 13-99 amended by No 176 of 1999, s 3 and Sch 1 item 22, by repealing table item 4, effective 1 July 2000. Table item 4 formerly read: "4 Non-deductible expenses Division 69".
Division 15 - Creditable importations
15-1
What this Division is about
You are entitled to input tax credits for your creditable importations. This Division defines creditable importations, states who is entitled to the input tax credits and describes how to work out the input tax credits on importations.
15-5
What are creditable importations?
You make a
creditable importation if:
(a)
you import goods solely or partly for a *creditable purpose; and
(b)
the importation is a *taxable importation; and
(c)
you are *registered, or *required to be registered.
15-10
Meaning of creditable purpose
(1)
You import goods for a
creditable purpose to the extent that you import the goods in *carrying on your *enterprise.
(2)
However, you do not import the goods for a creditable purpose to the extent that:
(a)
the importation relates to making supplies that would be *input taxed; or
(b)
the importation is of a private or domestic nature.
(3)
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.
S 15-10(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 15-10(3) substituted by No 156 of 2000, s 3 and Sch 1 item 2, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 15-10(3) formerly read:
(3)
To the extent that an importation relates to making *financial supplies through an *enterprise, or a part of an enterprise, that you *carry on outside Australia, the importation is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:
(a)
the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and
(b)
you do not *exceed the financial acquisitions threshold.
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:
(a)
the importation relates to making a *financial supply consisting of a borrowing; and
(b)
the borrowing relates to you making supplies that are not input taxed.
S 15-10(5) inserted by No 92 of 2000, s 3 and Sch 5 item 4, effective 1 July 2000.
15-15
Who is entitled to input tax credits for creditable importations?
You are entitled to the input tax credit for any *creditable importation that you make.
15-20
How much are the input tax credits for creditable importations?
The amount of input tax credit for a *creditable importation is an amount equal to the GST payable on the importation. However, the amount of the input tax credit is reduced if the importation is only *partly creditable.
Note:
The basic rule for working out the GST payable on the importation is in section 13-20. However, the GST payable may be affected by other provisions in:
(a) this Act (for a list of provisions, see section 13-99); and
(b) other GST laws (for example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule)).
S 15-20 amended by No 74 of 2010, s 3 and Sch 2 item 5, by inserting the note at the end, effective 1 July 2010.
15-25
Importations that are partly creditable
(1)
An importation that you make is
partly creditable if it is a *creditable importation that you make only partly for a *creditable purpose.
(2)
(Repealed by No 176 of 1999)
S 15-25(2) repealed by No 176 of 1999, s 3 and Sch 1 item 24, effective 1 July 2000. S 15-25(2) formerly read:
(2)
However, the importation is not *partly creditable if:
(a)
it was made for a *creditable purpose except to the extent (if any) that the importation relates to making *financial supplies; and
(b)
your *annual financial supplies turnover does not exceed either:
(i)
$50,000 or such other amount specified in the regulations; or
(ii)
5% of your *annual turnover (treating supplies that are input taxed as part of your annual turnover).
(3)
The amount of the input tax credit on an importation that you make that is *partly creditable is as follows:
Full input tax credit × Extent of creditable purpose
where:
extent of creditable purpose is the extent to which the importation is for a *creditable purpose, expressed as a percentage of the total purpose of the importation.
full input tax credit is what would have been the amount of the input tax credit for the importation if it had been made solely for a creditable purpose.
The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which an importation is for a *creditable purpose.
S 15-99 amended by No 118 of 2009, s 3 and Sch 1 item 4, by inserting table item 3A, effective 1 July 2000.
S 15-99 amended by No 134 of 2004, s 3 and Sch 2 item 2, by inserting table item 1AA, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 15-99 amended by No 156 of 2000, s 3 and Sch 3 item 2, by substituting table item 1A, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. Table item 1A formerly read: "1A Financial supplies (acquisitions and importations to provide fringe benefits) Division 71".
S 15-99 amended by No 92 of 2000, s 3, Sch 5 item 4A and Sch 11 item 4C, by inserting table items 1A and 2AA, effective 1 July 2000.
S 15-99 amended by No 176 of 1999, s 3 and Sch 1 item 25, by inserting table item 2A, effective 1 July 2000.
Part 2-4 - Net amounts and adjustments
Division 17 - Net amounts and adjustments
17-1
What this Division is about
S 17-1 substituted by No 39 of 2012, s 3 and Sch 1 item 35, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 17-1 formerly read:
17-1 What this Division is about
A net amount is worked out for each tax period that applies to you. This is the amount payable by you to the Commonwealth, or payable to you by the Commonwealth, for the tax period.
Adjustments can be made to the net amount. Increasing adjustments increase your net amount, and decreasing adjustments decrease your net amount.
Note 1:
GST on taxable importations is not included in the net amount. It is dealt with separately under section 33-15.
Note 2:
Net amounts payable to the Commonwealth are to be paid to the Commissioner on the Commonwealth's behalf (see Division 33).
17-5
Net amounts
(1)
The
net amount for a tax period applying to you is worked out using the following formula:
GST − Input tax credits
where:
GST is the sum of all of the GST for which you are liable on the *taxable supplies that are attributable to the tax period.
input tax credits is the sum of all of the input tax credits to which you are entitled for the *creditable acquisitions and *creditable importations that are attributable to the tax period.
Note 1:
For the basic rules on what is attributable to a particular period, see Division 29.
Note 2:
For further rules if you have excess GST for the period, see Division 142.
S 17-5(1) amended by No 34 of 2014, s 3 and Sch 2 item 2, by substituting the note, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014. The note formerly read:
For the basic rules on what is attributable to a particular period, see Division 29
However, the *net amount for the tax period:
(a)
may be increased or decreased if you have any *adjustments for the tax period; and
(b)
may be increased or decreased under Subdivision 21-A of the *Wine Tax Act; and
(c)
may be increased or decreased under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999.
Note 1:
Under Subdivision 21-A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount.
Note 2:
Under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999, amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount.
S 17-5(2) substituted by No 39 of 2012, s 3 and Sch 3 item 1, effective 1 July 2012. S 17-5(2) formerly read:
(2)
However, the *net amount for the tax period may be increased or decreased if you have any *adjustments for the tax period.
17-10
Adjustments
If you have any *adjustments that are attributable to a tax period applying to you, alter your *net amount for the period as follows:
(a)
add to the amount worked out under subsection 17-5(1) for the period the sum of all the *increasing adjustments (if any) that are attributable to the period;
(b)
subtract from that amount the sum of all the *decreasing adjustments (if any) that are attributable to the period.
For the basic rules on what adjustments are attributable to a particular period, see Division 29.
17-15
Working out net amounts using approved forms
(Repealed by No 21 of 2015)
S 17-15 repealed by No 21 of 2015, s 3 and Sch 7 item 1, applicable in relation to tax periods starting after 19 March 2015. S 17-15 formerly read:
17-15 Working out net amounts using approved forms
(1)
You may choose to work out your *net amount for a tax period in the way specified in an *approved form if you use the form to notify the Commissioner of that net amount. The amount so worked out is treated as your net amount for the tax period.
Note:
Choosing to use section 17-5 to work out your net amount does not mean your GST return is not in the approved form: see subsection 31-15(3).
(1)
The Commissioner may make a determination that, in the circumstances specified in the determination, a *net amount for a tax period may be worked out to take account of other matters in the way specified in the determination.
(2)
S 17-20(2) substituted by No 39 of 2012, s 3 and Sch 1 item 242, effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 17-20(2) formerly read:
(2)
The matters must relate to correction of errors:
(a)
that were made in working out *net amounts to which subsection (2A) applies; and
(b)
that do not relate to amounts:
(i)
that have ceased to be payable by you because of section 105-50 in Schedule 1 to the Taxation Administration Act 1953; or
(ii)
to which, because of section 105-55 in that Schedule, you are not entitled.
Note:
Paragraph (2)(b) will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.
S 17-20(2) substituted by No 39 of 2012, s 3 and Sch 2 item 1, effective 1 July 2012. S 17-20(2) formerly read:
(2)
The matters must relate to correction of errors made in working out *net amounts for the immediately preceding tax period.
(2A)
This subsection applies to a *net amount for a tax period (the
earlier tax period) if:
(a)
the earlier tax period precedes the tax period mentioned in subsection (1); and
(b)
the tax period mentioned in subsection (1) starts during the *period of review for the *assessment of the *net amount.
S 17-20(2A) amended by No 39 of 2012, s 3 and Sch 1 item 243, by omitting "if the earlier tax period started on or after 1 July 2012 -" before "the tax period" from para (b), effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 17-20(2A) inserted by No 39 of 2012, s 3 and Sch 2 item 1, effective 1 July 2012.
(3)
If those circumstances apply in relation to a tax period applying to you, you may work out your *net amount for the tax period in that way.
S 17-20 inserted by No 73 of 2001, s 3 and Sch 1 item 67, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
17-99
Special rules relating to net amounts or adjustments
S 17-99 amended by No 21 of 2010, s 3 and Sch 1 item 1, by inserting table item 15A, applicable in relation to payments made on or after 1 July 2010.
S 17-99 amended by No 20 of 2010, s 3 and Sch 1 item 2, by inserting table item 9C, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 17-99 amended by No 118 of 2009, s 3 and Sch 1 item 12, by substituting "Division 58" for "Divisions 58 and 147" in table item 10, effective 4 December 2009.
S 17-99 amended by No 118 of 2009, s 3 and Sch 1 item 5, by substituting "Divisions 58 and 147" for "Division 147" in table item 10, effective 1 July 2000.
S 17-99 amended by No 112 of 2007, s 3 and Sch 1 item 1, by inserting "and small enterprise entities" after "retailers" in table item 12A, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 17-99 amended by No 78 of 2005, s 3 and Sch 6 item 1, by inserting table item 11A, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
S 17-99 amended by No 134 of 2004, s 3 and Sch 2 item 3, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 17-99 amended by No 67 of 2003, s 3 and Sch 11 items 6 and 7, by inserting table items 4AA and 12AA, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 17-99 amended by No 73 of 2001, s 3 and Sch 1 item 23, by inserting table item 9B, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 17-99 amended by No 156 of 2000, s 3 and Sch 4 item 1, by substituting "etc. without full input tax credits" for ", imported or applied to make financial supplies" in table item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 17-99 amended by No 156 of 2000, s 3 and Sch 3 item 3, by inserting table item 9AA, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 17-99 amended by No 92 of 2000, s 3, Sch 1 item 1C and Sch 11 item 4D, by inserting table items 4A and 8A, effective 1 July 2000.
S 17-99 amended by No 177 of 1999, s 3 and Sch 1 items 9 to 12, by inserting table items 5A, 9A, 12B and 17, effective 1 July 2000.
S 17-99 amended by No 176 of 1999, s 3 and Sch 7 item 9, by inserting table item 16, effective 1 July 2000.
S 17-99 amended by No 176 of 1999, s 3 and Sch 1 item 26, by inserting table item 12A, effective 1 July 2000.
Division 19 - Adjustment events
19-1
What this Division is about
Adjustments can arise because of adjustment events. They are events such as a cancellation of a supply or acquisition, or a change in the consideration for a supply or acquisition (for example, because of a volume discount).
Note:
Importations do not give rise to adjustment events.
S 19-5 amended by No 176 of 1999, s 3 and Sch 1 item 27, by inserting the Note, effective 1 July 2000.
Subdivision 19-A - Adjustment events
19-10
Adjustment events
(1)
An
adjustment event is any event which has the effect of:
(a)
cancelling a supply or acquisition; or
(b)
changing the *consideration for a supply or acquisition; or
(c)
causing a supply or acquisition to become, or stop being, a *taxable supply or *creditable acquisition.
Example:
If goods that are supplied for export are not exported within the time provided in section 38-185, the supply is likely to become a taxable supply after originally being a supply that was GST-free.
(2)
Without limiting subsection (1), these are *adjustment events:
(a)
the return to a supplier of a thing, or part of a thing, supplied (whether or not the return involves a change of ownership of the thing);
(b)
a change to the previously agreed *consideration for a supply or acquisition, whether due to the offer of a discount or otherwise;
(c)
a change in the extent to which an entity that makes an acquisition provides, or is liable to provide, consideration for the acquisition (unless the entity *accounts on a cash basis).
(3)
An *adjustment event:
(a)
can arise in relation to a supply even if it is not a *taxable supply; and
(b)
can arise in relation to an acquisition even if it is not a *creditable acquisition.
(4)
However, the return of a thing supplied, or part of a thing supplied, to its supplier is not an *adjustment event if the return is for the purpose of repair or maintenance.
S 19-10(4) inserted by No 176 of 1999, s 3 and Sch 1 item 28, effective 1 July 2000.
Subdivision 19-B - Adjustments for supplies
19-40
Where adjustments for supplies arise
You have an
adjustment for a supply for which you are liable to pay GST (or would be liable to pay GST if it were a *taxable supply) if:
(a)
in relation to the supply, one or more *adjustment events occur during a tax period; and
(b)
GST on the supply was attributable to an earlier tax period (or, if the supply was not a taxable supply, would have been attributable to an earlier tax period had the supply been a taxable supply); and
(c)
as a result of those adjustment events, the *previously attributed GST amount for the supply (if any) no longer correctly reflects the amount of GST (if any) on the supply (the
corrected GST amount), taking into account any change of circumstances that has given rise to an adjustment for the supply under this Subdivision or Division 21 or 134.
S 19-40 amended by No 21 of 2010, s 3 and Sch 1 item 2, by inserting "or 134" after "Division 21" in para (c), applicable in relation to payments made on or after 1 July 2010.
S 19-40 amended by No 177 of 1999, s 3 and Sch 1 item 13, by substituting para (c), effective 1 July 2000. Para (c) formerly read:
(c)
as a result of those adjustment events, the *previously attributed GST amount for the supply no longer correctly reflects the amount of GST on the supply (the
corrected GST amount), taking into account any adjustments for the supply.
19-45
Previously attributed GST amounts
The
previously attributed GST amount for a supply is:
(a)
the amount of any GST that was attributable to a tax period in respect of the supply; plus
(b)
the sum of any *increasing adjustments, under this Subdivision or Division 21, that were previously attributable to a tax period in respect of the supply; minus
(c)
the sum of any *decreasing adjustments, under this Subdivision or Division 21 or 134, that were previously attributable to a tax period in respect of the supply.
S 19-45 amended by No 21 of 2010, s 3 and Sch 1 item 2, by inserting "or 134" after "Division 21" in para (c), applicable in relation to payments made on or after 1 July 2010.
S 19-45 amended by No 177 of 1999, s 3 and Sch 1 item 14, by inserting "or Division 21" into paras (b) and (c), effective 1 July 2000.
19-50
Increasing adjustments for supplies
If the *corrected GST amount is greater than the *previously attributed GST amount, you have an
increasing adjustment equal to the difference between the corrected GST amount and the previously attributed GST amount.
19-55
Decreasing adjustments for supplies
If the *corrected GST amount is less than the *previously attributed GST amount, you have a
decreasing adjustment equal to the difference between the previously attributed GST amount and the corrected GST amount.
Subdivision 19-C - Adjustments for acquisitions
19-70
Where adjustments for acquisitions arise
(1)
You have an
adjustment for an acquisition for which you are entitled to an input tax credit (or would be entitled to an input tax credit if the acquisition were a *creditable acquisition) if:
(a)
in relation to the acquisition, one or more *adjustment events occur during a tax period; and
(b)
an input tax credit on the acquisition was attributable to an earlier tax period (or, if the acquisition was not a creditable acquisition, would have been attributable to an earlier tax period had the acquisition been a creditable acquisition); and
(c)
as a result of those adjustment events, the *previously attributed input tax credit amount for the acquisition (if any) no longer correctly reflects the amount of the input tax credit (if any) on the acquisition (the
corrected input tax credit amount).
S 19-70(1) amended by No 134 of 2004, s 3 and Sch 2 item 4, by omitting the words "taking into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21 or 129" at the end of para (c), applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 19-70 amended by No 177 of 1999, s 3 and Sch 1 item 15, by substituting "taking into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21 or 129" for "taking into account any adjustments for the acquisition" in para (c), effective 1 July 2000.
In working out the *corrected input tax credit amount for the acquisition:
(a)
take into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21, 129, 133 or 134; and
S 19-70(2) amended by No 21 of 2010, s 3 and Sch 1 item 3, by substituting ", 133 or 134" for "or 133" in para (a), applicable in relation to payments made on or after 1 July 2010.
S 19-70(2) amended by No 20 of 2010, s 3 and Sch 1 item 3, by substituting ", 129 or 133" for "or 129" in para (a), applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 19-70(2) inserted by No 134 of 2004, s 3 and Sch 2 item 5, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
19-75
Previously attributed input tax credit amounts
The
previously attributed input tax credit amount for an acquisition is:
(a)
the amount of any input tax credit that was attributable to a tax period in respect of the acquisition; minus
(b)
the sum of any *increasing adjustments, under this Subdivision or Division 21, 129, 131 or 134, that were previously attributable to a tax period in respect of the acquisition; plus
(c)
the sum of any *decreasing adjustments, under this Subdivision or Division 21, 129 or 133, that were previously attributable to a tax period in respect of the acquisition.
S 19-75 amended by No 21 of 2010, s 3 and Sch 1 item 4, by substituting ", 131 or 134" for "or 131" in para (b), applicable in relation to payments made on or after 1 July 2010.
S 19-75 amended by No 20 of 2010, s 3 and Sch 1 item 3, by substituting ", 129 or 133" for "or 129" in para (c), applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 19-75 amended by No 134 of 2004, s 3 and Sch 2 item 6, by substituting ", 129 or 131" for "or 129" in para (b), applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 19-75 amended by No 177 of 1999, s 3 and Sch 1 item 16, by inserting "or Division 21 or 129" in paras (b) and (c), effective 1 July 2000.
S 19-75 amended by No 176 of 1999, s 3 and Sch 1 items 29 and 30, by substituting "minus" for "plus" in para (a) and "plus" for "minus" in para (b), effective 1 July 2000.
19-80
Increasing adjustments for acquisitions
If the *previously attributed input tax credit amount is greater than the *corrected input tax credit amount, you have an
increasing adjustment equal to the difference between the previously attributed input tax credit amount and the corrected input tax credit amount.
19-85
Decreasing adjustments for acquisitions
If the *previously attributed input tax credit amount is less than the *corrected input tax credit amount, you have a
decreasing adjustment equal to the difference between the corrected input tax credit amount and the previously attributed input tax credit amount.
19-99
Special rules relating to adjustment events
S 19-99 amended by No 34 of 2014, s 3 and Sch 2 item 3, by inserting table item 1AB, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 19-99 amended by No 21 of 2010, s 3 and Sch 1 item 5, by inserting table item 4, applicable in relation to payments made on or after 1 July 2010.
S 19-99 amended by No 20 of 2010, s 3 and Sch 1 item 4, by inserting table item 2A, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred toin paragraph (b).
S 19-99 amended by No 67 of 2003, s 3 and Sch 11 items 8 and 9, by inserting table items 1AA and 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 19-99 amended by No 156 of 2000, s 3 and Sch 3 item 4, by inserting table item 2, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 19-99 amended by No 92 of 2000, s 3 and Sch 1 item 1D, by inserting table item 1A, effective 1 July 2000.
S 19-99 inserted by No 177 of 1999, s 3 and Sch 1 item 17, effective 1 July 2000.
Division 21 - Bad debts
21-1
What this Division is about
If debts are written off as bad or are outstanding after 12 months, adjustments (for the purpose of working out net amounts) are made. They can arise both for amounts written off or outstanding and for recovery of amounts previously written off or outstanding.
Note:
This Division does not apply to supplies and acquisitions that you account for on a cash basis (except in the limited circumstances referred to in Division 159).
You have a
decreasing adjustment if:
(a)
you made a *taxable supply; and
(b)
the whole or part of the *consideration for the supply has not been received; and
(c)
you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.
The amount of the decreasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.
S 21-5(1) amended by No 177 of 1999, s 3 and Sch 1 items 18 and 19, by substituting ``*overdue'' for ``due'' in para (c) and ``overdue'' for ``due'' (last occurring), effective 1 July 2000.
(2)
However, you cannot have an *adjustment under this section if you *account on a cash basis.
21-10
Recovering amounts previously written off (taxable supplies)
You have an
increasing adjustment if:
(a)
you made a *taxable supply in relation to which you had a *decreasing adjustment under section 21-5 for a debt; and
(b)
you recover the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.
You have an
increasing adjustment if:
(a)
you made a *creditable acquisition for *consideration; and
(b)
the whole or part of the consideration is *overdue, but you have not provided the consideration overdue; and
(c)
the supplier of the thing you acquired writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.
The amount of the increasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.
S 21-15(1) amended by No 177 of 1999, s 3 and Sch 1 items 21 to 24, by substituting ``*overdue'' for ``due'' (first occurring) and ``overdue'' for ``due'' (second occurring) in para (b), ``overdue'' for ``due'' in para (c) and ``overdue'' for ``due'' (last occurring), effective 1 July 2000.
(2)
However, you cannot have an *adjustment under this section if you *account on a cash basis.
21-20
Recovering amounts previously written off (creditable acquisitions)
You have a
decreasing adjustment if:
(a)
you made a *creditable acquisition in relation to which you had an *increasing adjustment under section 21-15 for a debt; and
(b)
you pay to the supplier of the thing you acquired the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.
S 21-99 amended by No 118 of 2009, s 3 and Sch 1 item 6, by inserting table item 2A, effective 1 July 2000.
S 21-99 amended by No 156 of 2000, s 3 and Sch 4 item 2, by substituting "transactions that are not taxable or creditable to the fullest extent" for "partly taxable or creditable transactions" in table item 1A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 21-99 amended by No 177 of 1999, s 3 and Sch 1 item 26, by inserting table item 1A, effective 1 July 2000.
Part 2-5 - Registration
Division 23 - Who is required to be registered and who may be registered
23-1
Explanation of Division
S 23-1 amended by No 70 of 2015, s 3 and Sch 6 item 1, by substituting the diagram, effective 25 June 2015. The diagram formerly read:
S 23-1 amended by No 80 of 2007, s 3 and Sch 2 item 1, by substituting the diagram, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The diagram formerly read:
S 23-5 amended by No 80 of 2007, s 3 and Sch 2 item 2, by substituting "*GST turnover" for "*annual turnover" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 23-10 amended by No 80 of 2007, s 3 and Sch 2 item 3, by substituting "your *GST turnover" for "your turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
23-15
The registration turnover threshold
(1)
Your
registration turnover threshold (unless you are a non-profit body) is:
(a)
$50,000; or
(b)
such higher amount as the regulations specify.
(2)
Your
registration turnover threshold if you are a non-profit body is:
(a)
$100,000; or
(b)
such higher amount as the regulations specify.
Subsection 25-10(1A) provides that the date of effect of your registration must not be a day that occurred more than 4 years before the day of the Commissioner's decision to register you, unless the Commissioner is of the opinion there has been fraud or evasion.
S 23-20 inserted by No 39 of 2012, s 3 and Sch 1 item 36, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
23-99
Special rules relating to who is required to be registered or who may be registered
S 23-99 amended by No 118 of 2009, s 3 and Sch 1 item 13, by substituting "Division 58" for "Division 147" in table item 1, effective 4 December 2009.
S 23-99 amended by No 177 of 1999, s 3 and Sch 1 item 27, by inserting table items 1A and 1B, effective 1 July 2000.
Division 25 - How you become registered, and how your registration can be cancelled
Subdivision 25-A - How you become registered
25-1
When you must apply for registration
You must apply, in the *approved form, to be *registered under this Act if:
(a)
you are not registered under this Act; and
(b)
you are *required to be registered.
You must make your application within 21 days after becoming required to be registered.
25-5
When the Commissioner must register you
(1)
The Commissioner must *register you if:
(a)
you have applied for registration in an *approved form; and
(b)
the Commissioner is satisfied that you are *carrying on an *enterprise, or you intend to carry on an enterprise from a particular date specified in your application.
Note:
Refusing to register you under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-5(1) amended by No 73 of 2006, s 3 and Sch 5 item 67, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must *register you (even if you have not applied for registration) if the Commissioner is satisfied that you are *required to be registered.
Note:
Registering you under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-5(2) amended by No 73 of 2006, s 3 and Sch 5 item 68, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to *register you, the notice must specify the following:
(a)
the date of effect of your registration;
(b)
your registration number;
(c)
the tax periods that apply to you.
S 25-5(3) amended by No 69 of 2023, s 3 and Sch 4 item 105, by substituting "*register" for "register", effective 1 October 2023.
25-10
The date of effect of your registration
(1)
The Commissioner must decide the date from which your *registration takes effect, or took effect. However:
(a)
if you did not apply for registration and the Commissioner is satisfied that you are *required to be registered - the date of effect must not be a day before the day on which you became required to be registered; or
(b)
if you applied for registration - the date of effect must not be a day before:
(i)
the day specified in your application; or
(ii)
if the Commissioner is satisfied that you became required to be registered on an earlier day - the day that the Commissioner is satisfied is that earlier day; or
(c)
if you are being registered only because you intend to *carry on an *enterprise - the date of effect must not be a day before the day specified, in your application for registration, as the day from which you intend to carry on the enterprise.
Note:
Deciding the date of effect of your registration is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-10(1) amended by No 73 of 2006, s 3 and Sch 5 item 69, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The date of effect must not be a day that occurred more than 4 years before the day of the decision, unless the Commissioner is of the opinion there has been fraud or evasion.
S 25-10(1A) inserted by No 39 of 2012, s 3 and Sch 1 item 37, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 25-10(2) will be substituted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 90, effective 1 July 2026 or a day or days to be fixed by Proclamation. S 25-10(2) will read:
(2)
The *Registrar must maintain a record of information relating to *registrations under this Division.
No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 items 1465-1468 contain the following application and transitional provisions:
Part 3 - Application and transitional provisions
1465 Definitions
(1)
In this Part:
amending item means:
(a)
an item (other than item 103) of Part 2 of this Schedule that amends a provision of any of the following:
application day , for an amendment made by an amending item, as applying in relation to a matter, means the day on and after which the amendment applies in relation to that matter because of item 1467.
commencement day , for an amending item, means the day on which the item commences (taking into account Part 1 of Schedule 4 to the Treasury Laws Amendment (2022 Measures No. 1) Act 2022).
interim period means the period:
(a)
starting at the start of 22 June 2022; and
(b)
ending at the end of the day before the day on which Part 2 of Schedule 4 to the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 commences.
postponed item means any of the following that commenced on 22 June 2022 (disregarding Part 1 of Schedule 4 to the Treasury Laws Amendment (2022 Measures No. 1) Act 2022):
(a)
an item of Part 2 of Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020;
(b)
an item of Part 3 of Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021;
(c)
an item of Part 4 of Schedule 2 to the Treasury Laws Amendment (2021 Measures No. 1) Act 2021.
Note:
Item 103 of Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 is not covered by paragraph (a) because that item commenced on 4 April 2021.
(2)
For the purposes of paragraph (b) of the definition of
amending item in subitem (1), the Minister may, by legislative instrument, specify items that:
(a)
are in a Schedule to any Act and amend a provision that:
(i)
is a provision of an Act referred to in paragraph (a) of that definition; and
(ii)
deals with a matter related to a government registry regime; and
(b)
are to commence on a day after the end of the interim period but before 1 July 2026.
(3)
For the purposes of subparagraph 1467(1)(c)(i), the Minister may, by legislative instrument, specify a day for an item specified under subitem (2) of this item. The day must occur after the end of the interim period but before 1 July 2026.
1466 Validation of acts or things done during interim period
Object
(1)
The object of this item is to treat all situations during the interim period in every respect as if:
(a)
the amendments made by Part 1 of Schedule 4 to the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 had been made at the start of 21 June 2022; and
(b)
the amendments made by the postponed items had not been made at the start of 22 June 2022 and had had no effect during the interim period.
Validation of acts and things done in interim period
(2)
An act or thing that was done at any time during the interim period is as valid, and is taken always to have been as valid, as it would have been if:
(a)
the amendments made by Part 1 of Schedule 4 to the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 had been made at the start of 21 June 2022; and
(b)
in particular, the amendments made by the postponed items had not been made at the start of 22 June 2022 and had had no effect during the interim period.
Continuation of delegations
(3)
Without limiting subitem (2), if:
(a)
a function or power conferred by any of the following Acts was delegated to a person:
(b)
the delegation was in force immediately before 22 June 2022; and
(c)
but for this subitem, the delegation would have ceased to have effect at the start of 22 June 2022 because of any of the amendments made by the postponed items;
then:
(d)
an act or thing done by the delegate in the interim period is, and is taken always to have been, as valid a performance or exercise of the function or power as it would have been if the delegation had continued in force throughout the interim period; and
(e)
the delegation has effect, on and after the day section 1 of the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 commences, as if it had been made at the time that section commences.
Acts and things to which this item applies
(4)
This item applies to an act or thing, regardless of the basis on which, or capacity in which, the act or thing was done or purported to be done.
1467 Application of amendments
(1)
An amendment of a provision of an Act that is made by an amending item applies, in relation to a matter (the
relevant matter), on and after the earliest of the following days:
(a)
if the amending item is covered by a notifiable instrument in force under paragraph (2)(a) of this item - the day the instrument specifies for the item;
(b)
if the amending item is covered by a notifiable instrument in force under paragraph (2)(b) of this item that specifies matters for the item that include the relevant matter - the day the instrument specifies for the item in relation to those matters;
(c)
whichever of the following is applicable:
(i)
if a day is specified for the amending item under subitem 1465(3) - that day;
(ii)
otherwise - 1 July 2026.
Note:
The provision, as in force immediately before the commencement day for the amending item, will continue to apply in relation to the relevant matter until the day that applies under this subitem.
(2)
The Minister:
(a)
may by notifiable instrument specify days for amending items for the purposes of paragraph (1)(a); and
(b)
may by notifiable instrument specify days and matters for amending items for the purposes of paragraph (1)(b).
(3)
A day specified for an amending item in a notifiable instrument made under subitem (2) must be:
(a)
on or after the day that the instrument is made; and
(b)
on or after the commencement day for the amending item.
(4)
Without limiting subsection 13(3) of the Legislation Act 2003, an instrument made under subitem (2) of this item may specify all amending items as a class of amending items.
1468 Things started but not finished by ASIC
1468
If:
(a)
an amending item amends a provision of an Act; and
(b)
before the application day for the amendment made by the amending item, as applying in relation to a matter, ASIC started doing a thing that relates to that matter under the provision as in force immediately before the commencement day for the amending item; and
(c)
immediately before that application day, ASIC had not finished doing that thing; and
(d)
on and after that application day, doing that thing is within the powers or functions of the Registrar;
then, on and after that application day:
(e)
ASIC may finish doing that thing as if that thing were being done by the Registrar in performing or exercising the Registrar's functions or powers; and
(f)
to the extent that ASIC does not finish doing that thing under paragraph (e), the Registrar may finish doing that thing in performing and exercising the Registrar's functions and powers.
S 25-10(2) inserted by No 176 of 1999, s 3 and Sch 1 item 31, effective 1 July 2000.
25-15
Effect of backdating your registration
If the Commissioner decides under section 25-10, as the date of effect of your *registration (
your registration day), a day before the day of the decision, then you are taken:
(a)
for the purpose of determining whether a supply you made on or after your registration day was a *taxable supply; and
(b)
for the purpose of determining whether an acquisition you made on or after that day was a *creditable acquisition; and
(c)
for the purpose of determining whether an importation you made on or after that day was a *creditable importation;
to have been registered from and including your registration day.
Note:
This section ensures that backdating your registration enables your supplies and acquisitions made on or after the date of effect to be picked up by the GST system. Section 25-10 limits the extent to which your registration can be backdated.
S 25-49 amended by No 77 of 2017, s 3 and Sch 1 items 8 and 9, by inserting table item 1AA and repealing table item 4, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4 formerly read:
4
Offshore supplies other than goods or real property
Division 84
S 25-49 amended by No 52 of 2016, s 3 and Sch 1 item 11, by inserting table item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 25-49 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 3, column headed "For this case …", applicable to a tax period that commences on or after 1 July 2015.
S 25-49 amended by No 92 of 2000, s 3 and Sch 3 item 3, by inserting table item 3, effective 1 July 2000.
S 25-49 amended by No 177 of 1999, s 3 and Sch 1 items 28 and 29, by inserting table items 1A and 2, effective 1 July 2000.
Subdivision 25-B - How your registration can be cancelled
25-50
When you must apply for cancellation of registration
If you are *registered and you are not *carrying on any *enterprise, you must apply to the Commissioner in the *approved form for cancellation of your *registration. You must lodge your application within 21 days after the day on which you ceased to be carrying on any *enterprise.
25-55
When the Commissioner must cancel registration
(1)
The Commissioner must cancel your *registration if:
(a)
you have applied for cancellation of registration in the *approved form; and
(b)
at the time you applied for cancellation of registration, you had been registered for at least 12 months; and
(c)
the Commissioner is satisfied that you are not *required to be registered.
Note:
Refusing to cancel your registration under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-55(1) amended by No 73 of 2006, s 3 and Sch 5 item 70, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must cancel your *registration (even if you have not applied for cancellation of your registration) if:
(a)
the Commissioner is satisfied that you are not *carrying on an *enterprise; and
(b)
the Commissioner believes on reasonable grounds that you are not likely to carry on an enterprise for at least 12 months.
Note:
Cancelling your registration under this subsection is a reviewable GST decision(see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-55(2) amended by No 73 of 2006, s 3 and Sch 5 item 71, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The Commissioner must notify you of any decision he or she makes in relation to you under this section. If the Commissioner decides to cancel your *registration, the notice must specify the date of effect of the cancellation.
(1)
The Commissioner may cancel your *registration if:
(a)
less than 12 months after being registered, you apply for cancellation of registration in the *approved form; and
(b)
the Commissioner is satisfied that you are not *required to be registered.
Note:
Refusing to cancel your registration under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-57(1) amended by No 73 of 2006, s 3 and Sch 5 item 72, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
In considering your application, the Commissioner may have regard to:
(a)
how long you have been *registered; and
(b)
whether you have previously been registered; and
(c)
any other relevant matters.
(3)
The Commissioner must notify you of any decision he or she makes in relation to you under this section. If the Commissioner decides to cancel your *registration, the notice must specify the date of effect of the cancellation.
The Commissioner must decide the date on which the cancellation of your *registration under subsection 25-55(1) or (2) or section 25-57 takes effect. That date may be any day occurring before, on or after the day on which the Commissioner makes the decision.
Note:
Deciding the date of effect of the cancellation of your registration is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-60(1) amended by No 73 of 2006, s 3 and Sch 5 item 73, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 25-60(1) amended by No 156 of 2000, s 3 and Sch 5 item 2, by inserting "or section 25-57" after "or (2)". Under Sch 5 item 18, the Commissioner is authorised to decide as a date on which the cancellation of a registration under sec 25-57 takes effect, any day occurring on or after 1 July 2000.
The *Australian Business Registrar must enter in the *Australian Business Register the date on which the cancellation of your *registration takes effect.
CCH Note:
Pending amendment
S 25-60(2) will be substituted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 91, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2). S 25-60(2) will read:
(2)
The *Registrar must maintain a record of information relating to cancellations of *registrations under this Division.
S 25-60(2) inserted by No 176 of 1999, s 3 and Sch 1 item 32, effective 1 July 2000.
25-65
Effect of backdating your cancellation of registration
If the Commissioner decides under section 25-60, as the date of effect of the cancellation of your *registration (
your cancellation day), a day before the day of the decision, your registration is taken:
(a)
for the purpose of determining whether a supply you made on or after your cancellation day was a *taxable supply; and
(b)
for the purpose of determining whether an acquisition you made on or after that day was a *creditable acquisition; and
(c)
for the purpose of determining whether an importation you made on or after that date was a *creditable importation;
to have been cancelled from and including your cancellation day.
25-99
Special rules relating to cancellation of registration
S 25-99 amended by No 77 of 2017, s 3 and Sch 1 items 10 and 11, by inserting table item 1AA and repealing table item 1C, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 1C formerly read:
1C
Offshore supplies other than goods or real property
Division 84
S 25-99 amended by No 52 of 2016, s 3 and Sch 1 item 12, by inserting table item 1C, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 25-99 amended by No 118 of 2009, s 3 and Sch 1 item 14, by substituting "Division 58" for "Division 147" in table item 2, effective 4 December 2009.
S 25-99 amended by No 177 of 1999, s 3 and Sch 1 items 30 and 31, by inserting table items 1A and 1B, effective 1 July 2000.
Part 2-6 - Tax periods
Division 27 - How to work out the tax periods that apply to you
27-1
What this Division is about
This Division tells you the tax periods that apply to you. You need to know this because your net amounts are worked out in respect of these tax periods.
S 27-1 amended by No 39 of 2012, s 3 and Sch 1 item 38, by omitting "(the amounts payable by you or to you)" before "are worked out", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
27-5
General rule - 3 month tax periods
The
tax periods that apply to you are each period of 3 months ending on 31 March, 30 June, 30 September or 31 December in any year, except to the extent that:
(a)
an election is in force under section 27-10; or
(b)
the Commissioner determines otherwise under this Division.
Note:
Several provisions in Chapter 4 provide for different tax periods. In particular, Division 151 provides for annual tax periods.
S 27-5 amended by No 134 of 2004, s 3 and Sch 1 item 1, by inserting the Note at the end, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
27-10
Election of one month tax periods
(1)
The
tax periods that apply to you are each individual month if, by notifying the Commissioner in the *approved form, you elect to have as the tax periods that apply to you each individual month.
(2)
The election takes effect on the day specified in the notice. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
27-15
Determination of one month tax periods
(1)
The Commissioner must determine that the
tax periods that apply to you are each individual month if:
(a)
the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold; or
(c)
the Commissioner is satisfied that you have a history of failing to comply with your obligations under a *taxation law.
Note:
Determining under this section the tax periods applying to you is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-15(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 27-15(1) amended by No 80 of 2007, s 3 and Sch 2 item 4, by substituting "*GST turnover" for "*annual turnover" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 27-15(1) amended by No 73 of 2006, s 3 and Sch 5 item 74, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 27-15(1) amended by No 73 of 2001, s 3 and Sch 1 items 63 and 64, by substituting "law." for "law; or" and by repealing para (d), applicable in relation to tax periods starting on or after 1 July 2001. Paragraph (d) formerly read:
(d)
your *income year is not the same as the *financial year.
S 66(2) of No 73 of 2001 provided:
Any determination made under section 27-15 of the A New Tax System (Goods and Services Tax) Act 1999 that:
(a)
is in force immediately before 1 July 2001; and
(b)
could not have been made on any ground other than the ground referred to in paragraph 27-15(1)(d) of that Act;
is taken, on and after 1 July 2001, to have been revoked with effect from the start of that day.
(2)
The determination takes effect on the day specified in the determination. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Note:
Deciding the date of effect of the determination is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-15(2) amended by No 73 of 2006, s 3 and Sch 5 item 75, by substituting "Subdivison 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 27-15(2A) repealed by No 73 of 2001, s 3 and Sch 1 item 65, applicable in relation to tax periods starting on or after 1 July 2001. S 27-15(2A) formerly read:
(2A)
Paragraph (1)(d) does not apply to an entity that meets the requirements of subsection 63-5(2) for choosing to apply Division 63 (whether or not the entity chooses to apply that Division).
S 66(2) of No 73 of 2001 provided:
Any determination made under section 27-15 of the A New Tax System (Goods and Services Tax) Act 1999 that:
(a)
is in force immediately before 1 July 2001; and
(b)
could not have been made on any ground other than the ground referred to in paragraph 27-15(1)(d) of that Act;
is taken, on and after 1 July 2001, to have been revoked with effect from the start of that day.
S 27-15(2A) inserted by No 92 of 2000, s 3 and Sch 1 item 2, effective 1 July 2000.
(3)
The
tax period turnover threshold is:
(a)
$20 million; or
(b)
such other amount as the regulations specify.
However, if the regulations change the tax period turnover threshold, the change does not apply to you until the start of the next tax period that starts after the regulation in question comes into operation.
27-20
Withdrawing elections of one month tax periods
(1)
S 27-20(1) amended by No 80 of 2007, s 3 and Sch 2 item 5, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
(2)
The withdrawal takes effect on the day specified in the notice. However, the day specified:
(a)
must be 1 January, 1 April, 1 July or 1 October, or any day occurring before the election takes effect; and
(b)
must not be a day occurring earlier than 12 months after the election took effect.
27-22
Revoking elections of one month tax periods
The Commissioner may, if you so request in the *approved form, revoke your election under section 27-10, with effect from a day occurring earlier than 12 months after the election took effect, unless the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold.
Note:
Refusing to revoke your election under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-22(1) amended by No 80 of 2007, s 3 and Sch 2 item 6, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 27-22(1) amended by No 73 of 2006, s 3 and Sch 5 item 76, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
In considering your request, the Commissioner may have regard to:
(a)
for how long the tax periods applying to you have been each individual month; and
(b)
whether you have previously been *registered, and whether such tax periods had applied to you; and
(c)
any other relevant matters.
(3)
The revocation:
(a)
takes effect on the day specified in the instrument of revocation; or
(b)
is taken to have had effect from a past day specified in the instrument of revocation.
However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Note:
Deciding the date of effect of the revocation is a reviewable decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-22(3) amended by No 73 of 2006, s 3 and Sch 5 item 77, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 27-22 inserted by No 156 of 2000, s 3 and Sch 5 item 3, effective 21 December 2000.
27-25
Revoking determinations of one month tax periods
(1)
The Commissioner must revoke a determination under section 27-15 relating to you if you so request, unless the Commissioner is satisfied that any of the grounds for making a determination under that section apply to you.
Note:
Refusing to revoke a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-25(1) amended by No 73 of 2006, s 3 and Sch 5 item 78, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The revocation takes effect on the day specified in the instrument of revocation. However, the day specified:
(a)
must be 1 January, 1 April, 1 July or 1 October; and
(b)
must not be a day occurring earlier than 12 months after the determination took effect.
Note:
Deciding the date of effect of the revocation isa reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-25(2) amended by No 73 of 2006, s 3 and Sch 5 item 79, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
27-30
Tax periods determined by the Commissioner to take account of changes in tax periods
(1)
For the purpose of ensuring the effective operation of this Division where:
(a)
you become *registered or *required to be registered; or
(b)
the tax periods applying to you have changed;
the Commissioner may, by written notice given to you, determine that a period specified in the notice is a
tax period that applies to you.
Note:
Determining under this section a tax period applying to you is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-30(1) amended by No 73 of 2006, s 3 and Sch 5 item 80, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 27-30(1) substituted by No 176 of 1999, s 3 and Sch 1 item 33, effective 1 July 2000. S 27-30(1) formerly read:
(1)
For the purpose of ensuring the effective operation of this Division where the tax periods have changed, the Commissioner may, by written notice given to you, determine that a period specified in the notice is a
tax period that applies to you.
Note:
Determining under this section a tax period applying to you is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
(2)
The period specified in the notice may start earlier than the day on which the notice is given to you.
(3)
However, the period specified in the notice:
(a)
must be less than 3 months; and
(b)
must not overlap with any part of any other tax period for which you have already given a *GST return to the Commissioner.
For the giving of GST returns to the Commissioner, see Division 31.
27-35
Changing the days on which your tax periods end
(1)
You may change the day in each year on which a tax period would otherwise end. However:
(a)
the day must be no more than 7 days earlier or 7 days later than a day on which one of the tax periods thatapplies to you would otherwise end if the days were not changed; and
(b)
the change must be consistent with the commercial accounting periods that apply to you.
(2)
If the day on which a tax period ends is changed, the next tax period starts on the day after that day.
27-37
Special determination of tax periods on request
(1)
The Commissioner may, in accordance with a request you make in the *approved form, determine the tax periods applying to you to be the tax periods specified in the request if the Commissioner is satisfied that:
(a)
your *GST turnover meets the *tax period turnover threshold; and
(b)
the tax periods specified in the request are consistent with the commercial accounting periods that apply to you; and
(c)
the tax periods specified in the request would, if determined under this section, result in 12 complete tax periods in each year; and
(d)
any other requirements specified in the regulations are complied with.
Note:
Refusing a request for a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-37(1) amended by No 80 of 2007, s 3 and Sch 2 item 7, by substituting "*GST turnover" for "*annual turnover" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 27-37(1) amended by No 73 of 2006, s 3 and Sch 5 item 81, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
A determination under this section overrides any determination under section 27-15 or 27-30 relating to tax periods applying to you.
27-38
Revoking special determination of tax periods
(1)
The Commissioner must revoke a determination under section 27-37 if the Commissioner is satisfied that any of the requirements of paragraphs 27-37(1)(a), (b), (c) and (d) are not complied with.
Note:
Revoking a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-38(1) amended by No 73 of 2006, s 3 and Sch 5 item 82, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in thenote, effective 1 July 2006.
(2)
The revocation takes effect on the day specified in the instrument of revocation. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Note:
Deciding the date of effect of the revocation is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-38(2) amended by No 73 of 2006, s 3 and Sch 5 item 83, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(3)
A revocation under this section revives any election under section 27-10, or any determination under section 27-15 or 27-30, relating to tax periods applying to you.
27-39
Tax periods of incapacitated entities
(1)
If an entity becomes an *incapacitated entity, the entity's tax period at the time is taken to have ended at the end of the day before the entity became incapacitated.
(2)
If a tax period (the
first tax period) ends on a particular day because of subsection (1), the next tax period starts on the day after that day and ends when the first tax period would have ended but for that subsection.
S 27-40(1) substituted by No 118 of 2009, s 3 and Sch 1 item 16, effective 4 December 2009. S 27-40(1) formerly read:
(1)
If:
(a)
an individual dies or becomes bankrupt; or
(b)
any other entity goes into liquidation or receivership or for any reason ceases to exist;
the individual's or entity's tax period at the time is taken to have ceased at the end of the day before the death, bankruptcy, liquidation or receivership.
S 27-40(1) substituted by No 176 of 1999, s 3 and Sch 1 item 34, effective 1 July 2000. S 27-40(1) formerly read:
(1)
If:
(a)
an individual dies, becomes bankrupt or ceases to *carry on any *enterprise; or
(b)
any other entity goes into liquidation or receivership, ceases to carry on any enterprise or for any reason ceases to exist;
the individual's or entity's tax period at the time is taken to have ceased at the end of the day before the death, bankruptcy, cessation, liquidation or receivership.
(1A)
If an entity ceases to *carry on any *enterprise, the entity's tax period at the time is taken to have ceased at the end of the day on which the cessation occurred.
S 27-40(1A) inserted by No 176 of 1999, s 3 and Sch 1 item 34, effective 1 July 2000.
(2)
If an entity's *registration is cancelled, the entity's tax period at the date of effect of the cancellation (the
cancellation day) ceases at the end of the cancellation day.
27-99
Special rules relating to tax periods
S 27-99 amended by No 77 of 2017, s 3 and Sch 1 item 12, by substituting table item 1AB, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 7 formerly read:
1AB
Offshore supplies other than goods or real property
Division 84
S 27-99 amended by No 52 of 2016, s 3 and Sch 1 item 13, by substituting table items 1AB and 1AC for table item 1AB, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading. Table item 1AB formerly read:
1AB
Payment of GST by instalments
Division 162
S 27-99 amended by No 118 of 2009, s 3 and Sch 1 items 17 and 18, by substituting table items 1AA and 1AB for table item 1AA, and substituting "Division 58" for "Division 147" in table item 1A, effective 4 December 2009. Table item 1AA formerly read:
1AA
Payment of GST by instalments
Division 162
S 27-99 amended by No 134 of 2004, s 3 and Sch 1 item 2, by inserting table item 1AAA, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 27-99 amended by No 73 of 2001, s 3 and Sch 1 item 24, by inserting table item 1AA, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 27-99 amended by No 176 of 1999, s 3 and Sch 1 item 35, by inserting table item 1A, effective 1 July 2000.
Division 29 - What is attributable to tax periods
29-1
What this Division is about
This Division tells you the tax periods to which your taxable supplies, creditable acquisitions, creditable importations and adjustments are attributable. You need to know this to work out your net amounts under Part 2-4.
Note:
This Division does not deal with your taxable importations, because they are not attributed to tax periods. See section 33-15 for payment of assessed GST on taxable importations.
S 29-1 amended by No 39 of 2012, s 3 and Sch 1 item 39, by substituting "assessed GST" for "GST" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Subdivision 29-A - The attribution rules
29-5
Attributing the GST on your taxable supplies
(1)
The GST payable by you on a *taxable supply is attributable to:
(a)
the tax period in which any of the *consideration is received for the supply; or
(b)
if, before any of the consideration is received, an *invoice is issued relating to the supply - the tax period in which the invoice is issued.
(2)
However, if you *account on a cash basis, then:
(a)
if, in a tax period, all of the *consideration is received for a *taxable supply - GST on the supply is attributable to that tax period; or
(b)
if, in a tax period, part of the consideration is received - GST on the supply is attributable to that tax period, but only to the extent that the consideration is received in that tax period; or
(c)
if, in a tax period, none of the consideration is received - none of the GST on the supply is attributable to that tax period.
29-10
Attributing the input tax credits for your creditable acquisitions
(1)
The input tax credit to which you are entitled for a *creditable acquisition is attributable to:
(a)
the tax period in which you provide any of the *consideration for the acquisition; or
(b)
if, before you provide any of the consideration, an *invoice is issued relating to the acquisition - the tax period in which the invoice is issued.
(2)
However, if you *account on a cash basis, then:
(a)
if, in a tax period, you provide all of the *consideration for a *creditable acquisition - the input tax credit for the acquisition is attributable to that tax period; or
(b)
if, in a tax period, you provide part of the consideration - the input tax credit for the acquisition is attributable to that tax period, but only to the extent that you provided the consideration in that tax period; or
(c)
if, in a tax period, none of the consideration is provided - none of the input tax credit for the acquisition is attributable to that tax period.
(3)
If you do not hold a *tax invoice for a *creditable acquisition when you give to the Commissioner a *GST return for the tax period to which the input tax credit (or any part of the input tax credit) on the acquisition would otherwise be attributable:
(a)
the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(b)
the input tax credit (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that tax invoice.
However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for a tax invoice does not apply.
For the giving of GST returns to the Commissioner, see Division 31.
If the *GST return for a tax period does not take into account an input tax credit attributable to that tax period:
(a)
the input tax credit is not attributable to that tax period; and
(b)
the input tax credit is attributable to the first tax period for which you give the Commissioner a GST return that does take it into account.
Note:
Section 93-5 or 93-15 may provide a time limit on your entitlement to an input tax credit.
S 29-10(4) amended by No 39 of 2012, s 3 and Sch 1 items 40 and 41, by omitting "states a *net amount that" after "for a tax period" and inserting "or 93-15" after "Section 93-5" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 29-10(4) amended by No 21 of 2010, s 3 and Sch 2 items 1 and 2, by substituting "a tax period" for "the tax period referred to in paragraph (3)(b)" and inserting the note at the end, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
S 29-10(4) inserted by No 156 of 2000, s 3 and Sch 6 item 2, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
29-15
Attributing the input tax credits for your creditable importations
(1)
The input tax credit to which you are entitled for a *creditable importation is attributable to the tax period in which you pay the *assessed GST on the importation.
S 29-15(1) amended by No 39 of 2012, s 3 and Sch 1 item 42, by substituting "*assessed GST" for "GST", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
However, if paragraph 33-15(1)(b) applies to payment of the *assessed GST on the importation, the input tax credit is attributable to the tax period in which the liability for the GST arose.
S 29-15(2) amended by No 39 of 2012, s 3 and Sch 1 item 43, by substituting "*assessed GST" for "GST" (first occurring), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 29-15(2) amended by No 41 of 2005, s 3 and Sch 10, item 1, by substituting "33-15(1)(b)" for "33-15(b)", applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 29-15(2) inserted by No 176 of 1999, s 3 and Sch 1 item 36, effective 1 July 2000.
29-20
Attributing your adjustments
(1)
An *adjustment that you have is attributable to the tax period in which you become aware of the adjustment.
(2)
However, if you *account on a cash basis, and the *adjustment arises from an *adjustment event as a result of which you are liable to provide *consideration, then:
(a)
if, in a tax period, all of the consideration is provided - the *adjustment is attributable tothat tax period; or
(b)
if, in a tax period, part of the consideration is provided - the adjustment is attributable to that tax period, but only to the extent that the consideration is provided in that tax period; or
(c)
if, in a tax period, none of the consideration is provided - none of the adjustment is attributable to that tax period.
(3)
If:
(a)
you have a *decreasing adjustment arising from an *adjustment event; and
(b)
you do not hold an *adjustment note for the adjustment when you give to the Commissioner a *GST return for the tax period to which the adjustment (or any part of the adjustment) would otherwise be attributable;
then:
(c)
the adjustment (including any part of the adjustment) is not attributable to that tax period; and
(d)
the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that adjustment note.
However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for an adjustment note does not apply.
For the giving of GST returns to the Commissioner, see Division 31.
29-25
Commissioner may determine particular attribution rules
(1)
The Commissioner may, in writing, determine the tax periods to which:
(a)
GST on *taxable supplies of a specified kind; or
(b)
input tax credits for *creditable acquisitions of a specified kind; or
(c)
input tax credits for *creditable importations of a specified kind; or
(d)
*adjustments of a specified kind;
are attributable.
(2)
However, the Commissioner must not make a determination under this section unless satisfied that it is necessary to prevent the provisions of this Division and Chapter 4 applying in a way that is inappropriate in circumstances involving:
(a)
a supply or acquisition in which possession of goods passes, but title in the goods will, or may, pass at some time in the future; or
(b)
a supply or acquisition for which payment is made or an *invoice is issued, but use, enjoyment or passing of title will, or may, occur at some time in the future; or
(c)
a supply or acquisition occurring, but still being subject to a statutory cooling off period under an *Australian law; or
(d)
a supply or acquisition occurring before the supplier or *recipient knows it has occurred; or
(e)
a supply or acquisition occurring before the supplier or recipient knows the total *consideration; or
(f)
a supply or acquisition made under a contract that is subject to preconditions; or
(g)
a supply or acquisition made under a contract that provides for retention of some or all of the consideration until certain conditions are met; or
(h)
a supply or acquisition for which the GST treatment will be unknown until a later supply is made.
S 29-25(2) amended by No 32 of 2006, s 3 and Sch 4 item 1, by inserting para (h), applicable in relation to supplies made on or after 6 April 2006.
(3)
Determinations under subsection (1) override the provisions of this Division (except this section) and Chapter 4, but only to the extent of any inconsistency.
29-39
Special rules relating to attribution rules
S 29-39 amended by No 12 of 2012, s 3 and Sch 3 item 7, by inserting table item 8AA, applicable in relation to hire purchase agreements entered into on or after 1 July 2012.
S 29-39 amended by No 21 of 2010, s 3 and Sch 1 item 6, by inserting table item 13A, applicable in relation to payments made on or after 1 July 2010.
S 29-39 amended by No 118 of 2009, s 3 and Sch 1 item 7, by inserting table item 11, effective 1 July 2000.
S 29-39 amended by No 156 of 2000, s 3 and Sch 6 item 3, by repealing table item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 11 formerly read: "11 Returnable containers Division 93".
S 29-39 amended by No 156 of 2000, s 3 and Sch 4 item 3, by substituting "etc. without full input tax credits" for ", imported or applied to make financial supplies" in table item 13, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 29-39 amended by No 156 of 2000, s 3 and Sch 3 item 5, by inserting table item 8B, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 29-39 amended by No 92 of 2000, s 3 and Sch 11 item 4E, by inserting table item 8A, effective 1 July 2000.
S 29-39 amended by No 177 of 1999, s 3 and Sch 1 items 32 and 33, by inserting "and insurance brokers" in table item 1, and inserting table item 11A, effective 1 July 2000.
S 29-39 amended by No 176 of 1999, s 3 and Sch 7 item 10, by inserting table item 14, effective 1 July 2000.
Subdivision 29-B - Accounting on a cash basis
29-40
Choosing to account on a cash basis
(1)
(b)
for income tax purposes, you account for your income using the receipts method; or
(c)
each of the *enterprises that you *carry on is an enterprise of a kind that the Commissioner determines, in writing, to be a kind of enterprise in respect of which a choice to *account on a cash basis may be made under this section.
S 29-40(1) amended by No 80 of 2007, s 3 and Sch 2 items 8 to 11, by substituting "You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if" for "If", substituting paras (a) and (ab) for para (a), substituting "this section." for "this section;" in para (c) and omitting "you may choose to account on a cash basis, with effect from the first day of the tax period that you choose." after para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Act No 80 of 2007, s 3 and Sch 2 item 68, contained the following transitional provision:
68 Transitional - choice to account on a cash basis
(1)
This item applies to you if:
(a)
before 1 July 2007, you chose to account on a cash basis under paragraph 29-40(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
your choice was in effect immediately before 1 July 2007.
(2)
If you are carrying on a business on 1 July 2007, your choice continues to have effect as if it had been made under paragraph 29-40(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule.
(3)
If you are not carrying on a business on 1 July 2007, your choice continues to have effect as if it had been made under paragraph 29-40(1)(ab) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule.
S 29-40(1) substituted by No 176 of 1999, s 3 and Sch 1 item 37, effective 1 July 2000. S 29-40(1) formerly read:
(1)
If your *annual turnover does not exceed the *cash accounting turnover threshold, you may choose to *account on a cash basis, with effect from the first day of the tax period that you choose.
S 29-40(2) repealed by No 80 of 2006, s 3 and Sch 12 item 1, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. No 80 of 2006, s 3 and Sch 12 item 2 contains the following saving provision:
Saving provision
(1)
If:
(a)
you made a choice under subsection 29-40(2) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
the choice was in force immediately before the start of the first tax period applying to you that is a tax period starting on or after 30 June 2006;
the choice continues in force after the start of that tax period as if it had been made under section 157-5 of that Act as amended.
(2)
However, this item does not apply, and the choice ceases to be in force from the start of that tax period, if the choice could not have been made after the start of that tax period because of subsection 157-5(3) of that Act as amended.
S 29-40(2) formerly read:
(2)
However, any charitable institution, any trustee of a charitable fund, any *gift-deductible entity or any *government school may choose to *account on a cash basis, with effect from the first day of the tax period that the institution, trustee or entity chooses, whether or not paragraph (1)(a), (b) or (c) applies.
S 29-40(2) amended by No 92 of 2000, s 3 and Sch 1 item 2A, by substituting ", any *gift-deductible entity or any *government school" for "or any *gift-deductible entity", effective 1 July 2000.
S 29-40(2) amended by No 176 of 1999, s 3 and Sch 1 item 38, by substituting "whether or not paragraph (1)(a), (b) or (c) applies" for "whether or not its *annual turnover exceeds the *cash accounting turnover threshold", effective 1 July 2000.
S 29-40(2A) repealed by No 80 of 2006, s 3 and Sch 12 item 1, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. S 29-40(2A) formerly read:
(2A)
Subsection (2) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (2) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 29-40(2A) inserted by No 95 of 2004, s 3 and Sch 10 item 4, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
(3)
The
cash accounting turnover threshold is:
(a)
$2 million; or
S 29-40(3) amended by No 80 of 2007, s 3 and Sch 2 item 12, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
(a)
$1,000,000; or
S 29-40(3) amended by No 176 of 1999, s 3 and Sch 1 item 39, by substituting "$1,000,000" for "$500,000" in para (a), effective 1 July 2000.
29-45
Permission to account on a cash basis
(1)
The Commissioner may permit you to *account on a cash basis if:
(a)
you apply to the Commissioner in the *approved form for permission to account on a cash basis; and
(b)
the Commissioner is satisfied that, having regard to:
(ii)
the nature of the accounting system that you use;
(iii)
(Repealed by 176 of 1999)
it is appropriate to permit you to account on a cash basis.
Note:
Refusing to permit you to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-45(1) amended by No 73 of 2006, s 3 and Sch 5 item 84, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 29-45(1) amended by No 176 of 1999, s 3 and Sch 1 items 40 and 41, by omitting ``and'' from subpara (b)(ii) and repealing subpara (b)(iii), effective 1 July 2000. Subpara (b)(iii) formerly read:
(iii)
how you account for income tax purposes;
(2)
The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to permit you to *account on a cash basis, the notice must specify the date of effect of your permission.
Note:
Deciding the date of effect of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-45(2) amended by No 73 of 2006, s 3 and Sch 5 item 85, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(ab)
in a case to which paragraph 29-40(1)(ab) applied - you do not satisfy the requirements of that paragraph and you do not have permission to account on a cash basis; or
S 29-50(1) amended by No 80 of 2007, s 3 and Sch 2 item 13, by substituting paras (a) and (ab) for para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
The date of effect of your cessation is the first day of the next tax period to commence after:
(a)
if paragraph (1)(a) applies - the start of the *income year referred to in that paragraph; or
(b)
if paragraph (1)(ab) applies - you do not satisfy the requirements of paragraph 29-40(1)(ab); or
(c)if paragraph (1)(b) applies - you notify the Commissioner.
S 29-50(2) substituted by No 80 of 2007, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. S 29-50(2) formerly read:
(2)
The date of effect of your cessation is the first day of the next tax period to commence after your *annual turnover meets the *cash accounting turnover threshold, or you notify the Commissioner, as the case may be.
(3)
The Commissioner must revoke any permission for you to *account on a cash basis if the Commissioner is satisfied that:
(a)
either:
(b)
it is not appropriate to permit you to account on a cash basis.
Note:
Revoking your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-50(3) amended by No 80 of 2007, s 3 and Sch 2 item 15, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
S 29-50(3) amended by No 73 of 2006, s 3 and Sch 5 item 86, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(4)
The Commissioner must notify you in writing of his or her decision under subsection (3). The notice must specify the date of effect of the revocation, which can be the first day of any tax period starting before, on or after the day on which the Commissioner makes the decision.
Note:
Deciding the date of effect of the revocation of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-50(4) amended by No 73 of 2006, s 3 and Sch 5 item 87, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 29-50(5) repealed by No 80 of 2006, s 3 and Sch 12 item 3, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. S 29-50(5) formerly read:
S 29-50(5) amended by No 95 of 2004, s 3 and Sch 10 item 5, by substituting "Subject to subsection (6), paragraph (1)(a)" for "Paragraph (1)(a)", applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
S 29-50(6) repealed by No 80 of 2006, s 3 and Sch 12 item 3, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. S 29-50(6) formerly read:
(6)
Subsection (5) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (5) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 29-50(6) inserted by No 95 of 2004, s 3 and Sch 10 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
29-69
29-69
Special rules relating to accounting on a cash basis
S 29-69 amended by No 169 of 2012, s 3 and Sch 2 item 71, by substituting "charities" for "charitable institutions" in table item 1, effective 3 December 2012.
S 29-69 amended by No 12 of 2012, s 3 and Sch 3 item 8, by inserting table item 2, applicable in relation to hire purchase agreements entered into on or after 1 July 2012.
S 29-69 inserted by No 80 of 2006, s 3 and Sch 12 item 4, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
A
tax invoice is a document that complies with the following requirements:
(a)
it is issued by the supplier of the supply or supplies to which the document relates, unless it is a *recipient created tax invoice (in which case it is issued by the *recipient);
(b)
it is in the *approved form;
(c)
it contains enough information to enable the following to be clearly ascertained:
(i)
the supplier's identity and the supplier's *ABN;
(ii)
if the total *price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient - the recipient's identity or the recipient's ABN;
(iii)
what is supplied, including the quantity (if applicable) and the price of what is supplied;
(iv)
the extent to which each supply to which the document relates is a *taxable supply;
(v)
the date the document is issued;
(vi)
the amount of GST (if any) payable in relation to each supply to which the document relates;
(vii)
if the document was issued by the recipient and GST is payable in relation to any supply - that the GST is payable by the supplier;
(viii)
such other matters as the regulations specify;
(d)
it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice.
Note:
If the recipient is a member of a GST group, section 48-57 may relax the requirements relating to the recipient's identity or the recipient's ABN.
S 29-70(1) substituted by No 74 of 2010, s 3 and Sch 3 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2010. S 29-70(1) formerly read:
(1)
A
tax invoice for a *taxable supply:
(a)
must be issued by the supplier, unless it is a *recipient created tax invoice (in which case it must be issued by the *recipient); and
(b)
must set out the *ABN of the entity that issues it; and
(c)
must set out the *price for the supply; and
(d)
must contain such other information as the regulations specify; and
(e)
must be in the *approved form.
However, the Commissioner may treat as a tax invoice a particular document that is not a tax invoice.
S 29-70(1) amended by No 176 of 1999, s 3 and Sch 1 item 42, by inserting "However, the Commissioner may treat as a tax invoice a particular document that is not a tax invoice.", effective 1 July 2000.
(1A)
A document issued by an entity to another entity may be treated by the other entity as a *tax invoice for the purposes of this Act if:
(a)
it would comply with the requirements for a tax invoice but for the fact that it does not contain certain information; and
(b)
all of that information can be clearly ascertained from other documents given by the entity to the other entity.
Note:
The requirements for a tax invoices are primarily contained in subsection (1), but can be affected by sections 48-57 and 54-50.
S 29-70(1B) amended by No 39 of 2012, s 3 and Sch 1 item 44, by repealing the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. The note formerly read:
Note:
A request to the Commissioner, to which the Commissioner agrees, to treat a document as a tax invoice is taken to be a notification of your entitlement to the relevant input tax credit: see subsection 105-55(2A) in Schedule 1 to the Taxation Administration Act 1953.
S 29-70(1B) inserted by No 74 of 2010, s 3 and Sch 3 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
(2)
The supplier of a *taxable supply must, within 28 days after the *recipient of the supply requests it, give to the recipient a *tax invoice for the supply, unless it is a *recipient created tax invoice.
(3)
A
recipient created tax invoice is a *tax invoice belonging to a class of tax invoices that the Commissioner has determined in writing may be issued by the *recipient of a *taxable supply.
29-75
Adjustment notes
(1)
(b)
must set out the *ABN of the entity that issues it; and
(c)
must contain such other information as the Commissioner determines in writing; and
(d)
must be in the *approved form.
However, the Commissioner may treat as an adjustment note a particular document that is not an adjustment note.
S 29-75(1) amended by No 177 of 1999, s 3 and Sch 1 item 34, by substituting para (a), effective 1 July 2000. Para (a) formerly read:
(a)
must be issued by the supplier of the *taxable supply, unless any *tax invoice relating to the supply would have been a *recipient created tax invoice (in which case it must be issued by the *recipient of the supply); and
S 29-75(1) amended by No 176 of 1999, s 3 and Sch 1 item 43, by inserting ``However, the Commissioner may treat as an adjustment note a particular document that is not an adjustment note.'', effective 1 July 2000.
The supplier of the *taxable supply must:
(a)
within 28 days after the *recipient of the supply requests the supplier to give an *adjustment note for the *adjustment relating to the supply; or
(b)
if the supplier has issued a *tax invoice in relation to the supply (or the recipient has requested one) and the supplier becomes aware of the adjustment before an adjustment note is requested - within 28 days after becoming aware of that fact;
S 29-75(2) amended by No 177 of 1999, s 3 and Sch 1 items 35 and 36, by substituting para (b) and inserting ``(in which case it must be issued by the recipient)'' at the end of the subsection, effective 1 July 2000. Para (b) formerly read:
(b)
if, before receiving such a request, the supplier becomes aware of the adjustment - within 28 days after becoming aware of that fact;
However, in circumstances that the Commissioner determines in writing, paragraph (2)(b) has effect as if the number of days referred to in that paragraph is the number of days specified in the determination in relation to those circumstances.
S 29-75(4) inserted by No 92 of 2000, s 3 and Sch 11 item 5, effective 1 July 2000.
29-80
Tax invoices and adjustment notes not required for low value transactions
(1)
Subsections 29-10(3) and 29-70(2) do not apply to a *creditable acquisition that relates to a *taxable supply the *value of which does not exceed $50, or such higher amount as the regulations specify.
(2)
Subsections 29-20(3) and 29-75(2) do not apply to a *decreasing adjustment of an amount that does not exceed $50, or such higher amount as the regulations specify.
S 29-80(2) amended by No 92 of 2000, s 3 and Sch 11 item 6, by substituting "of an amount that" for "that relates to a *taxable supply the *value of which", effective 1 July 2000.
CCH Note
For the purposes of s 29-80(1), with effect from 1 July 2007, the amount of $75 is specified. For the purposes of s 29-80(2), with effect from 1 July 2010, the amount of $75 is specified. For details, see reg 29-80.01 and 29-80.02 of the A New Tax System (Goods and Services Tax) Regulations 2019.
29-99
Special rules relating to tax invoices and adjustment notes
S 29-99 amended by No 77 of 2017, s 3 and Sch 1 item 13, by substituting table item 4A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4A formerly read:
4A
Offshore supplies other than goods or real property
Division 84
S 29-99 amended by No 52 of 2016, s 3 and Sch 1 item 14, by inserting table item 4A, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 29-99 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 4, column headed "For this case …", applicable to a tax period that commences on or after 1 July 2015.
S 29-99 amended by No 74 of 2010, s 3 and Sch 3 item 2, by inserting table item 3A, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
S 29-99 amended by No 134 of 2004, s 3 and Sch 2 item 7, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 29-99 amended by No 156 of 2000, s 3 and Sch 6 item 4, by inserting table item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 29-99 amended by No 92 of 2000, s 3 and Sch 3 item 4, by inserting table item 4, effective 1 July 2000.
S 29-99 amended by No 177 of 1999, s 3 and Sch 1 item 37, by inserting "and insurance brokers" in table item 1, effective 1 July 2000.
Part 2-7 - Returns, payments and refunds
Division 31 - GST returns
31-1
What this Division is about
This Division is about your obligation (if you are registered or required to be registered) to give to the Commissioner GST returns for each tax period.
For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.
31-5
Who must give GST returns
(1)
If you are *registered or *required to be registered, you must give to the Commissioner a *GST return for each tax period.
(2)
You must give the return whether or not:
(a)
your *net amount for the tax period is zero; or
(b)
you are liable for the GST on any *taxable supplies that are attributable to the tax period.
31-8
When GST returns must be given - quarterly tax periods
(1)
If a tax period applying to you is a *quarterly tax period, you must give your *GST return for the tax period to the Commissioner:
(a)
as provided in the following table; or
(b)
within such further period as the Commissioner allows.
When quarterly GST returns must be given
Item
If this day falls within the quarterly tax period …
Give the GST return to the Commissioner on or before this day:
1
1 September
the following 28 October
2
1 December
the following 28 February
3
1 March
the following 28 April
4
1 June
the following 28 July
(2)
A tax period is a
quarterly tax period if:
(a)
it is a period of 3 months; or
(b)
it would be a period of 3 months but for the application of section 27-30 or 27-35.
Note:
Under section 27-30, a tax period can be determined to take account of changes in tax periods. Under section 27-35, the start or finish of a 3 month tax period can vary by up to 7 days from the start or finish of a normal quarter.
S 31-8 inserted by No 73 of 2001, s 3 and Sch 1 item 1, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
31-10
When GST returns must be given - other tax periods
S 31-10 heading substituted by No 73 of 2001, s 3 and Sch 1 item 2, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 31-10 heading formerly read:
You must give your *GST return for a tax period (other than a *quarterly tax period) to the Commissioner:
(a)
on or before the 21st day of the month following the end of that tax period; or
(b)
within such further period as the Commissioner allows.
S 31-10(1) amended by No 73 of 2001, s 3 Sch 1 item 3, by inserting ``(other than a *quarterly tax period)'' after ``a tax period'', applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
However, if the tax period ends during the first 7 days of a month, you must give the *GST return to the Commissioner:
(a)
on or before the 21st day of that month; or
(b)
within such further period as the Commissioner allows.
S 31-15(1) substituted by No 73 of 2001, s 3 and Sch 1 item 4, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 31-15(1) formerly read:
(1) Your *GST return for a tax period must:
(a)
be in the *approved form; and
(b)
state your *net amount for the tax period; and
(c)
set out such other information as the approved form requires; and
(d)
be signed in accordance with section 388-75 in Schedule 1 to the Taxation Administration Act 1953.
S 31-15(1) amended by No 92 of 2000, s 3 and Sch 9 item 1, by substituting "section 388-75 in Schedule 1 to the Taxation Administration Act 1953" for "section 31-30" in para (d), applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
(2)
However, if during the tax period:
(a)
you are not liable for the GST on any *taxable supplies, and you did not make any supplies that would have been taxable supplies had they not been *GST-free or *input taxed; and
(b)
you are not liable for the GST on any *taxable importations the GST on which is payable at the time when GST on taxable supplies is normally payable; and
(c)
you are not entitled to the input tax credits on any *creditable acquisitions or *creditable importations;
you may give your *GST return for the period to the Commissioner in the manner the Commissioner requires.
S 31-15(3) repealed by No 21 of 2015, s 3 and Sch 7 item 2, applicable in relation to tax periods starting after 19 March 2015. S 31-15(3) formerly read:
You must, if required by the Commissioner, whether before or after the end of a tax period, give to the Commissioner, within the time required, a *GST return or a further or fuller GST return for the tax period or a specified period, whether or not you have given the Commissioner a GST return for the tax period under section 31-5.
S 31-20(1) substituted by No 39 of 2012, s 3 and Sch 1 item 45, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 31-20(1) formerly read:
(1)
In addition to the *GST returns required under section 31-5, you must give to the Commissioner such further or fuller GST returns as the Commissioner directs you to give (including any GST return in your capacity as agent or trustee).
The *approved form for a further or fuller *GST return may require information to be provided relating to:
(a)
the tax period to which the return relates; or
(b)
one or more preceding tax periods; or
(c)
both the tax period to which the return relates, and one or more preceding tax periods.
S 31-20(2) substituted by No 73 of 2001, s 3 and Sch 1 item 5, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 31-20(2) formerly read:
(2)
The Commissioner may direct that a *GST return given under this section need not state your *net amount for a tax period for which a GST return has been given under section 31-15.
S 31-20(2) inserted by No 176 of 1999, s 3 and Sch 1 item 45, effective 1 July 2000.
S 31-25(1) amended by No 92 of 2000, s 3 and Sch 9 item 2, by inserting the Note at the end, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
A penalty applies if you fail to lodge your GST return electronically as required - see section 288-10 in Schedule 1 to the Taxation Administration Act 1953.
Note 2:
If you lodge your GST return electronically, you must also electronically notify the Commissioner of other BAS amounts - see section 388-80 in that Schedule.
S 31-25(2) amended by No 80 of 2007, s 3 and Sch 2 item 16, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 31-25(2) amended by No 92 of 2000, s 3 and Sch 9 items 3 and 4, by substituting ``unless the Commissioner otherwise approves'' for ``unless the Commissioner is satisfied that it is not practicable for you to lodge your returns electronically'', and by substituting ``388-80'' for ``288-5'', applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
S 31-25(2) amended by No 179 of 1999, s 3 and Sch 12 item 1, by inserting Notes 1 and 2, effective 1 July 2000.
S 31-25(2) amended by No 176 of 1999, s 3 and Sch 1 item 46, by inserting ``, unless the Commissioner is satisfied that it is not practicable for you to lodge your returns electronically'', effective 1 July 2000.
(3)
A *GST return is
lodged electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner.
(4)
The
electronic lodgment turnover threshold is:
(a)
$20 million; or
(b)
such higher amount as the regulations specify.
31-30
GST returns treated as being duly made
(Repealed by No 2 of 2015)
S 31-30 repealed by No 2 of 2015, s 3 and Sch 2 item 21, effective 1 July 2015. S 31-30 formerly read:
31-30 GST returns treated as being duly made
A *GST return purporting to be made or signed by or on behalf of an entity is treated as having been duly made by the entity or with the entity's authority until the contrary is proved.
S 31-30 inserted by No 39 of 2012, s 3 and Sch 1 item 46, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Former s 31-30 repealed by No 92 of 2000, s 3 and Sch 9 item 5, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year. S 31-30 formerly read:
31-30 Signing GST returns
(1)
You must sign your *GST returns unless they are *lodged electronically.
(2)
Any *GST return of yours that is *lodged electronically:
(a)
if you give it to the Commissioner - must contain your *electronic signature; or
(b)
if a *registered tax agent gives it to the Commissioner on your behalf - must contain the registered tax agent's electronic signature.
S 31-99 amended by No 118 of 2009, s 3 and Sch 1 item 19, by inserting table item 4B, effective 4 December 2009.
S 31-99 amended by No 134 of 2004, s 3 and Sch 1 item 3, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 31-99 amended by No 73 of 2001, s 3 and Sch 1 item 25, by inserting table item 4A, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Division 33 - Payments of GST
33-1
What this Division is about
This Division is about your obligation to pay to the Commonwealth amounts of GST that remain after off-setting your entitlements to input tax credits. The obligation to pay arises for any of your assessed net amounts that are greater than zero.
Note 1A:
For provisions about assessment (including self-assessment), see Division 155 in Schedule 1 to the Taxation Administration Act 1953.
Note 1:
For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.
Note 2:
For provisions about collection and recovery of GST, see Subdivision 105-C, and Part 4-15, in Schedule 1 to the Taxation Administration Act 1953.
Note 3:
Payments of GST on importations of goods are dealt with separately in section 33-15 of this Act.
Note 4:
For taxable supplies of new residential premises or potential residential land, section 14-250 in Schedule 1 to the Taxation Administration Act 1953 may require the recipient to pay to the Commissioner an amount representing the GST on the supply, and the entity liable for the GST on the supply is then entitled to a credit for that payment under section 18-60 in that Schedule.
S 33-1 amended by No 76 of 2023, s 3 and Sch 6 item 41, by substituting "entity liable for the GST on the supply" for "supplier" in note 4, effective 1 October 2023.
S 33-1 amended by No 23 of 2018, s 3 and Sch 5 item 5, by inserting note 4, effective 1 April 2018. No 23 of 2018, s 3 and Sch 5 Pt 3 contain the following application provisions:
Part 3 - Application of amendments
26 General rule
The amendments made by this Schedule apply in relation to supplies for which any of the consideration (other than consideration provided as a deposit) is first provided on or after 1 July 2018, whether a contract for the supply was entered into before, on or after the commencement of this Schedule.
27 Existing contracts
Despite item 26, if a contract for a supply was entered into before 1 July 2018, the amendments made by this Schedule do not apply in relation to the supply if consideration for the supply (other than consideration provided as a deposit) is first provided before 1 July 2020.
28 Existing property development arrangements
If:
(a)
an arrangement entered into before 1 July 2018 between:
(i)
an entity (the
supplier) making a taxable supply that is, or includes, a supply to which subsection 14-250(2) in Schedule 1 to the Taxation Administration Act 1953 as amended by this Schedule applies; and
(ii)
one or more entities (not including the entity to which the supply is made), at least one of whom is supplying (or is to supply) development services in relation to the real property to which the supply relates;
deals with the distribution, between the parties to the arrangement, of the consideration for the supply; and
(b)
under the arrangement:
(i)
an amount is to be distributed to the supplier for the payment of the supplier's liability to GST for the supply (less any relevant entitlements to input tax credits); or
(ii)
distributions of the consideration, between the parties, are to be adjusted to take into account that liability; and
(c)
were that amount to be distributed under the arrangement, or were the distributions to be so adjusted, the parties would not be in the same position as they would be if an amount were not payable, under section 14-250 in that Schedule as so amended, in relation to the supply; and
(d)
a payment has been made under that section in relation to the supply;
the amount of the payment is taken, for the purposes of the arrangement, to have been received by the supplier in relation to the supply.
S 33-1 amended by No 39 of 2012, s 3 and Sch 1 items 47 and 48, by substituting "assessed net amounts" for "net amounts" and inserting Note 1A, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-1 amended by No 73 of 2006, s 3 and Sch 5 item 88, by substituting Notes 1, 2 and 3 for the notes, effective 1 July 2006. The notes formerly read:
For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.
For provisions about collection and recovery of GST, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 and Division 3 of Part VI of that Act.
Note:
Payments of GST on importations of goods are dealt with separately in section 33-15.
S 33-1 amended by No 179 of 1999, s 3 and Sch 2 item 5, by inserting "For provisions about collection and recovery of GST, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 and Division 3 of Part VI of that Act.", effective 22 December 1999.
33-3
When payments of assessed net amounts must be made - quarterly tax periods
S 33-3 amended by No 39 of 2012, s 3 and Sch 1 items 50 to 52, by substituting "*assessed net amount" for "*net amount" in para (a), "must pay the assessed net amount" for "must pay the net amount" and "
assessed net amount
" for "
net amount
" in the table, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-3 inserted by No 73 of 2001, s 3 and Sch 1 item 6, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
33-5
When payments of assessed net amounts must be made - other tax periods
(1)
If the *assessed net amount for a tax period (other than a *quarterly tax period) applying to you is greater than zero, you must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of that tax period.
S 33-5(1) amended by No 39 of 2012, s 3 and Sch 1 items 54 and 55, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-5(1) amended by No 73 of 2001, s 3 and Sch 1 item 8, by inserting "(other than a *quarterly tax period)" after "a tax period", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
However, if the tax period ends during the first 7 days of a month, you must pay the *assessed net amount to the Commissioner on or before the 21st day of that month.
S 33-5(2) amended by No 39 of 2012, s 3 and Sch 1 item 56, by substituting "*assessed net amount" for "*net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
33-10
How payment of assessed net amounts are made
(1)
You may pay by *electronic payment any *assessed net amounts payable by you. Any amounts of an assessed net amount that you do not pay by electronic payment must be paid in the manner determined in writing by the Commissioner.
S 33-10(1) amended by No 39 of 2012, s 3 and Sch 1 items 58 and 59, by substituting "any *assessed net amounts" for "any *net amounts" and "an assessed net amount" for "a net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-10(1) amended by No 73 of 2001, s 3 and Sch 1 item 9, by omitting "under section 33-5" from after "payable by you", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 33-10(2) amended by No 39 of 2012, s 3 and Sch 1 item 60, by substituting "*assessed net amounts" for "*net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-10(2) amended by No 80 of 2007, s 3 and Sch 2 item 17, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 33-10(2) amended by No 73 of 2001, s 3 and Sch 1 item 9, by omitting "under section 33-5" from after "payable by you", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 33-10(2) amended by No 92 of 2000, s 3 and Sch 9 item 6, by substituting "8AAZMA in that Act" for "288-15 in that Schedule" in Note 2, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
S 33-10(2) amended by No 179 of 1999, s 3 and Sch 12 item 2, by substituting Notes 1 and 2 for the Note, effective 1 July 2000. The Note formerly read:
Note:
A penalty applies if you fail to make an electronic payment as required - see section 41 of the Taxation Administration Act 1953.
33-15
Payments of assessed GST on importations
(1)
Amounts of *assessed GST on *taxable importations are to be paid by the importer to the Commonwealth:
(a)
at the same time, at the same place, and in the same manner, as *customs duty is payable on the goods in question (or would be payable if the goods were subject to customs duty); or
(b)
in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.
Note:
The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.
S 33-15(1) amended by No 39 of 2012, s 3 and Sch 1 items 62 and 63, by substituting "*assessed GST" for "GST" and "assessed net amounts" for "net amounts" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
An officer of Customs (within the meaning of subsection 4(1) of the Customs Act 1901) may refuse to deliver the goods concerned unless the *assessed GST has been paid.
S 33-15(2) amended by No 39 of 2012, s 3 and Sch 1 item 64, by substituting "*assessed GST" for "GST", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-15(2) inserted by No 176 of 1999, s 3 and Sch 1 item 47, effective 1 July 2000.
33-20
Commissioner may extend time for payment
(Repealed by No 179 of 1999)
S 33-20 repealed by No 179 of 1999, s 3 and Sch 2 item 6, effective 22 December 1999. S 33-20 formerly read:
33-20 Commissioner may extend time for payment
The Commissioner may, in a particular case, extend the time for a payment of:
(a)
a *net amount; or
(b)
an amount of GST; or
(c)
an amount of a penalty under Part VI of the Taxation Administration Act 1953;
or allow it to be paid by instalments on terms determined by the Commissioner.
33-25
Commissioner may bring forward payment date if you are about to leave Australia
(Repealed by No 179 of 1999)
S 33-25 repealed by No 179 of 1999, s 3 and Sch 2 item 7, effective 22 December 1999. S 33-25 formerly read:
33-25 Commissioner may bring forward payment date if you are about to leave Australia
If the Commissioner has reason to believe that you may leave Australia before a particular payment of:
(a)
a *net amount; or
(b)
an amount of GST; or
(c)
an amount of a penalty under Part VI of the Taxation Administration Act 1953;
would (apart from this section) become due, that amount becomes due for payment on the day the Commissioner fixes and notifies to you.
Note:
The Commissioner has power to issue departure prohibition orders under Part IVA of the Taxation Administration Act 1953.
33-30
Net amounts etc. a debt due to the Commonwealth
(Repealed by No 179 of 1999)
S 33-30 repealed by No 179 of 1999, s 3 and Sch 2 item 8, effective 22 December 1999. S 33-30 formerly read:
33-30 Net amounts etc. a debt due to the Commonwealth
When a *net amount, an amount of GST or an amount of a penalty under Part VI of the Taxation Administration Act 1953 becomes payable, it is a debt due to the Commonwealth.
S 33-99 amended by No 134 of 2004, s 3 and Sch 1 item 4, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 33-99 amended by No 73 of 2001, s 3 and Sch 1 item 26, by inserting table item 5A, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 33-99 amended by No 176 of 1999, s 3 and Sch 1 item 48, by inserting table item 4A, effective 1 July 2000.
Division 35 - Refunds
35-1
What this Division is about
This Division is about the Commissioner's obligation to pay to you your entitlements to input tax credits that remain after off-setting amounts of GST. The obligation to pay arises for any of your assessed net amounts that are less than zero.
S 35-1 amended by No 39 of 2012, s 3 and Sch 1 item 65, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
If the *assessed net amount for a tax period is less than zero, the Commissioner must,on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you.
Note 1:
See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.
Note 2:
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.
S 35-5(1) amended by No 34 of 2014, s 3 and Sch 2 item 4, by omitting ", and section 105-65 in Schedule 1 to," after "Part IIB of" in note 1, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 35-5(1) amended by No 39 of 2012, s 3 and Sch 1 item 66, by substituting "*assessed net amount" for "*net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 35-5(1) amended by No 20 of 2010, s 3 and Sch 5 item 1, by inserting "(1)" before "If", effective 24 March 2010.
S 35-5 amended by No 73 of 2006, s 3 and Sch 5 item 89, by substituting "of, and section 105-65 in Schedule 1 to," for "and section 39 of" in Note 1, effective 1 July 2006.
S 35-5 substituted by No 179 of 1999, s 3 and Sch 15 item 1, effective 1 July 2000. Section 35-5 formerly read:
35-5 When refunds must be made
(1)
If the *net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you within 14 days after you give to the Commissioner, under Division 31, your *GST return for that tax period.
Note:
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commonwealth is late in making the payment.
(2)
However, if you have a liability to the Commonwealth arising under or because of an Act of which the Commissioner has the general administration, the Commissioner may:
(a)
apply that *net amount against the liability; and
(b)
pay to you any part of that net amount not so applied.
However, if:
(a)
the Commissioner amends the *assessment of your *net amount; and
(b)
your *assessed net amount before the amendment was less than zero; and
(c)
the amount that, because of the assessment, was:
(i)
paid; or
(ii)
applied under the Taxation Administration Act 1953;
exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;
the amount of the excess is to be treated as if:
(d)
the excess were an assessed net amount for the tax period; and
(e)
that assessed net amount were an amount greater than zero and equal to the amount of the excess; and
(f)
despite Division 33, that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.
Note:
Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3-10 and Divisions 268 and 269 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section105-80 in that Schedule.
S 35-5(2) amended by No 6 of 2020, s 3 and Sch 3 item 1, by inserting "and Divisions 268 and 269" after "Part 3-10" in the note, applicable in relation to: (a) net amounts and assessed net amounts for tax periods that start on or after 1 April 2020; and (b) GST instalments for GST instalment quarters that start on or after 1 April 2020.
S 35-5(2) substituted by No 39 of 2012, s 3 and Sch 1 item 67, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 35-5(2) formerly read:
(2)
However, if the amount paid, or applied under the Taxation Administration Act 1953, exceeds the amount to which you are properly entitled under subsection (1), the excess is to be treated as if it were GST that became payable, and due for payment, by you at the time when the amount was paid or applied.
Note:
The main effect of treating the amount as if it were GST is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105-80 in that Schedule.
S 35-5(2) inserted by No 20 of 2010, s 3 and Sch 5 item 2, applicable in relation to amounts payable under subsection 35-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 for tax periods starting on or after 24 March 2010.
Your entitlement to be paid an amount under section 35-5 arises when the Commissioner gives you notice of the *assessment of your *net amount for the tax period.
Note:
In certain circumstances, the Commissioner is treated as having given you notice of the assessment when you give to the Commissioner your GST return (see section 155-15 in Schedule 1 to the Taxation Administration Act 1953).
S 35-10 substituted by No 39 of 2012, s 3 and Sch 1 item 68, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 35-10 formerly read:
35-10 When entitlement arises
Your entitlement to be paid an amount under section 35-5 arises when you give the Commissioner a *GST return.
S 35-10 amended by No 73 of 2001, s 3 and Sch 1 item 10, by omitting "under section 31-5 or 31-20" from after "a *GST return", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 35-10 inserted by No 92 of 2000, s 3 and Sch 9 item 7, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
Former s 35-10 repealed by No 179 of 1999, s 3 and Sch 15 item 2, effective 1 July 2000. Former s 35-10 read:
35-10 How refunds are made
(1)
The Commissioner must pay any *net amounts payable to you under section 35-5 to the credit of a *financial institution account nominated and maintained by you.
(1A)
The account must be an account maintained in Australia.
S 35-10(1A) inserted by No 176 of 1999, s 3 and Sch 1 item 49, effective 1 July 2000.
(2)
However, the Commissioner may direct that any *net amounts payable to you under section 35-5 be paid to you in a different way.
(3)
If you have not nominated a *financial institution account for the purposes of this section and a direction has not been made under subsection (2) relating to you, the Commissioner is not obliged to pay any refunds to you until you nominate an account for the purposes of this section.
S 35-99 amended by No 34 of 2014, s 3 and Sch 2 items 5 and 6, by inserting table item 1A and repealing the note, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014. The note formerly read:
Note:
Section 105-65 in Schedule 1 to the Taxation Administration Act 1953 also relates to refunds of assessed net amounts.
S 35-99 amended by No 39 of 2012, s 3 and Sch 1 item 69, by substituting "assessed net amounts" for "net amounts" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 35-99 amended by No 73 of 2006, s 3 and Sch 5 item 90, by substituting "Section 105-65 in Schedule 1 to" for "Section 39 of" in the note, effective 1 July 2006.
S 35-99 amended by No 179 of 1999, s 3 and Sch 15 item 3, by substituting "Section 39 of the Taxation Administration Act 1953 also relates" for "Sections 38 and 39 of the Taxation Administration Act 1953 also relate" in the Note, effective 1 July 2000.
Part 2-8 - Checklist of special rules
Division 37 - Checklist of special rules
37-1
Checklist of special rules
S 37-1 amended by No 77 of 2017, s 3 and Sch 1 items 14 and 15, by inserting table item 18A and substituting table item 21, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 21 formerly read:
21
Offshore supplies other than goods or real property
Division 84
S 37-1 amended by No 76 of 2017, s 3 and Sch 1 item 3, by inserting table item 36AA, effective 27 June 2017.
S 37-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.
S 37-1 amended by No 34 of 2014, s 3 and Sch 2 item 7, by inserting table item 10B, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 37-1 amended by No 169 of 2012, s 3 and Sch 2 item 72, by substituting "charities" for "charitable institutions" in table item 1AA, effective 3 December 2012.
S 37-1 amended by No 74 of 2010, s 3 and Sch 1 items 48 and 49, by repealing table item 17A and inserting table item 35AA, applicable to tax periods starting on or after 1 July 2010. Table item 17A formerly read:
17A
Income tax-related transactions
Division 110
S 37-1 amended by No 21 of 2010, s 3 and Sch 1 item 7, by inserting table item 35B, applicable in relation to payments made on or after 1 July 2010.
S 37-1 amended by No 20 of 2010, s 3 and Sch 1 items 5 and 6, by inserting table items 23A and 35C, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 37-1 amended by No 118 of 2009, s 3 and Sch 1 item 20, by substituting "Division 58" for "Division 147" in table item 25, effective 4 December 2009.
S 37-1 amended by No 112 of 2007, s 3 and Sch 1 item 2, by inserting "and small enterprise entities" after "retailers" in table item 29A, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 37-1 amended by No 80 of 2006, s 3 and Sch 12 item 5, by inserting table item 1AA, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
S 37-1 amended by No 134 of 2004, s 3 and Sch 2 item 8, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 37-1 amended by No 134 of 2004, s 3 and Sch 1 item 5, by inserting table item 1B, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 37-1 amended by No 67 of 2003, s 3 and Sch 11 items 10 and 11, by inserting table items 8A and 29AA, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 37-1 amended by No 97 of 2002, s 3 and Sch 1 items 2 and 10, by inserting table items 30A and 17A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 37-1 amended by No 73 of 2001, s 3 and Sch 1 item 27, by inserting table item 21A, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 37-1 amended by No 156 of 2000, s 3 and Sch 6 item 5, by repealing table item 27, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 27 formerly read: "27 Returnable containers Division 93".
S 37-1 amended by No 156 of 2000, s 3 and Sch 4 items 4 and 5, by substituting "transactions that are not taxable or creditable to the fullest extent" for "partly taxable or creditable transactions" in table item 3A and substituting "etc. without full input tax credits" for ", imported or applied to make financial supplies" in table item 33, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 37-1 amended by No 156 of 2000, s 3 and Sch 3 items 6 and 7, by repealing table item 10B and inserting table item 11A, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. Table item 10B formerly read: "10B Financial supplies (acquisitions and importations to provide fringe benefits) Division 71".
S 37-1 amended by No 156 of 2000, s 3 and Sch 2 items 3 and 4, by repealing table item 16 and inserting table item 36B, applicable to importations into Australia on or after 12 October 2000. Table item 16 formerly read: "16 Importations of goods that were exported for repair or renovation Division 117".
S 37-1 amended by No 92 of 2000, s 3, Sch 1 item 2B, Sch 3 item 5, Sch 5 item 4B and Sch 11 item 6A, by inserting table items 10A, 10B, 15A and 20B, effective 1 July 2000.
S 37-1 amended by No 178 of 1999, s 3 and Sch 1 item 54, by inserting table item 33A, effective 22 December 1999.
S 37-1 amended by No 177 of 1999, s 3 and Sch 1 items 38 to 44, by inserting "and insurance brokers" in table item 1 and inserting table items 3A, 12A, 12B, 20A, 29B, 35A and 38, effective 1 July 2000.
S 37-1 amended by No 176 of 1999, s 3 and Sch 7 item 11, by inserting table item 36A, effective 1 July 2000.
S 37-1 amended by No 176 of 1999, s 3 and Sch 1 item 50, by inserting table item 29A, effective 1 July 2000.
Chapter 3 - The exemptions
Part 3-1 - Supplies that are not taxable supplies
Division 38 - GST-free supplies
38-1
What this Division is about
This Division sets out the supplies that are GST-free. If a supply is GST-free, then:
• no GST is payable on the supply;
• an entitlement to an input tax credit for anything acquired or imported to make the supply is not affected.
For the basic rules about supplies that are GST-free, see sections 9-30 and 9-80.
Subdivision 38-A - Food
38-2
Food
A supply of *food is
GST-free.
38-3
Food that is not GST-free
(1)
A supply is not GST-free under section 38-2 if it is a supply of:
(a)
*food for consumption on the *premises from which it is supplied; or
(b)
hot food for consumption away from those premises; or
(c)
food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one or more foods at least one of which is food of such a kind; or
(d)
a *beverage (or an ingredient for a beverage), other than a beverage (or ingredient) of a kind specified in the third column of the table in clause 1 of Schedule 2; or
(e)
food of a kind specified in regulations made for the purposes of this subsection.
(2)
However, this section does not apply to a supply of *food of a kind specified in regulations made for the purposes of this subsection.
(3)
The items in the table in clause 1 of Schedule 1 or 2 are to be interpreted subject to the other clauses of Schedule 1 or 2, as the case requires.
38-4
Meaning of food
(1)
Food means any of these, or any combination of any of these:
(a)
food for human consumption (whether or not requiring processing or treatment);
(b)
ingredients for food for human consumption;
(c)
*beverages for human consumption;
(e)
goods to be mixed with or added to food for human consumption (including condiments, spices, seasonings, sweetening agents or flavourings);
(f)
fats and oils marketed for culinary purposes;
but does not include:
(g)
live animals (other than crustaceans or molluscs); or
(ga)
unprocessed cow's milk; or
(h)
any grain, cereal or sugar cane that has not been subject to any process or treatment resulting in an alteration of its form, nature or condition; or
(i)
plants under cultivation that can be consumed (without being subject to further process or treatment) as food for human consumption.
S 38-4(1) amended by No 176 of 1999, s 3 and Sch 1 items 51 and 52, by inserting ``for human consumption'' at the end of paras (c) and (d), and inserting para (ga), effective 1 July 2000.
(2)
Beverage includes water.
38-5
Premises used in supplying food
Premises, in relation to a supply of *food, includes:
(a)
the place where the supply takes place; or
(b)
the grounds surrounding a cafe or public house, or other outlet for the supply; or
(c)
the whole of any enclosed space such as a football ground, garden, showground, amusement park or similar area where there is a clear boundary or limit;
but does not include any part of a public thoroughfare unless it is an area designated for use in connection with supplies of food from an outlet for the supply of food.
38-6
Packaging of food
(1)
A supply of the packaging in which *food is supplied is
GST-free if the supply of the food is GST-free.
(2)
However, the supply of the packaging is GST-free under this section only to the extent that the packaging:
(a)
is necessary for the supply of the food; and
(b)
is packaging of a kind in which food of that kind is normally supplied.
Subdivision 38-B - Health
38-7
Medical services
(1)
A supply of a *medical service is
GST-free.
(2)
However, a supply of a *medical service is not GST-free under subsection (1) if:
(a)
it is a supply of a *professional service rendered in circumstances covered by a prescribed provision of regulations made under the Health Insurance Act 1973; or
(b)
it is rendered for cosmetic reasons and is not a *professional service for which medicare benefit is payable under Part II of the Health Insurance Act 1973.
S 38-7(2) amended by No 18 of 2020, s 3 and Sch 1 item 18 by substituting "circumstances covered by a prescribed provision of regulations made under the Health Insurance Act 1973" for "prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 (other than the prescribed circumstances set out in regulations 14(2)(ea), (f) and (g))" in para (a), effective 6 September 2020.
S 38-7(2) amended by No 177 of 1999, s 3 and Sch 1 item 45, by substituting ", (f) and (g)" for "and (f)" in para (a), effective 1 July 2000.
(3)
A supply of goods is
GST-free if:
(a)
it is made to an individual in the course of supplying to him or her a *medical service the supply of which is GST-free; and
(b)
it is made at the premises at which the medical service is supplied.
38-10
Other health services
(1)
A supply is
GST-free if:
(a)
it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and
(b)
the supplier is a *recognised professional in relation to the supply of services of that kind; and
(c)
the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the *recipient of the supply.
Health services
Item
Service
1
Aboriginal or Torres Strait Islander health
2
Acupuncture
3
Audiology, audiometry
4
Chiropody
5
Chiropractic
6
Dental
7
Dietary
8
Herbal medicine (including traditional Chinese herbal medicine)
S 38-10(1) amended by No 176 of 1999, s 3 and Sch 1 item 53, by substituting table item 12, effective 1 July 2000. Table item 12 formerly read: "12 Optical".
(2)
However, a supply of a pharmacy service is not GST-free under subsection (1) unless it is:
(a)
a supply relating to asupply that is GST-free because of section 38-50; or
(b)
a service of conducting a medication review.
(3)
A supply of goods is
GST-free if:
(a)
it is made to a person in the course of supplying to the person a service the supply of which is GST-free under subsection (1) (other than a service referred to in item 8, 9, 12 or 15 of the table in subsection (1)); and
(b)
it is made at the premises at which the service is supplied.
(4)
A supply of goods is
GST-free if:
(a)
it is made to a person in the course of supplying to the person a service referred to in item 8 or 9 of the table in subsection (1); and
(b)
it is supplied, and used or consumed, at the premises at which the service is supplied.
(5)
A supply is
GST-free if it is provided by an ambulance service in the course of the treatment of the *recipient of the supply.
38-15
Other government funded health services
A supply is
GST-free if:
(a)
it is a supply of a health service in connection with a supply that is GST-free because of section 38-7 or 38-10; and
(b)
the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply of the health service; and
(c)
the supply of the health service is of a kind determined in writing by the *Health Minister.
38-20
Hospital treatment
(1)
A supply of *hospital treatment is
GST-free.
(2)
However, a supply of *hospital treatment is not GST-free to the extent that it relates to a supply of a *professional service that, because of subsection 38-7(2), is not GST-free.
(3)
A supply of goods is
GST-free if it is a supply that is directly related to a supply of *hospital treatment that is:
(a)
GST-free because of subsection (1); and
(b)
supplied by, or on behalf of, the supplier of the hospital treatment.
38-25
Residential care etc.
(1)
A supply of services is
GST-free if:
(a)
it is a supply of services covered by Schedule 1 to the *Quality of Care Principles; and
(b)
it is provided through a residential care service (within the meaning of the Aged Care Act 1997); and
(c)
the supplier is an approved provider (within the meaning of that Act).
(2) A supply of services is
GST-free if:
(a)
the services are provided to one or more aged or disabled people; and
(b)
the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and
(c)
the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply.
(3)
A supply of services is
GST-free if:
(a)
the services are provided to one or more aged or disabled people in a residential setting; and
(b)
the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and
(c)
the services include, and are only provided to people who require, the services (
care services) set out in:
(i)
item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or
(ii)
item 3.8 (nursing services) of Part 3 of that Schedule.
Act No 143 of 2004, s 3 and Sch 1 item 18, contained the following application provision:
18 Application of Aged Care Minister's determinations relating to paragraph 38-25(3)(b) of the GST Act
Any requirement in a determination made for the purposes of paragraph 38-25(3)(b) of the GST Act that accommodation be included in a package of services, or that charges for accommodation be payable to the entity to which charges for services are payable, does not apply in relation to a supply that:
(a)
is made to a resident of a serviced apartment in a retirement village; and
(b)
is connected with a supply of a kind referred to in subparagraph 38-25(4A)(b)(i), (ii) or (iii) to the resident.
S 38-25(3) amended by No 143 of 2004, s 3 and Sch 1 item 1, by inserting "(
care services)" after "services" (second occurring), effective 14 December 2004. No 143 of 2004, s 3 and Sch 1 Part 2 (as amended by No 73 of 2006, s 3 and Sch 5 items 168 and 169), contained the following application provisions:
Part 2 - Application
13 Definition
In this Part:
GST Act means the A New Tax System (Goods and Services Tax) Act 1999.
14 General application
(1)
The amendments made by this Schedule (other than items 4 to 6) apply, and are taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
(2)
However, to avoid doubt, a determination made for the purposes of paragraph 38-25(3B)(a) of the GST Act (as amended by this Act) does not apply in relation to any supplies made before the commencement of this item.
(3)
The amendments made by items 4 to 6 of this Schedule apply to supplies made on or after the day on which this Act receives the Royal Assent.
15 Attributing input tax credits
(1)
If:
(a)
you are entitled to an input tax credit for an acquisition or importation made before the commencement of this item; and
(b)
you would not be entitled to the input tax credit if the amendments made by this Schedule had not been made;
to the extent that you would, apart from this item, attribute that input tax credit to a tax period ending before the commencement of this item, you may instead attribute it to the first tax period ending after that commencement.
(2)
This item does not apply for the purpose of working out adjustment periods for the purposes of Division 129 of the GST Act (which is about adjustments for changes to the extent of creditable purposes).
(3)
This item has effect despite:
(a)
sections 29-10 and 29-15 of the GST Act (which are about attributing input tax credits); and
(b)
section 105-55 in Schedule 1 to the Taxation Administration Act 1953 (which is about the time limit on refunds and credits).
16 Application of section 105-55 in Schedule 1 to the
Taxation Administration Act 1953 Section 105-55 in Schedule 1 to the Taxation Administration Act 1953 does not apply to a refund under section 35-5 of the GST Act in respect of a tax period to the extent that:
(a)
before the commencement of this item, GST on a taxable supply was attributable to that tax period; and
(b)
because of the amendments of the GST Act made by this Act, the supply is no longer a taxable supply.
Services provided to a resident of a *retirement village are taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if, and only if:
(a)
he or she is a resident of a *serviced apartment in the retirement village; and
(b)
there is in force a written agreement under which the operator of the retirement village provides daily meals and heavy laundry services to all of the residents of the apartment.
However, services provided to a resident of a *serviced apartment in a *retirement village are not taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if:
(a)
the *Aged Care Minister has determined in writing:
(i)
the levels of care services that residents of serviced apartments in retirement villages must require in order for subsection (3) to apply; and
(ii)
the way in which the levels of care services required by residents are to be assessed; and
(b)
the *Aged Care Secretary has not, in accordance with the determination, assessed the person to whom the services are provided as requiring the levels of care services so determined.
A determination made for the purposes of paragraph (3B)(a) may be restricted to a specified class of residents of *serviced apartments in *retirement villages.
S 38-25(3C) inserted by No 143 of 2004, s 3 and Sch 1 item 2, effective 14 December 2004. For application provisions, see note under s 38-25(3).
(4)
A supply of accommodation is
GST-free if it is made to a person in the course of making a supply to that person that is GST-free under subsection (1), (2) or (3).
(4A)
(ii)
a sale of *real property that is residential premises consisting of a serviced apartment in a retirement village; or
(iii)
a supply of an excluded security (within the meaning of the Corporations Act 2001) in respect of which the right to participate in a retirement village scheme (within the meaning of that Act) entitles the person to use or occupy a serviced apartment in a retirement village; and
(c)
in a case where:
(i)
a determination made for the purposes of paragraph (3B)(a) is in force; and
(ii)
the determination is not restricted under subsection (3C) in such a way that the determination excludes the person;
the *Aged Care Secretary has, in accordance with the determination, assessed the person as requiring the levels of care services determined in the determination; and
(d)
it is made in connection with one or more supplies, or proposed supplies, to the person that are or will be GST-free under subsection (3).
S 38-25(4A) inserted by No 143 of 2004, s 3 and Sch 1 item 3, effective 14 December 2004. For application provisions, see note under s 38-25(3).
(5)
However, a supply of services that is covered by an extra services fee within the meaning of Division 35 of the Aged Care Act 1997 is only
GST-free under this section to the extent that the services are covered by Schedule 1 to the *Quality of Care Principles.
38-30
Home care etc.
(1)
A supply of *home care is
GST-free if:
(a)
home care subsidy is payable under Part 3.2 of the Aged Care Act 1997 or Part 3.2 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care; or
(b)
the Commonwealth contribution amount worked out in respect of the supplier, using section 48-1A of the Aged Care Act 1997, for the recipient of the care in respect of the payment period (within the meaning of that Act) in which the supply is made, is greater than zero; or
(c)
both of the following apply:
(i)
the supplier is eligible for home care subsidy under section 46-1 of the Aged Care (Transitional Provisions) Act 1997 in the payment period (within the meaning of that Act) in which the supply is made;
(ii)
the supply is a supply of a kind specified in the regulations.
S 38-30(1) substituted by No 2 of 2021, s 3 and Sch 1 item 14, effective 1 September 2021. S 38-30(1) formerly read:
(1)
A supply of *home care is
GST-free if home care subsidy is payable under Part 3.2 of the Aged Care Act 1997 or Part 3.2 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.
S 38-30(1) amended by No 76 of 2013, s 3 and Sch 4 item 6, by substituting "Part 3.2 of the Aged Care Act 1997 or Part 3.2 of the Aged Care (Transitional Provisions) Act 1997" for "Part 3-2 of the Aged Care Act 1997", effective 1 July 2014.
S 38-30(1) amended by No 76 of 2013, s 3 and Sch 4 item 2, by substituting "*home care is
GST-free if home care" for "*community care is
GST-free if community care", effective 1 August 2013.
(2)
A supply of care is
GST-free if the supplier receives funding under the Home and Community Care Act 1985 in connection with the supply.
(3)
A supply of *home care is
GST-free if the supply is of services:
(a)
that are provided to one or more aged or disabled people; and
(b)
that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles.
S 38-30(3) amended by No 76 of 2013, s 3 and Sch 4 item 3, by substituting "*home care" for "*community care", effective 1 August 2013.
(4)
A supply of care is
GST-free if:
(a)
the supplier receives funding from the Commonwealth, a State or a Territory in connection withthe supply; and
(b)
the supply of the care is of a kind determined in writing by the *Aged Care Minister to be similar to a supply that is GST-free because of subsection (2).
38-35
Flexible care
A supply of flexible care (within the meaning of section 49-3 of the Aged Care Act 1997) is
GST-free if flexible care subsidy is payable under Part 3.3 of that Act or Part 3.3 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.
S 38-35 amended by No 76 of 2013, s 3 and Sch 4 item 7, by inserting "or Part 3.3 of the Aged Care (Transitional Provisions) Act 1997", effective 1 July 2014.
38-38
Disability support provided to NDIS participants
A supply is
GST-free if the supply:
(a)
is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013) for whom a participant's plan is in effect under section 37 of that Act; and
(b)
is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and
(c)
is made under a written agreement, between the supplier and the participant or another person, that:
(i)
identifies the participant; and
(ii)
states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant's plan; and
S 38-38 inserted by No 124 of 2013, s 3 and Sch 9 item 1, applicable in relation to supplies made on or after the commencement of section 37 of the National Disability Insurance Scheme Act 2013 [1 July 2013].
38-40
Specialist disability services
A supply of services is
GST-free if the supplier receives funding under the Disability Services Act 1986 or under a complementary *State law or *Territory law in respect of the services.
38-45
Medical aids and appliances
(1)
A supply is
GST-free if:
(a)
it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and
(b)
the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
(2)
A supply isGST-free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST-free under subsection (1).
(3)
However, a supply is not GST-free under subsection (1) or (2) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST-free supplies.
38-47
Other GST-free health goods
(1)
A supply is
GST-free if it is a supply of goods of a kind that the *Health Minister, by determination in writing, declares to be goods the supply of which is GST-free.
(2)
However, a supply is not GST-free under subsection (1) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST-free supplies.
38-50
Drugs and medicinal preparations etc.
(1)
A supply of a drug or medicinal preparation is
GST-free if the supply is on prescription and:
(a)
under a *State law or a *Territory law in the State or Territory in which the supply takes place, supply of the drug or medicinal preparation is restricted, but may be supplied on prescription; or
S 38-50(1) amended by No 176 of 1999, s 3 and Sch 1 item 54, by substituting "restricted, but may be supplied" for "prohibited except" in para (a), effective 1 July 2000.
A supply of a drug or medicinal preparation is
GST-free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the supply of the drug or medicinal preparation to an individual for private or domestic use or consumption is restricted but may be made by:
(a)
a *medical practitioner, *dental practitioner or pharmacist; or
(b)
any other person permitted by or under that law to do so.
S 38-50(2) amended by No 4 of 2007, s 3 and Sch 2 item 25, by substituting "individual" for "*individual", effective 19 February 2007.
S 38-50(2) substituted by No 176 of 1999, s 3 and Sch 1 item 55, effective 1 July 2000. S 38-50(2) formerly read:
(2)
A supply of a drug or medicinal preparation is
GST-free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the drug or medicinal preparation may only be supplied by a *medical practitioner, *dental practitioner or pharmacist.
S 38-50(3) substituted by No 176 of 1999, s 3 and Sch 1 item 55, effective 1 July 2000. S 38-50(3) formerly read:
(3)
A supply of a drug or medicinal preparation is
GST-free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the drug or medicinal preparation may only be supplied:
(a)
by a *medical practitioner, *dental practitioner, or by, or on behalf of, a pharmacist; or
(b)
a person who is permitted by that law to supply the drug or medicinal preparation in circumstances where pharmacy services are not available.
(4)
A supply of a drug, medicine or other pharmaceutical item is
GST-free if the supply is on prescription and:
(a)
it is supplied as a pharmaceutical benefit (within the meaning of section 91 of the Veterans' Entitlements Act 1986); and
(b)
it is supplied under an approved scheme (within the meaning of that section).
(4A)
A supply of a drug, medicine or other pharmaceutical item is
GST-free if the supply is on prescription and:
(a)
it is supplied as a pharmaceutical benefit (within the meaning of section 5 of the Military Rehabilitation and Compensation Act 2004); and
(b)
it is supplied in accordance with a determination made under paragraph 286(1)(c) of that Act.
S 38-50(4A) inserted by No 110 of 2006, s 3 and Sch 2 item 1, applicable to net amounts for tax periods starting, or that started, on or after 1 July 2004.
(5)
A supply of a drug or medicinal preparation is
GST-free if:
(a)
the drug or medicinal preparation is an analgesic that has a single active ingredient the supply of which as a drug or medicinal preparation would be GST-free under subsection (2) if it were supplied in a larger quantity; and
A supply of a drug or medicinal preparation is
GST-free if:
(a)
the drug or medicinal preparation is the subject of an approval under paragraph 19(1)(a) of the Therapeutic Goods Act 1989, and any conditions to which the approval is subject have been complied with; or
(b)
the drug or medicinal preparation is supplied under an authority under subsection 19(5) of that Act, and the supply is in accordance with any regulations made for the purposes of subsection 19(7) of that Act; or
(ba)
the supply of the drug or medicinal preparation is authorised by rules under subsection 19(7A) of that Act; or
(c)
the drug or medicinal preparation is exempted from the operation of Part 3 of that Act under regulation 12A of the Therapeutic Goods Regulations.
A supply of a drug or medicinal preparation covered by this section is
GST-free if, and only if:
(a)
the drug or medicinal preparation is for human use or consumption; and
(b)
the supply is to an individual for private or domestic use or consumption.
S 38-50(7) amended by No 4 of 2007, s 3 and Sch 2 item 25, by substituting "individual" for "*individual" in para (b), effective 19 February 2007.
S 38-50(7) inserted by No 176 of 1999, s 3 and Sch 1 item 57, effective 1 July 2000.
38-55
Private health insurance etc.
(1)
A supply of *private health insurance is
GST-free.
(2)
A supply of insurance against liability to pay for services supplied by ambulance is
GST-free.
Insurers
(1)
If:
(a)
a supply is a supply of a service to an insurer; and
(b)
the service is the supplier making one or more other supplies of goods or services to an individual; and
(c)
at least one of the other supplies is:
(i)
wholly or partly *GST-free under this Subdivision; and
(ii)
for settling one or more claims under an *insurance policy of which the insurer is an insurer;
the first-mentioned supply is
GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.
Note:
For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78-118).
Compulsory third party scheme operators
(2)
If:
(a)
a supply is a supply of a service to an *operator of a *compulsory third party scheme; and
(b)
the service is the supplier making one or more other supplies of goods or services to an individual; and
(c)
at least one of the other supplies is:
(i)
wholly or partly *GST-free under this Subdivision; and
(ii)
made under the compulsory third party scheme;
the first-mentioned supply is
GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.
Government agencies
(3)
If:
(a)
a supply is a supply of a service to an *Australian government agency; and
(b)
the service is the supplier making one or more other supplies of goods or services to an individual; and
(c)
at least one of the other supplies is wholly or partly *GST-free under this Subdivision;
the first-mentioned supply is
GST-free to the extent that the other supplies mentioned in paragraph (b) are GST-free under this Subdivision.
Parties may agree for supply not to be GST-free
(4)
However, a supply is not
GST-free (to any extent) under this section if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST-free supplies.
CCH Note
Act No 75 of 2012, s 3 and Sch 1 item 9 contained the following application provision:
9 Application of amendments
…
(2)
Subsection 38-60(4) of the A New Tax System (Goods and Services Tax) Act 1999 applies in relation to agreements made before, on or after 1 July 2012.
S 38-60 inserted by No 75 of 2012, s 3 and Sch 1 item 1, applicable in relation to supplies of services to:
(a) insurers; or
(b) operators of compulsory third party schemes; or
(c) Australian government agencies;
made on or after 1 July 2012.
Subdivision 38-C - Education
38-85
Education courses
A supply is
GST-free if it is a supply of:
(a)
an *education course; or
(b)
administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.
38-90
Excursions or field trips
(1)
A supply is
GST-free if it is a supply of an excursion or field trip, but only if the excursion or field trip:
(a)
is directly related to the curriculum of an *education course; and
(b)
is not predominantly recreational.
(2)
However:
(a)
if the course is a *tertiary course, a *tertiary residential college course or a *professional or trade course - any supply of accommodation as part of the excursion or field trip is not GST-free; and
S 38-90(2) amended by No 143 of 2007, s 3 and Sch 7 item 2, by omitting "a *Masters or Doctoral course," after "*tertiary course," in para (a), effective 1 July 2006.
38-95
Course materials
A supply of *course materials for a subject undertaken in an *education course is
GST-free.
38-97
Lease etc. of curriculum related goods
A supply by way of lease or hire of goods is
GST-free if:
(a)
the goods are for use directly or principally by a student in undertaking a *pre-school course, *primary course or *secondary course in which the student is enrolled; and
(b)
the entity supplying the course leases or hires the goods; and
(c)
at all times while the lease or hiring has effect, the entity supplying the course has the right to decide who uses goods and the use to which the goods are put; and
(d)
the lease or hiring is not part of an arrangement that includes:
(i)
a transfer of ownership of the goods; or
(ii)
an agreement to transfer ownership of the goods; or
(iii)
imposing an obligation, or conferring a right, to transfer ownership of the goods.
To avoid doubt, the following supplies related to an *education course are not GST-free:
(a)
a supply by way of sale, lease or hire of goods (other than *course materials covered by section 38-95, or a supply by way of lease or hire that is covered by section 38-97);
(b)
a supply of membership of a student organisation.
S 38-100 amended by No 92 of 2000, s 3 and Sch 2 item 2, by inserting ``, or a supply by way of lease or hire that is covered by section 38-97'' after ``section 38-95'', effective 1 July 2000.
38-105
Accommodation at boarding schools etc.
(1)
A supply is
GST-free if:
(a)
it is a supply of *student accommodation to students undertaking a *primary course, a *secondary course or a *special education course; and
(b)
the supplier of the accommodation also supplies the course.
(2)
A supply is
GST-free if:
(a)
it is a supply of *student accommodation to students who are undertaking a *primary course, a *secondary course or a *special education course; and
(b)
the accommodation is provided in a hostel whose primary purpose is to provide accommodation for students from rural or remote locations who are undertaking such courses.
(3)
Student accommodation means the right to occupy the whole or part of the premises used to provide the accommodation, including, if it is provided as part of the right so to occupy, the supply of:
(a)
cleaning and maintenance; or
(b)
electricity, gas, air-conditioning or heating; or
(c)
telephone, television, radio or any other similar thing.
(4)
However, a supply is not GST-free under subsection (1) or (2) to the extent that it consists of the supply of *food.
38-110
Recognition of prior learning etc.
(1)
A supply is
GST-free if the supply is the assessment or issue of qualifications for the purpose of:
(a)
access to education; or
(b)
membership of a professional or trade association; or
(c)
registration or licensing for a particular occupation; or
(d)
employment.
(2)
However, a supply is not GST-free under subsection (1) unless the supply is carried out by:
(a)
a professional or trade association; or
(b)
an *education institution; or
(c)
an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services; or
(d)
an authority of the Commonwealth or of a State or Territory; or
(e)
a local government body.
Subdivision 38-D - Child care
38-140
Child care - registered carersunder the family assistance law
(Repealed by No 22 of 2017)
S 38-140 repealed by No 22 of 2017, s 3 and Sch 2 item 1, effective 2 July 2018. For application, saving and transitional provisions, see note under Part 3A of A New Tax System (Family Assistance) (Administration) Act 1999. S 38-140 formerly read:
38-140 Child care - registered carers under the family assistance law
A supply is
GST-free if it is a supply of child care by a registered carer (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999).
S 38-140 substituted by No 156 of 2000, s 3 and Sch 1 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 38-140 formerly read:
38-140 Child care - suppliers registered under the Childcare Rebate Act
A supply is
GST-free if:
(a)
it is a supply of child care (within the meaning of the Childcare Rebate Act 1993) relating to a child; and
(b)
the supplier is registered under section 49 of that Act.
38-145
Child care - approved child care services under the family assistance law
A supply is
GST-free if:
(a)
it is a supply of child care by an approved child care service (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999); or
(b)
it is a supply of an excursion that is directly related to a supply of child care covered by paragraph (a).
S 38-145 substituted by No 156 of 2000, s 3 and Sch 1 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 38-145 formerly read:
38-145 Child care - eligible child care centres
(1)
A supply is
GST-free if:
(a)
it is a supply of child care (within the meaning of the Child Care Act 1972) at an eligible child care centre (within the meaning of section 12A of that Act); and
(b)
the supplier of the child care is the operator (within the meaning of section 4 of that Act) of the centre; and
(c)
the operator is granted fee relief (whether or not in respect of that particular supply) under section 12A of that Act .
(2)
A supply is
GST-free if it is a supply of an excursion that is directly related to the supply of child care covered by subsection (1).
(1)
A supply is
GST-free if it is a supply of child care specified in a determination made under subsection (2).
(2)
The *Child Care Minister may, by legislative instrument, determine kinds of child care for the purposes of subsection (1). A kind of child care may only be included in a determination if the supplier of the care is eligible for Commonwealth funding in respect of the kind of care.
S 38-150 substituted by No 22 of 2017, s 3 and Sch 3 item 7, effective 5 April 2017. S 38-150 formerly read:
38-150 Other child care
A supply is
GST-free if it is a supply of child care by a supplier that is eligible for funding (whether or not in respect of that particular supply) from the Commonwealth under guidelines made by the *Child Care Minister that relate to the funding of:
(a)
family day care; or
(b)
occasional care; or
(c)
outside school hours care; or
(d)
vacation care; or
(e)
any other type of care determined in writing by that Minister.
38-155
Supplies directly related to child care that is GST-free
A supply is
GST-free if it is a supply that is directly related to a supply of child care that is:
(a)
GST-free because of section 38-145 or 38-150; and
S 38-155 amended by No 22 of 2017, s 3 and Sch 2 item 2, by omitting "38-140," in para (a), effective 2 July 2018. For application, saving and transitional provisions, see note under Part 3A of A New Tax System (Family Assistance) (Administration) Act 1999.
Subdivision 38-E - Exports and other cross-border supplies
Subdiv 38-E heading substituted by No 52 of 2016, s 3 and Sch 2 item 18, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. The heading formerly read:
Subdivision 38-E - Exports and other supplies for consumption outside the indirect tax zone
Subdiv 38-E heading amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone
" for "
Australia
", applicable to a tax period that commences on or after 1 July 2015.
The third column of this table sets out supplies that are
GST-free:
GST-free exports of goods
Item
Topic
These supplies are GST-free …
1
Export of goods - general
a supply of goods, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:
(a)
the day on which the supplier receives any of the *consideration for the supply; or
(b)
if, on an earlier day, the supplier gives an *invoice for the supply - the day on which the supplier gives the invoice.
2
Export of goods - supplies paid for by instalments
a supply of goods for which the *consideration is provided in instalments under a contract that requires the goods to be exported, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:
(a)
the day on which the supplier receives any of the final instalment of the consideration for the supply; or
(b)
if, on an earlier day, the supplier gives an *invoice for that final instalment - the day on which the supplier gives the invoice.
2A
Export of goods - supplies to associates without consideration
a supply of goods without *consideration to an *associate of the supplier, but only if the supplier exports them from the indirect tax zone.
3
Export of aircraft or ships
a supply of an aircraft or *ship, but only if the recipient of the aircraft or ship exports it from the indirect tax zone under its own power within 60 days (or such further period as the Commissioner allows) after taking physical possession of it.
4
Export of aircraft or ships - paid for by instalments
a supply of an aircraft or *ship for which the *consideration is provided in instalments under a contract that requires the aircraft or ship to be exported, but only if the *recipient exports it from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after, the earliest day on which one or more of the following occurs:
(a)
the supplier receives any of the final instalment of the consideration for the supply;
(b)
the supplier gives an *invoice for that final instalment;
(c)
the supplier delivers the aircraft or ship to the recipient or (at the recipient's request) to another person.
the ship is a *new recreational boat on the earliest day (the
receipt day) on which one or more of the following occurs:
(i)
the *recipient takes physical possession of the ship;
(ii)
if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported - the supplier receives any of the final instalment;
(iii)
if consideration for the supply is provided in instalments under a contract that requires the ship to be exported - the supplier gives an *invoice for the final instalment; and
(b)
the supplier or recipient exports the ship from the indirect tax zone within 12 months (or such further period as the Commissioner allows) after the receipt day; and
(c)
subsection (6) does not apply at any time during the period:
(i)
starting on the receipt day; and
(ii)
ending when the supplier or recipient exports the ship.
5
Export of goods that are to be consumed on international flights or voyages
a supply of:
(a)
*aircraft's stores, or spare parts, for use, consumption or sale on an aircraft on a flight that has a destination outside the indirect tax zone; or
(b)
*ship's stores, or spare parts, for use, consumption or sale on a *ship on a voyage that has a destination outside the indirect tax zone;
whether or not part of the flight or voyage involves a journey between places in the indirect tax zone.
6
Export of goods used to repair etc. imported goods
a supply of goods in the course of repairing, renovating, modifying or treating other goods from outside the indirect tax zone whose destination is outside the indirect tax zone, but only if:
(a)
the goods are attached to, or become part of, the other goods; or
(b)
the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the other goods.
7
Goods exported by travellers as accompanied baggage
S 38-185(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.
S 38-185(1) amended by No 51 of 2011, s 3 and Sch 1 item 1, by inserting table item 4A, applicable to supplies that:
(a) are made under contracts entered into on or after 1 July 2011; and
(b) are not made pursuant to rights or options granted before 1 July 2011.
S 38-185(1) amended by No 20 of 2010, s 3 and Sch 6 item 1, by inserting table item 2A, applicable in relation to supplies, and acquisitions, made on or after 24 March 2010.
S 38-185(1) amended by No 176 of 1999, s 3 and Sch 1 items 60 to 64, by inserting "before, or" after "from Australia" in table items 1 and 2 (column 3), substituting "after taking" for "of taking" in table item 3 (column 3), substituting "before, or within 60 days (or such further period as the Commissioner allows) after," for "within 60 days (or such further period as the Commissioner allows) after" in table item 4 (column 3), and inserting ", or spare parts," after "stores" (wherever occurring) in table item 5 (column 3), effective 1 July 2000.
However, a supply covered by any of items 1 to 6 in the table in subsection (1) is not GST-free if the supplier reimports the goods into the indirect tax zone.
S 38-185(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
Without limiting items 1 and 2 in the table in subsection (1), a supplier of goods is treated, for the purposes of those items, as having exported the goods from the indirect tax zone if:
(a)
before the goods are exported, the supplier supplies them to an entity that is not *registered or *required to be registered; and
(b)
that entity exports the goods from the indirect tax zone; and
(c)
the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and
(d)
since their supply to that entity, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and
(e)
the supplier has sufficient documentary evidence to show that the goods were exported; and
(f)
if that entity is covered by paragraph 168-5(1A)(c) - the supplier has a declaration by that entity stating that:
(i)
a payment has not been sought under section 168-5 for the supply; and
(ii)
if the goods are *wine - a payment has not been sought under section 25-5 of that Act for the supply.
S 38-185(3) amended by No 52 of 2016, s 3 and Sch 2 item 23, by substituting "*wine" for "wine (within the meaning of the *Wine Tax Act)" in para (f)(ii), applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 38-185(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-185(3) amended by No 39 of 2012, s 3 and Sch 4 item 1, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999" in para (f)(ii), effective 15 April 2012.
S 38-185(3) amended by No 20 of 2010, s 3 and Sch 2 items 1 and 2, by inserting para (f) and the note at the end, applicable in relation to goods acquired, and wine purchased, on or after 1 July 2010.
S 38-185(3) inserted by No 176 of 1999, s 3 and Sch 1 item 65, effective 1 July 2000.
Without limiting item 2A in the table in subsection (1), a supplier of goods is treated, for the purposes of that item, as having exported the goods from the indirect tax zone if:
(a)
before the goods are exported, the supplier supplies them to an entity that:
(b)
the associate exports the goods from the indirect tax zone within 60 days (or such further period as the Commissioner allows) after the earlier of the following:
(i)
the day the goods were delivered in the indirect tax zone to the associate;
(ii)
the day the goods were made available in the indirect tax zone to the associate; and
(c)
the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and
(d)
since their supply to the associate, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and
(e)
the supplier has sufficient documentary evidence to show that the goods were exported; and
(f)
if the associate is covered by paragraph 168-5(1A)(c) - the supplier has a declaration by the associate stating that:
(i)
a payment has not been sought under section 168-5 for the supply; and
(ii)
if the goods are *wine - a payment has not been sought under section 25-5 of that Act for the supply.
S 38-185(4) amended by No 52 of 2016, s 3 and Sch 2 item 23, by substituting "*wine" for "wine (within the meaning of the *Wine Tax Act)" in para (f)(ii), applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 38-185(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-185(4) amended by No 39 of 2012, s 3 and Sch 4 item 1, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999" in para (f)(ii), effective 15 April 2012.
S 38-185(4) amended by No 20 of 2010, s 3 and Sch 2 items 3 and 4, by inserting para (f) and the note at the end, applicable in relation to goods acquired, and wine purchased, on or after 1 July 2010.
S 38-185(4) inserted by No 20 of 2010, s 3 and Sch 6 item 2, applicable in relation to supplies, and acquisitions, made on or after 24 March 2010.
For the purposes of item 4A of the table in subsection (1), the *ship is a
new recreational boat if the ship:
(a)
has not been substantially reconstructed; and
(b)
has not been sold, leased or used since the completion of its construction, except in connection with:
(i)
the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or
(ii)
the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and
(c)
was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and
(d)
is not a commercial ship.
For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:
(a)
as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or
(b)
in *carrying on an *enterprise in the indirect tax zone; or
(c)
in the indirect tax zone in carrying on an enterprise outside the indirect tax zone, not including use that involves the ship being used:
(i)
in a way that is private or domestic in nature; or
(ii)
in an activity, or series of activities, done as a private recreational pursuit or hobby; or
Example:
Allowing an employee to live on the ship, or to take the ship on a fishing trip.
S 38-185(6) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-185(6) inserted by No 51 of 2011, s 3 and Sch 1 item 2, applicable to supplies that:
(a) are made under contracts entered into on or after 1 July 2011; and
(b) are not made pursuant to rights or options granted before 1 July 2011.
38-187
Lease etc. of goods for use outside the indirect tax zone
If goods are leased or hired and used partly in the indirect tax zone and partly outside the indirect tax zone, the supply could be taxable to the extent that the goods are used in the indirect tax zone (see section 9-5).
S 38-187 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b) and "the indirect tax zone" for "Australia" (wherever occurring) in the note, applicable to a tax period that commences on or after 1 July 2015.
S 38-187 inserted by No 176 of 1999, s 3 and Sch 1 item 66, effective 1 July 2000.
38-188
Tooling used by non-residents to manufacture goods for export
A supply of goods is
GST-free if:
(a)
the *recipient of the supply is a *non-resident, and is not *registered or *required to be registered; and
(b)
the goods are jigs, patterns, templates, dies, punches and similar machine tools to be used in the indirect tax zone solely to manufacture goods that will be for export from the indirect tax zone.
S 38-188 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring) in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 38-188 inserted by No 92 of 2000, s 3 and Sch 3 item 6, effective 1 July 2000.
38-190
Supplies of things, other than goods or real property, for consumption outside the indirect tax zone
(1)
The third column of this table sets out supplies that are
GST-free (except to the extent that they are supplies of goods or *real property):
Supplies of things, other than goods or real property, for consumption outside the indirect tax zone
Item
Topic
These supplies are GST-free (except to the extent that they are supplies of goods or *real property) …
1
Supply connected with property outside the indirect tax zone
a supply that is directly connected with goods or real property situated outside the indirect tax zone.
2
Supply to *non-resident outside the indirect tax zone
a supply that is made to a *non-resident who is not in the indirect tax zone when the thing supplied is done, and:
(a)
the supply is neither a supply of work physically performed on goods situated in the indirect tax zone when the work is done nor a supply directly connected with *real property situated in the indirect tax zone; or
(b)
the *non-resident acquires the thing in *carrying on the non-resident's *enterprise, but is not *registered or *required to be registered.
3
Supplies used or enjoyed outside the indirect tax zone
a supply:
(a)
that is made to a *recipient who is not in the indirect tax zone when the thing supplied is done; and
(b)
the effective use or enjoyment of which takes place outside the indirect tax zone;
other than a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with *real property situated in the indirect tax zone.
4
Rights
a supply that is made in relation to rights if:
(a)
the rights are for use outside the indirect tax zone; or
(b)
the supply is to an entity that is not an *Australian resident and is outside the indirect tax zone when the thing supplied is done.
5
Export of services used to repair etc. imported goods
a supply that is constituted by the repair, renovation, modification or treatment of goods from outside the indirect tax zone whose destination is outside the indirect tax zone.
S 38-190(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone
" for "
Australia
" in table heading and "the indirect tax zone" for "Australia" (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.
S 38-190(1) amended by No 92 of 2000, s 3 and Sch 3 items 8 and 9, by substituting table item 2, and by substituting "of work physically performed on goods situated in Australia when the thing supplied is done, or a supply directly connected" for "directly connected with goods situated in Australia when the thing supplied is done, or" in the third column of table item 3, effective 1 July 2000. Item 2 formerly read:
2
Recipient not an *Australian resident etc.
a supply that is made to a *recipient who:
(a) is not an *Australian resident;
and
(b) is not in Australia when the
thing supplied is done;
other than a supply directly connected with goods situated in Australia when the thing supplied is done, or with *real property situated in Australia.
However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST-free if it is the supply of a right or option to acquire something the supply of which would be *connected with the indirect tax zone and would not be *GST-free.
S 38-190(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 38-190(2) amended by No 92 of 2000, s 3 and Sch 3 item 10, by inserting "and would not be *GST-free" at the end, effective 1 July 2000.
A supply covered by any of items 2 to 4 in the table in subsection (1) is not *GST-free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of *real property situated in the indirect tax zone that would be, wholly or partly, *input taxed under Subdivision 40-B or 40-C.
Note:
Subdivision 40-B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40-C deals with the sale of residential premises and the supply of residential premises by way of long-term lease.
S 38-190(2A) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 38-190(2A) inserted by No 23 of 2005, s 3 and Sch 9, item 1, applicable to supplies covered by any of items 2 to 4 in the table in subsection 38-190(1) made on or after 1 April 2005.
Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST-free if:
(a)
it is a supply under an agreement entered into, whether directly or indirectly, with a *non-resident; and
(b)
the supply is provided, or the agreement requires it to be provided, to another entity in the indirect tax zone; and
(c)
for a supply other than an *input taxed supply - none of the following applies:
(i)
the other entity would be an *Australian-based business recipient of the supply, if the supply had been made to it;
(ii)
the other entity is an individual who is provided with the supply as anemployee or *officer of an entity that would be an Australian-based business recipient of the supply, if the supply had been made to it; or
(iii)
the other entity is an individual who is provided with the supply as an employee or officer of the *recipient, and the recipient's acquisition of the thing is solely for a *creditable purpose and is not a *non-deductible expense.
S 38-190(3) amended by No 52 of 2016, s 3 and Sch 2 item 19, by inserting para (c), applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 38-190(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 38-190(3) amended by No 23 of 2005, s 3 and Sch 9, item 2, by inserting "or (2A)" after "(2)", applicable to supplies covered by any of items 2 to 4 in the table in subsection 38-190(1) made on or after 1 April 2005.
S 38-190(3) inserted by No 177 of 1999, s 3 and Sch 1 item 46, effective 1 July 2000.
A supply is taken, for the purposes of item 3 in that table, to be a supply made to a *recipient who is not in the indirect tax zone if:
(a)
it is a supply under an agreement entered into, whether directly or indirectly, with an *Australian resident; and
(b)
the supply is provided, or the agreement requires it to be provided, to another entity outside the indirect tax zone.
S 38-190(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-190(4) inserted by No 92 of 2000, s 3 and Sch 3 item 11, effective 1 July 2000.
Subsection (4) does not apply to any of the following supplies:
(a)
a transport of goods within the indirect tax zone that is part of, or is connected with, the *international transport of the goods;
(b)
a loading or handling of goods within the indirect tax zone that is part of, or is connected with, the international transport of the goods;
(c)
a service, done within the indirect tax zone, in relation to the goods that facilitates the international transport of the goods;
Example:
The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.
(d)
insuring transport covered by paragraph (a);
(e)
arranging transport covered by paragraph (a), or insurance covered by paragraph (d).
Note:
The supply might still be GST-free under item 5, 5A, 6 or 7 in the table in subsection 38-355(1).
S 38-190(5) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-190(5) inserted by No 91 of 2010, s 3 and Sch 1 item 4, effective 29 June 2010. For application provision, see history note under s 13-20(2).
38-191
Supplies relating to the repair etc. of goods under warranty
(1)
A supply of anything other than goods or *real property is
GST-free if:
(a)
the *recipient is a *non-resident who:
(i)
is not in the indirect tax zone when the thing supplied is done; and
(ii)
acquires the thing in *carrying on the recipient's *enterprise, but is not *registered or *required to be registered; and
(b)
the supply is constituted by the repair, renovation, modification or treatment of goods; and
(c)
the repair, renovation, modification or treatment is done in order to meet the recipient's obligations under a warranty relating to the goods; and
(d)
either:
(i)
*consideration for the warranty was included in the consideration for the supply of the goods; or
(ii)
the supply of the warranty was a separate *taxable supply to the supply of the goods.
(2)
A supply of goods is
GST-free if:
(a)
it is made in the course of a supply that is GST-free under subsection (1), and to the same *recipient; and
(b)
either:
(i)
the goods are attached to, or become part of, the goods to which the warranty relates; or
(ii)
the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the goods to which the warranty relates.
S 38-191 inserted by No 52 of 2016, s 3 and Sch 2 item 20, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
Subdivision 38-F - Religious services
38-220
Religious services
A supply is
GST-free if it is a supply of service that:
(a)
is supplied by a *ACNC-registered religious institution; and
S 38-220 amended by No 169 of 2012, s 3 and Sch 2 item 73, by substituting "*ACNC-registered religious institution" for "religious institution" in para (a), effective 3 December 2012.
Subdiv 38-G (heading) substituted by No 169 of 2012, s 3 and Sch 2 item 74, effective 3 December 2012. Subdiv 38-G (heading) formerly read:
Subdivision 38-G - Activities of charitable institutions etc.
Subdiv 38-G (heading) substituted by No 143 of 2004, s 3 and Sch 1 item 4, effective 14 December 2004. For application provisions, see note under s 38-25(3). Subdiv 38-G (heading) formerly read:
Subdivision 38-G - Non-commercial activities of charitable institutions etc.
S 38-250(1) amended by No 169 of 2012, s 3 and Sch 2 item 75, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), effective 3 December 2012.
S 38-250(1) amended by No 92 of 2000, s 3 and Sch 1 item 2C, by substituting ", a *gift-deductible entity or a *government school" for "or a *gift-deductible entity" in para (a), effective 1 July 2000.
S 38-250(1) amended by No 176 of 1999, s 3 and Sch 1 item 67, by substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b)
the supply is for *consideration that is less than 50% of the *GST inclusive market value of the supply.
(i)
if the supply is a supply of accommodation - is less than 75% of the cost to the supplier of providing the accommodation; or
(ii)
if the supply is not a supply of accommodation - is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.
S 38-250(2) amended by No 169 of 2012, s 3 and Sch 2 item 75, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), effective 3 December 2012.
S 38-250(2) amended by No 92 of 2000, s 3 and Sch 1 item 2C, by substituting ", a *gift-deductible entity or a *government school" for "or a *gift-deductible entity" in para (a), effective 1 July 2000.
S 38-250(2) amended by No 177 of 1999, s 3 and Sch 1 item 47, by substituting "75%" for "50%" in para (b)(ii), effective 1 July 2000.
S 38-250(2) amended by No 176 of 1999, s 3 and Sch 1 item 68, by substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b)
the supply is for *consideration that is less than 50% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.
S 38-250(3) repealed by No 169 of 2012, s 3 and Sch 2 item 76, effective 3 December 2012. S 38-250(3) formerly read:
(3)
Subsections (1) and (2) do not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsections (1) and (2) do not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 38-250(3) inserted by No 95 of 2004, s 3 and Sch 10 item 7, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsections (1) and (2) do not apply to a supply by a *gift-deductible entity endorsed as a deductible gift recipient (within themeaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
the supplier is:
This subsection denies GST-free status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST-free under this section if they relate to the principal purpose of the fund, authority or institution.
However, the supply is not GST-free if the endorsed charity, gift-deductible entity or government school has dealt with the goods in such a way that the goods no longer have their original character.
S 38-255(1) amended by No 169 of 2012, s 3 and Sch 2 items 78 to 80, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), "endorsed charity" for "institution, trustee" in para (b), and "if the endorsed charity" for "if the institution, trustee", effective 3 December 2012.
S 38-255 amended by No 92 of 2000, s 3 and Sch 1 items 2D and 2E, by substituting ", a *gift-deductible entity or a *government school" for "or a *gift-deductible entity" in para (a), and by substituting ", gift-deductible entity or government school" for "or gift-deductible entity" (wherever occurring), effective 1 July 2000.
S 38-255(2) repealed by No 169 of 2012, s 3 and Sch 2 item 81, effective 3 December 2012. S 38-255(2) formerly read:
(2)
Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 38-255(2) inserted by No 95 of 2004, s 3 and Sch 10 item 8, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsection (1) does not apply to a supply by a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
the supplier is:
This subsection denies GST-free status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST-free under this section if they relate to the principal purpose of the fund, authority or institution.
S 38-260 amended by No 169 of 2012, s 3 and Sch 2 item 83, by substituting "*endorsed charity" for "*endorsed charitable institution, or an *endorsed trustee of a charitable fund," in para (a), effective 3 December 2012.
S 38-260 amended by No 80 of 2006, s 3 and Sch 12 item 8, by substituting "an *endorsed charitable institution, or an *endorsed trustee" for "a charitable institution, or a trustee", in para (a), applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
S 38-260 inserted by No 143 of 2004, s 3 and Sch 1 item 5, effective 14 December 2004. For application provisions, see note under s 38-25(3).
38-270
Raffles and bingo conducted by charities etc.
(1)
A supply is
GST-free if:
(a)
S 38-270(1) amended by No 169 of 2012, s 3 and Sch 2 item 85, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), effective 3 December 2012.
S 38-270 amended by No 92 of 2000, s 3 and Sch 1 item 2F, by substituting ", a *gift-deductible entity or a *government school" for "or a *gift-deductible entity" in para (a), effective 1 July 2000.
S 38-270(2) repealed by No 169 of 2012, s 3 and Sch 2 item 86, effective 3 December 2012. S 38-270(2) formerly read:
(2)
Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 38-270(2) inserted by No 95 of 2004, s 3 and Sch 10 item 9, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsection (1) does not apply to a supply by a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
This subsection denies GST-free status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST-free under this section if they relate to the principal purpose of the fund, authority or institution.
Subdiv 38-H (heading) repealed by No 143 of 2004, s 3 and Sch 1 item 6, effective 14 December 2004. For application provisions, see note under s 38-25(3). Subdiv 38-H (heading) formerly read:
Subdivision 38-H - Raffles and bingo conducted by charitable institutions etc.
Subdiv 38-I heading substituted by No 176 of 1999, s 3 and Sch 1 item 69, effective 1 July 2000. The heading formerly read:
Subdivision 38-I - Water and sewerage
38-285
Water
(1)
A supply of water is
GST-free.
(2)
However, a supply of water is not GST-free under this section if it is:
(a)
supplied in a container; or
(b)
transferred into a container;
that has a capacity of less than 100 litres or such other quantity as the regulations specify.
(3)
It does not matter whether or not the amount of water supplied or transferred fills the container.
38-290
Sewerage and sewerage-like services
A supply that consists of removing waste matter from *residential premises is
GST-free if:
(a)
the premises are not serviced by sewers; and
(b)
the waste matter is of a kind that would normally be removed using sewers if the premises were serviced by sewers.
S 38-300 inserted by No 176 of 1999, s 3 and Sch 1 item 70, effective 1 July 2000.
Subdivision 38-J - Supplies of going concerns
38-325
Supply of a going concern
(1)
The *supply of a going concern is
GST-free if:
(a)
the supply is for *consideration; and
(b)
the *recipient is *registered or *required to be registered; and
(c)
the supplier and the recipient have agreed in writing that the supply is of a going concern.
(2)
A
supply of a going concern is a supply under an arrangement under which:
(a)
the supplier supplies to the *recipient all of the things that are necessary for the continued operation of an *enterprise; and
(b)
the supplier carries on, or will carry on, the enterprise until the day of the supply (whether or not as a part of a larger enterprise carried on by the supplier).
Subdivision 38-K - Transport and related matters
38-355
Supplies of transport and related matters
The third column of this table sets out supplies that are
GST-free:
Supplies of transport and related matters
Item
Topic
These supplies are GST-free …
1
Transport of passengers to,from or outside the indirect tax zone
the transport of a passenger:
(a)
from the last place of departure in the indirect tax zone to a destination outside the indirect tax zone; or
(b)
from a place outside the indirect tax zone to the first place of arrival in the indirect tax zone; or
(c)
from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
2
Transport of passengers on domestic legs of international flights
the transport of a passenger within the indirect tax zone by air, but only if:
(a)
the transport is part of a wider arrangement, itinerary or contract for transport by air involving international travel; and
(b)
at the time the arrangement, itinerary or contract was entered into, the transport within the indirect tax zone formed part of a ticket for international travel, or was cross referenced to such a ticket, issued at that time.
3
Domestic air travel of non-residents
the transport of a passenger within the indirect tax zone by air, but only if:
(a)
the passenger is a *non-resident; and
(b)
the supply was purchased while the passenger was outside the indirect tax zone.
4
Transport of passengers on domestic legs of international sea voyages
the transport of a passenger within the indirect tax zone by sea, but only if:
(a)
the transport is part of a journey by sea from the indirect tax zone to a destination outside the indirect tax zone, or from a destination outside the indirect tax zone to the indirect tax zone; and
(b)
the transport is provided by the supplier who transports the passenger to or from the indirect tax zone.
5
Transport etc. of goods
subject to subsections (2) and (3), the *international transport of goods:
(a)
from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or
(b)
from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; or
(c)
from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
insuring transport covered by item 1, 2, 3 or 4; or
(b)
insuring the *international transport of goods from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or
(c)
insuring:
(i)
the transport of goods from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; and
(ii)
the subsequent transport of those goods within the indirect tax zone, if it is an integral part of the transport of goods from the place outside the indirect tax zone to the place of consignment in the indirect tax zone;
including loading and handling within the indirect tax zone that is part of that transport; or
(d)
insuring the transport of goods from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
S 38-355(1) amended by No 77 of 2017, s 3 and Sch 1 items 16 and 17, by substituting "subject to subsections (2) and (3)" for "subject to subsection (2)" in table items 5 and 5A, and inserting "subject to subsection (3):" in table items 6 and 7, effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 38-355(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.
S 38-355(1) amended by No 91 of 2010, s 3 and Sch 1 items 5 to 8, by inserting "(1)" before "The third column", inserting "subject to subsection (2)," before "the *international transport" in table item 5, omitting "However, paragraph (a) or (b) only applies to the transport of the goods within Australia if it is supplied by the supplier of the transport of the goods from or to Australia (whichever is relevant)." from table item 5, and inserting table item 5A, effective 29 June 2010. For application provision, see history note under s 13-20(2).
S 38-355(1) amended by No 92 of 2000, s 3 and Sch 8 item 1, by substituting paras (b), (c) and (d) for para (b) in the third column of table item 6, effective 1 July 2000. Para (b) of the third column of item 6 formerly read:
(b)
insuring the *international transport of goods covered by item 5.
S 38-355(1) amended by No 176 of 1999, s 3 and Sch 1 items 71 to 75, by inserting "of passengers" after "Transport" in table item 1 (column 2), omitting "or goods" in table item 1 (column 3), substituting table item 5 and substituting "the *international transport" for "transport, loading or handling" in table items 6 and 7 (column 3), effective 1 July 2000. Table item 5 formerly read:
5
Transport etc. of goods within Australia
the transport, loading or handling of goods within Australia, but only if:
(a) it is an integral part of the supply
of transporting goods to or from
Australia; and
(b) it is provided by the supplier
who transports those goods to or
from Australia.
Paragraphs (a) and (b) of item 5, and item 5A, in the table in subsection (1) do not apply to a supply to the extent that the thing supplied is done in the indirect tax zone, unless:
(a)
the *recipient of the supply:
(i)
is a *non-resident; and
(ii)
is not in the indirect tax zone when the thing supplied is done in the indirect tax zone; or
(b)
the supply is done by the supplier of the transport of the goods from or to the indirect tax zone (whichever is relevant).
S 38-355(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-355(2) inserted by No 91 of 2010, s 3 and Sch 1 item 9, effective 29 June 2010. For application provision, see history note under s 13-20(2).
Items 5 and 5A, paragraphs (b) to (d) of item 6, and paragraphs (b) and (c) of item 7, in the table in subsection (1) do not apply to a supply to the extent that:
(a)
the supply is, or relates to, the *international transport of goods; and
(b)
the supplier is a *redeliverer that is treated as the supplier of the goods under subsection 84-81(4); and
(c)
the supply of the goods is a *taxable supply.
A supply is
GST-free if:
(a)
the supplier makes it in the course of *carrying on an *enterprise as a travel agent; and
(b)
it consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside the indirect tax zone.
S 38-360 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 38-360 inserted by No 156 of 2000, s 3 and Sch 1 item 4, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 38-L - Precious metals
38-385
Supplies of precious metals
A supply of *precious metal is
GST-free if:
(a)
it is the first supply of that precious metal after its refining by, or on behalf of, the supplier; and
(b)
the entity that refined the precious metal is a *refiner of precious metal; and
(c)
the *recipient of the supply is a *dealer in precious metal.
Note:
Any other supply of precious metal is input taxed under section 40-100.
S 38-385 substituted by No 177 of 1999, s 3 and Sch 1 item 48, effective 1 July 2000. S 38-385 formerly read:
38-385 Supplies of precious metals
A supply of *precious metal is
GST-free if:
(a)
it is the first supply of that precious metal after its refining by the supplier; and
(b)
the supplier is a *refiner of precious metal; and
(c)
the *recipient of the supply is a *dealer in precious metal who acquires the precious metal for investment purposes.
Note:
Any other supply of precious metal is input taxed under section 40-100.
Subdivision 38-M - Supplies through inwards duty free shops
38-415
Supplies through inwards duty free shops
S 38-415 substituted by No 92 of 2000, s 3 and Sch 2 item 4A, effective 1 July 2000. S 38-415 formerly read:
38-415 Supplies through inwards duty free shops
A supply is
GST-free if:
(a)
the supply is a sale of *airport shop goods through an *inwards duty free shop to a *relevant traveller; and
(b)
the goods are *imported or are *excisable goods.
Subdiv 38-N heading substituted by No 156 of 2000, s 3 and Sch 1 item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The heading formerly read:
Subdivision 38-N - Grants of freehold and similar interests by governments
38-445
Grants of freehold and similar interests by governments
(1)
A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is
GST-free if:
(a)
the supply is of a freehold interest in the land; or
(b)
the supply is by way of *long-term lease.
(1A)
A supply by the Commonwealth, a State or a Territory of land is
GST-free if:
(a)
the supply is of a freehold interest in the land, or is by way of *long-term lease; and
(b)
the Commonwealth, State or Territory had previously supplied the land, by way of lease, to the *recipient of the supply; and
(c)
at the time of that previous supply, there were no improvements on the land; and
(d)
because conditions to which that lease was subject had been satisfied, the recipient was entitled to the supply of the freehold interest or the supply by way of long-term lease.
S 38-445(1A) inserted by No 156 of 2000, s 3 and Sch 1 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(2)
However, the supply is not GST-free if, since 1 July 2000, the land has already been the subject of a supply that is GST-free under this section.
38-450
Leases preceding grants of freehold and similar interests by governments
(1)
A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is
GST-free if:
(a)
the supply is by way of lease (other than *long-term lease); and
(b)
the lease is subject to conditions the satisfaction of which will entitle the *recipient of the supply to the grant of a freehold interest in the land or a long-term lease of the land.
(2)
A supply consisting of the surrender, to the Commonwealth, a State or Territory, of a lease over land is
GST-free if:
(a)
the supplier acquired the land under a supply that:
(ii)
if the supply was made before 1 July 2000 - would have been GST-free under subsection (1) if it had been made on or after that day; and
(b)
solely or partly in return for the surrender of the lease, the Commonwealth, State or Territory makes a supply of the land to the supplier that is GST-free under section 38-445.
S 38-475(1) amended by No 92 of 2000, s 3 and Sch 2 item 5, by inserting ``the lease by an *Australian government agency of or'' after ``interest in, or'', effective 1 July 2000.
S 38-475(1) substituted by No 177 of 1999, s 3 and Sch 1 item 49, effective 1 July 2000. S 38-475(1) formerly read:
(1)
A supply of *potential residential land is
GST-free if:
(a)
the land is subdivided from land on which the supplier has *carried on a *farming business for at least 5 years; and
(b)
the supply is made to an *associate without *consideration or for consideration that is less than the *GST inclusive market value of the supply.
(2)
An entity *carries on a
farming business if it carries on a *business of:
(a)
cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or
(b)
maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or
(c)
manufacturing dairy produce from raw material that the entity produced; or
(d)
planting or tending trees in a plantation or forest that are intended to be felled.
38-480
Farm land supplied for farming
The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, land is
GST-free if:
(a)
the land is land on which a *farming business has been *carried on for at least the period of 5 years preceding the supply; and
(b)
the *recipient of the supply intends that a farming business be carried on, on the land.
S 38-480 amended by No 92 of 2000, s 3 and Sch 2 item 6, by inserting ``the lease by an *Australian government agency of or'' after ``interest in, or'', effective 1 July 2000.
S 38-480 substituted by No 177 of 1999, s 3 and Sch 1 item 50, effective 1 July 2000. S 38-480 formerly read:
38-480 Farm land supplied for farming
A supply of land is
GST-free if:
(a)
the supplier has *carried on a *farming business on the land for at least the period of 5 years preceding the supply; and
(b)
the *recipient of the supply intends to carry on a farming business on the land.
Subdivision 38-P - Cars for use by disabled people
38-505
Disabled veterans
(1)
A supply is
GST-free if it is a supply of a *car to an individual who:
(a)
(ii)
has had a leg, or both arms, rendered permanently and completely useless; or
(iii)
is a veteran to whom section 24 of the Veterans' Entitlements Act 1986 applies and receives a pension under Part II of that Act; or
(iv)
is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004, or satisfies the eligibility criteria in section 199 of that Act; and
(c)
intends to use the car in his or her personal transportation during all of the *Subdivision 38-P period.
S 38-505(1) amended by No 115 of 2024, s 3 and Sch 1 item 3, by substituting "the Sovereign" for "Her Majesty" in para (a), effective 11 December 2024.
S 38-505(1) amended by No 110 of 2006, s 3 and Sch 2 items 2 and 3, by substituting "; or" for "; and" in para (b)(iii) and inserting para (iv), applicable to net amounts for tax periods starting, or that started, on or after 1 July 2004.
S 38-505(2) amended by No 77 of 2001, s 3 and Sch 2 item 10, by substituting "*car limit" for "*car depreciation limit", applicable to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June 2001; or
(ii) you constructed where the construction started after that day; or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.
(3)
In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:
(a)
adapting it for driving by the person; or
(b)
adapting it for transporting the person.
(4)
A supply is
GST-free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a), (b) and (c) apply.
38-510
Other disabled people
(1)
A supply is
GST-free if it is a supply of a *car to an individual who:
(a)
has a current certificate of medical eligibility issued by a *medical practitioner, in the *approved form, certifying that the individual has lost the use of one or more limbs to such an extent that the individual is unable to use public transport; and
(b)
intends to use the car in his or her personal transportation to or from gainful employment during all of the *Subdivision 38-P period.
CCH Note:
No 76 of 2023, s 3 and Sch 6 item 9 provides, effective 1 October 2023, that the amendments made by Division 2 of Part 2 of Schedule 3 to the Treasury Laws Amendment (2021 Measures No 5) Act 2021 (No 127 of 2021), which includes s 3 and Sch 3 item 44, do not apply, and are taken never to have applied, in relation to:
(a) a disability certificate that:
(i) was issued before 1 January 2022; and
(ii) met the requirements of s 38-510(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as in force immediately before 1 January 2022; or
(b) a certificate of medical eligibility that:
(i) was issued before 1 January 2022; and
(ii) met the requirements of s 38-510(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as it operated immediately before 1 January 2022 because of the modification determined by the Taxation Administration (Remedial Power - Certificate for GST-free supplies of Cars for Disabled People) Determination 2020.
S 38-510(1) amended by No 127 of 2021, s 3 and Sch 3 item 44, by substituting para (a), effective 1 January 2022. Para (a) formerly read:
(a) has a current disability certificate issued by:
(i) the person holding the position of Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997); or
(ii) an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;
certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport; and
S 38-510(1) amended by No 176 of 1999, s 3 and Sch 1 item 76, by substituting para (a)(i) and (ii), effective 1 July 2000. Para (a)(i) and (ii) formerly read:
(i)
the Secretary to the Department responsible for the administration of the Disability Services Act 1986; or
(ii)
an officer of that Department authorised in writing by that Secretary for the purposes of this Act;
S 38-510(2) amended by No 77 of 2001, s 3 and Sch 2 item 11, by substituting "*car limit" for "*car depreciation limit'", applicable to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June 2001; or
(ii) you constructed where the construction started after that day; or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.
(3)
In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:
(a)
adapting it for driving by the individual; or
(b)
adapting it for transporting the individual.
(4)
A supply is
GST-free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a) and (b) applies.
Subdivision 38-Q - International mail
A supply is
GST-free if it is a supply of services to a foreign postal administration for:
(a)
the delivery in the indirect tax zone; or
(b)
the transit through the indirect tax zone;
of postal articles mailed outside the indirect tax zone.
S 38-540 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-540 inserted by No 177 of 1999, s 3 and Sch 1 item 51, effective 1 July 2000.
Subdivision 38-R - Telecommunication supplies made under arrangements for global roaming in the indirect tax zone
Subdiv 38-R heading amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone
" for "
Australia
", applicable to a tax period that commences on or after 1 July 2015.
Subdiv 38-R inserted by No 91 of 2010, s 3 and Sch 2 item 1, applicable to supplies made on or after 1 July 2000.
38-570
Telecommunication supplies made under arrangements for global roaming in the indirect tax zone
(1)
A *telecommunication supply is
GST-free if:
(a)
the supply is to enable the use in the indirect tax zone of a portable device for sending and receiving signals, writing, images, sounds or information by an electromagnetic system while the device is linked to:
(i)
an international mobile subscriber identity; or
(ii)
an IP address; or
(iii)
another internationally recognised identifier;
containing a home network identity that indicates a subscription to a telecommunications network outside the indirect tax zone; and
(b)
the supply is covered by subsection (2) or (3).
Supply by non-resident telecommunications supplier
(2)
This subsection covers the supply if:
(a)
the supply is made to the subscriber in connection with the subscription; and
(b)
the billing of the subscriber for the supply is to an address outside the indirect tax zone; and
(c)
the supply is made by a *non-resident that:
S 38-570(3) amended by No 77 of 2021, s 3 and Sch 2 item 1, by substituting "the Online Safety Act 2021" for "Schedule 5 to the Broadcasting Services Act 1992" in para (a)(ii), effective 23 January 2022.
S 38-570 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 38-570 inserted by No 91 of 2010, s 3 and Sch 2 item 1, applicable to supplies made on or after 1 July 2000.
Subdiv 38-T inserted by No 52 of 2016, s 3 and Sch 1 item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. No 52 of 2016, s 3 and Sch 1 item 39 contains the following provision:
39 Progressive or periodic supplies
(1)
If:
(a)
a supply is made under an agreement, or an enactment, that provides (expressly or impliedly) that the thing supplied is to be supplied:
(i)
for a period; or
(ii)
progressively over a period; and
(b)
that period begins before 1 July 2017 and ends on or after 1 July 2017;
then, for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 as amended by this Act and for the purposes of item 38 of this Schedule:
(c)
the supply is taken to be made continuously and uniformly throughout that period; and
(d)
to the extent that the supply is taken to be made on or after 1 July 2017:
(i)
any consideration for the supply received before the first tax period to start on or after that day is taken to be received in that tax period; and
(ii)
an invoice relating to the supply issued before the first tax period to start on or after that day is taken to have been issued in that tax period.
(2)
However, this item does not apply to:
(a)
a supply of a warranty (whether express, implied or required by law) that relates to goods or a service, if the value of the warranty was included in the price of the goods or service; or
(b)
a supply to the extent that it would be a taxable supply if the amendments made by this Schedule had not been made.
(3)
If this item has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.
(4)
In this item:
warranty has the same meaning as in section 12 of the A New Tax System (Goods and Services Tax Transition) Act 1999.
(1)
An *inbound intangible consumer supply is
GST-free if:
(a)
it is made by a *non-resident; and
(b)
it is covered by a determination under subsection (2).
(2)
The Minister may, by legislative instrument, determine that a specified class of *inbound intangible consumer supplies are GST-free.
(3)
However, the Minister must not make the determination unless:
(a)
the *Foreign Minister has advised the Minister in writing that the treatment of the class of supplies under the *GST law would, apart from the determination, be inconsistent with Australia's international obligations; and
(b)
the Minister is satisfied that similar supplies made by *Australian residents would be GST-free.
S 38-610 inserted by No 52 of 2016, s 3 and Sch 1 item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Division 40 - Input taxed supplies
40-1
What this Division is about
S 40-5(2) substituted by No 177 of 1999, s 3 and Sch 1 item 53, effective 1 July 2000. S 40-5(2) formerly read:
(2)
The third column of this table sets out the supplies that are
financial supplies:
Supplies that are financial supplies
Item
Topic
These are
financial supplies …
1
Money
the creation, issue, transfer, assignment or receipt of, or any other dealing with, *money including:
(a) lending or borrowing money;
and
(b) creating or transferring a debt
or an interest in a debt; and
(c) making any advance or
granting any credit.
2
Accounts
the creation, keeping or closing of a savings account, cheque account or deposit account.
3
Debt securities
the creation, issue, transfer, assignment or receipt of, or any other dealing with, a security for a debt (including a guarantee or indemnity), but not if the security is a lease, licence or other similar arrangement in respect of *real property.
4
Equity securities
the allotment, issue, transfer, assignment or receipt of, or any other dealing with, a security within the meaning of subsection 92(1) of the Corporations Law (other than paragraph (ca) of that subsection).
5
Unit trusts
the creation, issue, transfer, assignment or receipt of, or any other dealing with:
(a) a *unit trust; or
(b) an interest in, or a right to or
under, a unit trust.
the management of a unit trust.
6
Futures
the provision, transfer or assignment of a futures contract through a *futures exchange.
7
Options and warrants
the creation, issue, transfer, assignment or receipt of, or any other dealing with, an option or warrant relating to a future supply covered by item 3, 4 or 5.
8
Underwriting
an underwriting of a supply covered by any of items 1 to 7 (other than items 2 and 3).
9
Superannuation funds
the creation, transfer, assignment or receipt of, or any other dealing with, an interest in, or a right under, a *superannuation fund.
the management of a superannuation fund.
10
Life insurance
the provision, transfer or assignment of:
(a) a *life insurance policy; or
(b) reinsurance relating to a life
insurance policy.
11
Hire purchase etc.
the provision of credit under a *hire purchase agreement, or a sale, relating to goods, but only if:
(a) the credit is provided for a
separate charge; and
(b) the separate charge is disclosed to the *recipient of
the goods.
12
Incidental supplies
a supply of anything directly in connection with a supply covered by any of items 1 to 13 (other than this item), but only if the supplier under this item is the same supplier as that under the other item.
13
Arranging etc. supplies
agreeing to make, or arranging, a supply covered by any of items 1 to 12 (other than item 2).
S 40-5(4) repealed by No 177 of 1999, s 3 and Sch 1 item 53, effective 1 July 2000. S 40-5(4) formerly read:
(4)
The regulations may provide that a particular supply is, or is not, a financial supply. The regulations have effect despite subsections (2) and (3).
Subdivision 40-B - Residential rent
40-35
Residential rent
(1)
A supply of premises that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is
input taxed if:
(a)
the supply is of *residential premises (other than a supply of *commercial residential premises or a supply of accommodation in commercial residential premises provided to an individual by the entity that owns or controls the commercial residential premises); or
(b)
the supply is of *commercial accommodation and Division 87 (which is about long-term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87-25.
S 40-35(1) amended by No 80 of 2006, s 3 and Sch 15 item 1, by substituting "(other than a supply of *commercial residential premises or a supply of accommodation in commercial residential premises provided to an individual by the entity that owns or controls the commercial residential premises)" for "(other than *commercial residential premises)" in para (a), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
A supply of a berth at a marina that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is
input taxed if:
(a)
the berth is occupied, or is to be occupied, by a *ship used as a residence; and
(b)
the supply is of *commercial accommodation and Division 87 (which is about long-term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87-25.
S 40-35(1A) inserted by No 156 of 2000, s 3 and Sch 1 item 8, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(2)
However:
(a)
the supply is input taxed only to the extent that the premises are to be used predominantly for residential accommodation (regardless of the term of occupation); and
(b)
the supply is not input taxed under this section if the lease, hire or licence, or the renewal or extension of a lease, hire or licence, is a *long-term lease.
S 40-35(2) amended by No 80 of 2006, s 3 and Sch 15 item 2, by inserting "(regardless of the term of occupation)" after "residential accommodation" in para (a), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
A sale of *real property is
input taxed, but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation).
S 40-65(1) amended by No 80 of 2006, s 3 and Sch 15 item 3, by inserting "(regardless of the term of occupation)" after "residential accommodation", applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
For sales of residential premises that are new residential premises, the recipient of the supply must pay an amount representing the GST on the supply to the Commissioner under section 14-250 in Schedule 1 to the Taxation Administration Act 1953, and the entity liable for the GST on the supply is entitled to a credit for that payment under section 18-60 in that Schedule.
S 40-65(2) amended by No 76 of 2023, s 3 and Sch 6 item 42, by substituting "entity liable for the GST on the supply" for "supplier" in the note, effective 1 October 2023.
S 40-65(2) amended by No 23 of 2018, s 3 and Sch 5 item 6, by inserting the note, effective 1 April 2018. For application provisions, see note under s 33-1.
S 40-65(2) amended by No 80 of 2006, s 3 and Sch 15 item 4, by inserting "(regardless of the term of occupation)" after "residential accommodation" in para (b), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 40-65(2) substituted by No 92 of 2000, s 3 and Sch 11 item 7, effective 1 July 2000. S 40-65(2) formerly read:
(2)
However, the sale is not input taxed to the extent that the *residential premises are *commercial residential premises or *new residential premises.
40-70
Supplies of residential premises by way of long-term lease
(1)
A supply is
input taxed if:
(a)
the supply is of *real property but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation); and
S 40-70(1) amended by No 80 of 2006, s 3 and Sch 15 item 5, by inserting "(regardless of the term of occupation)" after "residential accommodation" in para (a), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 40-70(2) amended by No 80 of 2006, s 3 and Sch 15 item 6, by inserting "(regardless of the term of occupation)" after "residential accommodation" in para (b), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 40-70(2) substituted by No 92 of 2000, s 3 and Sch 11 item 8, effective 1 July 2000. S 40-70(2) formerly read:
(2)
However, the supply is not input taxed to the extent that the *residential premises are *commercial residential premises or *new residential premises.
(b)
have been created through *substantial renovations of a building; or
(c)
have been built, or contain a building that has been built, to replace demolished premises on the same land.
Paragraphs (b) and (c) have effect subject to paragraph (a).
Note 1:
For example, residential premises will be new residential premises if they are created as described in paragraph (b) or (c) to replace earlier premises that had ceased to be new residential premises because of paragraph (a).
Note 2:
However, premises that are new residential premises because of paragraph (b) or (c) will cease to be new residential premises once they are sold, or supplied by way of long-term lease, as residential premises (see paragraph (a)).
Note 3:
Premises created because of the registration of, for example, a strata title plan, or a plan to subdivide land, may not become new residential premises (see subsection (2AA)).
S 40-75(1) amended by No 12 of 2012, s 3 and Sch 4 item 2, by inserting "Paragraphs (b) and (c) have effect subject to paragraph (a)." and Notes 1 to 3, applicable in relation to supplies of residential premises on or after 22 March 2012.
S 40-75(1) amended by No 80 of 2006, s 3 and Sch 15 item 7, by inserting "(other than *commercial residential premises)" after "residential premises" in para (a), applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
However, the *residential premises are not
new residential premises if, for the period of at least 5 years since:
(a)
if paragraph (1)(a) applies (and neither paragraph (1)(b) nor paragraph (1)(c) applies) - the premises first became residential premises; or
S 40-75(2) amended by No 12 of 2012, s 3 and Sch 4 items 3 and 4, by substituting "*residential premises are not
new residential premises" for "premises are not new residential premises", and "residential premises" for "*residential premises" in para (a), applicable in relation to supplies of residential premises on or after 27 January 2011. For further application provisions, see note under s 40-75(2B) and (2C).
Subdivisions etc. may not result in new residential premises
(2AA)
Despite subsection (1), the *residential premises are not
new residential premises if:
(a)
they are created from residential premises that became the subject of a *property subdivision plan; and
(b)
the residential premises referred to in paragraph (a) were not new residential premises immediately before they became the subject of that plan.
This subsection has effect subject to paragraphs (1)(b) and (c).
S 40-75(2AA) inserted by No 12 of 2012, s 3 and Sch 4 item 5, applicable in relation to supplies of residential premises on or after 27 January 2011. For further application provisions, see note under s 40-75(2B) and (2C).
A supply of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a):
(a)
if it is a supply by a member of a *GST group to another member of the GST group; or
(b)
if:
(ii)
the other entity acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into.
S 40-75(2A) amended by No 12 of 2012, s 3 and Sch 4 item 7, by substituting "*residential premises is disregarded as a sale or supply" for "premises is disregarded as a sale", applicable in relation to supplies of residential premises on or after 27 January 2011. For further application provisions, see note under s 40-75(2B) and (2C).
S 40-75(2A) inserted by No 78 of 2005, s 3 and Sch 6 item 2, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
A supply (the
wholesale supply) of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if:
(a)
the premises from which the residential premises were created had earlier been supplied to the *recipient of the wholesale supply or one or more of its *associates; and
(b)
an arrangement (including an agreement) was made by:
(i)
the supplier of the earlier supply, or one or more associates of the supplier; and
(ii)
the recipient of the earlier supply, or one or more associates of the recipient; and
(c)
under the arrangement, the wholesale supply was conditional on:
(i)
specified building or renovation work being undertaken by the recipient of the earlier supply, or by one or more associates of the recipient; or
(ii)
circumstances existing as specified in regulations made for the purposes of this subparagraph.
Note 1:
The premises referred to in paragraph (a) could be vacant land.
Note 2:
For subparagraph (c)(ii), circumstances may be specified by class (see subsection 13(3) of the Legislation Act 2003).
Note 3:
This subsection does not apply to a supply if certain commercial commitments were in place before 27 January 2011 (see item 12 of Schedule 4 to the Tax Laws Amendment (2011 Measures No 9) Act 2012).
S 40-75(2B) amended by No 126 of 2015, s 3 and Sch 1 item 20, by substituting "Legislation Act 2003" for "Legislative Instruments Act 2003" in note 2, effective 5 March 2016.
S 40-75(2B) inserted by No 12 of 2012, s 3 and Sch 4 item 8, applicable in relation to supplies of residential premises on or after 27 January 2011. No 12 of 2012, s 3 and Sch 4 item 12 contains the following application provision:
12 Exception - arrangements made before 27 January 2011 to develop premises
(1)
Subsection 40-75(2B) of the A New Tax System (Goods and Services Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply (the
wholesale supply) of residential premises if:
(a)
the wholesale supply happens:
(i)
on or after 27 January 2011; or
(ii)
before 27 January 2011, and the next supply of the residential premises happens on or after 27 January 2011; and
(b)
subitem (2) is satisfied in relation to the wholesale supply.
(2)
This subitem is satisfied in relation to the wholesale supply if:
(a)
the premises from which the residential premises were created had earlier been supplied to the recipient of the wholesale supply or one or more of its associates; and
(b)
immediately before 27 January 2011, the recipient of the wholesale supply or one or more of its associates were commercially committed to an arrangement; and
(c)
under the arrangement, the wholesale supply was conditional on specified building or renovation work being undertaken by the recipient of the wholesale supply or by one or more of its associates; and
(d)
no GST return (as amended) given to the Commissioner reports a net amount for a tax period that includes amounts equivalent to the input tax credits that the recipient of the wholesale supply would have been entitled to if its acquisitions relating to the next sale or long term lease of the residential premises were creditable acquisitions.
Note:
The premises referred to in paragraph (a) could be vacant land.
(3)
In this item:
arrangement includes an agreement.
commercially committed : to be
commercially committed, in relation to an arrangement, means:
(a)
to be a party to the arrangement, where the arrangement is legally binding; or
(b)
to be the preferred tenderer (however described) in the final step in a bidding or tendering process relating to the arrangement; or
(c)
to have directly made (with associates) acquisitions, having a total GST exclusive value of at least $200,000, in relation to the arrangement; or
(d)
to have directly incurred (with associates) internal direct costs, of at least $200,000, in relation to the arrangement.
A supply of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if it is made because a *property subdivision plan relating to the premises was lodged for registration (however described) by the *recipient of the supply or the recipient's *associate.
Note:
This subsection does not apply to a supply if the plan was lodged for registration before 27 January 2011 (see item 13 of Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012).
S 40-75(2C) inserted by No 12 of 2012, s 3 and Sch 4 item 8, applicable in relation to supplies of residential premises on or after 27 January 2011. No 12 of 2012, s 3 and Sch 4 item 13 contains the following application provision:
13 Exception - property subdivision plans lodged for registration before 27 January 2011
Subsection 40-75(2C) of the A New Tax System (Goods and Services Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply of residential premises on or after 27 January 2011 if the supply is made because a property subdivision plan relating to the premises was lodged for registration (however described) before 27 January 2011 by the recipient of the supply or the recipient's associate.
New residential premises include associated land
(3)
To avoid doubt, if the *residential premises are new residential premises because of paragraph (1)(b) or (c), the new residential premises include land of which the new residential premises are a part.
S 40-75 inserted by No 156 of 2000, s 3 and Sch 1 item 9, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 40-D - Precious metals
40-100
Precious metals
A supply of *precious metal is
input taxed.
Note:
If the supply is the first supply of precious metal after refinement, the supply is GST-free under section 38-385.
Subdivision 40-E - School tuckshops and canteens
40-130
School tuckshops and canteens
(1)
A supply of *food is
input taxed if:
(a)
the supply is made by a non-profit body through a shop operating on the grounds of a *school that supplies *primary courses or *secondary courses; and
(b)
the non-profit body chooses to have all its supplies of food through the shop treated as input taxed.
(2)
However, the non-profit body:
(a)
(Repealed by No 92 of 2000)
(b)
cannot revoke the choice within 12 months after the day on which the non-profit body made the choice; and
(c)
cannot make a further choice within 12 months after the day on which the non-profit body revoked a previous choice.
S 40-130(2) amended by No 92 of 2000, s 3 and Sch 1 item 2G, by repealing para (a), effective 1 July 2000. Para (a) formerly read:
(a)
cannot make a choice under paragraph (1)(b) if any supplies are made through the shop that are not supplies of *food; and
(3)
This section does not apply to a supply of *food by a *school to boarding students of the school as part of their board.
Subdivision 40-F - Fund-raising events conducted by charities etc.
(b)
the supply is made in connection with a *fund-raising event; and
(c)
the supplier chooses to have all supplies that it makes in connection with the event treated as input taxed; and
(d)
the event is referred to in the supplier's records as an event that is treated as input taxed.
S 40-160(1) amended by No 169 of 2012, s 3 and Sch 2 item 90, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), effective 3 December 2012.
S 40-160(2) repealed by No 169 of 2012, s 3 and Sch 2 item 91, effective 3 December 2012. S 40-160(2) formerly read:
(2)
Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 40-160(2) inserted by No 95 of 2004, s 3 and Sch 10 item 10, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsection (1) does not apply to a supply by a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
the supplier is:
(b)
each purpose to which the supply relates is a *gift-deductible purpose of the supplier.
Note:
This subsection denies input taxed status under this section to supplies by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be input taxed under this section if they relate to the principal purpose of the fund, authority or institution.
S 40-160(3) amended by No 169 of 2012, s 3 and Sch 2 item 92, by substituting para (a)(i), effective 3 December 2012. Para (a)(i) formerly read:
(i)
a charitable institution or a trustee of a charitable fund; or
S 40-160(3) inserted by No 80 of 2006, s 3 and Sch 12 item 10, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
S 40-160 inserted by No 92 of 2000, s 3 and Sch 1 item 3, effective 1 July 2000.
(1)
Any of these is a
fund-raising event if it is conducted for the purpose of fund-raising and it does not form any part of a series or regular run of like or similar events:
(a)
a fete, ball, gala show, dinner, performance or similar event;
(b)
an event comprising sales of goods if:
(i)
each sale is for a *consideration that does not exceed $20 or such other amount as the regulations specify; and
(ii)
selling such goods is not a normal part of the supplier's *business;
(c)
an event that the Commissioner decides, on an application by the supplier in writing, to be a fund-raising event.
Note:
Refusing an application for a decision under this paragraph is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 40-165(1) amended by No 73 of 2006, s 3 and Sch 5 item 91, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
Paragraph (1)(b) does not apply to an event that involves the sale of alcoholic beverages or tobacco products.
(3)
The Commissioner must not make a decision under paragraph (1)(c) unless satisfied that:
(a)
the supplier is not in the *business of conducting such events; and
(b)
the proceeds from conducting the event are for the direct benefit of the supplier's charitable or non-profit purposes.
(4)
The Commissioner may determine, in writing, the frequency with which events may be held without forming any part of a series or regular run of like or similar events for the purposes of subsection (1).
Subdiv 40-G inserted by No 52 of 2016, s 3 and Sch 1 item 5, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
(1)
An *inbound intangible consumer supply is
input taxed if:
(a)
it is made by a *non-resident; and
(b)
it is covered by a determination under subsection (2).
(2)
The Minister may, by legislative instrument, determine that a specified class of *inbound intangible consumer supplies are input taxed.
(3)
However, the Minister must not make the determination unless:
(a)
the *Foreign Minister has advised the Minister in writing that the treatment of the class of supplies under the *GST law would, apart from the determination, be inconsistent with Australia's international obligations; and
(b)
the Minister is satisfied that similar supplies made by *Australian residents would be input taxed.
S 40-180 inserted by No 52 of 2016, s 3 and Sch 1 item 5, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Part 3-2 - Non-taxable importations
Division 42 - Non-taxable importations
42-1
What this Division is about
This Division sets out the importations that are non-taxable. No GST is payable on an importation that is non-taxable (see sections 7-1 and 13-5).
For the basic rules about non-taxable importations, see sections 13-10 and 13-25.
42-5
Non-taxable importations - Schedule 4 to the Customs Tariff Act 1995
(1)
An importation of goods is a
non-taxable importation if the goods are covered by item 4, 10, 11, 15, 18, 21, 21A, 23, 24, 25, 26 or 27 in Schedule 4 to the Customs Tariff Act 1995.
S 42-5(1) amended by No 138 of 2012, s 3 and Sch 2 item 1, by substituting "item 4, 10, 11, 15, 18, 21, 21A, 23, 24, 25, 26 or 27" for "item 4, 8, 15, 18A, 18B, 18C, 21, 21A, 23A, 23B, 24, 25A, 25B, 25C, 32A, 32B, 33A, 33B or 64", applicable inrelation to importations that occur on or after 1 March 2013.
S 42-5(1) amended by No 177 of 1999, s 3 and Sch 1 item 54, by substituting "4, 8, 15," for "17,", effective 1 July 2000.
S 42-5(1) amended by No 176 of 1999, s 3 and Sch 7 item 12, by inserting "21A," after "21,", effective 1 July 2000.
S 42-5(1) amended by No 176 of 1999, s 3 and Sch 1 item 77, by substituting "64" for "34", effective 1 July 2000.
An importation of a container is a
non-taxable importation if:
(a)
goods covered by item 22 in Schedule 4 to the Customs Tariff Act 1995 are imported in or on the container; and
S 42-5(1A) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 42-5(1A) amended by No 138 of 2012, s 3 and Sch 2 item 2, by substituting "item 22" for "item 34" in para (a), applicable in relation to importations that occur on or after 1 March 2013.
S 42-5(1A) inserted by No 176 of 1999, s 3 and Sch 1 item 78, effective 1 July 2000.
S 42-5(1B) repealed by No 92 of 2000, s 3 and Sch 11 item 8A, effective 1 July 2000. S 42-5(1B) formerly read:
(1B)
An importation of goods is a
non-taxable importation if the goods are covered by item 17 in Schedule 4 to the Customs Tariff Act 1995 and:
(a)
the importer is the manufacturer of the goods; or
(b)
the importer has previously acquired the goods, and the supply by means of which the importer acquired the goods was a *taxable supply (or would have been a taxable supply but for section 66-45); or
(c)
the importer has previously imported the goods, and the previous importation was a *taxable importation.
S 42-5(1B) inserted by No 177 of 1999, s 3 and Sch 1 item 55, effective 1 July 2000.
An importation of goods is a
non-taxable importation if the goods are covered by:
(a)
item 1, 3, 7, 12, 13 or 29 in Schedule 4 to the Customs Tariff Act 1995; and
S 42-5(1C) amended by No 138 of 2012, s 3 and Sch 2 item 3, by substituting "item 1, 3, 7, 12, 13 or 29" for "item 1A, 1B, 1C, 1D, 1E, 5, 6, 9 or 16" in para (a), applicable in relation to importations that occur on or after 1 March 2013.
S 42-5(1C) inserted by No 177 of 1999, s 3 and Sch 1 item 55, effective 1 July 2000.
To avoid doubt, a reference to goods that are covered by an item in Schedule 4 to the Customs Tariff Act 1995 includes a reference to goods to which that item would apply apart from the operation of subsection 18(1) of that Act.
S 42-5(2) amended by No 176 of 1999, s 3 and Sch 1 item 79, by substituting "includes a reference to goods to which that item would apply apart from the operation of subsection 18(1) of that Act" for "includes a reference to goods to which that item would apply if they were dutiable goods within the meaning of the Customs Act 1901", effective 1 July 2000.
42-10
Goods returned to the indirect tax zone in an unaltered condition
(1)
An importation of goods is a
non-taxable importation if:
(a)
the goods were exported from the indirect tax zone and are returned to the indirect tax zone, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since their export; and
(b)
the importer was not entitled to, and did not claim, a payment under Division 168 (about the tourist refund scheme) related to the export of the goods; and
(c)
the importer:
(i)
is the manufacturer of the goods; or
(ii)
has previously acquired the goods, and the supply by means of which the importer acquired the goods was a *taxable supply (or would have been a taxable supply but for section 66-45); or
(iii)
has previously imported the goods, and the previous importation was a *taxable importation in respect of which the GST was paid.
An importation of goods is a
non-taxable importation if:
(a)
the importer had manufactured, acquired or imported the goods before 1 July 2000; and
(b)
the goods were exported from the indirect tax zone before, on or after 1 July 2000; and
(c)
the goods are returned to the indirect tax zone on or after 1 July 2000, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since their export; and
(d)
the importer was not entitled to, and did not claim, a payment under Division 168 (about the tourist refund scheme) related to the export of the goods; and
(e)
the ownership of the goods when they are returned to the indirect tax zone is the same as their ownership on 1 July 2000.
S 42-10 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 42-10 inserted by No 92 of 2000, s 3 and Sch 11 item 8B, effective 1 July 2000.
Former s 42-10 repealed by No 176 of 1999, s 3 and Sch 1 item 80, effective 1 July 2000. Former s 42-10 read:
42-10 Ship and aircraft stores
An importation of goods is a
non-taxable importation if the goods are *ship's stores or *aircraft's stores.
(1)
An importation of goods is a
non-taxable importation to the extent that a supply of the goods was a *supplier-taxed offshore supply of low value goods.
Note 1:
Under Subdivision 84-C, offshore supplies of low value goods may be treated as connected with the indirect tax zone (this is not the case if the supplier reasonably believes there will be a taxable importation: see section 84-83).
Note 2:
There are limits on refunds of excess GST paid as a result of the incorrect treatment of the supply as a taxable supply, if this section has been treated as applying: see section 142-16.
(2)
However, this section does not apply unless the *Comptroller-General of Customs is notified that the supply was a *taxable supply at or before the time by which the *taxable importation would (apart from this section) have been made.
(3)
The notice must be given, in the *approved form, by or on behalf of the importer of the goods.
S 42-15 inserted by No 77 of 2017, s 3 and Sch 1 item 19, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Former s 42-15 repealed by No 177 of 1999, s 3 and Sch 1 item 56, effective 1 July 2000. S 42-15 formerly read:
42-15 Goods imported or purchased by overseas travellers
(1)
An importation of goods is a
non-taxable importation if the goods:
(a)
are imported by a passenger or member of the crew of a *ship or aircraft; and
(b)
are covered by item 15 in Schedule 4 to the Customs Tariff Act 1995.
(2)
An importation of goods is a
non-taxable importation if the goods:
(a)
are purchased from an *inwards duty free shop by a *relevant traveller; and
(b)
are covered by item 15 in Schedule 4 to the Customs Tariff Act 1995 (or would be covered if they had been imported by the *relevant traveller).
Chapter 4 - The special rules
Division 45 - Introduction
45-1
What this Chapter is about
This Chapter sets out the special rules for the GST. The special rules apply only in particular circumstances, and are generally quite limited in their scope.
The special rules modify the application of the basic rules for the GST in Chapter 2.
Note 1:
The special rules that modify each group of basic rules in Chapter 2 are specifically identified in tables located at the end of the Divisions and Subdivisions in Chapter 2. In addition, a checklist of special rules is set out in Part 2-8.
Note 2:
This section is an explanatory section.
45-5
The effect of special rules
The provisions of this Chapter override the provisions of Chapter 2 (except section 29-25), but only to the extent of any inconsistency.
Part 4-1 - Special rules mainly about particular ways entities are organised
Note:
The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2.
Division 48 - GST groups
CCH Note
Act No 74 of 2010, s 3 and Sch 1 item 43 contains the following transitional provisions:
43 Transitional provisions for GST groups
GST groups in existence before commencement
(1)
Subject to subitems (5) to (8), on the commencement of this item [28 June 2010]:
(a)
a GST group that existed immediately before that commencement is taken to continue in existence as if:
(i)
it had been formed, and its formation had been notified to the Commissioner, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999 as amended; and
(ii)
its formation took effect immediately after that commencement; and
(b)
the entities that were members of the group immediately before that commencement are taken, immediately after that commencement, to continue to be the members of the group; and
(c)
the entity that was the representative member of the group immediately before that commencement is taken, immediately after that commencement, to continue to be the representative member of the group.
GST groups approved, but not in existence, before commencement
(2)
If, before the commencement of this item [28 June 2010], the Commissioner approved 2 or more entities as a GST group but the approval did not take effect before that commencement, then, on the date of effect decided by the Commissioner under section 48-85 of the A New Tax System (Goods and Services Tax) Act 1999:
(a)
the group is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as amended; and
(b)
the entities that jointly applied for that approval are taken to be the members of the group; and
(c)
the entity that was nominated in the application to be the representative member of the group is taken to be the representative member of the group.
GST groups applied for, but not approved, before commencement
(3)
If:
(a)
before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST group; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of approval of the group, a date occurring before the date of that commencement; and
(c)
the Commissioner did not approve the group as a GST group, and did not refuse the application, before that commencement;
then, on the date of effect specified in the application:
(d)
the group is taken to be formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as amended; and
(e)
the entities that jointly applied for that approval are taken to be the members of the group; and
(f)
the entity that was nominated in the application to be the representative member of the group is taken to be the representative member of the group.
(4)
If:
(a)
before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 48-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST group; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of approval of the group, a date occurring before the date of that commencement; and
(c)
the Commissioner did not approve the group as a GST group, and did not refuse the application, before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the formation of the GST group took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day:
(i)
the group is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 48-5 of that Act as so amended; and
(ii)
the entities that jointly applied for approval of the group are taken to be the members of the group; and
(iii)
the entity that was nominated, in the application for approval of the group, to be the representative member of the group is taken to be the representative member of the group.
Changes to membership etc. of GST groups applied for, but not approved, before commencement
(5)
If:
(a)
before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:
(i)
approve another entity as an additional member of the group; or
(ii)
revoke the approval of one of the members of the group as a member of the group; or
(iii)
approve another member of the group to replace the representative member of the group; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner:
(i)
did not give the approval, or revoke the approval, as requested in the application; and
(ii)
did not refuse the application;
before that commencement;
then, on and after that commencement, the group is taken to continue in existence as if:
(d)
the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the corresponding action referred to in paragraph 48-70(1)(a), (b) or (c) of that Act as so amended has been taken; and
(e)
the action took effect on the date of effect specified in the application.
(6)
If:
(a)
before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:
(i)
approve another entity as an additional member of the group; or
(ii)
revoke the approval of one of the members of the group as a member of the group; or
(iii)
approve another member of the group to replace the representative member of the group; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner:
(i)
did not give the approval, or revoke the approval, as requested in the application; and
(ii)
did not refuse the application;
before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the approval or revocation took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the group is taken to continue in existence as if:
(i)
the Commissioner has been notified, in accordance with section 48-70 of that Act as so amended, that the corresponding action referred to in paragraph 48-70(1)(a), (b) or (c) of that Act as so amended has been taken; and
(ii)
the action took effect on that day.
Revocation of approval of GST groups applied for, but revocation not approved, before commencement
(7)
If:
(a)
before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the group as a GST group; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;
then, on the date of effect specified in the application, the group is taken to be dissolved as if the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the action referred to in paragraph 48-70(1)(d) of that Act as so amended has been taken.
(8)
If:
(a)
before the commencement of this item [28 June 2010], the representative member of a GST group applied, in accordance with section 48-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the group as a GST group; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 48-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 48-71 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the revocation took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the group is taken to be dissolved as if:
(i)
the Commissioner has been notified, in accordance with section 48-70 of that Act as amended, that the action referred to in paragraph 48-70(1)(d) of that Act as so amended has been taken; and
Companies within a 90% owned group, and in some cases other entities (such as non-profit bodies), can form a GST group. One member of the group then deals with all the GST liabilities and entitlements (except for GST on most taxable importations) of the group, and (in most cases) intra-group transactions are excluded from the GST.
Note:
Provisions for members of GST groups apply for the wine equalisation tax (see Subdivision 21-B of the Wine Tax Act) and the luxury car tax (see Subdivision 16-A of the A New Tax System (Luxury Car Tax) Act 1999).
S 48-1 amended by No 39 of 2012, s 3 and Sch 4 item 2, by substituting "Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999" in the note, effective 15 April 2012.
S 48-1 amended by No 74 of 2010, s 3 and Sch 1 item 1, by substituting "form" for "be approved as", applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
S 48-1 amended by No 156 of 2000, s 3 and Sch 6 item 6, by inserting "(in most cases)" before "intra-group", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 48-1 amended by No 176 of 1999, s 3 and Sch 1 items 81 and 82, by inserting ", and in some cases other entities (such as non-profit bodies)," after "90% owned group" and inserting the Note, effective 1 July 2000.
Subdivision 48-A - Formation and membership of GST groups
Subdiv 48-A (heading) substituted by No 74 of 2010, s 3 and Sch 1 item 2, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. The heading formerly read:
(1)
Two or more entities may form a *GST group if:
(a)
each of the entities *satisfies the membership requirements of the group; and
(b)
each of the entities agrees in writing to the formation of the group; and
(c)
one of those entities notifies the Commissioner, in the *approved form, of the formation of the group; and
(d)
that entity is nominated, in that notice, to be the *representative member of the group; and
(e)
that entity is an *Australian resident.
A group of entities that is so formed is a
GST group.
If 2 or more entities would *satisfy the membership requirements for the *GST group, the group need not include all those entities.
(3)
The formation of the *GST group takes effect from the start of the day specified in the notice under paragraph (1)(c) (whether that day is before, on or after the day on which the entities decided to form the group).
(4)
However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *representative member of the group is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the formation of the *GST group takes effect from the start of:
(a)
the day specified in the notice, if that day is approved by the Commissioner under section 48-71; and
(b)
if paragraph (a) does not apply - such other day as the Commissioner approves under that section.
S 48-5 substituted by No 74 of 2010, s 3 and Sch 1 item 3, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-5 formerly read:
48-5 Approval of GST groups
(1)
The Commissioner must approve 2 or more entities as a *GST group if:
(a)
the entities jointly apply, in the *approved form, for approval as a GST group; and
(b)
each of the entities *satisfies the membership requirements for that GST group; and
(c)
the application nominates one of the entities to be the *representative member for the group; and
(d)
the entity so nominated is an *Australian resident.
A group of entities that is so approved is a
GST group.
S 48-5(2) substituted by No 156 of 2000, s 3 and Sch 6 item 7, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 48-5(2) formerly read:
(2)
If the application for approval includes 2 or more *companies, the application need not include all the companies of the *90% owned group to which the 2 or more companies belong.
Note:
Refusing an application for approval under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-5 (note) amended by No 73 of 2006, s 3 and Sch 5 item 92, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
S 48-7 inserted by No 74 of 2010, s 3 and Sch 1 item 3, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
48-10
Membership requirements of a GST group
(1)
An entity
satisfies the membership requirements of a *GST group, or a proposed GST group, if the entity:
(a)
is:
(b)
is, if the entity is a company, a company of the same *90% owned group as all the other members of the GST group or proposed GST group that are also companies; and
(c)
is *registered; and
(d)
has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and
S 48-10(1) amended by No 156 of 2000, s 3 and Sch 6 item 8, by substituting "the other members of the GST group or proposed GST group" for "those other members" in paras (d) and (e), applicable in relation to net amounts for tax periods starting on or after 1 July 2000 and s 3 and Sch 6 item 9, by inserting para (g), effective 21 December 2000.
S 48-10(1) amended by No 92 of 2000, s 3 and Sch 11 item 9, by substituting ", trust or individual" for "or trust" in para (a)(ii), effective 1 July 2000.
Paragraph (1)(b) does not apply if:
(a)
the entity is a non-profit body; and
(b)
all the other members of the GST group or proposed GST group are non-profit bodies; and
(c)
the entity and all those other members are members of the same *non-profit association.
Note 1:
For the membership requirements of non-profit sub-entities, see section 63-50.
Note 2:
For the membership requirements of a GST group of government related entities, see section 149-25.
S 48-10(2) amended by No 156 of 2000, s 3 and Sch 6 item 10, by substituting "Paragraph (1)(b)" for "However, paragraph (1)(b)", effective 21 December 2000.
S 48-10(2) amended by No 92 of 2000, s 3 and Sch 1 item 4, by substituting Notes 1 and 2 for the Note, effective 1 July 2000. The Note formerly read:
Note:
For the membership requirements of a GST group of government related entities, see section 149-25.
S 48-10(2) amended by No 177 of 1999, s 3 and Sch 1 item 57, by inserting the Note, effective 1 July 2000.
S 48-10(2) amended by No 176 of 1999, s 3 and Sch 1 item 83, by substituting "paragraph (1)(b)" for "paragraph (1)(a)", effective 1 July 2000.
Paragraph (1)(d) does not apply in relation to a tax period that the Commissioner has determined under section 27-30 if the tax period:
(a)
ends at the same time as a tax period (a
corresponding tax period) of each of the other *members of the *GST group; and
(b)
is not longer than any corresponding tax period (other than a tax period that the Commissioner has determined under section 27-30).
S 48-10(2A) inserted by No 74 of 2010, s 3 and Sch 1 item 4, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
A *company does not satisfy the membership requirements of a *GST group, or a proposed GST group, if:
(a)
one or more other members of the GST group or proposed GST group are not companies; and
(b)
none of the members of the GST group or proposed GST group that are companies satisfy section 48-15.
(1)
A *company that is a member of a *GST group, or a proposed GST group, satisfies this section if:
(a)
a *partnership, trust or individual that is a member of the GST group or proposed GST group would, if it were another company, have *at least a 90% stake in that company; or
(b)
the company has only one member, and that member:
(i)
is a partner in a partnership that is a member of the GST group or proposed GST group; or
(ii)
is an individual that is a member of the GST group or proposed GST group; or
(iii)
is a *family member of that partner or individual; or
(c)
the company has more than one member, each of whom is:
(i)
a partner in the same partnership that is a member of the GST group or proposed GST group; or
(ii)
a family member of any such partner;
and one of the following applies:
(iii)
at least 2 of the partners are members of the company;
(iv)
one of the partners is a member of the company, and at least one other member of the company is a family member of a different partner;
(v)
none of the partners is a member of the company, and the members of the company are not all family members of the same partner and no other partner; or
(d)
the company has more than one member, each of whom is:
(i)
an individual who is a member of the GST group or proposed GST group; or
a trust is a member of the GST group or proposed GST group, and distributions of income or capital of the trust are not made except to an entity that is:
(i)
the company; or
(ii)
any other company that is a member of the GST group or proposed GST group; or
(iia)
a member of, or a family member of a member of, any company referred to in subparagraph (i) or (ii) that is a company to which subsection (1A) applies; or
S 48-15(1) amended by No 169 of 2012, s 3 and Sch 2 item 93, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (e)(iii), effective 3 December 2012.
S 48-15(1AA) repealed by No 169 of 2012, s 3 and Sch 2 item 94, effective 3 December 2012. S 48-15(1AA) formerly read:
(1AA)
Subparagraph (1)(e)(iii) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subparagraph (1)(e)(iii) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 48-15(1AA) inserted by No 95 of 2004, s 3 and Sch 10 item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
(1A)
This subsection applies to a company if:
(a)
the company has only one member; or
(b)
the company has more than one member, and:
(i)
at least 2 of the members are beneficiaries of the trust in question (either directly, or indirectly through one or more interposed trusts); or
(ii)
one of the members is such a beneficiary, and at least one other such beneficiary is a *family member of a different member of the company; or
(iii)
none of the members is such a beneficiary, and those family members (of the members of the company) who are such beneficiaries are not all family members of the same member of the company and no other member.
A person is a
family member of an individual if the individual's family, within the meaning of section 272-95 in Schedule 2F to the *ITAA 1936, includes that person. There are no family members of an entity that is not an individual.
Subdiv 48-B (heading) substituted by No 74 of 2010, s 3 and Sch 1 item 5, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. The heading formerly read:
Subdivision 48-B - Consequences of approval of GST groups
GST that is payable on any *taxable supply an entity makes and that is attributable to a tax period during which the entity is a *member of a *GST group:
(a)
is payable by the *representative member; and
(b)
is not payable by the entity that made it (unless the entity is the representative member).
However, each member may be jointly and severally liable to pay the GST that is payable by the representative member (see section 444-90 in Schedule 1 to the Taxation Administration Act 1953).
S 48-40(1) amended by No 74 of 2010, s 3 and Sch 1 item 50, by substituting "may be" for "is" (first occurring) in the note, applicable to tax periods starting on or after 1 July 2010.
S 48-40(1) amended by No 74 of 2010, s 3 and Sch 1 items 6 and 7, by substituting "that is payable on any *taxable supply an entity makes and that is attributable to a tax period during which the entity is a *member of a *GST group" for "payable on any *taxable supply or *taxable importation that a *member of a *GST group makes" and substituting "the entity" for "the member" (wherever occurring) in para (b), applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
S 48-40(1) amended by No 73 of 2006, s 3 and Sch 5 item 2, by inserting the note at the end, effective 1 July 2006.
GST that is payable on any *taxable importation an entity makes while the entity is a *member of a *GST group:
(a)
is payable by the *representative member; and
(b)
is not payable by the member that made it (unless the member is the representative member).
Note:
However, each member may be jointly and severally liable to pay the GST that is payable by the representative member (see section 444-90 in Schedule 1 to the Taxation Administration Act 1953).
S 48-40(1A) inserted by No 74 of 2010, s 3 and Sch 1 item 8, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
(2)
However:
(a)
a supply that an entity makes to another *member of the same *GST group is treated as if it were not a *taxable supply, unless:
(i)
it is a taxable supply because of section 84-5 (which is about offshore supplies); or
(b)
this section only applies to GST payable on a *taxable importation made, by a member of the GST group other than the *representative member, if the GST on the importation is payable at a time when GST on *taxable supplies is normally payable by the representative member.
S 48-40(2) amended by No 77 of 2017, s 3 and Sch 1 item 20, by omitting "other than goods or real property" after "offshore supplies" from para (a)(i), effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 48-40(2) amended by No 52 of 2016, s 3 and Sch 1 item 15, by substituting "section 84-5" for "Division 84" in para (a)(i), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 48-40(2) amended by No 176 of 1999, s 3 and Sch 1 item 84, by substituting para (a), effective 1 July 2000. Para (a) formerly read:
(a)
a supply that an entity makes to another *member of the same *GST group is treated as if it were not a *taxable supply (unless it is a taxable supply because of Division 84 (which is about offshore supplies other than goods or real property)); and
(3)
This section has effect despite sections 9-40 and 13-15 (which are about liability for GST).
48-45
Who is entitled to input tax credits
(1)
If an entity makes a *creditable acquisition or *creditable importation the input tax credit for which is attributable to a tax period during which the entity is a *member of a *GST group:
(a)
the *representative member is entitled to the input tax credit on the acquisition or importation; and
(b)
the entity making the acquisition or importation is not entitled to the input tax credit on the acquisition or importation (unless the entity is the representative member).
S 48-45(1) amended by No 74 of 2010, s 3 and Sch 1 items 9 and 10, by substituting "an entity makes a *creditable acquisition or *creditable importation the input tax credit for which is attributable to a tax period during which the entity is a *member of a *GST group" for "a *member of a *GST group makes a *creditable acquisition or *creditable importation" and substituting "the entity" for "the member" (wherever occurring) in para (b), applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
In deciding, for the purposes of subsection (1), whether an acquisition or importation by an entity is a *creditable acquisition or *creditable importation, the acquisition or importation is treated as being solely or partly for a *creditable purpose if, and only if, it would be so treated if:
(a)
the GST group were treated as a single entity; and
(b)
the GST group were not treated as a number of entities corresponding to the members of the GST group.
S 48-45(2) amended by No 74 of 2010, s 3 and Sch 1 item 11, by substituting "an entity" for "a *member of a *GST group", applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
However, an acquisition that an entity makes from another *member of the same *GST group is not a *creditable acquisition unless the supply of the thing acquired by the entity was a *taxable supply because of section 84-5 (which is about offshore supplies).
S 48-45(3) amended by No 77 of 2017, s 3 and Sch 1 item 21, by omitting "other than goods or real property" after "offshore supplies", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 48-45(3) amended by No 52 of 2016, s 3 and Sch 1 item 16, by substituting "section 84-5" for "Division 84", applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 48-45(3) substituted by No 156 of 2000, s 3 and Sch 6 item 13, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 48-45(3) formerly read:
(3)
However, an acquisition that an entity makes from another *member of the same *GST group is treated as if it were not a *creditable acquisition.
(4)
This section has effect despite sections 11-5 and 15-5 (which are about what are creditable acquisitions and creditable importations), and sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
48-50
Adjustments
(1)
Any *adjustment that an entity has and that is attributable to a tax period during which the entity is a *member of a *GST group is to be treated as if:
(a)
the entity did not have the adjustment (unless the entity is the *representative member); and
S 48-50(1) amended by No 74 of 2010, s 3 and Sch 1 items 12 and 13, by substituting "that an entity has and that is attributable to a tax period during which the entity is a *member of a *GST group" for "that a *member of a *GST group has" and substituting "the entity" for "that member" (wherever occurring) in para (a), applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
(2)
This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
48-51
Consequences of being a member of a GST group for part of a tax period
(1)
If you are a *member of a *GST group only for one or more parts of a tax period:
(a)
section 48-40 does not apply to the GST payable on a *taxable supply that you make, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and
(b)
section 48-40 does not apply to the GST payable on a *taxable importation that you make during a period to which subsection (2) applies; and
(c)
section 48-45 does not apply to the input tax credit for a *creditable acquisition or *creditable importation that you make, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and
(d)
section 48-50 does not apply to an *adjustment that you have that would be attributable to a period to which subsection (2) applies if it were a tax period applying to you.
(2)
This section applies to any period, during the tax period, during which you were not a *member of that *GST group or any other GST group.
S 48-51 inserted by No 74 of 2010, s 3 and Sch 1 item 14, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
48-52
Consequences for a representative member of membership change during a tax period
(1)
If an entity is a *member of a *GST group, of which you are the *representative member, only for one or more parts of a tax period:
(a)
section 48-40 only applies to the GST payable on a *taxable supply that the entity makes, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity; and
(b)
section 48-40 only applies to the GST payable on a *taxable importation that the entity makes during a period to which subsection (2) applies; and
(c)
section 48-45 only applies to the input tax credit for a *creditable acquisition or *creditable importation that the entity makes, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity; and
(d)
section 48-50 only applies to an *adjustment that the entity has that would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity.
(2)
This section applies to any period, during the tax period, during which the entity was a *member of the *GST group of which you are the *representative member.
(3)
However, if you are the *representative member of the *GST group only for one or more parts of the tax period, this section has effect subject to section 48-53.
(4)
If an entity is a *member of different *GST groups during the same tax period, subsections (1) and (2) apply separately in relation to each of those groups.
S 48-52 inserted by No 74 of 2010, s 3 and Sch 1 item 14, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
48-53
Consequences of changing a representative member during a tax period
(1)
If you are the *representative member of a *GST group only for one or more parts of a tax period, then, in relation to your capacity as the representative member:
(a)
section 48-40 only applies to the GST payable on a *taxable supply that an entity makes, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and
(b)
section 48-40 only applies to the GST payable on a *taxable importation that an entity makes during a period to which subsection (2) applies; and
(c)
section 48-45 only applies to the input tax credit for a *creditable acquisition or *creditable importation that an entity makes, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and
(d)
section 48-50 only applies to an *adjustment that an entity has that would be attributable to a period to which subsection (2) applies if it were a tax period applying to you.
(2)
This section applies to any period, during the tax period, during which you were the *representative member of the *GST group.
S 48-53 inserted by No 74 of 2010, s 3 and Sch 1 item 14, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
48-55GST groups treated as single entities for certain purposes
(1)
Despite sections 48-45 and 48-50, a *GST group is treated as a single entity, and not as a number of entities corresponding to the *members of the GST group, for the purposes of working out:
(a)
the amounts of any input tax credits to which the *representative member is entitled; and
(b)
whether the representative member has any *adjustments; and
(c)
the amounts of any such adjustments.
(1A)
If:
(a)
while you were not a *member of any *GST group, you acquired or imported a thing; and
(b)
you become a member of a GST group at a time when you still hold the thing;
(c)
the amount of the input tax credit to which you were entitled for the acquisition or importation; or
(d)
the amount of any *adjustment you had under Division 129 in relation to the thing;
S 48-55(1A) inserted by No 78 of 2005, s 3 and Sch 6 item 3, applicable, and taken to have applied, in relation to adjustments arising under Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 on or after 17 March 2005.
(2)
This section has effect despite section 11-25 (which is about the amount of input tax credits) and section 17-10 (which is about the effect of adjustments on net amounts).
48-57
Tax invoices that are required to identify recipients
(1)
A document issued for a supply is taken to be a
tax invoice if:
(a)
it would not, but for this section, be a tax invoice because it does not contain enough information to enable the identity, or the *ABN, of the *recipient of the supply to be clearly ascertained; and
(b)
there is no other reason why it would not be a tax invoice; and
(c)
the *representative member of a *GST group is entitled under section 48-45 to an input tax credit for the *creditable acquisition relating to the supply; and
(d)
the document contains enough information to enable the identity of at least one of the following to be clearly ascertained:
(i)
the GST group;
(ii)
the representative member;
(iii)
another entity that is or was a *member of the GST group, if the representative member would still have been entitled under section 48-45 to that input tax credit if that other entity had been the recipient of the supply.
Note:
Subparagraph (d)(iii) ensures that a member of the GST group identified in the document was a member of the group at the relevant time for the supply in question.
(2)
However, any obligation that the supplier of a *taxable supply has under subsection 29-70(2) is an obligation to give to the *recipient of the supply a document that would be a *tax invoice for the supply even if subsection (1) of this section had not been enacted.
Note:
This subsection ensures that a recipient's entitlement to a tax invoice, including (if subparagraph 29-70(1)(c)(ii) requires it) an entitlement to a tax invoice that enables the recipient's identity or the recipient's ABN to be clearly ascertained, is unaffected by this section.
(3)
This section has effect despite section 29-70 (which is about tax invoices).
S 48-57 inserted by No 74 of 2010, s 3 and Sch 3 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
48-60
GST returns
(1)
If you are a *member of a *GST group during the whole of a tax period, you are not required to give to the Commissioner a *GST return for that tax period, unless you are the *representative member of the group during that period.
Note:
If you were not a member of a GST group during the whole of a tax period, you are still obliged to give a GST return for the tax period, and (because of section 48-51) your net amount for the tax period will take into account your liabilities and entitlements relating to the one or more parts of the tax period during which you were not a member.
S 48-60(1) amended by No 74 of 2010, s 3 and Sch 1 item 15, by inserting the note at the end, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
(2)
This section has effect despite section 31-5 (which is about who must give GST returns).
Subdivision 48-C - Administrative matters
48-70
Changing the membership etc. of GST groups
(1)
The following actions may be taken, in accordance with subsection (2), in relation to a *GST group:
(a)
the *representative member of the group may, with the written agreement of an entity that *satisfies the membership requirements of the GST group, add the entity to the group;
(b)
the representative member may leave the group; or
(c)
another *member of the group, nominated by the members, who is an *Australian resident may become the new representative member; or
(d)
the representative member may remove from the group any other member of the group; or
(e)
if a member of the group is an *incapacitated entity - the entity's *representative may remove the entity from the group; or
(f)
the representative member may dissolve the group.
(2)
The action is to be taken by notice given to the Commissioner, in the *approved form, by:
(a)
if paragraph (1)(a), (d) or (f) applies - the *representative member; or
(b)
if paragraph (1)(b) or (c) applies - the new representative member of the group; or
(c)
if paragraph (1)(e) applies - the *representative of the *incapacitated entity.
(3)
The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).
(4)
However, if the notice was given to the Commissioner after the day by which the *representative member of the group, or the entity nominated to be the new representative member of the group, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:
(a)
the day specified in the notice, if that day is approved by the Commissioner under section 48-71; and
(b)
if paragraph (a) does not apply - such other day as the Commissioner approves under that section.
(5)
Despite subsections (3) and (4), action taken under paragraph (1)(e) cannot take effect earlier than the day on which the *member of the group became an *incapacitated entity.
(6)
A *GST group is taken to be dissolved if:
(a)
a *member of the group ceases to be the *representative member of the group; and
(b)
no other member of the group becomes the representative member of the group, with effect from the day after the previous representative member ceased to be the representative member of the group.
(7)
A notice that another *member of the *GST group has become the *representative member of the group must be given to the Commissioner within 21 days after the other member became the representative member.
Note:
Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.
S 48-70 substituted by No 74 of 2010, s 3 and Sch 1 item 16, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-70 formerly read:
48-70 Changing the membership etc. of GST groups
Changes made on application
(1)
The Commissioner must, if the *representative member of a *GST group applies to the Commissioner in the *approved form, do one or more of these (as requested in the application):
(a)
approve, as an additional *member of the GST group, another entity that *satisfies the membership requirements for the GST group;
(b)
revoke the approval of one of the members of the GST group as a member of the group;
(c)
approve another member of the GST group to replace the applicant as the representative member of the group.
Note:
Refusing an application for approval or revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-70(1) amended by No 73 of 2006, s 3 and Sch 5 item 93, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 48-70(1) amended by No 156 of 2000, s 3 and Sch 6 item 14, by substituting "entity" for "*company" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(1A)
The Commissioner must revoke the approval of one of the *members of a *GST group if:
(a)
the member becomes an *incapacitated entity; and
(b)
the *representative of the incapacitated entity applies to the Commissioner in the *approved form for the member's approval to be revoked.
Revoking under this subsection an approval under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-70(2) amended by No 73 of 2006, s 3 and Sch 5 item 94, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
48-71
Approval of early day of effect of forming, changing etc. GST groups
(1)
If an entity that gives a notice to the Commissioner under paragraph 48-5(1)(c) or subsection 48-70(2) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:
(a)
approve, for the purposes of subsection 48-5(4) or 48-70(4), the day specified in the notice; or
(b)
approve another day for those purposes.
Note:
Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(2)
The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.
Note:
Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(3)
The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.
S 48-71 inserted by No 74 of 2010, s 3 and Sch 1 item 16, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
48-72
Effect of representative member becoming an incapacitated entity
(Repealed by No 74 of 2010)
S 48-72 repealed by No 74 of 2010, s 3 and Sch 1 item 17, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-72 formerly read:
48-72 Effect of representative member becoming an incapacitated entity
(1)
The *representative member of a *GST group ceases to be the representative member of the group if the representative member becomes an *incapacitated entity.
(4)
If a *member of a *GST group ceases, because of this section, to be the *representative member of the group, the Commissioner must approve another member of the group to replace that member as the representative member of the group if:
(a)
any member of the group applies to the Commissioner in the *approved form for that other member to be so approved; and
(b)
that other member is not an *incapacitated entity.
S 48-72 inserted by No 118 of 2009, s 3 and Sch 1 item 22, effective 4 December 2009.
48-73
Tax periods of GST groups with incapacitated members
(1)
If a *member of a *GST group becomes an *incapacitated entity, the *representative member of that group may, by notifying the Commissioner in the *approved form, elect for the tax period that applies at the time to the members of the group to end at the same time as the incapacitated entity's tax period ends under subsection 27-39(1).
Note 1:
Section 31-10 provides for when a GST return must be given to the Commissioner for a tax period other than a quarterly tax period.
Note 2:
If the representative member does not make an election under this section when a member of the group becomes an incapacitated entity, the member's membership of the group may cease if, because of section 27-39, the tax periods applying to it are not the same as those applying to the other members of the group.
S 48-73(1) amended by No 74 of 2010, s 3 and Sch 1 item 18, by substituting note 2, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. Note 2 formerly read:
Note 2:
If the representative member does not make an election under this section when a member of the group becomes an incapacitated entity, it is likely that the member would no longer satisfy paragraph 48-10(1)(d), and that the Commissioner would revoke its approval as a member of the group under subsection 48-70(2).
If an entity ceases to be the *representative member of a *GST group as a result of becoming an *incapacitated entity, the entity may make an election under subsection (1), in relation to becoming an incapacitated entity, as if the entity were still the representative member of the group.
S 48-73(1A) inserted by No 74 of 2010, s 3 and Sch 1 item 19, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
S 48-73(1B) inserted by No 74 of 2010, s 3 and Sch 1 item 19, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
(2)
If a tax period (the
first tax period) ends on a particular day because of subsection (1), the next tax period starts on the day after that day and ends when the first tax period would have ended but for that subsection.
(3)
This section has effect despite Division 27 (which is about how to work out the tax periods that apply).
Subsection (1) does not apply for the purposes of the representative member making an election under subsection 48-73(1) relating to the representative member.
(3)
The *representative member of a *GST group ceases to be the representative member of the group if:
(a)
all the *members of the group are *incapacitated entities; and
(b)
a member of the group who is not the representative member ceases to be an incapacitated entity.
S 48-75 substituted by No 74 of 2010, s 3 and Sch 1 item 20, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-75 formerly read:
48-75 Revoking the approval of GST groups
Revoking on application
(1)
The Commissioner must, if the *representative member of a *GST group applies to the Commissioner in the *approved form, revoke the approval of the group as a GST group.
Note:
Refusing an application for revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-75(1) amended by No 73 of 2006, s 3 and Sch 5 item 95, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must revoke the approval of a *GST group if:
(a)
the Commissioner is satisfied that none of its *members, or only one of its members, *satisfies the membership requirements for that GST group; or
(b)
the Commissioner is satisfied that:
(i)
a member of the GST group has ceased, because of section 48-72, to be the *representative member of the group; and
(ii)
in the period of 21 days since the cessation, the Commissioner has not been required under subsection 48-72(4) to approve another member of the group to replace that member as the representative member of the group.
Note:
Revoking under this subsection the approval of a GST group is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-75(2) substituted by No 118 of 2009, s 3 and Sch 1 item 23, effective 4 December 2009. S 48-75(2) formerly read:
Revoking without application
(2)
The Commissioner must revoke the approval of the *GST group if satisfied that none of its members, or only one of its members, *satisfies the membership requirements for that GST group.
Note:
Revoking under this subsection the approval of a GST group is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-75(2) amended by No 73 of 2006, s 3 and Sch 5 item 96, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
48-80
Notification by representative members
(Repealed by No 74 of 2010)
S 48-80 repealed by No 74 of 2010, s 3 and Sch 1 item 20, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-80 formerly read:
48-80 Notification by representative members
The *representative member of a *GST group must notify the Commissioner of any circumstances under which the Commissioner must:
(a)
revoke the approval of one of the *members of the group under subsection 48-70(2); or
(b)
revoke the approval of the group under subsection 48-75(2).
The notification may (in appropriate cases) be in the form of an application under subsection 48-70(1). The notification, or application, must be given to the Commissioner within 21 days after the circumstances occurred.
48-85
Date of effect of approvals and revocations
(Repealed No 74 of 2010)
S 48-85 repealed by No 74 of 2010, s 3 and Sch 1 item 20, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-85 formerly read:
48-85 Date of effect of approvals and revocations
(1)
The Commissioner must decide the date of effect of any approval, or any revocation of an approval, under this Division.
(2)
The date of effect may be the day of the decision, or a day before or after that day.
S 48-85(2) amended by No 134 of 2004, s 3 and Sch 1 item 6, by omitting "However, it must be the beginning of a tax period applying to members of the *GST group in question" at the end, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
(3)
However, the date of effect must be:
(a)
the beginning of a tax period applying to the members of the *GST group in question; or
(b)
a day during an *annual tax period, or an *instalment tax period, applying to the members of the GST group.
Note:
Deciding under this section the date of effect of any approval, or any revocation of an approval, under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 48-85(3) amended by No 73 of 2006, s 3 and Sch 5 item 97, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 48-85(3) amended by No 134 of 2004, s 3 and Sch 3 item 1, by inserting ", or an *instalment tax period," after "*annual tax period", applicable in relation to net amounts for tax periods starting on or after 1 July 2005.
S 48-85(3) inserted by No 134 of 2004, s 3 and Sch 1 item 7, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
48-90
Notification by the Commissioner
(Repealed by No 74 of 2010)
S 48-90 repealed by No 74 of 2010, s 3 and Sch 1 item 20, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 48-90 formerly read:
48-90 Notification by the Commissioner
The Commissioner must give notice of any decision that he or she makes under this Division:
(a)
if the decision relates to the approval of 2 or more companies as a *GST group - to the company nominated in the application for approval to be the *representative member of the group; or
(b)
otherwise - to the representative member of the *GST group to which the decision relates.
Subdivision 48-D - Ceasing to be a member of a GST group
If you cease to be a member of a GST group (the
first GST group), any *adjustment that arises afterwards in relation to a supply, acquisition or importation that you made while a *member of the first GST group (other than a supply to, or an acquisition from, another member of that group):
(a)
is an adjustment that you have; and
(b)
is not an adjustment of the entity that is or was the *representative member of the first GST group (unless you were that representative member).
S 48-110(1) amended by No 12 of 2012, s 3 and Sch 6 item 97, by substituting "cease" for "*cease", applicable to tax periods starting on or after 22 March 2012.
(2)
In relation to the first GST group, this section has effect despite section 48-50 (which is about who has adjustments for a GST group).
(i)
while you were a *member of a *GST group (the
first GST group), you acquired a thing (otherthan from another member of that group) or imported a thing; or
(ii)
you acquired or imported a thing while you were not a member of any GST group, and you subsequently became a member of a GST group (the
first GST group) while you still held the thing; and
S 48-115(1) amended by No 12 of 2012, s 3 and Sch 6 item 98, by substituting "cease" for "*cease" in para (b), applicable to tax periods starting on or after 22 March 2012.
S 48-115(1) amended by No 78 of 2005, s 3 and Sch 6 items 4 to 7, by substituting para (a), omitting ", under section 48-55" after "last used to work out", inserting "you or" after "to which" in para (c) and inserting "you or" after "*adjustment" in para (d), applicable, and taken to have applied, in relation to adjustments arising under Division 129 of the A New Tax System (Goods and Services Tax) Act 1999 on or after 17 March 2005. Para (a) formerly read:
(a)
while you were a *member of a *GST group (the
first GST group), you acquired a thing (other than from another member of that group) or imported a thing; and
(2)
If:
(a)
while you were a *member of a *GST group (the
first GST group), you acquired a thing (other than from another member of that group) or imported a thing; and
(b)
you have ceased to be a member of the first GST group; and
(c)
you have an *adjustment under Division 129 in relation to the thing, or the *representative member of another GST group of which you are a *member has that adjustment;
then, for the purposes of working out the full input tax credit in section 129-70 or 129-75, you are taken not to have been a member of a GST group when you acquired or imported the thing.
S 48-115(2) amended by No 12 of 2012, s 3 and Sch 6 item 99, by substituting "ceased" for "*ceased" in para (b), applicable to tax periods starting on or after 22 March 2012.
S 48-115 inserted by No 177 of 1999, s 3 and Sch 1 item 58, effective 1 July 2000.
The Commissioner must approve 2 or more entities as a *GST religious group if:
(a)
the entities jointly apply, in the *approved form, for approval as a GST religious group; and
(b)
each of the entities *satisfies the membership requirements for that GST religious group; and
(c)
the application nominates one of the entities to be the *principal member for the group; and
(d)
the entity so nominated is an *Australian resident.
A group of entities that is so approved is a
GST religious group.
Note:
Refusing an application for approval under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-5 amended by No 73 of 2006, s 3 and Sch 5 item 98, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 49-5 inserted by No 92 of 2000, s 3 and Sch 1 item 4A, effective 1 July 2000.
49-10
Membership requirements of a GST religious group
An entity
satisfies the membership requirements of a *GST religious group, or a proposed GST religious group, if:
(a)
the entity is *registered; and
(b)
the entity is endorsed as exempt from income tax under Subdivision 50-B of the *ITAA 1997; and
(c)
all the other members of the GST religious group or proposed GST religious group are so endorsed; and
(d)
the entity and all those other members are part of the same religious organisation; and
(e)
the entity is not a member of any other GST religious group.
(1)
A supply that a *member of a *GST religious group makes to another member of the same GST religious group is treated as if it were not a *taxable supply.
(2) This section has effect despite section 9-5 (which is about what are taxable supplies).
(1)
An acquisition that a *member of a *GST religious group makes from another member of the same GST religious group is treated as if it were not a *creditable acquisition.
(2)
This section has effect despite section 11-5 (which is about what are creditable acquisitions).
(1)
An *adjustment event cannot arise in relation to:
(a)
a supply that a *member of a *GST religious group makes to another member of the same GST religious group; or
(b)
an acquisition that a member of a GST religious group makes from another member of the same GST religious group.
(2)
This section has effect despite section 19-10 (which is about what are adjustment events).
(1)
An *adjustment cannot arise under Division 129 in relation to an acquisition that a *member of a *GST religious group makes from another member of the same GST religious group.
(2)
This section has effect despite section 129-5 (which is about when adjustments can arise under Division 129).
(1)
Despite sections 49-35, 49-40 and 49-45, a *GST religious group is treated as a single entity, and not as a number of entities corresponding to the *members of the GST religious group, for the purposes of working out:
(a)
whether acquisitions or importations by a member are for a *creditable purpose; and
(b)
the amounts of any input tax credits to which the member is entitled; and
(c)
whether the member has any *adjustments; and
(d)
the amounts of any such adjustments.
(2)
This section has effect despite section 11-25 (which is about the amount of input tax credits) and section 17-10 (which is about the effect of adjustments on net amounts).
Changes made on application
(1)
The Commissioner must, if the *principal member of a *GST religious group applies to the Commissioner in the *approved form, do one or more of these (as requested in the application):
(a)
approve, as an additional *member of the GST religious group, another entity that *satisfies the membership requirements for the GST religious group;
(b)
revoke the approval of one of the members of the GST religious group as a member of the group;
(c)
approve another member of the GST religious group to replace the applicant as the principal member of the group.
Note:
Refusing an application for approval or revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-70(1) amended by No 73 of 2006, s 3 and Sch 5 item 99, by substituting "Subdivison 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
Revoking under this subsection an approval under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-70(2) amended by No 73 of 2006, s 3 and Sch 5 item 100, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 49-70 inserted by No 92 of 2000, s 3 and Sch 1 item 4A, effective 1 July 2000.
49-75
Revoking the approval of GST religious groups
Revoking on application
(1)
The Commissioner must, if the principal member of a *GST religious group applies to the Commissioner in the *approved form, revoke the approval of the group as a GST religious group.
Note:
Refusing an application for revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-75(1) amended by No 73 of 2006, s 3 and Sch 5 item 101, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
Revoking without application
(2)
The Commissioner must revoke the approval of the *GST religious group if satisfied that none of its members, or only one of its members, *satisfies the membership requirements for that GST religious group.
Note:
Revoking under this subsection the approval of a GST group is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-75(2) amended by No 73 of 2006, s 3 and Sch 5 item 102, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 49-75 inserted by No 92 of 2000, s 3 and Sch 1 item 4A, effective 1 July 2000.
The principal member of a *GST religious group must notify the Commissioner of any circumstances under which the Commissioner must:
(a)
revoke the approval of one of the *members of the group under subsection 49-70(2); or
(b)
revoke the approval of the group under subsection 49-75(2).
The notification may (in appropriate cases) be in the form of an application under subsection 49-70(1) or 49-75(1). The notification, or application, must be given to the Commissioner within 21 days after the circumstances occurred.
(1)
The Commissioner must decide the date of effect of any approval, or any revocation of an approval, under this Division.
(2)
The date of effect may be the day of the decision, or a day before or after that day. However, it must be a day on which, for all the *members of the *GST religious group in question, a tax period begins.
Note:
Deciding under this section the date of effect of any approval, or any revocation of an approval, under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 49-85 amended by No 73 of 2006, s 3 and Sch 5 item 103, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 49-85 inserted by No 92 of 2000, s 3 and Sch 1 item 4A, effective 1 July 2000.
The Commissioner must give notice of any decision that he or she makes under this Division:
(a)
if the decision relates to the approval of 2 or more entities as a *GST religious group - to the entity nominated in the application for approval to be the *principal member of the group; or
(b)
otherwise - to the principal member of the *GST religious group to which the decision relates.
Activities of a religious practitioner done in pursuit of his or her vocation as a religious practitioner and as a member of a religious institution will be treated as activities done by the religious institution, unless the religious practitioner is acting as an employee or agent.
(i)
in pursuit of his or her vocation as a religious practitioner; and
(ii)
as a member of a religious institution; and
(b)
does not do the activity, or series of activities, as an employee or agent of the religious institution or another entity;
the *GST law applies as if the activity, or series of activities, had been done by the religious institution and not by the religious practitioner.
Note:
This will mean that such an activity will be an enterprise of the religious institution under subsection 9-20(1) and not an enterprise of the religious practitioner.
S 50-5 inserted by No 168 of 2001, s 3 and Sch 1 item 4, applicable to activities done by a religious practitioner on or after 1 July 2000.
Division 51 - GST joint ventures
CCH Note
Act No 74 of 2010, s 3 and Sch 1 item 44 contains the following transitional provisions:
44 Transitional provisions for GST joint ventures
GST joint ventures in existence before commencement
(1)
Subject to subitems (5) to (8), on the commencement of this item [28 June 2010]:
(a)
a GST joint venture that existed immediately before that commencement is taken to continue in existence as if:
(i)
it had been formed, and its formation had been notified to the Commissioner, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999 as amended; and
(ii)
its formation took effect immediately after that commencement; and
(b)
the entities that were participants in the joint venture immediately before that commencement are taken, immediately after that commencement, to continue to be the participants in the joint venture; and
(c)
the entity that was the joint venture operator of the joint venture immediately before that commencement is taken, immediately after that commencement, to continue to be the joint venture operator of the joint venture.
GST joint ventures approved, but not in existence, before commencement
(2)
If, before the commencement of this item [28 June 2010], the Commissioner approved 2 or more entities as a GST joint venture but the approval did not take effect before that commencement, then, on the date of effect decided by the Commissioner under section 51-85 of the A New Tax System (Goods and Services Tax) Act 1999:
(a)
the joint venture is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as amended; and
(b)
the entities that jointly applied for that approval are taken to be the participants in the joint venture; and
(c)
the entity that was nominated in the application to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.
GST joint ventures applied for, but not approved, before commencement
(3)
If:
(a)
before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST joint venture; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of approval of the joint venture, a date occurring before the date of that commencement; and
(c)
the Commissioner did not approve the joint venture as a GST joint venture, and did not refuse the application, before that commencement;
then, on the date of effect specified in the application:
(d)
the joint venture is taken to be formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as amended; and
(e)
the entities that jointly applied for that approval are taken to be the participants in the joint venture; and
(f)
the entity that was nominated in the application to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.
(4)
If:
(a)
before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST joint venture; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of approval of the joint venture, a date occurring before the date of that commencement; and
(c)
the Commissioner did not approve the joint venture as a GST joint venture, and did not refuse the application, before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the formation of the GST joint venture took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day:
(i)
the joint venture is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as so amended; and
(ii)
the entities that jointly applied for approval of the joint venture are taken to be the participants in the joint venture; and
(iii)
the entity that was nominated, in the application for approval of the joint venture, to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.
Changes to participation etc. in GST joint ventures applied for, but not approved, before commencement
(5)
If:
(a)
before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:
(i)
approve another entity as an additional participant in the joint venture; or
(ii)
revoke the approval of one of the participants in the joint venture as a participant in the joint venture; or
(iii)
approve another entity that satisfies the requirements of paragraphs 51-10(c) and (f) of that Act as the joint venture operator of the joint venture; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner:
(i)
did not give the approval, or revoke the approval, as requested in the application; and
(ii)
did not refuse the application;
before that commencement;
then, on and after that commencement, the joint venture is taken to continue in existence as if:
(d)
the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the corresponding action referred to in paragraph 51-70(1)(a), (b) or (c) of that Act as so amended has been taken; and
(e)
the action took effect on the date of effect specified in the application.
(6)
If:
(a)
before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:
(i)
approve another entity as an additional participant in the joint venture; or
(ii)
revoke the approval of one of the participants in the joint venture as a participant in the joint venture; or
(iii)
approve another entity that satisfies the requirements of paragraphs 51-10(c) and (f) of that Act as the joint venture operator of the joint venture; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner:
(i)
did not give the approval, or revoke the approval, as requested in the application; and
(ii)
did not refuse the application;
before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the approval or revocation took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the joint venture is taken to continue in existence as if:
(i)
the Commissioner has been notified, in accordance with section 51-70 of that Act as so amended, that the corresponding action referred to in paragraph 51-70(1)(a), (b) or (c) of that Act as so amended has been taken; and
(ii)
the action took effect on that day.
Revocation of approval of GST joint ventures applied for, but revocation not approved, before commencement
(7)
If:
(a)
before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the joint venture as a GST joint venture; and
(b)
the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;
then, on the date of effect specified in the application, the GST joint venture is taken to be dissolved as if the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the action referred to in paragraph 51-70(1)(d) of that Act as so amended has been taken.
(8)
If:
(a)
before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the joint venture as a GST joint venture; and
(b)
the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and
(c)
the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;
then:
(d)
an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the revocation took effect; and
(e)
if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the joint venture is taken to be dissolved as if:
(i)
the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the action referred to in paragraph 51-70(1)(d) of that Act as so amended has been taken; and
Entities engaged in a joint venture can form a GST joint venture. The joint venture operator then deals with the GST liabilities and entitlements arising from the joint venture operator's dealings on behalf of the participants in the joint venture.
Note:
Provisions for participants in GST joint ventures apply for the wine equalisation tax (see Subdivision 21-C of the Wine Tax Act) and the luxury car tax (see Subdivision 16-B of the A New Tax System (Luxury Car Tax) Act 1999).
S 51-1 amended by No 39 of 2012, s 3 and Sch 4 item 3, by substituting "Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999" in the note, effective 15 April 2012.
S 51-1 amended by No 74 of 2010, s 3 and Sch 1 item 21, by substituting "form" for "have it approved as", applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading.
S 51-1 amended by No 92 of 2000, s 3 and Sch 7 item 4, by substituting "Entities" for "Companies", effective 1 July 2000.
S 51-1 amended by No 177 of 1999, s 3 and Sch 1 item 59, by omitting "other" before "participants", effective 1 July 2000.
S 51-1 amended by No 176 of 1999, s 3 and Sch 1 item 85, by inserting the Note, effective 1 July 2000.
Subdivision 51-A - Formation of and participation in GST joint ventures
Subdiv 51-A (heading) substituted by No 74 of 2010, s 3 and Sch 1 item 22, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. The heading formerly read:
Two or more entities may become the *participants in a *GST joint venture if:
(a)
the joint venture is a joint venture for the exploration or exploitation of *mineral deposits, or for a purpose specified in the regulations; and
(b)
the joint venture is not a *partnership; and
(c)
(Repealed by No 74 of 2010)
(eb)
the nominated joint venture operator notifies the Commissioner, in the *approved form, of the formation of the joint venture as a GST joint venture; and
(f)
if the nominated joint venture operator is not a party to the joint venture agreement - the nominated joint venture operator satisfies the requirements of paragraphs 51-10(c) and (f).
S 51-5(1) amended by No 74 of 2010, s 3 and Sch 1 items 24 to 27, by substituting "Two or more entities may become" for "The Commissioner must approve 2 or more entities as", repealing para (c), substituting paras (e), (ea) and (eb) for para (e) and substituting "Such a joint venture" for "A joint venture that is so approved", applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. Paras (c) and (e) formerly read:
(c)
the entities jointly apply, in the *approved form, for approval of the joint venture as a GST joint venture; and
(e)
the application nominates one of those entities, or another entity, to be the *joint venture operator of the joint venture; and
S 51-5(1) amended by No 92 of 2000, s 3 and Sch 7 items 5 to 7, by substituting "entities" for "*companies" in the main text, by substituting "entities" for "companies" in paras (c), (d) and (e), and by substituting "entity" for "company" in para (e), effective 1 July 2000.
S 51-5(1) amended by No 177 of 1999, s 3 and Sch 1 items 60 and 61, by substituting "those companies" for "the companies" in para (d), substituting para (e) and inserting para (f), effective 1 July 2000. Para (e) formerly read:
(e)
the application nominates one of the companies to be the *joint venture operator for the joint venture.
S 51-5(2) substituted by No 74 of 2010, s 3 and Sch 1 item 28, applicable to tax periods starting on or after 1 July 2010.For transitional provisions, see note under Div 51 heading. S 51-5(2) formerly read:
(2)
The application for approval need not include all the entities that are engaged in, or intend to engage in, the joint venture.
Note:
Refusing an application for approval under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-5 amended by No 73 of 2006, s 3 and Sch 5 item 104, by substituting "Subdivision 110-F in Schedule to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 51-5(2) amended by No 92 of 2000, s 3 and Sch 7 item 5, by substituting "entities" for "*companies", effective 1 July 2000.
The *formation of the *GST joint venture takes effect from the start of the day specified in the notice under paragraph (1)(eb) (whether that day is before, on or after the day on which the entities decided to form the joint venture).
S 51-5(3) inserted by No 74 of 2010, s 3 and Sch 1 item 28, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading.
However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *joint venture operator of the *GST joint venture is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the *formation of the GST joint venture takes effect from the start of:
(a)
the day specified in the notice, if that day is approved by the Commissioner under section 51-75; and
(b)
if paragraph (a) does not apply - such other day as the Commissioner approves under that section.
S 51-5(4) inserted by No 74 of 2010, s 3 and Sch 1 item 28, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading.
S 51-7 inserted by No 74 of 2010, s 3 and Sch 1 item 29, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading.
51-10
Participation requirements of a GST joint venture
An entity
satisfies the participation requirements for a *GST joint venture, or a proposed GST joint venture, if the entity:
(a)
participates in, or intends to participate in, the joint venture; and
(b)
is a party to a joint venture agreement with all the other entities participating in, or intending to participate in, the joint venture; and
S 51-10 amended by No 92 of 2000, s 3 and Sch 7 items 6, 8 and 9, by substituting "An entity" for "A *company" and "entity" for "company" in the main text, and by substituting "entities" for "companies" in para (b), effective 1 July 2000.
S 51-10 amended by No 176 of 1999, s 3 and Sch 1 items 86 to 88, by repealing paras (d), (e) and (g) and omitting "; and" from para (f), effective 1 July 2000. Paras (d), (e) and (g) formerly read:
(d) is an *Australian resident; and
(e) has the same tax periods applying to it as the tax periods applying to all the other participants of the GST joint venture; and
…
(g) is not a member of a *GST group.
Subdivision 51-B - Consequences of GST joint ventures
Subdiv 51-B (heading) substituted by No 74 of 2010, s 3 and Sch 1 item 30, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. The heading formerly read:
Subdivision 51-B - Consequences of approval of GST joint ventures
GST payable on any *taxable supply or *taxable importation that the *joint venture operator of a *GST joint venture makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into:
(a)
is payable by the joint venture operator; and
(b)
is not payable by the participant.
However, each participant may be jointly and severally liable to pay the GST that is payable by the joint venture operator (see section 444-80 in Schedule 1 to the Taxation Administration Act 1953).
S 51-30(1) amended by No 74 of 2010, s 3 and Sch 1 item 51, by substituting "may be" for "is" (first occurring) in the note, applicable to tax periods starting on or after 1 July 2010.
S 51-30(1) amended by No 73 of 2006, s 3 and Sch 5 item 3, by inserting the note at the end, effective 1 July 2006.
S 51-30(1) amended by No 92 of 2000, s 3 and Sch 7 item 10, by substituting "entity" for "*company", effective 1 July 2000.
S 51-30(1) amended by No 177 of 1999, s 3 and Sch 1 items 62 and 63, by substituting "another*company that is a" for "another" and omitting "other" before "participant" in para (b), effective 1 July 2000.
(b)
the participant acquired the thing supplied for consumption, use or supply in the course of activities for which the joint venture was entered into.
S 51-30(2) amended by No 92 of 2000, s 3 and Sch 7 item 11, by substituting "entity" for "*company" in para (a), effective 1 July 2000.
S 51-30(2) amended by No 177 of 1999, s 3 and Sch 1 items 62 and 63, by substituting "another *company that is a" for "another" in para (a) and omitting "other" before "participant" in para (b), effective 1 July 2000.
(3)
This section has effect despite sections 9-40 and 13-15 (which are about liability for GST).
51-35
Who is entitled to input tax credits
(1)
If the *joint venture operator of a *GST joint venture makes a *creditable acquisition or *creditable importation, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into:
(a)
the *joint venture operator is entitled to the input tax credit for the acquisition or importation; and
(b)
the participant is not entitled to the input tax credit on the acquisition or importation.
S 51-35(1) amended by No 92 of 2000, s 3 and Sch 7 item 10, by substituting ``entity'' for ``*company'', effective 1 July 2000.
S 51-35(1) amended by No 177 of 1999, s 3 and Sch 1 items 64 and 65, by substituting ``another *company that is a'' for ``another'' and omitting ``other'' before ``participant'' in para (b), effective 1 July 2000.
(2)
This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
51-40
Adjustments
(1)
Any *adjustment relating to any supply, acquisition or importation that the *joint venture operator of a *GST joint venture makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into is to be treated as if:
(a)
the participant did not have the adjustment; and
S 51-40(1) amended by No 92 of 2000, s 3 and Sch 7 items 10 and 11, by substituting ``entity'' for ``*company'' in the main text and in para (b), effective 1 July 2000.
S 51-40(1) amended by No 177 of 1999, s 3 and Sch 1 items 66 to 68, by substituting ``another *company that is a'' for ``another'', omitting ``other'' before ``participant'' in para (a) and substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b)
the joint venture operator had the adjustment.
(2)
This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
51-45
Additional net amounts relating to GST joint ventures
(1)
Division 17 applies to the *joint venture operator of a *GST joint venture as if the joint venture operator had an additional *net amount, relating to the joint venture, for each tax period.
(2)
The additional *net amount relating to the joint venture is worked out as if the joint venture operator:
(a)
is only liable for the GST on *taxable supplies that the joint venture operator makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into; and
(b)
is only entitled to the input tax credits for *creditable acquisitions or *creditable importations that the joint venture operator makes on behalf of another entity that is a participant in the joint venture, in the course of activities for which the joint venture was entered into; and
(c)
only has adjustments relating to supplies, acquisitions or importations that the joint venture operator makes, on behalf of another entity that is a participant in the joint venture, in the course of activities for which the joint venture was entered into.
S 51-45(2) amended by No 92 of 2000, s 3 and Sch 7 items 7 and 11, by substituting ``entity'' for ``*company'' in para (a), and by substituting ``entity'' for ``company'' in paras (b) and (c), effective 1 July 2000.
S 51-45(2) amended by No 177 of 1999, s 3 and Sch 1 items 69 and 70, by substituting ``another *company that is a'' for ``another'' in para (a) and ``another company that is a'' for ``another'' in paras (b) and (c), effective 1 July 2000.
However, while an election made by the *joint venture operator under section 51-52 has effect:
(a)
Division 17 applies to the joint venture operator as if the joint venture operator had an additional *net amount, relating to all the *GST joint ventures for which the joint venture operator is the joint venture operator, for each tax period; and
(b)
that additional net amount is worked out by aggregating what would be the additional *net amounts relating to each GST joint venture under subsection (2) if that subsection applied.
S 51-45(2A) inserted by No 92 of 2000, s 3 and Sch 7 item 12, effective 1 July 2000.
(3)
This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
51-50
GST returns relating to GST joint ventures
(1)
The *joint venture operator of a *GST joint venture must, in relation to each *GST joint venture of the joint venture operator, give to the Commissioner a *GST return for each tax period applying to the joint venture operator.
(2)
However, while an election made by the *joint venture operator under section 51-52 has effect, the joint venture operator must, in relation to all the *GST joint ventures for which the joint venture operator is the joint venture operator, give to the Commissioner a single *GST return for each tax period applying to the joint venture operator.
S 51-50(2) substituted by No 73 of 2001, s 3 and Sch 1 item 11, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 51-50(2) formerly read:
(2)
The *net amount stated in such a return must be the net amount relating to the *GST joint venture in question.
S 51-50(2A) repealed by No 73 of 2001, s 3 and Sch 1 item 11, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 51-50(2A) formerly read:
(2A)
However, while an election made by the *joint venture operator under section 51-52 has effect:
(a)
the joint venture operator must, in relation to all the *GST joint ventures for which the joint venture operator is the joint venture operator, give to the Commissioner a single *GST return for each tax period applying to the joint venture operator; and
(b)
the *net amount stated in such a return must be the net amount relating to all those *GST joint ventures.
S 51-50(2A) inserted by No 92 of 2000, s 3 and Sch 7 item 13, effective 1 July 2000.
S 51-50(3) substituted by No 73 of 2001, s 3 and Sch 1 item 11, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 51-50(3) formerly read:
(3)
This section has effect despite sections 31-5 and 31-15 (which are about GST returns).
51-52
Consolidation of GST returns relating to GST joint ventures
Electing to consolidate GST returns
(1)
The *joint venture operator of 2 or more *GST joint ventures may, by notifying the Commissioner in the *approved form, elect to give to the Commissioner consolidated *GST returns relating to all the GST joint ventures of the joint venture operator.
(2)
The election takes effect on the day specified in the notice. However, the day specified must be the first day of a tax period applying to the *joint venture operator that has not already ceased when the notice is given.
Withdrawal of elections
(3)
The *joint venture operator may, by notifying the Commissioner in the *approved form, withdraw the election.
(4)
The withdrawal takes effect on the day specified in the notice. However, the day specified:
(a)
must be the first day of a tax period applying to the *joint venture operator that has not already ceased when the notice is given; and
(b)
must not be a day occurring earlier than 12 months after the election took effect.
Disallowance of elections
(5)
The Commissioner may disallow the election if the Commissioner is satisfied that the *joint venture operator has a history of failing to comply with the joint venture operator's obligations (either as a joint venture operator or in any other capacity) under a *taxation law.
Note:
Disallowing an election is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-52(5) amended by No 73 of 2006, s 3 and Sch 5 item 105, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(6)
The disallowance is taken to have had effect from the start of the tax period in which the disallowance occurs.
If the *assessed net amount relating to one or more *GST joint ventures for a tax period is greater than zero:
(a)
the *joint venture operator of that GST joint venture or those GST joint ventures must pay that assessed net amount to the Commissioner; and
(b)
Division 33 applies to payment of that amount as if it were a payment the joint venture operator was obliged to make under section 33-3 or 33-5 (as the case requires).
S 51-55(1) amended by No 39 of 2012, s 3 and Sch 1 items 70 and 71, by substituting "the *assessed net amount" for "the *net amount" and "assessed net amount" for "net amount" in para (a), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 51-55(1) amended by No 73 of 2001, s 3 and Sch 1 item 12, by substituting "section 33-3 or 33-5 (as the case requires)" for "section 33-5", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 51-55(1) amended by No 92 of 2000, s 3 and Sch 7 items 15 and 16, by substituting "one or more *GST joint ventures" for "a *GST joint venture" in the main text, and by substituting "that GST joint venture or those GST joint ventures" for "the GST joint venture" in para (a), effective 1 July 2000.
(2)
This section has effect despite Division 33 (which is about payments of GST).
51-60
Refunds relating to GST joint ventures
If the *assessed net amount relating to one or more *GST joint ventures for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that assessed net amount (expressed as a positive amount) to the *joint venture operator of that GST joint venture or those GST joint ventures.
Note 1:
See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the operator. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the operator owes to the Commonwealth.
Note 2:
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.
S 51-60 amended by No 34 of 2014, s 3 and Sch 2 item 8, by omitting ", and section 105-65 in Schedule 1 to," after "Part IIB" from note 1, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 51-60 amended by No 39 of 2012, s 3 and Sch 1 items 72 and 73, by substituting "the *assessed net amount" for "the *net amount" and "that assessed net amount" for "that net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 51-60 (note 1) amended by No 73 of 2006, s 3 and Sch 5 item 106, by substituting "of, and section 105-65 in Schedule 1 to," for "and section 39 of", effective 1 July 2006.
S 51-60 amended by No 92 of 2000, s 3 and Sch 7 items 17 and 18, by substituting "one or more *GST joint ventures" for "a *GST joint venture" and by substituting "that GST joint venture or those GST joint ventures" for "the GST joint venture", effective 1 July 2000.
S 51-60 substituted by No 179 of 1999, s 3 and Sch 15 item 4, effective 1 July 2000. S 51-60 formerly read:
51-60 Refunds relating to GST joint ventures
(1)
If the *net amount relating to a *GST joint venture for a tax period is less than zero:
(a)
the Commissioner must, on behalf of the Commonwealth, pay that net amount (expressed as a positive amount) to the *joint venture operator of the GST joint venture; and
(b)
Division 35 applies to payment of that amount as if it were a payment the Commissioner was obliged to make under section 35-5.
(2)
This section has effect despite Division 35 (which is about refunds).
Subdiv 51-C substituted by No 74 of 2010, s 3 and Sch 1 item 31, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. Subdiv 51-C formerly read:
Subdivision 51-C - Administrative matters
51-70 Changing the participants etc. of GST joint ventures
Changes made on application
(1)
The Commissioner must, if the *joint venture operator of a *GST joint venture applies to the Commissioner in the *approved form, do one or more of these (as requested in the application):
(a)
approve, as an additional *participant of the GST joint venture, another entity that *satisfies the participation requirements of the GST joint venture;
(b)
revoke the approval of one of the participants of the GST joint venture as a participant in the joint venture;
(c)
approve another entity that satisfies the requirements of paragraphs 51-10(c) and (f) as the joint venture operator of the joint venture.
Note:
Refusing an application for approval or revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-70(1) amended by No 73 of 2006, s 3 and Sch 5 item 107, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 51-70(1) amended by No 92 of 2000, s 3 and Sch 7 items 7 and 11, by substituting "entity" for "*company" in para (a), and by substituting "entity" for "company" in para (c), effective 1 July 2000.
S 51-70(1) amended by No 177 of 1999, s 3 and Sch 1 item 71, by substituting para (c), effective 1 July 2000. Para (c) formerly read:
(c)
approve another participant of the GST joint venture to replace the applicant as the joint venture operator of the joint venture.
Revoking under this subsection an approval under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-70(2) amended by No 73 of 2006, s 3 and Sch 5 item 108, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 51-70(2) substituted by No 177 of 1999, s 3 and Sch 1 item 72, effective 1 July 2000. S 51-70(2) formerly read:
(2)
The Commissioner must revoke the approval of one of the *participants of a *GST joint venture if satisfied that the participant does not *satisfy the participation requirements of the GST joint venture.
Note:
Revoking under this subsection an approval under this Division is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
51-75 Revoking the approval of GST joint ventures
Revoking on application
Refusing an application for revocation under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-75(1) amended by No 73 of 2006, s 3 and Sch 5 item 109, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
Revoking under this subsection the approval of a GST joint venture is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-75(2) amended by No 73 of 2006, s 3 and Sch 5 item 110, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
51-80 Notification by joint venture operators
The *joint venture operator of a *GST joint venture must notify the Commissioner of any circumstances under which the Commissioner must:
(a)
revoke the approval of one of the *participants of the joint venture under subsection 51-70(2); or
(b)
revoke the approval of the joint venture under subsection 51-75(2).
The notification may (in appropriate cases) be in the form of an application under subsection 51-70(1). The notification, or application, must be given to the Commissioner within 21 days after the circumstances occurred.
51-85 Date of effect of approvals and revocations
(1)
The Commissioner must decide the date of effect of any approval, or any revocation of an approval, under this Division.
(2)
The date of effect may be the day of the decision, or a day before or after that day. However, it must be the beginning of a tax period applying to the participants of the *GST joint venture in question.
Note:
Deciding under this section the date of effect of any approval, or any revocation of an approval, under this Division is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 51-85 (note) amended by No 73 of 2006, s 3 and Sch 5 item 111, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
51-90 Notification by the Commissioner
The Commissioner must give notice of any decision that he or she makes under this Division:
(a)
if the decision relates to the approval of 2 or more entities as the *participants of a *GST joint venture - to the entity nominated in the application for approval to be the *joint venture operator of the joint venture; or
(b)
otherwise - to the joint venture operator of the *GST joint venture to which the decision relates.
S 51-90 amended by No 92 of 2000, s 3 and Sch 7 items 7 and 19, by substituting "entities" for "*companies" and "entity" for "company" in para (a), effective 1 July 2000.
51-70
Changing the participants etc. of GST joint ventures
(ii)
remove from the joint venture a participant in the joint venture;
(c)
another entity, nominated by the participants in the joint venture,that satisfies the requirements of paragraphs 51-10(c) and (f) may become the joint venture operator;
(d)
the joint venture operator may dissolve the joint venture;
by notice given to the Commissioner, in the *approved form, by the joint venture operator, or (if subparagraph (b)(i) or paragraph (c) applies) by the new joint venture operator of the joint venture.
The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).
(3)
However, if the notice was given to the Commissioner after the day by which the *joint venture operator of the joint venture, or the entity nominated to be the new joint venture operator of the joint venture, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:
(a)
the day specified in the notice, if that day is approved by the Commissioner under section 51-75; and
(b)
if paragraph (a) does not apply - such other day as the Commissioner approves under that section.
(4)
A *GST joint venture is taken to be dissolved if:
(a)
an entity ceases to be the *joint venture operator of the joint venture, and no other entity becomes the joint venture operator of the joint venture with effect from the day after the previous joint venture operator ceased to be the joint venture operator; or
(b)
there are no longer 2 or more *participants in the joint venture.
(5)
A notice that another entity has become the *joint venture operator of the *GST joint venture must be given to the Commissioner within 21 days after the other entity became the joint venture operator.
Note:
Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.
S 51-70 substituted by No 74 of 2010, s 3 and Sch 1 item 31, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. For former wording, see history note under Subdiv 51-C heading.
51-75
Approval of early day of effect of forming, changing etc. GST joint ventures
(1)
If an entity that gives a notice to the Commissioner under paragraph 51-5(1)(eb) or subsection 51-70(1) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:
(a)
approve, for the purposes of subsection 51-5(4) or 51-70(3), the dayspecified in the notice; or
(b)
approve another day for those purposes.
Note:
Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(2)
The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.
Note:
Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(3)
The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.
S 51-75 substituted by No 74 of 2010, s 3 and Sch 1 item 31, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. For former wording, see history note under Subdiv 51-C heading.
Subdivision 51-D - Ceasing to be a participant in, or an operator of, a GST joint venture
If you cease to be a participant in a GST joint venture, any *adjustment that arises afterwards in relation to a supply, acquisition or importation that the *joint venture operator made on your behalf in the course of activities for which the joint venture was entered into (other than a supply covered by subsection 51-30(2)):
(a)
is an adjustment that you have; and
(b)
is not an adjustment of the entity that is or was the joint venture operator.
S 51-110(1) amended by No 12 of 2012, s 3 and Sch 6 item 100, by substituting "cease" for "*cease", applicable to tax periods starting on or after 22 March 2012.
S 51-110(1) amended by No 92 of 2000, s 3 and Sch 7 item 11, by substituting "entity" for "*company" in para (b), effective 1 July 2000.
(2)
This section has effect despite section 51-40 (which is about who has adjustments for a GST joint venture).
(1)
If:
(a)
while you were a *participant in a *GST joint venture, you acquired or imported a thing by the joint venture operator acquiring or importing it on your behalf; and
(b)
you cease to be a participant in the GST joint venture;
then, when applying section 129-40 for the first time after that cessation, the *intended or former application of the thing is the extent of *creditable purpose last used to work out:
(c)
under section 51-35, the amount of the input tax credit to which the *joint venture operator was entitled for the acquisition or importation; or
(d)
under section 51-40, the amount of any *adjustment the joint venture operator had under Division 129 in relation to the acquisition or importation.
S 51-115(1) amended by No 12 of 2012, s 3 and Sch 6 item 101, by substituting "cease" for "*cease" in para (b), applicable to tax periods starting on or after 22 March 2012.
(2)
If:
(a)
while you were a *participant in a *GST joint venture, you acquired or imported a thing by the joint venture operator acquiring or importing it on your behalf; and
(b)
you have ceased to be a participant in the GST joint venture; and
(c)
you have an *adjustment under Division 129 in relation to the acquisition or importation;
then, for the purposes of working out the full input tax credit in section 129-70 or 129-75, you are taken not to have been a participant of a GST joint venture when you acquired or imported the thing.
S 51-115(2) amended by No 12 of 2012, s 3 and Sch 6 item 102, by substituting "ceased" for "*ceased" in para (b), applicable to tax periods starting on or after 22 March 2012.
S 51-115 inserted by No 177 of 1999, s 3 and Sch 1 item 73, effective 1 July 2000.
Division 54 - GST branches
54-1
What this Division is about
A branch of a registered entity can be separately registered as a GST branch. Separate GST returns are given, and separate payments and refunds of GST are made, in respect of the branch.
Subdivision 54-A - Registration of GST branches
54-5
Registration of GST branches
(1)
The Commissioner must *register a branch of a *registered entity if:
(a)
the registered entity applies, in the *approved form, for registration of the branch; and
(b)
the Commissioner is satisfied that the branch maintains an independent system of accounting, and can be separately identified by reference to:
(i)
the nature of the activities carried on through the branch; or
(ii)
the location of the branch; and
(c)
the Commissioner is satisfied that the registered entity is *carrying on an *enterprise through the branch, or intends to carry on an enterprise through the branch, from a particular date specified in the application.
A branch that is so registered is a
GST branch.
(2)
A branch of a *registered entity can be registered as a *GST branch without all or any of the other branches of the entity being so registered.
(3)
However, a branch of a *registered entity cannot be registered as a *GST branch if the registered entity is a *member of a *GST group.
Note:
Refusing an application for registration under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 54-5 (note) amended by No 73 of 2006, s 3 and Sch 5 item 112, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
54-10
The date of effect of registration of a GST branch
The Commissioner must decide the date from which *registration as a *GST branch takes effect. However, the date of effect must not be a day before:
(a)
the day specified in the application for that purpose; or
(b)
if the branch is being registered only because it is intended that an *enterprise be *carried on through the branch - the date of effect must not be a day before the day specified, in the application, as the day from which it is intended to carry on the enterprise through the branch.
Note:
Deciding the date of effect of registration as a GST branch is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 54-10 (note) amended by No 73 of 2006, s 3 and Sch 5 item 113, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
S 54-15 amended by No 156 of 2000, s 3 and Sch 7 items 1 and 2, by substituting ``*registers'' for ``registers'' and ``registered'' for ``*registered'', effective 1 July 2000.
Subdivision 54-B - Consequences of registration of GST branches
54-40
Additional net amounts relating to GST branches
(1)
If an entity (the
parent entity) has a *GST branch, Division 17 applies to the parent entity as if it had an additional *net amount, relating to the branch, for each tax period.
(2)
The additional *net amount relating to the branch is worked out as if the branch were a separate entity and as if:
(a)
all the supplies, acquisitions and importations made through the branch were made by that separate entity; and
(b)
all the *adjustments that the parent entity has arising from such supplies, acquisitions and importations were adjustments that the branch has; and
(c)
all transfers of anything by the branch to the parent entity (including any other branch of the parent entity), that would have been supplies made by the branch if it were an entity, were supplies made by the separate entity; and
(d)
all transfers of anything by the parent entity (including any other branch of the parent entity) to the branch, that would have been acquisitions made by the branch if it were an entity, were acquisitions made by the separate entity; and
(e)
all adjustments that the branch would have had, if it were an entity, relating to the supplies and acquisitions it would have made as mentioned in paragraphs (c) and (d), were adjustments that the branch had.
(3)
This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
54-45
Net amounts of parent entities
(1)
If an entity (the
parent entity) has a *GST branch, the parent entity's *net amount is worked out as if:
(a)
all the supplies, acquisitions and importations made through any GST branch of the parent entity were not supplies for which the parent entity is liable for GST, or acquisitions or importations for which the parent entity is entitled to input tax credits; and
(b)
the parent entity does not have any *adjustments arising from such supplies, acquisitions and importations; and
(c)
all transfers of anything by the parent entity to any GST branch of the parent entity, that would have been supplies made to the branch if it were an entity, were supplies made by the parent entity; and
(d)
all transfers of anything by any GST branch of the parent entity to the parent entity, that would have been acquisitions made from the branch if it were an entity, were acquisitions made by the parent entity; and
(e)
all adjustments that the parent entity would have had, if the GST branches of the parent entity were entities, relating to the supplies and acquisitions the parent entity would have made as mentioned in paragraphs (c) and (d), were adjustments that the parent entity had.
(2)
However, the parent entity has no *net amount under this section if all the *enterprises that it *carries on are carried on through its *GST branches.
(3)
This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
54-50
Tax invoices and adjustment notes
(1)
The *GST branch registration number of a *GST branch must be set out in:
(a)
any *tax invoice relating to a *taxable supply made through that GST branch; and
(b)
any *adjustment note for a *decreasing adjustment that arose from the occurrence of an *adjustment event relating to a *taxable supply made through that GST branch; and
(c)
any *third party adjustment note for a decreasing adjustment under section 134-5 that relates to a taxable supply made through that GST branch.
This section has effect despite sections 29-70 and 29-75 (which are about tax invoices and adjustment notes), and section 134-20 (which is about third party adjustment notes).
S 54-50(2) amended by No 21 of 2010, s 3 and Sch 1 item 9, by inserting ", and section 134-20 (which is about third party adjustment notes)" at the end, applicable in relation to payments made on or after 1 July 2010.
54-55
GST returns relating to GST branches
(1)
An entity must, in relation to each *GST branch of the entity, give to the Commissioner a *GST return for each tax period applying to the entity.
(2)
S 54-55(2) repealed by No 73 of 2001, s 3 and Sch 1 item 13, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 54-55(2) formerly read:
(2)
The *net amount stated in such a return must be the net amount relating to the *GST branch in question.
(3)
The entity must still give a *GST return under section 31-5, unless all the *enterprises that it *carries on are carried on through its *GST branches.
(4)
S 54-55(4) substituted by No 73 of 2001, s 3 and Sch 1 item 14, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 54-55(4) formerly read:
(4)
This section has effect despite sections 31-5 and 31-15 (which are about GST returns).
54-60
Payments of GST relating to GST branches
(1)
If an entity has a *GST branch and the *assessed net amount relating to the *GST branch for a tax period is greater than zero:
(a)
the entity must pay that assessed net amount to the Commissioner; and
(b)
Division 33 applies to payment of that amount as if it were a payment the entity was obliged to make under section 33-3 or 33-5 (as the case requires).
S 54-60(1) amended by No 39 of 2012, s 3 and Sch 1 items 74 and 75, by substituting "the *assessed net amount" for "the *net amount" and "assessed net amount" for "net amount" in para (a), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 54-60(1) amended by No 73 of 2001, s 3 and Sch 1 item 15, by substituting "section 33-3 or 33-5 (as the case requires)" for "section 33-5", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
(2)
This section has effect despite Division 33 (which is about payments of GST).
54-65
Refunds relating to GST branches
If an entity has a *GST branch and the *assessed net amount relating to the *GST branch for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that assessed net amount (expressed as a positive amount) to the entity.
Note 1:
See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the entity. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the entity owes to the Commonwealth.
Note 2:
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.
S 54-65 amended by No34 of 2014, s 3 and Sch 2 item 9, by omitting ", and section 105-65 in Schedule 1 to," after "Part IIB" from note 1, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 54-65 amended by No 39 of 2012, s 3 and Sch 1 items 76 and 77, by substituting "the *assessed net amount" for "the *net amount" and "that assessed net amount" for "that net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 54-65 (note 1) amended by No 73 of 2006, s 3 and Sch 5 item 114, by substituting "of, and section 105-65 in Schedule 1 to," for "and section 39 of", effective 1 July 2006.
S 54-65 substituted by No 179 of 1999, s 3 and Sch 15 item 5, effective 1 July 2000. S 54-65 formerly read:
54-65 Refunds relating to GST branches
(1)
If an entity has a *GST branch and the *net amount relating to the *GST branch for a tax period is less than zero:
(a)
the Commissioner must, on behalf of the Commonwealth, pay that net amount (expressed as a positive amount) to the entity; and
(b)
Division 35 applies to payment of that amount as if it were a payment the Commissioner was obliged to make under section 35-5.
(2)
This section has effect despite Division 35 (which is about refunds).
Subdivision 54-C - Cancellation of registration of GST branches
54-70
When an entity must apply for cancellation of registration of a GST branch
(1)
If an entity has a *GST branch and the entity is not *carrying on any *enterprise through the branch, the entity must apply to the Commissioner in the *approved form for cancellation of the *registration of the branch.
(2)
The entity must lodge its application within 21 days after the day on which it ceased to *carry on any *enterprise through the branch.
54-75
When the Commissioner must cancel registration of a GST branch
(1)
The Commissioner must cancel the *registration of a *GST branch of an entity if:
(a)
the entity has applied for cancellation of registration in the *approved form; and
(b)
at the time it applied, the branch had been registered for at least 12 months.
Note:
Refusing to cancel the registration of a GST branch under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 54-75(1) amended by No 73 of 2006, s 3 and Sch 5 item 115, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must cancel the *registration of a *GST branch of the entity (even if the entity has not applied for cancellation of the registration) if:
(a)
the Commissioner is satisfied that the entity is not *carrying on an *enterprise through the branch; and
(b)
the Commissioner believes on reasonable grounds that the entity is unlikely to carry on an enterprise through the branch for at least 12 months.
Note:
Cancelling the registration of a GST branch under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 54-75(2) amended by No 73 of 2006, s 3 and Sch 5 item 116, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The Commissioner must notify the entity of any decision he or she makes in relation to it under this section. If the Commissioner decides to cancel the *registration, the notice must specify the date of effect of the cancellation.
S 54-75(3) amended by No 156 of 2000, s 3 and Sch 7 item 3, by substituting ``*registration'' for ``registration'', effective 1 July 2000.
54-80
The date of effect of cancellation of registration of a GST branch
The Commissioner must decide the date on which the cancellation of the *registration of a *GST branch of an entity under subsection 54-75(1) or (2) takes effect. That date may be any day occurring before, on or after the day on which the Commissioner makes the decision.
Note:
Deciding the date of effect of the cancellation of the registration of a GST branch is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 54-80 (note) amended by No 73 of 2006, s 3 and Sch 5 item 117, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
54-85
Application of Subdivision 25-B
Subdivision 25-B does not apply to the cancellation of the *registration of a *GST branch.
54-90
Effect on GST branches of cancelling the entity's registration
If an entity's *registration is cancelled, the registration of any *GST branches of the entity ceases to have effect from the day the cancellation takes effect.
Division 57 - Resident agents acting for non-residents
57-1
What this Division is about
This Division effectively makes resident agents acting for non-residents responsible for the GST consequences of what the non-residents do through their resident agents.
57-5
Who is liable for GST
(1)
GST payable on a *taxable supply or *taxable importation made by a *non-resident through a *resident agent:
(a)
is payable by the agent; and
(b)
is not payable by the non-resident.
(2)
This section has effect despite sections 9-40 and 13-15 (which are about liability for GST).
(3)
However, this section does not apply to a *taxable supply if:
(a)
apart from this section, the *non-resident would not be liable to pay GST on the supply; or
(b)
the non-resident makes the supply through an *enterprise that the non-resident *carries on in the indirect tax zone.
S 57-5(3) inserted by No 52 of 2016, s 3 and Sch 2 item 5, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
57-7
Agreement to apply this Division to all supplies through a resident agent
(1)
Subsection 9-26(1) does not apply to a supply made by a *non-resident through a *resident agent if:
(a)
section 57-5 would apply to the supply if that subsection did not apply to the supply; and
(b)
the non-resident and the agent have agreed in writing that that subsection will not apply to any supplies made by the non-resident through the agent; and
(c)
the supply is made no earlier than:
(i)
if the agreement specifies a time (not earlier than the start of the day the agreement is made) as the time the agreement takes effect - that time; or
(ii)
otherwise - the start of the day the agreement is made.
Note:
An agreement under paragraph (1)(b) prevents subsection 9-26(1) having the effect that the supply would not be connected with the indirect tax zone (that subsection could otherwise result in the GST on the supply being reverse charged to the recipient under Division 84).
(2)
If the *recipient of the supply is an *Australian-based business recipient, the recipient must be given a notice in the *approved form by:
(a)
if the agreement referred to in paragraph (1)(b) specifies that the *non-resident is to give the notice - the non-resident; or
(b)
otherwise - the *resident agent.
(3)
The notice must be given no later than 7 days after the earlier of:
(a)
the first day any of the *consideration for the supply is provided; or
(b)
the day on which an *invoice for the supply is issued.
Note:
Subsection 286-75(7) in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of subsection (2) or this subsection.
(4)
If the *non-resident and the agent agree in writing to terminate the agreement referred to in paragraph (1)(b), this section ceases to apply:
(a)
if the agreement to terminate specifies a time (not earlier than the start of the day the agreement to terminate is made) as the time the termination takes effect - at that time; or
(b)
otherwise - at the start of the day the agreement to terminate is made.
S 57-7 inserted by No 52 of 2016, s 3 and Sch 2 item 5A, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
57-10
Who is entitled to input tax credits
(1)
If a *non-resident makes a *creditable acquisition or *creditable importation through a *resident agent:
(a)
the agent is entitled to the input tax credit on the acquisition or importation; and
(b)
the non-resident is not entitled to the input tax credit on the acquisition or importation.
(2)
This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
57-15
Adjustments
(1)
Any *adjustment that a *non-resident has relating to a supply, acquisition or importation made through a *resident agent is to be treated as if:
(a)
the non-resident did not have the adjustment; and
(b)
the agent had the adjustment.
(2)
This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
57-20
Resident agents are required to be registered
(1)
A *resident agent who is acting as agent for a *non-resident is
required to be registered if the non-resident is *registered or *required to be registered.
(2)
The section has effect despite section 23-5 (which is about who is required to be registered).
57-25
Cancellation of registration of a resident agent
(1)
The Commissioner must cancel the *registration of a *resident agent if the Commissioner is satisfied that the resident agent is not *required to be registered.
Note:
Cancelling the registration of a resident agent under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 57-25(1) amended by No 73 of 2006, s 3 and Sch 5 item 118, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must notify the *resident agent of the cancellation.
(3)
Sections 25-50 and 25-55 do not apply to the cancellation of the *registration of a *resident agent.
57-30
Notice of cessation of agency
A *resident agent who ceases to act as agent for a *non-resident must notify the Commissioner of that cessation, in the *approved form, within 14 days after so ceasing to act.
57-35
Tax periods of resident agents
(1)
If you are a *resident agent who is acting as agent for a *non-resident, the Commissioner must determine that the
tax periods that apply to you are each individual month if the Commissioner is satisfied that the non-resident's *GST turnover meets the *tax period turnover threshold.
Note:
Determining under this section the tax periods applying to you is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 57-35(1) amended by No 80 of 2007, s 3 and Sch 2 item 18, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 57-35(1) amended by No 73 of 2006, s 3 and Sch 5 item 119, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The determination takes effect on the day specified in the determination. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Note:
Deciding the date of effect of the determination is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 57-35(2) amended by No 73 of 2006, s 3 and Sch 5 item 120, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(3)
This section has effect in addition to section 27-15 (which is about determination of one month tax periods).
57-40
GST returns for non-residents
(1)
A *non-resident is not required to give a *GST return for a tax period if:
(a)
the non-resident's *net amount for the tax period is zero; or
(b)
the only *taxable supplies or *taxable importations that the non-resident made that are attributable to the tax period are taxable supplies or taxable importations made through a *resident agent.
(2)
This section has effect despite section 31-5 (which is about who must give GST returns).
57-45
Resident agents giving GST returns
If you are a *resident agent acting for a *non-resident, subsection 31-15(2) does not apply to you in relation to a tax period if, during the tax period:
(a)
the non-resident made *taxable supplies, or supplies that would have been taxable supplies had they not been *GST-free or *input taxed, through you as agent; or
(b)
the non-resident made *creditable acquisitions through you as agent.
57-50
Non-residents that belong to GST groups
This Division does not apply in relation to a *non-resident that is a *member of a *GST group.
Division 58 - Representatives of incapacitated entities
Div 58 inserted by No 118 of 2009, s 3 and Sch 1 item 8, effective 1 July 2000. No 118 of 2009, s 3 and Sch 1 items 50-55 contains the following transitional provisions:
50 Application of Division 72
(1)
Division 72 of the A New Tax System (Goods and Services Tax) Act 1999 does not apply in relation to a supply or acquisition that an incapacitated entity made to or from an associate of the incapacitated entity if:
(a)
making the supply or acquisition was within the scope of the representative's responsibility or authority for managing the incapacitated entity's affairs; and
(b)
the supply or acquisition was made before the day this Act received the Royal Assent [ie 4 December 2009].
(2)
Division 72 of that Act does not apply in relation to a supply or acquisition that an incapacitated entity made to or from an associate of the incapacitated entity if:
(a)
making the supply or acquisition was within the scope of the representative's responsibility or authority for managing the incapacitated entity's affairs; and
(b)
the incapacitated entity is being wound up under a member's voluntary winding up (within the meaning of the Corporations Act 2001); and
(c)
the resolution for voluntary winding up (within the meaning of the Corporations Act 2001) was passed before the day on which the Bill that became this Act was introduced into the House of Representatives [ie 16 September 2009].
51 Cancellations of registration under section 147-10
(1)
If:
(a)
before the commencement of this item [ie 4 December 2009], the Commissioner cancelled the registration of an incapacitated entity; and
(b)
but for the enactment of this Schedule, the cancellation would have continued to have effect under section 147-10 of the A New Tax System (Goods and Services Tax) Act 1999;
the cancellation continues to have effect after that commencement as a cancellation under section 58-25 of that Act as inserted by this Schedule.
(2)
If:
(a)
before the commencement of this item [ie 4 December 2009], an objection had been made under section 110-50 in Schedule 1 to the Taxation Administration Act 1953 against a decision under section 147-10 of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
as at that commencement, the objection had not been finally determined;
Part IVC of the Taxation Administration Act 1953 continues to apply after that commencement in relation to the objection as if the decision were a decision under section 58-25 of the A New Tax System (Goods and Services Tax) Act 1999 as inserted by this Schedule.
52 Notices under section 147-15
If:
(a)
before this Act received the Royal Assent [ie 4 December 2009], a representative who ceased to be a representative of an incapacitated entity notified the Commissioner of that cessation; and
(b)
but for the enactment of this Schedule, the notice would have met the requirements of section 147-15 of the A New Tax System (Goods and Services Tax) Act 1999;
the notice has effect as a notice under section 58-30 of that Act as inserted by this Schedule.
53 Time limit on recovery by the Commissioner
If:
(a)
because of the amendments made by this Schedule, you are liable to pay a net amount, net fuel amount or amount of indirect tax that you would not have been liable to pay if the amendments had not been made; and
(b)
the net amount, net fuel amount or amount of indirect tax corresponds to an amount paid to you as a refund, or applied under Division 3 of Part IIB of the Taxation Administration Act 1953:
(i)
on or after 12 December 2008 and before this Act received the Royal Assent [ie 4 December 2009]; and
(ii)
in relation to the net amount, net fuel amount or amount of indirect tax;
that Act applies in relation to the net amount, net fuel amount or amount of indirect tax as if the reference in subsection 105-50(1) in Schedule 1 to that Act to 4 years after the net amount, net fuel amount or amount of indirect tax became payable by you were a reference to 4 years after the payment of the refund or application of the amount under that Division.
54 Refunds of amounts wrongly paid by incapacitated entities
If:
(a)
before this Act received the Royal Assent [ie 4 December 2009], an incapacitated entity paid an amount of indirect tax (including any relevant general interest charge under the Taxation Administration Act 1953) that was payable by a representative of an incapacitated entity; and
(b)
but for this item, the Commissioner would be liable to refund the amount to the incapacitated entity;
the Commissioner is not liable to refund the amount unless the representative has also paid the amount to the Commissioner.
55 Liability of representatives of incapacitated entities
A representative of an incapacitated entity is not liable to make a payment to the Commissioner relating to a net amount if:
(a)
but for this item, the representative would be liable, because of amendments made by this Schedule, to make the payment; and
(b)
the liability arose as a result of acts or omissions that were within the scope of the representative's responsibility or authority for managing the incapacitated entity's affairs; and
(c)
the liability arose before 6 February 2009; and
(d)
the net amount has been disclosed in a GST return given to the Commissioner in accordance with the A New Tax System (Goods and Services Tax) Act 1999:
(i)
before 6 February 2009; or
(ii)
within the period required under that Act for giving the return; and
(e)
either the incapacitated entity has paid the net amount to the Commissioner, or both of the following apply:
(i)
the incapacitated entity was unable to pay the net amount to the Commissioner before 6 February 2009;
(ii)
the representative did not, on that day, have access to assets of the incapacitated entity, or to an indemnity, through which the net amount could be paid to the Commissioner; and
(f)
the representative acted in good faith in relation to the net amount.
This Division sets out how to ascribe activities of a representative of an incapacitated entity between the representative and the incapacitated entity for GST purposes.
In particular, supplies, acquisitions and importations, and associated acts and omissions, by the representative are, in most cases, treated as having been by the incapacitated entity. This ensures that a transaction by the representative has the same consequences under the GST law as if the incapacitated entity had no representative.
However, in most cases, GST-related liabilities and entitlements are allocated to the representative for transactions that are within the scope of the representative's responsibility or authority.
Note:
This Division does not apply to a representative to the extent that paragraph 105-5(1)(a) (which is about supplies by creditors in satisfaction of debts) will apply to its supplies. See section 58-95.
S 58-1 amended by No 142 of 2012, s 3 and Sch 2 item 1, by inserting the note at the end, applicable in relation to supplies made on or after the start of the first quarterly tax period starting on or after 28 September 2012. For this purpose, it does not matter whether quarterly tax periods are the tax periods that apply to you.
S 58-1 inserted by No 118 of 2009, s 3 and Sch 1 item 8, effective 1 July 2000.
58-5
General principle for the relationship between incapacitated entities and their representatives
(1)
Subject to this Division, any supply, acquisition or importation by an entity in the capacity of a *representative of another entity that is an *incapacitated entity is taken to be a supply, acquisition or importation by the other entity.
(2)
Subject to this Division, any other act, or any omission, of an entity in the capacity of a *representative of another entity that is an *incapacitated entity is taken to be an act or omission of the other entity, but only for the purposes of determining, for the purposes of the *GST law:
(a)
whether a supply or importation is a *taxable supply or *taxable importation, or the amount of GST payable on the supply or importation; or
(b)
whether an acquisition or importation is a *creditable acquisition or *creditable importation, or the amount of the input tax credit for the acquisition or importation; or
(c)
whether an *adjustment arises in relation to a supply, acquisition or importation, or the amount of such an adjustment.
(3)
To avoid doubt, if the other entity ceases to be an *incapacitated entity, this section continues to apply in relation to the supply, acquisition or importation, or to the act or omission, after the other entity ceases to be an incapacitated entity.
(4)
To avoid doubt, to the extent that an act or omission referred to in subsection (2) relates to deciding to *account on a cash basis, that subsection does not apply for the purposes of determining, for the purposes of the *GST law, whether an adjustment arises under Division 21 in relation to a supply or acquisition.
to the extent that the making of the supply, importation or acquisition to which the GST, input tax credit or adjustment relates is within the scope of the representative's responsibility or authority for managing the incapacitated entity's affairs.
Exceptions for certain taxable supplies
(2)
This section does not apply to the GST payable on a *taxable supply to the extent that one or more of the following apply:
(a)
the *incapacitated entity received the *consideration for the supply before the *representative became a representative of the incapacitated entity;
(b)
if, under Division 83 or section 84-5 or 86-5, the GST is payable by the recipient of the supply - the incapacitated entity provided the consideration for the supply before the representative became a representative of the incapacitatedentity;
(i)
the supply is a supply for which a *voucher to which Division 100 applies is redeemed; and
(ii)
the incapacitated entity supplied the voucher before the representative became a representative of the incapacitated entity;
the consideration for the supply referred to in subparagraph (i) does not exceed the consideration provided for the incapacitated entity's supply of the voucher.
S 58-10(2) amended by No 76 of 2017, s 3 and Sch 1 item 4, by inserting "or 86-5" in para (b), effective 27 June 2017.
S 58-10(2) amended by No 52 of 2016, s 3 and Sch 1 item 17, by substituting "section 84-5" for "84" in para (b), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Exception for certain creditable acquisitions
(3)
This section does not apply to an input tax credit for a *creditable acquisition to the extent that the *incapacitated entity provided the *consideration for the acquisition before the *representative became a representative of the incapacitated entity.
Exceptions for certain adjustments
(4)
This section does not apply to an *adjustment to the extent that one or more of the following apply:
(a)
if the adjustment relates to a supply - the *incapacitated entity received the *consideration for the supply before the *representative became a representative of the incapacitated entity;
(b)
if the adjustment relates to an acquisition - the incapacitated entity provided the consideration for the supply before the representative became a representative of the incapacitated entity;
(c)
the adjustment would not be attributable to a tax period applying to the representative in the capacity of a representative of the incapacitated entity.
Incapacitated entity not liable to pay GST etc.
(5)
An *incapacitated entity or, if the incapacitated entity is a *member of a *GST group, the *representative member of that group:
(a)
is not liable to pay the GST on a *taxable supply or a *taxable importation to the extent that a *representative of the incapacitated entity is liable under this section to pay the GST on the supply or importation; and
(b)
is not entitled to the input tax credit for a *creditable acquisition or a *creditable importation to the extent that a representative of the incapacitated entity is entitled under this section to the input tax credit for the acquisition or importation; and
(c)
does not have an *adjustment to the extent that a representative of the incapacitated entity has the adjustment under this section.
S 58-10(6) amended by No 76 of 2017, s 3 and Sch 1 item 5, by substituting ", 84-10 and 86-5" for "and 84-10", effective 27 June 2017.
S 58-10(6) amended by No 74 of 2010, s 3 and Sch 1 item 32, by substituting "48-40(1) and (1A)" for "48-40(1)", applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading.
S 58-10 inserted by No 118 of 2009, s 3 and Sch 1 item 8, effective 1 July 2000.
(1)
For the purposes of determining whether an *adjustment arises under section 21-5 or 21-15 for the whole or a part of a debt relating to a *taxable supply or *creditable acquisition for which a *representative of an *incapacitated entity is liable to pay GST, or is entitled to an input tax credit, under section 58-10:
(a)
the adjustment cannot arise if, when the whole or part of the debt is written off, or has been *overdue for 12 months, the representative *accounts on a cash basis; but
(b)
it does not matter whether the incapacitated entity accounts on a cash basis at that or any other time.
(2)
This section has effect despite subsections 21-5(2) and 21-15(2) (which preclude adjustments for bad debts when accounting on a cash basis).
Cancelling the registration of a representative under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(1)
If a *representative of an *incapacitated entity is *required to be registered in that capacity, the tax periods applying to the representative in that capacity are the same tax periods that apply to the incapacitated entity.
(2)
This section has effect despite Division 27 (which is about how to work out the tax periods that apply).
then, to the extent that, but for this section, the GST or input tax credit would be attributable to a tax period that ended before the representative became a representative of the incapacitated entity, the GST or input tax credit is instead attributable to the first tax period applying to the representative in that capacity.
(2)
This section has effect despite sections 29-5 and 29-10 (which are about attribution of GST on taxable supplies and of input tax credits for creditable acquisitions).
(1)
If an individual is appointed as a *representative of 2 or more *incapacitated entities, the individual may give to the Commissioner one *GST return for a tax period in respect of the entities if the entities are *members of the same *GST group.
(2)
This section has effect despite section 31-5 (which is about who must give GST returns).
(1)
A *representative of an *incapacitated entity must give to the Commissioner a *GST return for a tax period applying to the incapacitated entity if:
(a)
the incapacitated entity has failed to give to the Commissioner a GST return for a tax period; and
(b)
the Commissioner, in writing, directs the representative to give to the Commissioner a GST return.
Note:
Deciding to direct a representative of an incapacitated entity to give to the Commissioner a GST return is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(2)
The tax period may be any tax period applying to the *incapacitated entity, including:
(a)
a tax period that ends before the *representative became a representative of the incapacitated entity; and
(b)
a tax period that starts after the representative became a representative of the incapacitated entity.
(3)
The *GST return by the *representative:
(a)
must be in accordance with the requirements of Division 31 as they would apply in relation to the *incapacitated entity except to the extent that the direction under paragraph (1)(b) modifies those requirements; and
(b)
must be given to the Commissioner within the period specified in the direction.
(4)
Without limiting the matters that the Commissioner may take into account in deciding whether to give a direction under paragraph (1)(b), the Commissioner must take into account:
(a)
the likelihood of a dividend to unsecured creditors of the *incapacitated entity being declared, and the likely amounts of any such dividend; and
(b)
the likelihood that, if the Commissioner were given the *GST return, it would reveal a liability to pay an amount to the Commissioner under the *GST law; and
(c)
the availability of books and records that would make it possible to prepare the GST return; and
(d)
the likelihood that the cost to the *representative of preparing the GST return would be covered by the incapacitated entity's assets without resulting in an unreasonable impact on the other creditors of the incapacitated entity.
(5)
The *incapacitated entity is taken to have complied with Division 31 in relation to giving a *GST return for a tax period if the *representative gives to the Commissioner a return for the tax period in accordance with this section.
(6)
A direction under paragraph (1)(b) is not a legislative instrument.
(7)
This section has effect despite section 31-5 (which is about who must give GST returns).
(1)
An *incapacitated entity is not required to give a *GST return for a tax period if:
(a)
the entity's *net amount for the tax period is zero; and
(b)
the entity does not have an *increasing adjustment that is attributable to the tax period; and
(c)
the entity is not liable for GST that is attributable to the tax period.
(2)
This section has effect despite section 31-5 (which is about who must give GST returns).
(1)
A *representative of an *incapacitated entity must notify the Commissioner, in the *approved form, of an amount of GST for which the entity is liable, or an *increasing adjustment that the entity has, if:
(a)
the representative becomes aware, or could reasonably be expected to have become aware, of the amount of GST, or the adjustment; and
(b)
the amount of GST, or the adjustment, has not been taken into account in any *GST return that has been given to the Commissioner; and
(c)
the Commissioner has not been previously notified of the amount of GST, or the adjustment, under this section.
Note:
Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.
(2)
The notification must be given to the Commissioner before the day on which the *representative declares a dividend to unsecured creditors of the *incapacitated entity.
(3)
This section does not apply if the *representative is a representative of a kind that does not have the capacity to declare dividends to unsecured creditors of the *incapacitated entity.
(4)
This section does not apply in circumstances determined by the Commissioner under subsection (5).
(5)
The Commissioner may, by legislative instrument, determine circumstances in which this section does not apply.
A *representative of an *incapacitated entity who is liable to pay an amount because of this Division is authorised and required to apply any money which the representative receives in his or her capacity as that representative in order to pay the liability.
A *representative of an *incapacitated entity is not liable to civil or criminal proceedings in relation to an act done, or omitted to be done, in good faith, in the performance or purported performance, or exercise or purported exercise, of the representative's duties or powers under, or in relation to, the *GST law.
This Division does not apply in relation to a *representative of an entity to the extent that paragraph 105-5(1)(a) will apply to a supply by the representative of the entity's property.
Note:
For example, if the representative:
(a) is a mortgagee in possession of the entity's property; and
(b) is not a representative of the entity for any other reason;
the representative need not register under section 58-20 if it will supply that property in or towards the satisfaction of a debt owed to it by the entity.
S 58-95 inserted by No 142 of 2012, s 3 and Sch 2 item 2, applicable in relation to supplies made on or after the start of the first quarterly tax period starting on or after 28 September 2012. For this purpose, it does not matter whether quarterly tax periods are the tax periods that apply to you.
Division 60 - Pre-establishment costs
60-1
What this Division is about
This Division enables input tax credits to arise in some circumstances in which acquisitions and importations are made before a company is in existence.
60-5
Input tax credit for acquisitions and importations before establishment
(1)
If you make a *creditable acquisition that is a *pre-establishment acquisition, or a *creditable importation that is a *pre-establishment importation, relating to a *company before it is in existence:
(a)
you are not entitled to the input tax credit on the acquisition or importation; and
(b)
once the company is in existence, it is entitled to the input tax credit on the acquisition or importation.
S 60-5(1) amended by No 41 of 2005, s 3 and Sch 10, item 3, by substituting ``in existence'' for ``*in existence'', effective 1 April 2005.
(2)
This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
60-10
Registration etc. not needed for input tax credits
(1)
If you make a *pre-establishment acquisition, the fact that you are not *registered or *required to be registered does not stop the acquisition being a *creditable acquisition.
(2)
If you make a *pre-establishment importation, the fact that you are not *registered or *required to be registered does not stop the acquisition being a *creditable importation.
(3)
This section has effect despite sections 11-5 and 15-5 (which are about what are creditable acquisitions and creditable importations).
60-15
Pre-establishment acquisitions and importations
(1)
An acquisition that you make is a
pre-establishment acquisition, and an importation that you make is a
pre-establishment importation, if:
(a)
you do not *apply the thing acquired or imported for any purpose other than for a *creditable purpose relating to a *company not yet in existence; and
(b)
the company comes into existence, and becomes *registered, within 6 months after the acquisition or importation; and
(c)
you become a member, officer or employee of the company; and
(d)
in the case of an acquisition - you have been fully reimbursed by the company for the *consideration you provided for the acquisition; and
(e)
in the case of an importation - you have been fully reimbursed by the company:
(i)
for the *assessed GST paid on the importation; and
(ii)
for the cost of acquiring or producing the thing imported.
S 60-15(1) amended by No 39 of 2012, s 3 and Sch 1 item 78, by substituting "*assessed GST" for "GST" in para (e)(i), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 60-15(1) amended by No 41 of 2005, s 3 and Sch 10, item 4, by substituting "in existence" for "*in existence" in para (a), effective 1 April 2005.
(2)
However, the acquisition or importation is not a
pre-establishment acquisition or a
pre-establishment importation if:
(a)
you are entitled to an input tax credit for the acquisition or importation; or
(b)
the company acquires the thing acquired or imported, and that acquisition by the company is a *creditable acquisition.
60-20
Creditable purpose
(1)
If, before a *company is in existence, you make an acquisition or importation:
(a)
for the purpose of bringing the company into existence; or
(b)
for the purpose of the company *carrying on an *enterprise after it is in existence;
you acquire or import the thing for a
creditable purpose only to the extent that you acquire or import it for either or both of those purposes.
S 60-20(1) amended by No 41 of 2005, s 3 and Sch 10, item 5, by substituting "in existence" for "*in existence", effective 1 April 2005.
(2)
However, you do not acquire or import the thing for a creditable purpose to the extent that:
(a)
the acquisition or importation relates (directly or indirectly) to the company making supplies that would be *input taxed; or
(b)
the acquisition or importation is of a private or domestic nature.
(3)
An acquisition or importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that the company will *carry on outside the indirect tax zone.
S 60-20(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 60-20(3) substituted by No 156 of 2000, s 3 and Sch 1 item 10, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 60-20(3) formerly read:
(3)
To the extent that an acquisition or importation relates to making *financial supplies through an *enterprise, or a part of an enterprise, that the company will *carrying on outside Australia, the acquisition or importation is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
(4)
This section has effect despite sections 11-15 and 15-10 (which are about creditable purpose).
60-25
Attributing the input tax credit for pre-establishment acquisitions
(1)
The input tax credit to which a *company is entitled under this Division for an acquisition that you made is attributable to the tax period (applying to the company) in which you were fully reimbursed by the company for the *consideration you paid for the acquisition.
(2)
However, if the company does not hold a copy of a *tax invoice that you (or your agent) hold for the acquisition when the company gives to the Commissioner a *GST return for the tax period to which the input tax credit for the acquisition would otherwise be attributable, then:
(a)
the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(b)
the input tax credit (or the part of the input tax credit) is attributable to the first tax period for which the company gives to the Commissioner a GST return at a time when it holds a copy of that tax invoice.
However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner, under subsection 29-10(3), to be circumstances in which the requirement for a tax invoice does not apply.
For the giving of GST returns to the Commissioner, see Division 31.
(3)
This section has effect despite section 29-10 (which is about attributing input tax credits for acquisitions).
60-30
Attributing the input tax credit for pre-establishment importations
(1)
The input tax credit to which a *company is entitled under this Division for an importation that you made is attributable to the tax period (applying to the company) in which you were fully reimbursed by the company:
(a)
for the *assessed GST paid on the importation; and
S 60-30(1) amended by No 39 of 2012, s 3 and Sch 1 item 79, by substituting "*assessed GST" for "GST" in para (a), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(2)
This section has effect despite section 29-15 (which is about attributing input tax credits for importations).
60-35
Application of Division 129
If a *company is entitled under this Division to an input tax credit for an acquisition or importation, the acquisition or importation is treated, for the purposes of Division 129 (which is about changes in the extent of creditable purpose), as if the company had made it.
Division 63 - Non-profit sub-entities
Some kinds of non-profit entities may choose to have some (or all) of their separately identifiable branches treated as separate entities for GST purposes.
Note:
The parent entities then cease to be responsible, for GST purposes, for these branches. (By way of contrast, parent entities would remain responsible for their branches if they registered them under Division 54.)
(1)
An entity may choose to apply this Division.
(2)
However, the entity must be *registered and must be:
(a)
an *endorsed charity or a *government school; or
S 63-5(2) amended by No 169 of 2012, s 3 and Sch 2 items 25 and 95, by substituting "education and science" for "education, science and religion" in para (b)(i) and "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), effective 3 December 2012.
S 63-5(2) amended by No 80 of 2006, s 3 and Sch 12 item 11, by substituting paras (a) and (aa) for para (a), applicable in relation to net amounts for tax periods starting on or after 30 June 2006. Para (a) formerly read:
S 63-5(2) amended by No 92 of 2000, s 3 and Sch 1 item 4B, by substituting ", a *gift-deductible entity or a *government school" for "or a *gift-deductible entity" in para (a), effective 1 July 2000.
S 63-5 inserted by No 177 of 1999, s 3 and Sch 1 item 74, effective 1 July 2000.
S 63-5(3) repealed by No 169 of 2012, s 3 and Sch 2 item 96, effective 3 December 2012. S 63-5(3) formerly read:
(3)
Paragraph (2)(a) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Paragraph (2)(a) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 63-5(3) inserted by No 95 of 2004, s 3 and Sch 10 item 12, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
(1)
The choice has effect from the time the entity makes the choice.
(2)
The choice ceases to have effect if:
(a)
the entity revokes the choice; or
(b)
the entity ceases to meet the requirements of subsection 63-5(2).
(3)
However, the entity:
(a)
cannot revoke the choice within 12 months after the day on which the entity made the choice; and
(b)
cannot make a further choice within 12 months after the day on which the entity revoked a previous choice.
(1)
While the choice has effect, any branch of the entity is treated, for the purposes of the *GST law (other than sections 63-5 and 63-10 and this section), as an entity if that branch:
(a)
maintains an independent system of accounting; and
(b)
can be separately identified by reference to:
(i)
the nature of the activities carried on through the branch; or
(ii)
the location of the branch; and
(c)
is referred to in the entity's records to the effect that it is to be treated as a separate entity for the purposes of the GST law.
(2)
The branch's treatment as an entity ceases if:
(a)
the choice ceases to have effect; or
(b)
the branch ceases to meet the requirements of paragraphs (1)(a), (b) and (c).
However, if the branch is *registered, its treatment as an entity continues until its registration is cancelled.
(3)
At all times during its treatment as an entity, the branch is a
non-profit sub-entity.
(1)
A *non-profit sub-entity may apply to be *registered under section 23-10 even if it is not *carrying on an *enterprise and is not intending to carry on an enterprise.
(2)
The Commissioner must *register the *non-profit sub-entity whether or not the Commissioner is satisfied that it is *carrying on an *enterprise or intending to carry on an enterprise.
(3)
This section has effect despite section 23-10 (which is about who may be registered) and section 25-5 (which is about when the Commissioner must register an entity).
(1)
Subsection 23-15(2) applies in relation to a *non-profit sub-entity of an entity (the
parent entity) whether or not the parent entity is a non-profit body.
S 63-25(1) inserted by No 61 of 2011, s 3 and Sch 5 item 1, applicable to tax periods commencing on or after 30 June 2011.
(2)
Regulations made for the purposes of paragraph 23-15(2)(b) may:
(a)
provide that they apply only to *non-profit sub-entities, or only to other non-profit entities; or
(b)
specify one amount for *non-profit sub-entities and a different amount for other non-profit entities.
S 63-25 amended by No 61 of 2011, s 3 and Sch 5 item 2, by inserting "(2)" before "Regulations", applicable to tax periods commencing on or after 30 June 2011.
S 63-25 inserted by No 177 of 1999, s 3 and Sch 1 item 74, effective 1 July 2000.
63-27
Application of particular provisions relating to charities etc.
Application of particular provisions
(1)
For the purposes of the provisions mentioned in subsection (2), a *non-profit sub-entity of an entity (the
parent entity) is taken to be a body of the following type, if the parent entity is a body of that type:
(a)
a non-profit body;
(b)
an *endorsed charity;
(e)
a gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997;
(f)
a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997;
(g)
a body that has a particular *gift-deductible purpose;
(h)
a body that operates a particular *retirement village;
(i)
a particular *school.
S 63-27(1) amended by No 21 of 2015, s 3 and Sch 7 item 4, by substituting "a" for "a a" in para (b), effective 20 March 2015.
S 63-27(1) amended by No 169 of 2012, s 3 and Sch 2 items 98 and 99, by omitting "charitable institution, a trustee of a charitable fund or" from para (b) and substituting para (d), effective 3 December 2012. Para (d) formerly read:
(d)
an *endorsed charitable institution or an *endorsed trustee of a charitable fund;
Subdivision 38-G (Activities of charities etc.); and
(c)
Subdivision 40-E (Schools tuckshops and canteens); and
(d)
Subdivision 40-F (fund-raising events); and
(e)
section 111-18 (reimbursement of volunteers' expenses); and
(f)
section 129-45 (Gifts to gift-deductible entities); and
(g)
S 63-27(2) amended by No 169 of 2012, s 3 and Sch 2 item 100, by substituting "charities" for "charitable institutions" in paras (b) and (g), effective 3 December 2012.
S 63-27(2) amended by No 75 of 2012, s 3 and Sch 2 item 3, by substituting "subsection 9-17(2)" for "paragraph 9-15(3)(b)" in para (a), applicable, and taken to have applied, from 1 July 2012.
(3)
To avoid doubt, subsection (1) does not prevent the *non-profit sub-entity being a body of a particular type merely because the parent entity is not a body of that type.
(1)
If a *non-profit sub-entity is *registered and it does not meet the requirements of paragraphs 63-15(1)(a), (b) and (c), it must apply to the Commissioner in the *approved form for cancellation of its *registration. It must lodge the application within 21 days after the day on which it ceased to meet those requirements.
(2)
Section 25-50 (which is about cancelling registration) does not apply to *non-profit sub-entities.
(1)
The Commissioner must cancel *registration of a *non-profit sub-entity (even if it has not applied for cancellation of the registration) if the Commissioner is satisfied that the sub-entity does not meet the requirements of paragraphs 63-15(1)(a), (b) and (c).
Note:
Cancelling registration under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 63-35(1) amended by No 73 of 2006, s 3 and Sch 5 item 121, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The Commissioner must notify the sub-entity if the Commissioner decides to cancel its *registration. The notice must specify the date of effect of the cancellation.
(1)
If a branch of an entity becomes a *non-profit sub-entity, any *adjustment arising afterwards in relation to a supply, acquisition or importation, made by the entity through the branch before it became a non-profit sub-entity:
(a)
is taken to be an adjustment that the non-profit sub-entity has, as if the non-profit sub-entity had made the supply, acquisition or importation; and
(b)
is not taken to be an adjustment that the entity has.
(2)
For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch became a *non-profit sub-entity, that Division applies as if:
(a)
the extent to which the acquisition or importation of the thing was for a *creditable purpose were the extent to which the non-profit sub-entity acquired or imported it for a creditable purpose; and
(b)
the extent to which the thing has been *applied for a creditable purpose since its acquisition or importation were the extent to which the non-profit sub-entity applied it for a creditable purpose.
(1)
If a branch of an entity ceases to be a *non-profit sub-entity, any *adjustment arising afterwards in relation to a supply, acquisition or importation, made by the branch while it was a non-profit sub-entity, is taken to be an adjustment that the entity has, as if the entity had made the supply, acquisition or importation.
(2)
For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch ceased to be a *non-profit sub-entity, that Division applies as if:
(a)
the extent to which the acquisition or importation of the thing was for a *creditable purpose were the extent to which the entity acquired or imported it for a creditable purpose; and
(b)
the extent to which the thing has been *applied for a creditable purpose since its acquisition or importation were the extent to which the entity applied it for a creditable purpose.
A *non-profit sub-entitysatisfies the membership requirements for a *GST group, or a proposed GST group, if:
(a)
it is *registered; and
(b)
it has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and
(c)
it accounts on the same basis as all those other members; and
(d)
it is not a *member of any other GST group; and
(e)
each of the other members of the GST group or proposed GST group is either:
(i)
the entity of which the non-profit sub-entity is a branch; or
(ii)
another branch of that entity that is a non-profit sub-entity.
This Division allows you to claim input tax credits for your acquisitions of second-hand goods, even though GST was not payable on the supply of the goods to you. However, some limitations apply, and a form of global accounting is used for some acquisitions of second-hand goods that are divided for re-supply.
S 66-1 amended by No 177 of 1999, s 3 and Sch 1 item 75, by inserting ``, and a form of global accounting is used for some acquisitions of second-hand goods that are divided for re-supply'', effective 1 July 2000.
Subdivision 66-A - Input tax credits for acquiring second-hand goods
If you acquire *second-hand goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of *business, the fact that the supply of the goods to you is not a *taxable supply does not stop the acquisition being a *creditable acquisition.
S 66-5(1) amended by No 177 of 1999, s 3 and Sch 1 item 77, by inserting ``for the purposes of sale or exchange (but not for manufacture) in the ordinary course of *business'' after ``*second-hand goods'', effective 1 July 2000.
(2)
However, this section does not apply, and is taken never to have applied, to the acquisition if:
(a)
the supply of the goods to you was a *taxable supply, or was *GST-free; or
(b)
you *imported the goods; or
(c)
the supply of the goods to you was a supply by way of hire; or
(d)
Subdivision 66-B applies to the acquisition; or
S 66-5(2) amended by No 177 of 1999, s 3 and Sch 1 item 78, by substituting para (d), effective 1 July 2000. Para (d) formerly read:
(d)
the supply of the goods to you occurred before 1 July 2000; or
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
66-10
Amounts of input tax credits for creditable acquisitions of second-hand goods
(1)
The amount of the input tax credit for a *creditable acquisition of *second-hand goods for which the *consideration is more than $300 is:
(a)
an amount equal to 1/11 of the *consideration that you provide, or are liable to provide, for the acquisition; or
(b)
if that amount is more than the amount of the GST payable on a *taxable supply of the goods that you make - the amount of GST on that taxable supply.
S 66-10(1) amended by No 177 of 1999, s 3 and Sch 1 item 79, by inserting ``for which the *consideration is more than $300'' after ``*second-hand goods'', effective 1 July 2000.
S 66-10(1A) inserted by No 177 of 1999, s 3 and Sch 1 item 80, effective 1 July 2000.
(2)
However, this section does not apply if the supply of the goods to you is a *taxable supply.
(3)
This section has effect despite section 11-25 (which is about the amount of input tax credits for creditable acquisitions).
66-15
Attributing input tax credits for creditable acquisitions of second-hand goods
(1)
If:
(a)
you are entitled, under this Division, to the input tax credit for a *creditable acquisition of *second-hand goods; and
(b)
either the *consideration for the acquisition was more than $300 or you choose to have this section apply to the acquisition;
the input tax credit for the acquisition is attributable to:
(c)
the tax period in which any *consideration is received for a subsequent *taxable supply of the goods; or
(d)
if, before any of the consideration is received, you have issued an *invoice relating to the supply - the tax period in which the invoice is issued.
S 66-15(1) amended by No 177 of 1999, s 3 and Sch 1 item 81, by substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b)
the *consideration for the acquisition was more than $300;
(2)
However, if you *account on a cash basis, then:
(a)
if, in a tax period, all of the *consideration is received for the subsequent *taxable supply - the input tax credit for the acquisition is attributable to that tax period; or
(b)
if, in a tax period, part of the consideration is received - the input tax credit for the acquisition is attributable to that tax period, but only to the extent that the consideration is received in that tax period; or
(c)
if, in a tax period, none of the consideration is received - none of the input tax credit for the acquisition is attributable to that tax period.
(3)
(Repealed by No 177 of 1999)
S 66-15(3) repealed by No 177 of 1999, s 3 and Sch 1 item 82, effective 1 July 2000. S 66-15(3) formerly read:
(3)
Subsection 29-10(3) does not apply in relation to a *creditable acquisition of *second-hand goods if the supply of the goods to you was not a *taxable supply.
(4)
This section has effect despite section 29-10 (which is about attributing the input tax credits for creditable acquisitions).
66-17
Records of creditable acquisitions of second-hand goods
(1)
If you make a *creditable acquisition of second-hand goods and the supply of the goods to you was not a *taxable supply:
(a)
subsection 29-10(3) applies to the acquisition as if references to a *tax invoice were references to a record you prepared that complies with this section; and
(b)
subsection 29-20(3) applies to an adjustment event relating to the acquisition as if references to an *adjustment note were references to a record you prepared that complies with this section.
(2)
To comply with this section, the record must:
(a)
set out the name and address of the entity that supplied the goods to you; and
(b)
describe the goods (including their quantity); and
(c)
set out the date of, and the *consideration for, the acquisition.
(2A)
S 66-17(2B) inserted by No 92 of 2000, s 3 and Sch 11 item 10, effective 1 July 2000.
(3)
This section has effect despite section 29-10 (which is about attributing the input tax credits for creditable acquisitions) and section 29-20 (which is about attributing decreasing adjustments).
S 66-20 repealed by No 156 of 2000, s 3 and Sch 6 item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 66-20 formerly read:
66-20 Returnable containers
This Division does not apply to an acquisition of a *returnable container.
Note:
See Division 93 for input tax credits for acquisitions of returnable containers.
Subdivision 66-B - Acquisitions of second-hand goods that are divided for re-supply
(1)
This Subdivision applies to an acquisition of *second-hand goods if:
(a)
you acquire the goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of *business; and
(b)
either the *consideration for the acquisition was more than $300 or you choose to have this section apply to the acquisition; and
(c)
the goods are of such a kind, or they are supplied to you in such a way, that it would be reasonable to expect you to divide them before supplying them in 2 or more separate supplies; and
(d)
you do not subsequently make a single supply of the entirety of the goods acquired.
(2)
However, this Subdivision does not apply, and is taken never to have applied, to the acquisition if:
(a)
the *consideration for the acquisition separately itemises the consideration for the different goods acquired, and your division of the goods before supplying them:
(i)
corresponds to that itemisation; or
(ii)
does not involve dividing the goods any further than the division indicated by that itemisation; or
(b)
the supply of the goods to you was a *taxable supply, or was *GST-free; or
(c)
you *imported the goods; or
(d)
the supply of the goods to you was a supply by way of hire; or
(e)
you make a supply of the goods, or of part of the goods, that is not a taxable supply (other than because of section 66-45).
(1)
A supply you make is not a *taxable supply if:
(a)
it is a supply of goods that were part of an acquisition you made that was an acquisition of *second-hand goods to which this Subdivision applied; and
(b)
your *total Subdivision 66-B credit amount is more than your *total Subdivision 66-B GST amount; and
(c)
what would be the amount of GST payable on the supply, if the supply were a taxable supply, is less than or equal to the difference between:
(1)
The amount of GST on a *taxable supply you make is reduced if:
(a)
it is a supply of goods that were part of an acquisition you made that was an acquisition of *second-hand goods to which this Subdivision applied; and
(b)
your *total Subdivision 66-B credit amount is more than your *total Subdivision 66-B GST amount; and
(c)
what would be the amount of GST payable on the supply, if the amount were not reduced under this section, is more than the difference between:
(i)
your total Subdivision 66-B credit amount; and
(ii)
your total Subdivision 66-B GST amount.
Note:
This section will not apply unless the record keeping requirements of section 66-55 are met.
(2)
The amount by which the GST on the supply is reduced is an amount equal to the difference between:
(a)
your *total Subdivision 66-B credit amount; and
(b)
your *total Subdivision 66-B GST amount.
(3)
This section has effect despite section 9-70 (which is about the amount of GST on taxable supplies).
Note:
Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.
Sections 66-45 and 66-50 do not apply to a supply of goods you made unless you hold a record, relating to the acquisition of *second-hand goods of which the goods supplied were a part, that:
(a)
sets out the name and address of the entity that supplied the goods to you; and
(b)
describes the goods (including their quantity); and
(c)
sets out the date of, and the *consideration for, the acquisition.
(1)
If an entity acquires *second-hand goods, and, because of section 66-45 and for no other reason, the supply of the goods to the entity is not a *taxable supply:
(a)
the fact that the supply is not a taxable supply does not stop the acquisition being a *creditable acquisition; and
(b)
the amount of the input tax credit for the creditable acquisition is worked out as if the supply were a taxable supply.
(2)
If:
(a)
an entity makes a *creditable acquisition of *second-hand goods; and
(b)
the amount of GST on the supply of the goods to the entity was reduced because of section 66-50;
the amount of the input tax credit for the creditable acquisition is worked out as if that amount of GST had not been so reduced.
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition) and section 11-25 (which is about the amount of input tax credits for creditable acquisitions).
(1)
Your
total Subdivision 66-B credit amount is the sum of the amounts of the input tax credits to which you would have been entitled, for all your acquisitions of *second-hand goods to which this Subdivision applied, if this Subdivision had not applied to them.
(2)
Your
total Subdivision 66-B GST amount is the sum of:
(a)
all the amounts of GST that, but for the operation of section 66-45, would have been payable on supplies that you made; and
(b)
all the amounts by which GST payable on supplies that you made has been reduced under section 66-50.
(1)
The Commissioner may, in writing, determine:
(a)
that acquisitions of *second-hand goods of a specified kind are, or are not, acquisitions of second-hand goods to which this Subdivision applies; or
(b)
how *total Subdivision 66-B credit amounts or *total Subdivision 66-B GST amounts are to be worked out in specified circumstances.
(2)
Determinations under subsection (1) override the provisions of this Subdivision (except this section), but only to the extent of any inconsistency.
S 66-70 inserted by No 177 of 1999, s 3 and Sch 1 item 84, effective 1 July 2000.
Division 69 - Non-deductible expenses
69-1
What this Division is about
Some expenses that are not deductible under the ITAA 1997 do not give rise to creditable acquisitions or creditable importations. The amount of input tax credits on some creditable acquisitions or creditable importations of cars is reduced.
Subdivision 69-A - Non-deductible expenses generally
Subdiv 69-A heading inserted by No 156 of 2000, s 3 and Sch 3 item 8, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
69-5
Non-deductible expenses do not give rise to creditable acquisitions or creditable importations
(1)
An acquisition is not a *creditable acquisition to the extent that it is a *non-deductible expense.
(2)
An importation is not a *creditable importation to the extent that it is a *non-deductible expense.
(3)
An acquisition or importation is a
non-deductible expense if it is not deductible under Division 8 of the *ITAA 1997 because of one of the following:
(a)
section 26-5 of the *ITAA 1997 (Penalties);
(b)
section 26-30 of the *ITAA 1997 (Relative's travel expenses);
(c)
section 26-40 of the *ITAA 1997 (Maintaining your family);
(d)
section 26-45 of the *ITAA 1997 (Recreational club expenses);
(e)
section 26-50 of the *ITAA 1997 (Expenses for a leisure facility);
(f)
Division 32 of the *ITAA 1997 (Entertainment expenses);
(g)
Division 34 of the *ITAA 1997 (Non-compulsory uniforms);
(h)
section 51AK of the *ITAA 1936 (Agreements for the provision of non-deductible non-cash business benefits).
S 69-5(3) amended by No 78 of 2007, s 3 and Sch 2 item 5, by omitting "or boat" after "leisure facility" in para (e), applicable to the first income year starting on or after 21 June 2007.
S 69-5(3) amended by No 41 of 2005, s 3 and Sch 10 item 6, by substituting item (h) for items (h) and (i), effective 1 April 2005. Items (h) and (i) formerly read:
(h)
section 51AK of the *ITAA 1936 (Agreements for the provision of non-deductible non-cash business benefits);
(i)
Division 4A of Part III of the *ITAA 1936 (Car parking for certain self-employed persons, partnerships and trusts).
An acquisition or importation is also a
non-deductible expense to the extent that it is not deductible under Division 8 of the *ITAA 1997 because of one of the following:
(a)
section 51AEA of the *ITAA 1936 (Meal entertainment - election to use the 50/50 split method);
(b)
section 51AEB of the ITAA 1936 (Meal entertainment - election to use the 12 week register method);
(c)
section 51AEC of the ITAA 1936 (Entertainment facility - election to use the 50/50 split method).
S 69-5(3A) inserted by No 156 of 2000, s 3 and Sch 3 item 9, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
If the entity making the acquisition or importation is an *exempt entity, the acquisition or importation is a
non-deductible expense if it would have been a non-deductible expense under subsection (3) or (3A) had the entity not been an exempt entity.
S 69-5(4) amended by No 156 of 2000, s 3 and Sch 3 item 9A, by inserting ``or (3A)'' after ``subsection (3)'', applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
(5)
This section has effect despite sections 11-5 and 15-5 (which are about what is a creditable acquisition and what is a creditable importation).
69-10
Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars
(1)
If:
(a)
you are entitled to an input tax credit for a *creditable acquisition or *creditable importation of a *car; and
(b)
you are not, for the purposes of the A New Tax System (Luxury Car Tax) Act 1999, entitled to quote an *ABN in relation to the supply to which the creditable acquisition relates, or in relation to the importation, as the case requires; and
(c)
the *GST inclusive market value of the car exceeds the *car limit for the *financial year in which you first used the car for any purpose;
the amount of the input tax credit on the acquisition or importation is the amount of GST payable on the supply or importation of the car up to 1/11 of that limit.
CCH Note:
The car limit for the 2024/25 financial year is $69,674 (The indexation factor is 1.023, calculated as 445.7 divided by 435.5). The car limit for the 2023/24 financial year is $68,108. The car limit for the 2022/23 financial year was $64,741. The car limit for the 2021/22 financial years was $60,733. The car limit for the 2020/21 financial years was $59,136.
S 69-10(1) amended by No 77 of 2001, s 3 and Sch 2 item 12, by substituting "*car limit" for "*car depreciation limit" in para (c), applicable to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June 2001; or
(ii) you constructed where the construction started after that day; or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.
S 69-10(1) amended by No 156 of 2000, s 3 and Sch 6 item 16, by substituting "is the amount of GST payable on the supply or importation of the car up to 1/11 of that limit" for "is an amount equal to 1/11 of that limit", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 69-10(1A) repealed by No 156 of 2000, s 3 and Sch 6 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 69-10(1A) formerly read:
(1A)
However, this section does not apply in relation to the acquisition or importation of:
(a)
a commercial vehicle that is not designed for the principal purpose of carrying passengers; or
(b)
a motor home or campervan.
S 69-10(1A) inserted by No 92 of 2000, s 3 and Sch 11 item 10A, effective 1 July 2000.
However, if:
(a)
the supply of the car is *GST-free to any extent under Subdivision 38-P; or
(b)
the importation of the car is non-taxable to any extent under paragraph 13-10(b) because it would have been GST-free to any extent under Subdivision 38-P if it had been a supply;
you are not entitled to the input tax credit for the acquisition or importation.
S 69-10(2) substituted by No 156 of 2000, s 3 and Sch 6 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 69-10(2) formerly read:
(2)
This section has effect despite sections 11-25 and 15-20 (which are about the amount of input tax credits on creditable acquisitions and the amount of input tax credits on creditable importations).
(3)
If your acquisition or importation is *partly creditable, the input tax credit is reduced to the extent (expressed as a percentage) to which the acquisition or importation is made for a *creditable purpose.
S 69-10(3) inserted by No 156 of 2000, s 3 and Sch 6 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(4)
This section does not apply in relation to:
(a)
the acquisition or importation of a *car that is not a *luxury car because of subsection 25-1(2) of the A New Tax System (Luxury Car Tax) Act 1999; or
Note:
Emergency vehicles, cars fitted to transport disabled people, non-passenger commercial vehicles, motor homes and campervans are not luxury cars under that subsection.
S 69-10(4) inserted by No 156 of 2000, s 3 and Sch 6 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(5)
This section has effect despite sections 11-25 and 15-20 (which are about the amount of input tax credits on creditable acquisitions and creditable importations).
Subdiv 69-B inserted by No 156 of 2000, s 3 and Sch 3 item 10, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
The GST consequences of incurring certain expenses for the provision of meal entertainment and entertainment facilities depend on elections made under fringe benefits tax law. These elections might not be made until after GST returns are due.
This Subdivision allows elections to be made for GST purposes so that GST returns can take into account the likely application of subsection 69-5(3A) to those expenses, before the fringe benefits tax elections are made.
(1)
If you make an election under this Subdivision that has effect during a particular tax period, your *net amount for the tax period must be worked out on the basis of that election.
(2)
This section has effect despite section 17-5 (which is about working out your net amount).
You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as *non-deductible expenses because of paragraph 69-5(3A)(a), to the extent that the acquisitions or importations would be non-deductible expenses because of that paragraph if:
(a)
an election were in force under section 37AA of the Fringe Benefits Tax Assessment Act 1986 (but no further election were in force under section 37CA of that Act); and
(b)
section 51AEA of the *ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations.
(1)
You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as *non-deductible expenses because of paragraph 69-5(3A)(b), to the extent that the acquisitions or importations would be non-deductible expenses because of that paragraph if:
(a)
an election were in force under section 37CA of the Fringe Benefits Tax Assessment Act 1986; and
(b)
section 51AEB of the *ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations.
(2)
However, you cannot make the election unless you have a *valid meal entertainment register.
You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as *non-deductible expenses because of paragraph 69-5(3A)(c), to the extent that the acquisitions or importations would be non-deductible expenses because of that paragraph if:
(a)
an election were in force under section 152B of the Fringe Benefits Tax Assessment Act 1986; and
(b)
section 51AEC of the *ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations.
(1)
An election under this Subdivision is taken to have effect, or to have had effect, from the start of the tax period specified in the election.
(2)
The tax period may be a future tax period or the current tax period. It cannot be a tax period that has already come to an end.
If a circumstance specified in the second column of the following table occurs, the election ceases to have effect from the start of the tax period specified in the third column:
When elections cease to have effect
When elections cease to have effect
When elections cease to have effect
Item
Kind of election
Circumstance
Tax period
1
Any election under this Subdivision
You withdraw the election
The tax period (which must not be a past tax period) specified in the withdrawal
2
An election under section 69-25
You make an election under section 69-30
The tax period at the start of which the election under section 69-30 takes effect
3
An election under section 69-30
You make an election under section 69-25
The tax period at the start of which the election under section 69-25 takes effect
4
An election under section 69-30
You cease to have a *valid meal entertainment register
The tax period during which you cease to have such a register
5
An election under section 69-25 or 69-30
You make an election under section 37AA or 37CA of the Fringe Benefits Tax Assessment Act 1986
The tax period during which the election is made
6
An election under section 69-35
You make an election under section 152B of that Act
(1)
The following are
adjustment events if they have the effect of changing the extent to which an acquisition you made is a *creditable acquisition:
(a)
an election you make under this Subdivision ceases to have effect at a time other than the start of an *FBT year;
(b)
an election is made under section 37AA, 37CA or 152B of the Fringe Benefits Tax Assessment Act 1986 for an FBT year, without one or more corresponding elections under this Subdivision having been made covering all the tax periods in that year;
(c)
an election is not made under section 37AA, 37CA or 152B of that Act for an FBT year, but one or more corresponding elections have been made under this Subdivision covering one or more of the tax periods in that year.
(2)
However, an *adjustment event under this section arises only in respect of a tax period in which:
(a)
the day occurs by which you are required, under section 68 of the Fringe Benefits Tax Assessment Act 1986, to furnish a return to the Commissioner relating to an *FBT year; or
(b)
if you are not required under that section to lodge a return relating to that FBT year - the day occurs by which you would have been required under that section to lodge a return relating to that FBT year, if you were required to lodge the return.
(3)
Subdivision 19-C applies to the acquisition in question as if every *adjustment event under this section that occurred during the *FBT year, and that relates to the acquisition, occurred during the tax period referred to in paragraph 19-70(a).
(4)
This table sets out when elections that you make or fail to make under section 37AA, 37CA or 152B of the Fringe Benefits Tax Assessment Act 1986 correspond to elections under this Subdivision:
Corresponding elections
Corresponding elections
Corresponding elections
Item
These elections under the
Fringe Benefits Tax Assessment Act 1986...
correspond to these elections under this Subdivision...
1
an election under section 37AA, but without a further election under section 37CA
an election under section 69-25
2
an election under section 37AA, together with a further election under section 37CA
S 69-55 inserted by No 156 of 2000, s 3 and Sch 3 item 10, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
Division 70 - Financial supplies (reduced credit acquisitions)
70-1
What this Division is about
In some cases, acquisitions relating to financial supplies can attract a reduced input tax credit, even though no input tax credit could arise under the basic rules.
70-5
Acquisitions that attract the reduced credit
(1)
The regulations may provide that acquisitions of a specified kind that relate to making *financial supplies can give rise to an entitlement to a reduced input tax credit. These are
reduced credit acquisitions.
(1A)
However, an acquisition is not a reduced credit acquisition to the extent (if any) that, without this Division applying, an entity is entitled to an input tax credit for the acquisition.
Note:
Acquisitions relating to financial supplies can give rise to input tax credits: see subsections 11-15(4) and (5).
S 70-5(1A) amended by No 156 of 2000, s 3 and Sch 1 item 11, by substituting ``to the extent (if any) that'' for ``if'', applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 70-5(1A) inserted by No 92 of 2000, s 3 and Sch 5 item 5, effective 1 July 2000.
(2)
For each kind of *reduced credit acquisition specified, the regulations must specify a percentage to which the input tax credit is reduced.
70-10
Extended meaning of creditable purpose
(1)
The fact that a *reduced credit acquisition relates to making *financial supplies does not stop it being for a *creditable purpose, to the extent that it relates to making financial supplies.
(2)
The fact that you *apply a *reduced credit acquisition in making *financial supplies does not stop it being applied for a *creditable purpose, to the extent that it relates to making financial supplies.
(3)
This section has effect despite sections 11-15 and 129-50 (which are about the meaning of creditable purpose).
70-15
How much are the reduced input tax credits?
(1)
The amount of an input tax credit for a *creditable acquisition of a *reduced credit acquisition is an amount equal to the GST payable on the supply of the acquisition multiplied by the percentage specified under subsection 70-5(2) for acquisitions of that kind.
(2)
However, the amount of such an input tax credit is further reduced if the acquisition is only *partly creditable.
(3)
This section has effect despite section 11-25 (which is about the amount of input tax credits).
70-20
Extent of creditable purpose
(1)
If:
(a)
a *reduced credit acquisition is a *creditable acquisition; and
(b)
it is not wholly for a *creditable purpose because of this Division;
(2)
The extent to which the acquisition is acquired or applied for a *creditable purpose is worked out using the following formula:
where:
extent of creditable purpose is the extent to which the purpose for which you applied or acquired the acquisition was a *creditable purpose otherwise than because of this Division, expressed as a percentage.
extent of Division 70 creditable purpose is the extent to which the purpose for which you applied or acquired the acquisition was a *creditable purpose because of this Division, expressed as a percentage.
percentage credit reduction is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.
Note:
This section affects sections 11-30 and 129-40. It is used even if the reduced credit acquisition is used wholly in carrying on your enterprise (unless the acquisition was wholly for a creditable purpose because of this Division, then section 70-15 applies).
Example 1:
You make a reduced credit acquisition of $110,000, wholly for the purposes of carrying on your enterprise, partly for the purpose of making financial supplies (40%) and partly for the purpose of making taxable supplies (60%). Assume the percentage credit reduction to be 50%. The extent to which you make the acquisition for a creditable purpose is:
60% + [40% × 50%] = 80%
Applying section 11-30, your input tax credit is $8,000 (assuming you were liable for all the consideration).
Example 2:
You subsequently apply the acquisition partly in making financial supplies (40%), partly in making taxable supplies (40%) and partly for private use (20%). The extent to which you made the acquisition for a creditable purpose is:
40% + [40% × 50%] = 60%
Applying Division 129, your input tax credit is reduced to $6,000, giving you an increasing adjustment of $2,000.
The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (2), the extent to which an acquisition is for a *creditable purpose.
S 70-20(3) inserted by No 177 of 1999, s 3 and Sch 1 item 85, effective 1 July 2000.
70-25
Sale of reduced credit acquisitions (Division 132)
(1)
If:
(a)
you supply a *reduced credit acquisition in circumstances to which Division 132 applies; and
(b)
you made the acquisition for a *creditable purpose because of this Division, or you applied the acquisition for a *creditable purpose because of this Division;
this section applies for the purposes of Division 132.
Div 71 heading substituted by No 156 of 2000, s 3 and Sch 3 item 11, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. The heading formerly read:
Division 71 - Financial supplies (acquisitions and importations to provide fringe benefits)
Div 71 inserted by No 92 of 2000, s 3 and Sch 5 item 5A, effective 1 July 2000.
Suppliers making input taxed supplies may not be entitled to input tax credits for acquisitions or importations they make to provide fringe benefits to their employees.
Note:
Under the Fringe Benefits Tax Assessment Act 1986, a lower rate of fringe benefits tax is payable for providing fringe benefits without entitlement to input tax credits.
S 71-1 amended by No 156 of 2000, s 3 and Sch 3 item 12, by substituting ``Suppliers making input taxed supplies'' for ``Financial suppliers'', applicable in relation to net amounts for tax periods ending on or after 12 October 2000.
S 71-1 inserted by No 92 of 2000, s 3 and Sch 5 item 5A, effective 1 July 2000.
71-5
Acquisitions by input taxed suppliers to provide fringe benefits
An acquisition that solely or partly relates to making supplies that are *input taxed is not a *creditable acquisition if:
(a)
the acquisition would (but for this section) be an acquisition of a kind referred to in paragraph 149A(2)(b) of the Fringe Benefits Tax Assessment Act 1986; and
(b)
the acquisition specifically relates to the provision of a particular benefit (within the meaning of that Act) in respect of which *fringe benefits tax is or will be payable.
S 71-5(1) substituted by No 156 of 2000, s 3 and Sch 3 item 14, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. S 71-5(1) formerly read:
(1)
An acquisition that solely or partly relates to making *financial supplies is not a *creditable acquisition to the extent that the acquisition would (but for this section) be a *GST-creditable benefit on the provision of which *fringe benefits tax is payable.
However, this section does not apply to an acquisition if:
(a)
the only reason it relates to making supplies that are *input taxed is because it relates to making *financial supplies; and
(b)
you do not *exceed the financial acquisitions threshold.
S 71-5(2) substituted by No 156 of 2000, s 3 and Sch 3 item 14, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. S 71-5(2) formerly read:
(2)
However, this section applies only if you *exceed the financial acquisitions threshold.
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
An importation that solely or partly relates to making supplies that are *input taxed is not a *creditable importation if:
(a)
the importation would (but for this section) be an importation of a kind referred to in paragraph 149A(2)(b) of the Fringe Benefits Tax Assessment Act 1986; and
(b)
the importation specifically relates to the provision of a particular benefit (within the meaning of that Act) in respect of which *fringe benefits tax is or will be payable.
S 71-10(1) substituted by No 156 of 2000, s 3 and Sch 3 item 16, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. S 71-10(1) formerly read:
(1)
An importation that solely or partly relates to making *financial supplies is not a *creditable importation to the extent that the importation would (but for this section) be a *GST-creditable benefit on the provision of which *fringe benefits tax is payable.
S 71-10(2) substituted by No 156 of 2000, s 3 and Sch 3 item 16, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. S 71-10(2) formerly read:
(2)
However, this section applies only if you *exceed the financial acquisitions threshold.
(3)
This section has effect despite section 15-5 (which is about what is a creditable importation).
S 71-10 inserted by No 92 of 2000, s 3 and Sch 5 item 5A, effective 1 July 2000.
Division 72 - Associates
CCH Note
For transitional provisions relating to a supply or acquisition that an incapacitated entity makes to or from an associate of the incapacitated entity, see note under Div 58 heading.
72-1
What this Division is about
This Division ensures that supplies to, and acquisitions from, your associates without consideration are brought within the GST system, and that supplies to your associates for inadequate consideration are properly valued for GST purposes.
Subdivision 72-A - Supplies without consideration
72-5
Taxable supplies without consideration
(1)
The fact that a supply to your *associate is without *consideration, does not stop the supply being a *taxable supply if:
(a)
your associate is not *registered or *required to be registered; or
(b)
your associate acquires the thing supplied otherwise than solely for a *creditable purpose.
(2)
S 72-5(2) amended by No 77 of 2017, s 3 and Sch 1 item 22, by substituting "84-5(1)(a)" for "84-5(1)(d)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 72-5(2) substituted by No 52 of 2016, s 3 and Sch 2 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. S 72-5(2) formerly read:
(2)
This section has effect despite paragraph 9-5(a) (which would otherwise require a taxable supply to be for consideration).
However, this section does not apply to any supply that is constituted by an insured entity settling a claim under an *insurance policy or by an entity (other than an *operator) settling a claim under a *compulsory third party scheme.
S 72-5(3) amended by No 67 of 2003, s 3 and Sch 11 item 12, by inserting "or by an entity (other than an *operator) settling a claim under a *compulsory third party scheme" after "*insurance policy", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 72-5(3) inserted by No 177 of 1999, s 3 and Sch 1 item 86, effective 1 July 2000.
72-10
The value of taxable supplies without consideration
(1)
If a supply to your *associate without *consideration is a *taxable supply, its
value is the *GST exclusive market value of the supply.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
(3)
S 72-10(3) amended by No 77 of 2017, s 3 and Sch 1 item 23, by omitting "other than goods or real property" after "offshore supplies", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 72-10(3) inserted by No 52 of 2016, s 3 and Sch 2 item 7, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 72-15(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
(2)
This section has effect despite section 29-5 (which is about attributing GST on taxable supplies).
72-20
Supplies and acquisitions that would otherwise be sales etc.
S 72-25 inserted by No 20 of 2010, s 3 and Sch 6 item 3, applicable in relation to supplies, and acquisitions, made on or after 24 March 2010.
Subdivision 72-B - Acquisitions without consideration
72-40
Creditable acquisitions without consideration
(1)
The fact that an acquisition from your *associate is without *consideration does not stop the acquisition being a *creditable acquisition if you acquire the thing supplied otherwise than solely for a *creditable purpose.
(2)
This section has effect despite paragraph 11-5(c) (which would otherwise require a creditable acquisition to be for consideration).
(3)
S 72-40(3) amended by No 67 of 2003, s 3 and Sch 11 item 13, by inserting ``or by an *operator settling a claim under a *compulsory third party scheme'' after ``*insurance policy'', applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 72-40(3) inserted by No 177 of 1999, s 3 and Sch 1 item 87, effective 1 July 2000.
72-45
The amount of the input tax credit
(1)
The amount of the input tax credit on an acquisition from your *associate that is without *consideration is as follows:
Full input tax credit × Extent of creditable purpose
where:
extent of creditable purpose is the extent to which the creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.
full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.
However, if:
(a)
an *annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and
(b)
the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b);
the amount of the input tax credit on the acquisition is worked out under section 131-40 as if you had provided, or had been liable to provide, all of the *consideration for the acquisition.
S 72-45(1A) inserted by No 134 of 2004, s 3 and Sch 2 item 9, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
S 72-50(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
(2)
This section has effect despite section 29-10 (which is about attributing input tax credits for creditable acquisitions).
Subdivision 72-C - Supplies for inadequate consideration
72-70
The value of taxable supplies for inadequate consideration
(1)
If a supply to your *associate for *consideration that is less than the *GST inclusive market value is a *taxable supply, its
value is the *GST exclusive market value of the supply.
(2)
Subsection (1) does not apply if:
(a)
your associate is *registered or *required to be registered; and
(b)
your associate acquires the thing supplied solely for a *creditable purpose.
(3)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
(4)
S 72-70(4) amended by No 77 of 2017, s 3 and Sch 1 item 23, by omitting "other than goods or real property" after "offshore supplies", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 72-70(4) inserted by No 52 of 2016, s 3 and Sch 2 item 8, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
Subdivision 72-D - Application of this Division to certain sub-entities
This Division applies to a *GST branch of an entity as if the GST branch were an *associate of:
(a)
that entity; and
(b)
every other GST branch of that entity; and
(c)
any other associate of that entity.
This Division applies to a *non-profit sub-entity of an entity as if the non-profit sub-entity were an *associate of:
(a)
that entity; and
(b)
every other non-profit sub-entity of that entity; and
(c)
any other associate of that entity.
This Division applies to a *government entity that is:
(a)
a Department of State of the Commonwealth; or
(b)
a Department of the Parliament established under the Parliamentary Service Act 1999; or
(c)
an Executive Agency, or Statutory Agency, within the meaning of the Public Service Act 1999; or
(d)
an organisation, established by the Commonwealth, of a kind referred to in paragraph (e) of the definition of
government entity in section 41 of the A New Tax System (Australian Business Number) Act 1999;
as if the government entity were an *associate of the Commonwealth, of every other government entity of a kind referred to in paragraph (a), (b), (c) or (d) and of any other associate of the Commonwealth.
S 72-95(1) amended by No 75 of 2012, s 3 and Sch 2 item 4, by renumbering from s 72-95, applicable, and taken to have applied, from 1 July 2012.
S 72-95 amended by No 5 of 2011, s 3 and Sch 6 item 121, by inserting "established under the Parliamentary Service Act 1999" after "Parliament" in para (b), effective 19 April 2011.
S 72-95 inserted by No 92 of 2000, s 3 and Sch 11 item 11, effective 1 July 2000.
This Division applies to a *government entity that is:
(a)
a Department of State of a State or Territory; or
(b)
an organisation, established by a State or Territory, of a kind referred to in paragraph (e) of the definition of
government entity in section 41 of the A New Tax System (Australian Business Number) Act 1999;
as if the government entity were an *associate of:
(c)
that State or Territory; and
(d)
every other Department of State of that State or Territory, or organisation, established by that State or Territory, of a kind referred to in paragraph (e) of that definition; and
(e)
any other associate of that State or Territory.
S 72-100(2) inserted by No 75 of 2012, s 3 and Sch 2 item 7, applicable, and taken to have applied, from 1 July 2012.
Division 75 - Sale of freehold interests etc.
75-1
What this Division is about
This Division allows you to use a margin scheme to bring within the GST system your taxable supplies of freehold interests in land, of stratum units and of long-term leases.
The agreement must be made:
(a)
on or before the making of the supply; or
(b)
within such further period as the Commissioner allows.
Note:
Refusing to allow, or allowing, a further period within which to make an agreement is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 75-5(1A) amended by No 73 of 2006, s 3 and Sch 5 item 122, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 75-5(1) and (1A) substituted for s 75-5(1) by No 78 of 2005, s 3 and Sch 6 item 10, applicable only in relation to supplies that:
(a) are made under contracts entered into on or after 29 June 2005; and
(b) are not made pursuant to rights or options granted before that day.
A supply that you make to your *associate is taken for the purposes of subsection (1) to be a sale to your associate whether or not the supply is for *consideration.
S 75-5(1B) inserted by No 145 of 2008, s 3 and Sch 1 item 1, effective 9 December 2008. No 145 of 2008, s 3 and Sch 1 item 13 contains the following application provision:
Application
(1)
The amendment applies in relation to supplies that are supplies of things that the supplier acquired through a new supply to the supplier.
(2)
Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 as in force immediately before 9 December 2008 continues to apply in relation to supplies that are not supplies of things that the supplier acquired through a new supply to the supplier.
…
(4)
In this item:
new supply means a supply that:
(a)
is made on or after 9 December 2008; and
(b)
is not made:
(i)
under a written agreement entered into before 9 December 2008; or
(ii)
pursuant to a right or option granted before 9 December 2008;
that specifies in writing the consideration, or a way of working out the consideration, for the supply.
If you acquired part of the interest, unit or lease through a supply that was ineligible for the margin scheme, you may have an increasing adjustment: see section 75-22.
S 75-5(2), (3) and (4) substituted for s 75-5(2) by No 78 of 2005, s 3 and Sch 6 item 11, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005. S 75-5(2) formerly read:
(2)
However, you cannot choose to apply the *margin scheme if you acquired the freehold interest, *stratum unit or *long-term lease through a *taxable supply on which the GST was worked out without applying the margin scheme.
A supply is
ineligible for the margin scheme if:
(a)
it is a *taxable supply on which the GST was worked out without applying the *margin scheme; or
(b)
it is a supply of a thing you acquired by *inheriting it from a deceased person, and the deceased person had acquired all of it through a supply that was ineligible for the margin scheme; or
(c)
it is a supply in relation to which all of the following apply:
(i)
you were a *member of a *GST group at the time you acquired the interest, unit or lease in question;
(ii)
the entity from whom you acquired it was a member of the GST group at that time;
(iii)
the last supply of the interest, unit or lease by an entity who was not (at the time of that supply) a member of the GST group to an entity who was (at that time) such a member was a supply that was ineligible for the margin scheme; or
(d)
it is a supply in relation to which both of the following apply:
(ii)
the joint venture operator had acquired the interest, unit or lease through a supply that was ineligible for the margin scheme; or
(e)
it is a supply in relation to which all of the following apply:
(i)
you acquired the interest, unit or lease from an entity as, or as part of, a *supply of a going concern to you that was *GST-free under Subdivision 38-J;
(iii)
the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or
(f)
it is a supply in relation to which all of the following apply:
(i)
you acquired the interest, unit or lease from an entity as, or as part of, a supply to you that was GST-free under Subdivision 38-O;
(ii)
the entity was registered or required to be registered, at the time of the acquisition;
(iii)
the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or
(g)
it is a supply in relation to which all of the following apply:
(i)
you acquired the interest, unit or lease from an entity who was your *associate, and who was registered or required to be registered, at the time of the acquisition;
(ii)
the acquisition from your associate was without *consideration;
(iii)
the supply by your associate was not a taxable supply;
(iv)
your associate made the supply in the course or furtherance of an *enterprise that your associate *carried on;
(v)
your associate had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme.
S 75-5(3) amended by No 145 of 2008, s 3 and Sch 1 item 2, by inserting paras (e) to (g) at the end, effective 9 December 2008. For application provision, see history note under s 75-5(1B).
S 75-5(2), (3) and (4) substituted for s 75-5(2) by No 78 of 2005, s 3 and Sch 6 item 11, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
A reference in paragraph (3)(b), (c) or (d) to a supply that was ineligible for the margin scheme is a reference to a supply:
(a)
that was ineligible for the margin scheme because of one or more previous applications of subsection (3); or
(b)
that would have been ineligible for the margin scheme for that reason if subsection (3) had been in force at all relevant times.
S 75-5(2), (3) and (4) substituted for s 75-5(2) by No 78 of 2005, s 3 and Sch 6 item 11, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-10
The amount of GST on taxable supplies
(1)
If a *taxable supply of *real property is under the *margin scheme, the amount ofGST on the supply is 1/11 of the *margin for the supply.
(2)
Subject to subsection (3) and section 75-11, the
margin for the supply is the amount by which the *consideration for the supply exceeds the consideration for your acquisition of the interest, unit or lease in question.
S 75-10(2) amended by No 78 of 2005, s 3 and Sch 6 item 12, by substituting "Subject to subsection (3) and section 75-11, the
margin" for "The
margin", applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Subject to section 75-11, if:
(a)
the circumstances specified in an item in the second column of the table in this subsection apply to the supply; and
(b)
an *approved valuation of the freehold interest, *stratum unit or *long-term lease, as at the day specified in the corresponding item in the third column of the table, has been made;
the
margin for the supply is the amount by which the *consideration for the supply exceeds that valuation of the interest, unit or lease.
Use of valuations to work out margins
Item
When valuations may be used
Days when valuations are to be made
1
The supplier acquired the interest, unit or lease before 1 July 2000, and items 2, 3 and 4 do not apply.
1 July 2000
2
The supplier acquired the interest, unit or lease before 1 July 2000, but does not become *registered or *required to be registered until after 1 July 2000.
The date of effect of your registration, or the day on which you applied for registration (if it is earlier)
2A
The supplier acquired the interest, unit or lease on or after 1 July 2000, but the supply to the supplier:
1 July 2000
(a)
was *GST-free under subsection 38-445(1A); and
(b)
related to a supply before 1 July 2000, by way of lease, that would have been GST-free under section 38-450 had it been made on or after 1 July 2000.
3
The supplier is *registered or *required to be registered and has held the interest, unit or lease since before 1 July 2000, and there were improvements on the land or premises in question as at 1 July 2000.
1 July 2000
4
The supplier is the Commonwealth, a State or a Territory and has held the interest, unit or lease since before 1 July 2000, and there were no improvements on the land or premises in question as at 1 July 2000.
S 75-10(3) amended by No 78 of 2005, s 3 and Sch 6 items 13 to 15, by substituting "Subject to section 75-11" for "However", substituting "an *approved valuation" for "a valuation" in para (b) and omitting "that complies with any requirements determined in writing by the Commissioner for making valuations for the purposes of this Division" at the end of para (b), applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005. No 78 of 2005, s 3 and Sch 6 item 21 contains the following savings provision:
21 Savings provision - determinations under paragraph 75-10(3)(b)
A determination by the Commissioner, for the purposes of paragraph 75-10(3)(b) of the A New Tax System (Goods and Services Tax) Act 1999 that was in force immediately before 17 March 2005:
(a)
continues in force on that commencement as if it had been made under section 75-35 of that Act as amended by this Act; and
(b)
may be revoked or amended by the Commissioner in the same way as a determination under section 75-35.
S 75-10(3) amended by No 156 of 2000, s 3 and Sch 1 item 12, by inserting table item 2A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
If:
(a)
the circumstances specified in item 4 in the second column of the table in subsection (3) apply to the supply; and
(b)
there are improvements on the land or premises in question on the day on which the *taxable supply takes place;
the valuation is to be made as if there are no improvements on the land or premises on that day.
Margin for supplyof real property acquired from fellow member of GST group
(1)
If:
(a)
you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were *members of the same *GST group; and
(b)
on or after 1 July 2000, there has been a supply (an
earlier supply) of the interest, unit or lease that occurred at a time when the supplier was not a member of the GST group; and
(ba)
the *recipient was at that time, or subsequently became, a member of the GST group;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(c)
the consideration for the last such earlier supply, if the supplier and the recipient were not *associates at that time; or
(d)
the *GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time.
(2)
If:
(a)
you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were *members of the same *GST group; and
(b)
subsection (1) does not apply;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds an *approved valuation of the interest, unit or lease as at 1 July 2000.
Margin for supply of real property acquired from joint venture operator of a GST joint venture
(2A)
If:
(a)
you acquired the interest, unit or lease in question at a time when you were a *participant in a *GST joint venture and the entity from whom you acquired it was the *joint venture operator of the joint venture; and
(b)
you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and
(c)
on or after 1 July 2000, there has been a supply (an
earlier supply) of the interest, unit or lease to the entity from whom you acquired it (whether or not that entity was the joint venture operator of the joint venture at the time of that acquisition);
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(d)
the consideration for the last such earlier supply, if the supplier and the *recipient were not *associates at the time of the earlier supply; or
(e)
the *GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time.
S 75-11(2A) amended by No 58 of 2006, s 3 and Sch 7 item 2, by substituting "value of the interest" for "value of interest" in para (e), effective 22 June 2006.
(2B)
If:
(a)
you acquired the interest, unit or lease in question at a time when you were a *participant in a *GST joint venture and the entity from whom you acquired it was the *joint venture operator of the joint venture; and
(b)
you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and
(c)
subsection (2A) does not apply;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds an *approved valuation of the interest, unit or lease as at 1 July 2000.
Margin for supply of real property acquired from deceased estate
(3)
If:
(a)
you acquired the interest, unit or lease in question by *inheriting it; and
(b)
none of subsections (1) to (2B) applies; and
(c)
the entity from whom you inherited the interest, unit or lease (the
deceased) acquired it before 1 July 2000;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(ca)
if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply - that consideration; or
(d)
if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was neither *registered nor *required to be registered - an *approved valuation of the interest, unit or lease as at the latest of:
(i)
1 July 2000; or
(ii)
the day on which you inherited the interest, unit or lease; or
(iii)
the first day on which you registered or were required to be registered; or
(e)
if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was registered or required to be registered - an approved valuation of the interest, unit or lease as at the later of:
(i)
1 July 2000; or
(ii)
the first day on which the deceased registered or was required to be registered.
(4)
If:
(a)
you acquired the interest, unit or lease in question by *inheriting it; and
(b)
none of subsections (1) to (2B) applies; and
(c)
the entity from whom you inherited the interest, unit or lease (the
deceased) acquired it on or after 1 July 2000;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(d)
if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply - that consideration; or
(e)
if paragraph (d) does not apply - an *approved valuation of the interest, unit or lease as at the day on which the deceased acquired it.
Margin for supply of real property acquired as a GST-free going concern or as GST-free farm land
(5)
(ii)
a supply to you that was GST-free under Subdivision 38-O; and
(b)
the entity was *registered or *required to be registered, at the time of the acquisition; and
(c)
none of subsections (1) to (4) applies;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(d)
if that entity had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:
(i)
if you choose to apply an *approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or
(ii)
if subparagraph (i) does not apply - the *GST inclusive market value of the interest, unit or lease as at 1 July 2000; or
(e)
if that entity had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:
(i)
if the entity's acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which the entity had acquired it; or
(ii)
if the entity's acquisition was for consideration and subparagraph (i) does not apply - that consideration; or
(iii)
if the entity's acquisition was without consideration - the GST inclusive market value of the interest, unit or lease as at the time of the acquisition; or
(f)
if that entity had not been registered or required to be registered at the time of the entity's acquisition of the interest, unit or lease (and paragraph (d) does not apply):
(i)
if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or
(ii)
if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.
If:
(a)
you acquired the interest, unit or lease in question from an entity who was your *associate, and who was *registered or *required to be registered, at the time of the acquisition; and
(b)
the acquisition from your associate was without *consideration; and
(c)
the supply by your associate was not a *taxable supply; and
(d)
your associate made the supply in the course or furtherance of an *enterprise that your associate *carried on; and
(e)
none of subsections (1) to (5) applies;
the
margin for the supply you make is the amount by which the consideration for the supply exceeds:
(f)
if your associate had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:
(i)
if you choose to apply an *approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or
(ii)
if subparagraph (i) does not apply - the *GST inclusive market value of the interest, unit or lease as at 1 July 2000; or
(g)
if your associate had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:
(i)
if your associate's acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which your associate had acquired it; or
(ii)
if your associate's acquisition was for consideration and subparagraph (i) does not apply - that consideration; or
(iii)
if your associate's acquisition was without consideration - the GST inclusive market value of the interest, unit or lease at the time of the acquisition; or
(h)
if your associate had not been registered or required to be registered at the time of your associate's acquisition of the interest, unit or lease (and paragraph (f) does not apply):
(i)
if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or
(ii)
if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.
To avoid doubt, you cannot be taken, for the purposes of paragraph (5)(f) or (6)(h), to be *registered or *required to be registered on a day earlier than 1 July 2000.
S 75-11(6B) inserted by No 145 of 2008, s 3 and Sch 1 item 4, effective 9 December 2008. For application provision, see history note under s 75-5(1B).
(7)
If:
(a)
you acquired the interest, unit or lease in question from an entity who was your *associate at the time of the acquisition; and
(b)
none of the other subsections of this section apply;
the
margin for the supply you make is the amount by which the *consideration for the supply exceeds:
(c)
if your acquisition was made before 1 July 2000 - an *approved valuation of the interest, unit or lease as at 1 July 2000; or
(d)
if your acquisition was made on or after 1 July 2000 - the *GST inclusive market value of the interest, unit or lease at the time of the acquisition.
(8)
S 75-11(8) amended by No 145 of 2008, s 3 and Sch 1 items 6 and 7, by substituting "Subsection (6) or (7)" for "Subsection (7)" and substituting "that subsection" for "subsection (7)", effective 9 December 2008. For application provision, see history note under s 75-5(1B).
S 75-11 inserted by No 78 of 2005, s 3 and Sch 6 item 16, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-12
Working out margins to take into account failure to pay full consideration
In working out the *margin for a *taxable supply of *real property you make (the
later supply), if:
(a)
you had acquired the interest, unit or lease in question through a supply (the
earlier supply); and
(b)
the *consideration for:
(i)
if your acquisition was not an acquisition from a *member of a *GST group of which you were also a member at the time of the acquisition - the earlier supply; or
(ii)
if your acquisition was such an acquisition - the last supply of the interest, unit or lease at a time when the supplier of that last supply was not, but the *recipient of that last supply was, a member of the GST group;
had not been paid in full at the time of the later supply;
treat the amount of the consideration as having been reduced by the amount of unpaid consideration referred to in paragraph (b).
Note:
If you subsequently pay more of the consideration for the earlier supply, you may have a decreasing adjustment: see section 75-27.
S 75-12 inserted by No 78 of 2005, s 3 and Sch 6 item 16, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-13
Working out margins to take into account supplies to associates
In working out the *margin for a *taxable supply of *real property you make to an entity who is your *associate at the time of the supply, treat the *consideration for the supply (whether or not the supply was for consideration) as if it were the same as the *GST inclusive market value of the interest, unit or lease at the time of the supply.
S 75-13 amended by No 145 of 2008, s 3 and Sch 1 item 8, by inserting "(whether or not the supply was for consideration)" after "for the supply", effective 9 December 2008. For application provision, see history note under s 75-5(1B).
S 75-13 inserted by No 78 of 2005, s 3 and Sch 6 item 16, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-14
Consideration for acquisition of real property not to include cost of improvements etc.
(1)
To avoid doubt, in working out the *consideration for an acquisition for the purposes of applying the *margin scheme to a *taxable supply of *real property, disregard:
(a)
the cost or value of any other acquisitions that have been made by you, or any work that has been performed, in relation to the real property; and
(b)
the cost or value of any other acquisitions that are intended to be made by you, or any work that is intended to be performed, in relation to the real property after its acquisition;
including acquisitions or work connected with bringing into existence the interest, unit or lease supplied.
(2)
This section does not affect what constitutes *consideration for a purpose not connected with applying the *margin scheme.
S 75-14 inserted by No 78 of 2005, s 3 and Sch 6 item 16, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
(1)
This section applies if you make a *taxable supply of *real property that relates only to part of the land or premises in which you acquired an interest, unit or lease.
(2)
In applying any of sections 75-10 to 75-14 in working out the *margin for the *taxable supply, use only the corresponding proportion of the following (as applicable):
(a)
the *consideration for the acquisition or supply referred to in that section of that interest, unit or lease;
(b)
an *approved valuation of that interest, unit or lease as at the day referred to in that section;
(c)
the *GST inclusive market value of that interest, unit or lease as at the day or time referred to in that section.
Example 1:
If subsection 75-11(2) applies, use only the corresponding proportion of an approved valuation of your interest, unit or lease in the unsubdivided property as at 1 July 2000.
Example 2:
If subparagraph 75-11(5)(e)(ii) applies, use only the corresponding proportion of the consideration for the acquisition of the interest, unit or lease in the unsubdivided property by the entity that supplied it to you.
S 75-15 substituted by No 84 of 2013, s 3 and Sch 8 item 17, applicable in relation to taxable supplies made on or after the start of the first quarterly tax period starting on or after 28 June 2013. For this purpose, it does not matter whether quarterly tax periods are the tax periods that apply to you. S 75-15 formerly read:
75-15 Subdivided land
For the purposes of sections 75-10 to 75-14, if the freehold interest, *stratum unit or *long-term lease you supply relates only to part of land or premises that you acquired, the *consideration for your acquisition of that part is the corresponding proportion of the consideration for the land or premises that you acquired.
S 75-15 amended by No 78 of 2005, s 3 and Sch 6 item 17, by substituting "sections 75-10 to 75-14" for "section 75-10", applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-16
Margins for supplies of real property acquired through several acquisitions
(1)
If:
(a)
you make a *taxable supply of *real property under the *margin scheme; and
(b)
the interest, unit or lease in question is one that you acquired through 2 or more acquisitions (
partial acquisitions); and
(c)
one of the following provisions (a
margin provision) applies in relation to such a partial acquisition, or would so apply if the partial acquisition had been an acquisition of the whole of the interest, unit or lease:
the margin provision applies, in working out the margin for the supply you make, only to the extent that the supply is connected to the partial acquisition.
(2)
The application of a margin provision in relation to one of the partial acquisitions does not prevent that margin provision or a different margin provision applying in relation to another of the partial acquisitions.
S 75-16 inserted by No 145 of 2008, s 3 and Sch 1 item 9, effective 9 December 2008. For application provision, see history note under s 75-5(1B).
75-20
Supplies under a margin scheme do not give rise to creditable acquisitions
(1)
An acquisition of a freehold interest in land, a *stratum unit or a *long-term lease is not a *creditable acquisition if the supply of the interest, unit or lease was a *taxable supply under the *margin scheme.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
75-22
Increasing adjustment relating to input tax credit entitlement
(1)
You have an
increasing adjustment if:
(a)
you make a *taxable supply of *real property under the *margin scheme; and
(b)
an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme; and
(c)
you were, or are, entitled to an input tax credit for the acquisition.
(2)
You have an
increasing adjustment if:
(a)
you make a *taxable supply of *real property under the *margin scheme; and
(b)
you acquired all or part of the interest, unit or lease in question by inheriting it; and
(c)
the entity from whom you inherited (the
deceased) had acquired part of the interest, unit or lease that you inherited through a supply that was *ineligible for the margin scheme; and
(d)
the deceased was entitled to an input tax credit for that acquisition.
You have an
increasing adjustment if:
(a)
you make a *taxable supply of *real property under the *margin scheme; and
(b)
an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was *ineligible for the margin scheme because of paragraph 75-5(3)(e), (f), or (g); and
(c)
the entity from whom you made the acquisition had been entitled to an input tax credit for its acquisition.
You have an
increasing adjustment if:
(a)
you make a *taxable supply of *real property under the *margin scheme; and
(b)
the acquisition that you made of the interest, unit or lease in question:
(i)
was made through a supply that was *GST-free under Subdivision 38-J or Subdivision 38-O; or
(ii)
was made through a supply (other than a taxable supply) from your *associate without *consideration and in the course or furtherance of an *enterprise that your associate *carried on; or
(iii)
was made from your associate but not by means of a supply from your associate; and
(c)
the entity from whom you acquired the interest, unit or lease:
(i)
acquired part of the interest, unit or lease through a supply that would have been *ineligible for the margin scheme if it had been a supply of the whole of the interest, unit or lease; and
(ii)
had been entitled to an input tax credit for its acquisition; and
The amount of the *increasing adjustment under subsection (3) or (4) is an amount equal to 1/11 of:
(a)
if you choose to apply an *approved valuation to work out the amount - an approved valuation of the part of the interest, unit or lease referred to in paragraph (3)(b) or subparagraph (4)(c)(i) as at the day on which the entity had acquired it; or
(b)
otherwise - the *consideration for the entity's acquisition of that part of the interest, unit or lease.
S 75-22(5) inserted by No 145 of 2008, s 3 and Sch 1 item 10, effective 9 December 2008. For application provision, see history note under s 75-5(1B).
S 75-22 inserted by No 78 of 2005, s 3 and Sch 6 item 18, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-25
Adjustments relating to bad debts
(1)
If:
(a)
you have an *adjustment under Division 21 relating to a supply that you made that is a *taxable supply of *real property under the *margin scheme; and
(b)
the amount of the adjustment would (apart from this section) exceed 1/11 of the *margin for the supply;
the amount of the adjustment is 1/11 of the margin for the supply.
(2)
This section has effect despite sections 21-5 and 21-10 (which are about adjustments for writing off and recovering suppliers' bad debts).
75-27
Decreasing adjustment for later payment of consideration
(1)
You have a
decreasing adjustment if:
(a)
section 75-12 applied to working out the *margin for a *taxable supply of *real property that you made; and
(b)
after you made the supply, a further amount of the *consideration was paid for the earlier supply referred to in that section.
(2)
The amount of the decreasing adjustment is an amount equal to 1/11 of the further amount of the *consideration paid.
S 75-27 inserted by No 78 of 2005, s 3 and Sch 6 item 19, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
75-30
Tax invoices not required for supplies of real property under the margin scheme
(1)
You are not required to issue a *tax invoice for a *taxable supply that you make that is solely a supply of *real property under the *margin scheme.
(2)
This section has effect despite section 29-70 (which is about the requirement to issue tax invoices).
(1)
The Commissioner may, by legislative instrument, determine in writing requirements for making valuations for the purposes of this Division.
(2)
A valuation made in accordance with those requirements is an
approved valuation.
S 75-35 inserted by No 78 of 2005, s 3 and Sch 6 item 20, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Division 78 - Insurance
78-1
What this Division is about
Stamp duty is not included in working out the GST on insurance premiums. Insurers have decreasing adjustments which enable the net GST on insurance to reflect correctly their margins after settlements of claims are taken into account.
Note:
Payments and supplies under compulsory third party schemes are dealt with in some cases under this Division and in others under Division 79 or 80.
S 78-1 amended by No 67 of 2003, s 3 and Sch 11 item 14, by inserting the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2003.
S 78-1 substituted by No 177 of 1999, s 3 and Sch 1 item 89, effective 1 July 2000. S 78-1 formerly read:
78-1 What this Division is about
Settlements of claims under insurance policies in most cases entitle insurers to input tax credits. Entities that are insured can be liable for GST on the settlement, but third parties paid under the settlement are not liable for GST.
(1)
The *value of a *taxable supply of an *insurance policy is worked out as if the *price of the supply were reduced by the amount of any stamp duty payable under a *State law or *Territory law in respect of the supply.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
S 78-5 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-5 formerly read:
78-5 Creditable acquisitions relating to settlements of insurance claims
(1)
If, in settlement of a claim under an *insurance policy, an insurer:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is treated as *consideration for an acquisition made by the insurer.
(2)
The acquisition is a
creditable acquisition if:
(a)
the insurer settles the claim for a *creditable purpose; and
(b)
the insurer is *registered, or *required to be registered.
(3)
However, this section only applies if the supply of the *insurance policy by the insurer was a *taxable supply.
(4)
An
insurance policy is a policy of insurance (or of reinsurance) against loss, damage, injury or risk of any kind, whether under a contract or a law. However, it does not include such a policy to the extent that it does not relate to insurance (or reinsurance) against loss, damage, injury or risk of any kind.
(5)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
78-10
Decreasing adjustments for settlements of insurance claims
An insurer has a
decreasing adjustment if, in settlement of a claim under an *insurance policy, the insurer makes one or more of the following:
(a)
a payment of *money;
(b)
a payment of *digital currency;
(c)
a supply.
S 78-10(1) substituted by No 118 of 2017, s 3 and Sch 1 item 5, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 78-10(1) formerly read:
(1)
An insurer has a
decreasing adjustment if, in settlement of a claim under an *insurance policy, the insurer:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply.
(2)
However, this section only applies if:
(a)
the supply of the *insurance policy by the insurer was solely or partly a *taxable supply; and
(b)
either:
(i)
there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; or
(ii)
there was an entitlement to such an input tax credit, but the amount of the input tax credit was less than the GST payable by the insurer for the taxable supply; and
In working out the amount of an input tax credit for the purposes of subparagraph (2)(b)(ii), disregard sections 131-40 and 131-50 (which are about amounts of input tax credits under the annual apportionment rules).
S 78-10(2A) inserted by No 134 of 2004, s 3 and Sch 2 item 10, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
(3)
An event is a
non-creditable insurance event if the supply of an *insurance policy would not be a *taxable supply if it were only an insurance policy against loss, damage, injury or risk that relates to that event happening.
S 78-10 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-10 formerly read:
78-10 Amount of input tax credits relating to settlements of insurance claims
(1)
The amount of the input tax credit for a *creditable acquisition to which section 78-5 applies is an amount equal to 1/11 of:
(a)
all payments of *money made in settlement of the claim in question; plus
(b)
the market value of all supplies, made in settlement of the claim, that are not *taxable supplies; minus
(c)
any payments of an excess under the *insurance policy in question.
(2)
However, the amount of the input tax credit is reduced by the extent (if any) to which the settlement relates to one or more *non-creditable insurance events.
(3)
An event is a
non-creditable insurance event if the supply of an *insurance policy would not be a *taxable supply if it were only an insurance policy against loss, damage, injury or risk that relates to that event happening.
(4)
This section has effect despite section 11-25 (which is about the amount of input tax credits for creditable acquisitions).
No input tax credit for the premium
(1)
If there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened, the amount of the decreasing adjustment is 1/11 of the *settlement amount.
Partial input tax credit for the premium
(2)
If there was an entitlement to such an input tax credit, the amount of the decreasing adjustment is as follows:
78-15(2) formula.tif
where:
extent of input tax credit is the amount of the input tax credit expressed as a fraction of the GST payable for the supply of the *insurance policy for the period to which the premium relates.
Note:
There is no decreasing adjustment if there is a full input tax credit for the premium paid: see paragraph 78-10(2)(b).
Non-creditable insurance events
(3)
The amount of the decreasing adjustment under subsection (1) or (2) is reduced to the extent (if any) that the settlement relates to one or more *non-creditable insurance events.
The
settlement amount is worked out using this method statement.
Method statement
Step 1.
Add together:
(a) the sum of the payments of *money, or *digital currency, (if any) made in settlement of the claim; and
(b) the *GST inclusive market value of the supplies (if any) made by the insurer in settlement of the claim (other than supplies that would have been *taxable supplies but for section 78-25).
Step 2.
If any payments of excess were made to the insurer under the *insurance policy in question, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78-18 applies).
Step 3.
Multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following:
11
11 − Extent of input tax credit
where:
extent of input tax credit has the meaning given by subsection (2).
S 78-15(4) amended by No 118 of 2017, s 3 and Sch 1 item 6, by inserting ", or *digital currency," in para (a) of method statement, step 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
S 78-15(4) amended by No 156 of 2000, s 3 and Sch 6 item 20, by substituting "those payments (except to the extent that they are payments of excess to which section 78-18 applies)" for "those payments" in Step 2, applicable in relation to net amounts for tax periods starting on or after 17 August 2000.
S 78-15(4) amended by No 92 of 2000, s 3 and Sch 8 item 2, by substituting the Method statement, effective 1 July 2000. The Method statement formerly read:
Method statement
Step 1. The sum of the payments of *money (if any) made in settlement of the claim is multiplied by the following:
11
11 − Extent of input tax credit
where:
extent of input tax credit has the meaning given by subsection (2).
Step 2. The *GST inclusive market value of the supplies (if any) made by the insurer in settlement of the claim (other than supplies that would have been *taxable supplies but for section 78-25) is added to the step 1 amount.
Step 3. The sum of any payments of excess made to the insurer under the *insurance policy in question is subtracted from the step 2 amount.
S 78-15 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-15 formerly read:
78-15 Acquisitions of goods by insurers in the course of settling claims
(1)
An acquisition of *goods is not a *creditable acquisition if:
(a)
it is solely an acquisition made by an insurer for the purpose of supplying the goods in the course of settling a claim under an *insurance policy; and
(b)
the supply of the insurance policy by the insurer was not a *taxable supply.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
78-18
Increasing adjustments for payments of excess under insurance policies
(1)
An insurer has an
increasing adjustment if:
(a)
there is a payment of an excess to the insurer under an *insurance policy; and
(b)
the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and
(c)
the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim.
(2)
The amount of the increasing adjustment is 1/11 of the amount that represents the extent to which the payment of excess relates to *creditable acquisitions and *creditable importations made by the insurer directly for the purpose of settling the claim.
(3)
An insurer has an
increasing adjustment if:
(a)
there is a payment of an excess to the insurer under an *insurance policy; and
(b)
the insurer makes, or has made, *creditable acquisitions or *creditable importations directly for the purpose of settling the claim; and
(c)
the insurer has not made any payments or supplies in settlement of the claim.
The amount of the increasing adjustment is 1/11 of the amount of the payment of the excess.
If, in settlement of a claim under an *insurance policy, an insurer makes one or more of the following:
(a)
a payment of *money;
(b)
a payment of *digital currency;
(c)
a supply;
the payment or supply is not treated as *consideration for an acquisition made by the insurer.
S 78-20(1) substituted by No 118 of 2017, s 3 and Sch 1 item 7, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 78-20(1) formerly read:
(1)
If, in settlement of a claim under an *insurance policy, an insurer:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is not treated as *consideration for an acquisition made by the insurer.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
(1)
A supply that an insurer makes in settlement of a claim under an *insurance policy is not a *taxable supply.
(2)
This section has effect despite section 9-5 (which is about what are taxable supplies).
An acquisition is not a *creditable acquisition if:
(a)
the insurer makes the acquisition:
(i)
to the extent that the acquisition is an acquisition of goods - solely for the purpose of supplying the goods in the course of settling a claim under an *insurance policy; or
(ii)
otherwise - solely for a purpose directly related to settling a particular claim under an *insurance policy; and
S 78-30(1) amended by No 156 of 2000, s 3 and Sch 6 items 23 to 25, by omitting ``of *goods'' after ``An acquisition'', substituting para (a) and substituting ``was *GST-free'' for ``was not a *taxable supply'' in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Para (a) formerly read:
(a)
it is solely an acquisition made by an insurer for the purpose of supplying the goods in the course of settling a claim under an *insurance policy; and
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
S 78-30 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-30 formerly read:
78-30 Taxable supplies relating to settlements of insurance claims
(1)
If, in settlement of a claim under an *insurance policy, an insurer:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is treated as *consideration for a supply made by the entity insured under the insurance policy, whether or not the payment or supply is made to that entity.
(2)
The supply made by the entity insured under the insurance policy is a
taxable supply if the entity was entitled to an input tax credit for the premium it paid relating to the period during which the event giving rise to the claim happened.
(3)
It does not matter whether the entity is *registered, or *required to be registered, at the time of the settlement or at the time of the payment or supply by the insurer.
Note:
Subdivision 78-D deals with how GST applies to the taxable supply if the insured entity is not registered, or required to be registered.
(4)
However, the supply to the entity insured is not a *taxable supply to the extent (if any) that the *consideration for the supply is a taxable supply.
(5)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).
78-35
Taxable supplies relating to rights of subrogation
If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy makes one or more of the following:
(a)
a payment of *money;
(b)
a payment of *digital currency;
(c)a supply;
the payment or supply is not treated as *consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.
S 78-35(1) substituted by No 118 of 2017, s 3 and Sch 1 item 8, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 78-35(1) formerly read:
(1)
If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is not treated as *consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.
(2)
This section has effect despite section 9-15 (which is about consideration).
S 78-35 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-35 formerly read:
78-35 Payments of excess under insurance policies are not consideration for supplies
(1)
The making of any payment by an entity is not treated as *consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess under an *insurance policy.
(2)
This section has effect despite section 9-15 (which is about consideration).
78-40
Adjustment events relating to decreasing adjustments under this Division
(1)
Division 19 applies in relation to a *decreasing adjustment that an insurer has under this Division as if:
(a)
the adjustment were an input tax credit; and
(b)
the settlement of the claim to which the adjustment relates were a *creditable acquisition that the insurer made; and
(c)
any payment or supply made by another entity, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of the *insurance policy in question, were a reduction in the *consideration for the acquisition.
(2)
Paragraph (1)(c) does not apply to a payment by another entity in relation to which an *increasing adjustment arises under section 80-30 or 80-70 (which are about settlement sharing arrangements).
S 78-40(2) inserted by No 83 of 2004, s 3 and Sch 7 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 78-40 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-40 formerly read:
78-40 Effect of payments of excess under insurance policies on amounts of GST
(1)
If, in settlement of a claim under an *insurance policy:
(a)
the entity insured under the insurance policy makes a *taxable supply under subsection 78-30(2); and
(b)
the entity makes a payment of an excess under the policy;
the
value of the taxable supply is reduced by an amount equal to 10/11 of the amount of the excess.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
78-42
Adjustment events relating to increasing adjustments under section 78-18
Division 19 applies in relation to an *increasing adjustment that an insurer has under section 78-18 as if:
(a)
payments of excess under an *insurance policy to which the adjustment relates were *consideration for a *taxable supply that the insurer made; and
(b)
the adjustment were the GST payable on the taxable supply; and
(c)
any refund of that payment of excess made by the insurer were a reduction in the consideration for the supply.
If, in settlement of a claim under an *insurance policy, an insurer makes one or more of the following:
(a)
a payment of *money;
(b)
a payment of *digital currency;
(c)
a supply;
the payment or supply is not treated as *consideration for a supply made by the entity insured, or by any entity (other than the entity insured) that was entitled to an input tax credit for the premium paid for the insurance policy.
S 78-45(1) substituted by No 118 of 2017, s 3 and Sch 1 item 9, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 78-45(1) formerly read:
(1)
If, in settlement of a claim under an *insurance policy, an insurer:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is not treated as *consideration for a supply made by the entity insured, or by any entity (other than the entity insured) that was entitled to an input tax credit for the premium paid for the insurance policy.
(2)
This section has effect despite section 9-15 (which is about consideration).
S 78-45 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-45 formerly read:
78-45 Supplies of goods to insurers in the course of settling claims
(1)
A supply of goods is not a *taxable supply if it is solely a supply made under an *insurance policy to an insurer in the course of settling a claim under the policy.
(2)
In working out the
value of a *taxable supply that is partly a supply of goods made under an *insurance policy to an insurer in the course of settling a claim under the policy, disregard the *consideration to the extent that it relates to the supply of those goods.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).
78-50
Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed
(1)
However, the payment or supply is treated as *consideration for a supply made by an entity if:
(a)
the entity paid all or a part of the premium, for the *insurance policy, relating to the period during which the event giving rise to the claim happened; and
(b)
the entity, or the *representative member of the *GST group of which the entity is a *member, was entitled to an input tax credit for the premium it paid; and
(i)
did not, at or before the time a claim was first made under the insurance policy since the last payment of a premium, inform the insurer of the entitlement to an input tax credit for the premium it paid; or
(ii)
in informing the insurer of the entitlement at or before that time, understated its extent; and
S 78-50(1) amended by No 67 of 2003, s 3 and Sch 11 item 15, by inserting para (d), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 78-50(1) amended by No 156 of 2000, s 3 and Sch 6 items 26 and 27, by inserting ", or the *representative member of the *GST group of which the entity is a *member," after "the entity" in para (b) and substituting "of the entitlement" for "that the entity was entitled" in para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 78-50(1) amended by No 92 of 2000, s 3 and Sch 8 item 3, by substituting "a claim was first made under the insurance policy since the last payment of a premium" for "the insurance policy was supplied" in para (c)(i), effective 1 July 2000.
(2)
The extent to which the payment or supply is treated as *consideration is the extent of the entitlement, or the extent to which the entitlement was understated, as the case requires.
(2A)
In working out, for the purposes of subparagraph (1)(c)(ii) or subsection (2), whether an entitlement to an input tax credit has been understated, or the extent of the understatement, disregard sections 131-40 and 131-50 (which are about amounts of input tax credits under the annual apportionment rules).
S 78-50(2A) inserted by No 134 of 2004, s 3 and Sch 2 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
(3)
The supply made by the entity is a
taxable supply whether or not the entity is *registered, or *required to be registered, at the time of the settlement or at the time of the payment or supply by the insurer.
Note:
Subdivision 78-D deals with how GST applies to the taxable supply if the insured entity is not registered, or required to be registered.
S 78-50(4) amended by No 75 of 2012, s 3 and Sch 2 item 8, by substituting "section 9-17" for "section 9-15", applicable, and taken to have applied, from 1 July 2012.
CCH Note
Act No 143 of 2004, s 3 and Sch 1 item 17, contained the following application provision:
17 Application of section 78-50 of the GST Act
Section 78-50 of the GST Act does not apply to a payment or supply made in settlement of a claim under an insurance policy if:
(a)
the entity that paid all or a part of the premium for the insurance policy had, at or before the time referred to in subparagraph 78-50(1)(c)(i) of the GST Act, informed the insurer of the entitlement to an input tax credit for the premium it paid; and
(b)
in so informing the insurer, the entity did not, at that time, understate the extent of the entitlement; and
(c)
because of the amendments of the GST Act made by this Act, the statement of the extent of the entitlement is now an understatement of the entitlement.
For application provisions, see note under s 38-25(3).
S 78-50 substituted by No 177 of 1999, s 3 and Sch 1 item 90, effective 1 July 2000. S 78-50 formerly read:
78-50 Settlements of claims relating to non-creditable insurance events
(1)
Despite section 78-30, a supply by an insured entity under subsection 78-30(1) is not a *taxable supply to the extent (if any) that it relates to a settlement that relates to one or more *non-creditable insurance events.
(2)
This section has effect despite section 9-5 (which is about what are taxable supplies).
78-55
Payments of excess under insurance policies are not consideration for supplies
(1)
The making of any payment by an entity is not treated as *consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess to the insurer under an *insurance policy.
(2)
This section has effect despite section 9-15 (which is about consideration).
(1)
A supply of goods is not a *taxable supply if it is solely a supply made under an *insurance policy to an insurer in the course of settling a claim under the policy.
(2)
In working out the
value of a *taxable supply that is partly a supply of goods made under an *insurance policy to an insurer in the course of settling a claim under the policy, disregard the *consideration to the extent that it relates to the supply of those goods.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).
The making of any payment by an insurer to an entity is not treated as *consideration for a supply to the insurer by the entity, to the extent that:
(a)
the payment is made in settlement of a claim under an *insurance policy under which the entity is not insured; and
(b)
the payment is to discharge a liability owed to that entity by the entity insured.
S 78-65(1) amended by No 156 of 2000, s 3 and Sch 6 item 28, by substituting ``to the extent that: (a) the payment is made in settlement of a claim under an *insurance policy under which the entity is not insured; and (b) the payment is to discharge a liability owed to that entity by the entity insured.'' for ``to the extent that the payment is made in settlement of a claim under an *insurance policy under which the entity is not insured'', applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
The making of any supply by an insurer to an entity:
(a)
is not to be treated as a *taxable supply by the insurer; and
(b)
is not to be treated as *consideration for a supply to the insurer by the entity, or any other entity;
to the extent that:
(c)
the supply is made in settlement of a claim under an *insurance policy under which the entity is not insured; and
(d)
the supply is to discharge a liability owed to that entity by the entity insured.
S 78-65(2) amended by No 156 of 2000, s 3 and Sch 6 item 29, by substituting ``to the extent that: (c) the supply is made in settlement of a claim under an *insurance policy under which the entity is not insured; and (d) the supply is to discharge a liability owed to that entity by the entity insured.'' for ``to the extent that the supply is made in settlement of a claim under an *insurance policy under which the entity is not insured.'', applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).
78-70
Payments etc. to third parties by insured entities
(1)
The making of any payment by an entity to another entity is not to be treated as *consideration for a supply to the entity by that other entity, to the extent that:
(a)
the payment is to discharge a liability of the entity to that other entity; and
(b)
the payment is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability.
(2)
The making of any supply by an entity to another entity:
(a)
is not to be treated as a *taxable supply by the entity; and
(b)
is not to be treated as *consideration for a supply to the entity by that other, or any other, entity;
to the extent that:
(c)
the supply is to discharge a liability of the entity to that other entity; and
(d)
the supply is covered by a settlement of a claim under an *insurance policy under which the entity was insured against that liability.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).
78-75
Creditable acquisitions relating to rights of subrogation
If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy makes one or more of the following:
(a)
a payment of *money;
(b)
a payment of *digital currency;
(c)
a supply;
the payment or supply is not treated as *consideration for an acquisition made by the entity.
S 78-75(1) substituted by No 118 of 2017, s 3 and Sch 1 item 10, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 78-75(1) formerly read:
(1)
If, in settlement of a claim made by an insurer in the insurer's exercising of rights of subrogation in respect of an *insurance policy, an entity that is not insured under the policy:
(a)
makes a payment of *money; or
(b)
makes a supply; or
(c)
makes both a payment of money and a supply;
the payment or supply is not treated as *consideration for an acquisition made by the entity.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
(b)
an entity has any *increasing adjustments that arise in relation to any such supplies (whether made in that month or a previous month);
and the entity is not *registered or *required to be registered during that month, it must give to the Commissioner a *GST return, within 21 days after the end of the month, relating to those supplies it made in that month and those adjustments.
S 78-85(1) amended by No 177 of 1999, s 3 and Sch 1 item 93, by substituting ``section 78-50'' for ``section 78-30'' in para (a), effective 1 July 2000.
S 78-85(2) repealed by No 73 of 2001, s 3 and Sch 1 item 16, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 78-85(2) formerly read:
S 78-85(3) amended by No 73 of 2001, s 3 and Sch 1 item 17, by substituting ``and 31-10'' for ``, 31-10 and 31-15'', applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 78-90(1) substituted by No 39 of 2012, s 3 and Sch 1 item 80, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. No 39 of 2012, s 3 and Sch 1 item 241 also contains the following savings provision:
241 Savings provision
(1)
A specification:
(a)
made by the Commissioner for the purposes of subsection 78-90(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
in force just before the commencement of this item [1 July 2012];
has effect, from that commencement, as if it had been made for the purposes of paragraph 78-90(1A)(b) of that Act as in force after that commencement.
(2)
A specification:
(a)
made by the Commissioner for the purposes of subsection 105-20(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
in force just before the commencement of this item [1 July 2012];
has effect, from that commencement, as if it had been made for the purposes of paragraph 105-20(1A)(b) of that Act as in force after that commencement.
S 78-90(1) formerly read:
(1)
If an entity is not *registered or *required to be registered during a particular month, it must pay:
(a)
amounts of GST on *taxable supplies under section 78-50 that it makes during that month; and
(b)
amounts of *increasing adjustments that it has that arise, during that month, in relation to supplies that are *taxable supplies under section 78-50;
within 21 days after the end of the month, and at the place and in the manner specified by the Commissioner.
S 78-90(1) amended by No 177 of 1999, s 3 and Sch 1 item 94, by substituting "section 78-50" for "section 78-30" in paras (a) and (b), effective 1 July 2000.
The entity must pay each amount:
(a)
on or before the later of:
(i)
the 21st day after the end of the month; and
(ii)
the day the Commissioner gives notice of the relevant *assessment to the entity under section 155-10 in Schedule 1 to the Taxation Administration Act 1953; and
(b)
at the place and in the manner specified by the Commissioner.
S 78-90(1A) inserted by No 39 of 2012, s 3 and Sch 1 item 80, applicable in relation topayments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. For savings provision, see note under s 78-90(1).
(2)
This section has effect despite Division 33 (which is about payments of GST).
Subdivision 78-E - Statutory compensation schemes
(1)
The *value of a *taxable supply of membership of, or participation in, a *statutory compensation scheme is worked out as if the *price of the supply were reduced by the amount of any stamp duty payable under a *State law or *Territory law in respect of the supply.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
Subsection 38-60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a *statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an *insurance policy.
Note:
Subsection 38-60(1) provides that certain supplies to insurers are GST-free.
S 78-100(1) amended by No 75 of 2012, s 3 and Sch 1 items 2 to 4, by substituting "Subsection 38-60(1) and this Division apply" for "This Division applies", substituting "they apply" for "it applies", and inserting the note, applicable in relation to supplies of services to:
(a) insurers; or
(b) operators of compulsory third party schemes; or
For the purposes of the application of subsection 38-60(1) and this Division in relation to such a payment or supply:
(a)
the claim for compensation under the scheme is treated as a claim under an *insurance policy; and
(b)
the entity operating the scheme is treated as the insurer; and
(c)
an entity is treated as the entity insured if:
(i)
the entity's payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or
(ii)
the entity's liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme;
enabled the claim for compensation to arise; and
(ca)
those payments that that entity makes or is liable to make are treated as a premium it has paid; and
S 78-100(2) amended by No 75 of 2012, s 3 and Sch 1 item 5, by substituting "subsection 38-60(1) and this Division" for "this Division", applicable in relation to supplies of services to:
(a) insurers; or
(b) operators of compulsory third party schemes; or
(c) Australian government agencies;
made on or after 1 July 2012.
S 78-100(2) amended by No 92 of 2000, s 3 and Sch 8 item 4, by inserting para (ca), effective 1 July 2000.
However, if the entity treated as the entity insured:
(a)
is liable to make payments referred to in paragraph (2)(c); and
(b)
has not made all those payments;
for the purposes of sections 78-10 and 78-15, the entity's entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.
A
statutory compensation scheme is a scheme or arrangement:
(a)
that is established by an *Australian law; and
(b)
under which compensation is payable for particular kinds of injury, loss or damage; and
(c)
that is specified in the regulations, or that is of a kind specified in the regulations;
S 78-105 amended by No 67 of 2003, s 3 and Sch 11 item 16, by inserting ``; but does not include a *compulsory third party scheme'' and the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
No 67 of 2003, Sch 11 item 17, contains the following saving provision:
``
Saving of existing regulations
The amendment of section 78-105 of the A New Tax System (Goods and Services Tax) Act 1999 by this Schedule does not affect the validity of regulations made for the purposes of that section, to the extent that the regulations do not relate to compulsory third party schemes.''
S 78-105 inserted by No 177 of 1999, s 3 and Sch 1 item 95, effective 1 July 2000.
(b)
had the payment or supply been made in the absence of such a judgment or order, it would have been a payment or supply made in settlement of the claim;
the payment or supply is treated as having been made in settlement of the claim.
S 78-110 amended by No 118 of 2017, s 3 and Sch 1 item 11, by substituting para (a), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. Para (a) formerly read:
(a)
in compliance with a judgment or order of a court relating to:
(i)
a claim under an *insurance policy; or
(ii)
a claim by an insurer in exercising rights of subrogation in respect of an insurance policy; or
(iii)
a claim for compensation under a *statutory compensation scheme;
an entity makes a payment of *money, makes a supply, or makes both a payment of money and a supply; and
S 78-110 inserted by No 177 of 1999, s 3 and Sch 1 item 95, effective 1 July 2000.
78-115
Exclusion of certain Commonwealth, State or Territory insurance schemes
This Division (other than sections 78-5 and 78-95) does not apply to an *insurance policy, or to a payment or supply made in settlement of a claim made under an insurance policy, if:
(a)
the policy was supplied under a scheme for insurance, or a *statutory compensation scheme, established by an *Australian law; and
(b)
that scheme is of a kind specified in the regulations.
If an insurer (the
first insurer) enters into an arrangement, in the nature of a portfolio transfer, with another insurer for the other insurer:
(a)
to act as the insurer in relation to an *insurance policy; or
(b)
to meet the first insurer's liabilities arising under an insurance policy;
subsection 38-60(1) and this Division apply, from the time the arrangement takes effect, as if the other insurer were an insurer in relation to the policy.
Note:
Subsection 38-60(1) provides that certain supplies to insurers are GST-free.
S 78-118(1) amended by No 75 of 2012, s 3 and Sch 1 items 6 and 7, by substituting "subsection 38-60(1) and this Division apply" for "this Division applies" and inserting the note, applicable in relation to supplies of services to:
(a) insurers; or
(b) operators of compulsory third party schemes; or
(c) Australian government agencies;
made on or after 1 July 2012.
(2)
Without limiting subsection (1):
(a)
anything done after that time by the other insurer that, if it had been done by the first insurer, would have been done under the policy is taken, for the purposes of subsection 38-60(1) and this Division, to have been done by the other insurer under the policy; and
(b)
sections 78-10 and 78-30 apply as if the other insurer were the insurer that supplied the policy; and
(c)
section 78-18 applies as if the insurer that settles the claim referred to in paragraph 78-18(1)(b) or (3)(b) (as the case requires) has the *increasing adjustment under that section, regardless of which insurer was paid the excess to which the adjustment relates.
S 78-118(2) amended by No 75 of 2012, s 3 and Sch 1 item 8, by substituting "subsection 38-60(1) and this Division" for "this Division" in para (a), applicable in relation to supplies of services to:
(a) insurers; or
(b) operators of compulsory third party schemes; or
(c) Australian government agencies;
made on or after 1 July 2012.
S 78-118 inserted by No 169 of 2001, s 3 and Sch 5 item 9A, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 January 2001.
78-120
HIH rescue package
(1)
If a payment of *money, a supply or both a payment of money and a supply are received by an entity from an *HIH rescue entity as *consideration for:
(a)
the entity transferring or surrendering rights under an *insurance policy held with an *HIH company; or
(b)
the entity transferring or surrendering rights against another entity that is insured under an insurance policy held with an HIH company; or
(c)
the entity transferring or surrendering rights against another entity in relation to a matter in relation to which the entity also has or had rights under an insurance policy held with an HIH company;
this Division (other than sections 78-10, 78-15 and 78-40) applies to the payment or supply as if the HIH rescue entity made the payment or supply as the insurer in settlement of a claim under the insurance policy.
(2)
In particular:
(a)
this Division (other than sections 78-10, 78-15 and 78-40, subsection 78-50(1) and this section) applies as if:
(i)
references to an insurer were references to the *HIH rescue entity; and
(ii)
references to a claim under an *insurance policy were references to a request or claim to the HIH rescue entity for such a payment or supply; and
(iii)
references to a settlement of such a claim were references to the agreement to make such a payment or supply as consideration for the transfer or surrender; and
(b)
sections 78-18, 78-42 and 78-55 apply as if references in those sections to payments of excess to the insurer under the policy were references to payments to the HIH rescue entity corresponding to such payments of excess; and
(c)
section 78-30 applies as if references in that section to settling a claim were references to providing the consideration for the transfer or surrender; and
(d)
section 78-100 applies as if references in that section to a claim for compensation under a *statutory compensation scheme were references to a claim made to the HIH rescue entity corresponding to a claim for compensation under the scheme.
(3)
This section does not affect the operation of sections 78-10, 78-15 and 78-40.
S 78-120 inserted by No 169 of 2001, s 3 and Sch 5 item 10, applicable:
(a) in relation to net amounts for tax periods starting, or that started, on or after 15 March 2001; and
(b) in relation to payments and supplies, of a kind referred to in section 78-120 of the A New Tax System (Goods and Services Tax) Act 1999, that are, or have been, made on or after 15 March 2001 to an entity that is neither registered nor required to be registered.
Operators of compulsory third party schemes have adjustments which enable the net GST on the schemes to reflect correctly their margins after settlements of claims and other payments and supplies under the schemes are taken into account.
The normal application of Division 78 to some insurance policy payments and supplies under the schemes is modified (see Subdivision 79-A). That Division is also extended so that it applies in a modified form to payments and supplies connected with, but not under, insurance policies (see Subdivision 79-B). For other settlements, and payments, provisions similar to Division 78 apply (see Subdivision 79-C). Certain adjustments are worked out using an "applicable average input tax credit fraction" (see Subdivision 79-D).
Note:
Division 80 deals with use of settlement sharing arrangements by the operators of compulsory third party schemes.
(1)
This section applies to a payment or supply if:
(a)
it is a payment or supply made under a *compulsory third party scheme; and
(b)
the payment or supply is made in settlement of a claim under an *insurance policy; and
(c)
the *premium selection test is satisfied; and
(d)
the payment or supply is not a payment or supply to which section 79-15 (about sole operator elections) applies.
Premium selection test
(2)
The
premium selection test is satisfied if the amount of the premium or premiums for the policy resulted from:
(a)
an *operator of the *compulsory third party scheme offering a number of different premium amounts to the entity liable to pay the premium or premiums; and
(b)
that entity selecting a premium amount:
(i)
that was offered on the basis that there would be an entitlement to an input tax credit for some or all of the amount; or
(ii)
that was offered on the basis that there would be no entitlement to an input tax credit for any of the amount.
Input tax credit entitlement
(3)
If subparagraph (2)(b)(i) applies, then, for the purposes of sections 78-10 and 78-15:
(a)
there is taken to be an entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; and
(b)
if the supply of the insurance policy was solely or partly a *taxable supply - the amount of the input tax credit is taken to equal the GST payable by the *operator for the taxable supply.
No input tax credit entitlement
(4)
If subparagraph (2)(b)(ii) applies, then, for the purposes of sections 78-10 and 78-15, there is taken to be no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened.
Decreasing adjustment
(1)
If:
(a)
subsection 79-5(3) applies to a payment or supply; and
(b)
after the *premium selection test was satisfied, the *operator became or becomes aware that there was actually no entitlement to an input tax credit for any of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened; and
(c)
if subsection 79-5(4) had applied, the operator would have been entitled to a *decreasing adjustment (the
notional decreasing adjustment);
then:
(d)
the operator has a
decreasing adjustment whose amount is, subject to paragraph (e), equal to the notional decreasing adjustment; and
(e)
if one or more *increasing adjustments (each being a
notional section 78-40 increasing adjustment) would have arisen, before the decreasing adjustment under paragraph (d) arose, under Division 19 because of section 78-40 applying in relation to the notional decreasing adjustment, the amount of the decreasing adjustment under paragraph (d) is reduced by the sum of the notional section 78-40 increasing adjustments; and
(f)
for the purposes of applying section 78-40 after the decreasing adjustment arises under this subsection, that decreasing adjustment is taken to arise under Division 78.
Increasing adjustment
(2)
If:
(a)
subsection 79-5(4) applies to a payment or supply; and
(b)
as a result, the *operator has a *decreasing adjustment (the original decreasing adjustment); and
(c)
after the *premium selection test was satisfied, the operator became or becomes aware that there actually was an entitlement to an input tax credit for some or all of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened;
(d)
the operator has an
increasing adjustment whose amount is, subject to paragraph (e), equal to the original decreasing adjustment; and
(e)
if one or more *increasing adjustments (each being a
section 78-40 increasing adjustment) arose, before the increasing adjustment under paragraph (d) arose, under Division 19 because of section 78-40 applying in relation to the original decreasing adjustment, the amount of the increasing adjustment under paragraph (d) is reduced by the sum of the section 78-40 increasing adjustments; and
(f)
after the increasing adjustment arises under paragraph (d), no adjustment arises under Division 19 because of section 78-40 applying in relation to the original decreasing adjustment.
S 79-10(2) amended by No 83 of 2004, s 3 and Sch 7 item 2, by inserting "became or" after "the operator" in para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 79-10 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
79-15
Application of sections 78-10 and 78-15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement
The *operator may, in writing, elect that, from the start of a specified *financial year, any *decreasing adjustment in relation to all payments or supplies:
(a)
that are made during the financial year; and
(b)
to which paragraphs (1)(a), (b), (c) and (d) apply;
S 79-15(4) substituted by No 83 of 2004, s 3 and Sch 7 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 79-15(4) formerly read:
(5)
Subject to subsection (6), the election must be made before the start of the specified *financial year.
(6)
Subsection (5) does not apply if the election specifies the *financial year beginning on 1 July 2003 and is made before the end of 30 days after the day on which this section commences.
(7)
The election is in force during the specified *financial year and every later financial year, other than one that begins after a financial year in which the election is revoked.
Payments or supplies in settlement of claims
(1)
For the purposes of sections 78-35, 78-40 and 78-75, a reference in those sections to a payment or supply made by an entity in settlement of a claim by an insurer in exercising the insurer's rights of subrogation in respect of an *insurance policy includes a reference to a payment or supply that satisfies the following requirements:
(a)
the payment or supply is made by an entity in settlement of a claim by an *operator of a *compulsory third party scheme;
(b)
the claim was made by the operator in exercise of the operator's rights to recover in respect of a payment or supply made under the compulsory third party scheme;
(c)
the claim was not made under an *insurance policy that is a policy of reinsurance.
Payments or supplies in compliance with court judgments etc. relating to claims
(2)
For the purposes of section 78-110, a reference in that section to a payment or supply made by an entity in compliance with a judgment or order of a court relating to a claim made by an insurer in exercising the insurer's rights of subrogation in respect of an *insurance policy includes a reference to a payment or supply that satisfies the following requirements:
(a)
the payment or supply is made by an entity in compliance with a judgment or order of a court relating to a claim made by an *operator of a *compulsory third party scheme;
(b)
the claim was made by the *operator in exercise of the operator's rights to recover a payment or supply made under the *compulsory third party scheme;
(c)
the claim was not made under an insurance policy that is a policy of reinsurance.
S 79-20 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 79-B - Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies
(1)
Subject to this section, a payment or supply is a
CTP hybrid payment or supply if:
(a)
it is made in settlement of a claim for compensation under a *compulsory third party scheme; and
(b)
the claim would not have been made but for an *insurance policy issued under the scheme; and
(c)
the claim was not made under the insurance policy.
(2)
A payment or supply is not a
CTP hybrid payment or supply if:
(a)
when the payment or supply is made, the entity that paid the premium for the *insurance policy cannot be located; and
(b)
that entity did not, at or before the time the *operator making the payment or supply was first made aware of the circumstances to which the payment or supply relates, inform the operator of the entitlement to an input tax credit for the CTP premium it paid; and
(c)
the *premium selection test was not satisfied in relation to the insurance policy.
(2A)
Subsection (2) does not apply if the cover under the *insurance policy commenced before 1 July 2003 (whether or not all or part of the premium on the policy was paid before that day).
S 79-25(2A) inserted by No 83 of 2004, s 3 and Sch 7 item 4, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(3)
A payment or supply is not a
CTP hybrid payment or supply if the *operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer.
Meaning of
CTP compensation payment or supply (2)
A payment or supply is a
CTP compensation payment or supply if
(a)
it is a payment or supply made under a *compulsory third party scheme; and
(b)
it is a payment or supply made in settlement of a claim for compensation under the scheme; and
(c)
it is not the case that the *operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer; and
(d)
Division 78 does not apply in relation to the payment or supply; and
(e)
the payment or supply is not a *CTP dual premium or election payment or supply or a *CTP hybrid payment or supply.
Meaning of
CTP ancillary payment or supply (3)
A payment or supply is a
CTP ancillary payment or supply if:
(a)
the payment or supply is made under a *compulsory third party scheme; and
(b)
the payment or supply is of a kind specified in the regulations; and
(c)
it is not the case that the *operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer; and
(d)
Division 78 does not apply in relation to the payment or supply; and
(e)
the payment or supply is not a *CTP dual premium or election payment or supply or a *CTP hybrid payment or supply; and
(f)
the payment or supply is not made in settlement of a claim for compensation under the scheme; and
(g)
the payment or supply is not *consideration for a *creditable acquisition.
(1)
The *value of a *taxable supply for which the *consideration includes an amount of *CTP premium is worked out as if the *price of the supply were reduced by the amount of any stamp duty payable under a *State law or *Territory law in respect of the supply.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
S 79-50(2) amended by No 83 of 2004, s 3 and Sch 7 item 5 by inserting "to the *operator" after "premium" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
(1)
If an *operator of a *compulsory third party scheme makes a payment under the scheme, it is not treated as *consideration:
(a)
for an acquisition made by the operator; or
(b)
for a supply made to the operator by the entity to whom the payment was made;
(2)
If an *operator of a *compulsory third party scheme makes a supply under the scheme:
(a)
it is not a *taxable supply; and
(b)
it is not treated as *consideration for an acquisition made by the operator; and
(c)
it is not treated as *consideration for a supply made to the operator by the entity to whom the supply was made;
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies), section 9-15 (which is about consideration) and section 11-5 (which is about what is a creditable acquisition).
(1)
If:
(a)
an *operator of a *compulsory third party scheme has made a claim in relation to a *CTP compensation or ancillary payment or supply; and
(b)
the operator's claim is made in exercising rights to recover in respect of that payment or supply; and
(c)
an entity makes one or more of the following in settlement of the operator's claim:
the payment or supply mentioned in paragraph (c) is not treated as *consideration for a supply made by the operator (whether or not the payment or supply is made to the operator), or for an acquisition made by the entity making the payment or supply (or payment and supply).
S 79-65(1) amended by No 118 of 2017, s 3 and Sch 1 item 12, by substituting para (c), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. Para (c) formerly read:
(c)
an entity:
(i)
makes a payment of *money; or
(ii)
makes a supply; or
(iii)
makes both a payment of money and a supply;
in settlement of the operator's claim;
(2)
This section has effect despite section 9-15 (which is about consideration) and section 11-5 (which is about what is a creditable acquisition).
(ii)
if the adjustment relates to a *CTP ancillary payment or supply - the operator had made a creditable acquisition for which the payment or supply was the *consideration; and
(c)
any payment or supply made by another entity, in settlement of a claim made by the operator in exercising rights to recover from the other entity in respect of the settlement mentioned in subparagraph (b)(i) or the payment or supply mentioned in subparagraph (b)(ii), were a reduction in the consideration for the acquisition.
Paragraph (1)(c) does not apply to a payment by another entity in relation to which an *increasing adjustment arises under section 80-30 or 80-70 (which are about settlement sharing arrangements).
This section does not apply in relation to a payment or supply that the operator receives in settlement of a claim under an *insurance policy that the operator entered into, as the entity insured, in relation to any liability to make a *CTP compensation or ancilliary payment or supply.
Division 19 applies in relation to an *increasing adjustment that an *operator of a *compulsory third party scheme has under section 79-55 as if:
(a)
payments of excess to which the adjustment relates were *consideration for a *taxable supply that the operator made; and
(b)
the adjustment were the GST payable on the taxable supply; and
(c)
any refunds made by the operator of any of those payments of excess were reductions in the consideration for the supply.
(1)
The making of any payment by an entity is not treated as *consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess to an *operator of a *compulsory third party scheme.
(2)
This section has effect despite section 9-15 (which is about consideration).
(1)
A supply of goods is not a *taxable supply if it is solely a supply made under a *compulsory third party scheme to an *operator of the scheme in the course of settling a claim for compensation made under the scheme.
(2)
In working out the
value of a *taxable supply that is partly a supply of goods made under a *compulsory third party scheme to an *operator of the scheme in the course of settling a claim for compensation made under the scheme, disregard the *consideration to the extent that it relates to the supply of those goods.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).
(aa)
an entity makes one or more of the following in compliance with the judgment or order:
(i)
a payment of *money;
(ii)
a payment of *digital currency;
(iii)
a supply; and
(b)
had the payment or supply been made in the absence of such a judgment or order, it would have been a *CTP compensation payment or supply or a CTP ancillary payment or supply;
the payment or supply is treated as having been a CTP compensation payment or supply or a CTP ancillary payment or supply.
S 79-90(1) amended by No 118 of 2017, s 3 and Sch 1 item 13, by substituting para (a) and (aa) for para (a), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. Para (a) formerly read:
(a)
in compliance with a judgment or order of a court relating to a claim for compensation under a *compulsory third party scheme, an entity makes a payment of *money, makes a supply, or makes both a payment of money and a supply; and
If:
(a)
a judgment or order of a court relates to a claim by an *operator of a compulsory third party scheme exercising rights to recover from an entity in respect of a settlement made under the scheme; and
(aa)
an entity makes one or more of the following in compliance with the judgment or order:
(i)
a payment of *money;
(ii)
a payment of *digital currency;
(iii)
a supply; and
(b)
had the payment or supply been made in the absence of such a judgment or order, it would have been a settlement of a claim made in exercising rights to recover from an entity in respect of a settlement made under the scheme;
S 79-90(2) amended by No 118 of 2017, s 3 and Sch 1 items 14 and 15, by substituting para (a) and (aa) for para (a) and "an entity" for "another entity" in para (b), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. Para (a) formerly read:
(a)
in compliance with a judgment or order of a court relating to a claim by an *operator of a compulsory third party scheme exercising rights to recover from another entity in respect of a settlement made under the scheme, an entity makes a payment of *money, makes a supply, or makes both a payment of money and a supply; and
S 79-90 amended by No 83 of 2004, s 3 and Sch 7 item 7, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Para (a) formerly read:
(1)
If:
(a)
in compliance with a judgment or order of a court relating to:
(i)
a claim for compensation under a *compulsory third party scheme; or
(ii)
a claim by an *operator of a compulsory third party scheme, exercising rights to recover from another entity in respect of a settlement made under the scheme;
an entity makes a payment of *money, makes a supply, or makes both a payment of money and a supply; and
S 79-90 amended by No 83 of 2004, s 3 and Sch 7 item 8, by inserting subsec (2), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 79-90 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 79-D - Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction
(a)
if the payment or supply is a *CTP compensation payment or supply - the accident or other incident to which the claim relates happened; or
(b)
if the payment or supply is a *CTP ancillary payment or supply - the payment or supply was made; or
(c)
if the payment or supply is a payment or supply to which section 79-15 applies - the accident or other incident to which the claim relates happened.
payment or supply amount is the amount worked out in accordance with subsection (3).
S 79-95(2) amended by No 83 of 2004, s 3 and Sch 7 item 9, by inserting para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
If, in relation to the payment or supply, any payments of an excess were made to the *operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78-18 or 79-55 applies).
Step 3.
Except where the payment or supply is a *CTP ancillary payment or supply, multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following:
11
11 − Applicable average input tax credit fraction
where:
applicable average input tax credit fraction has the meaning given by subsection (2).
S 79-95(3) amended by No 118 of 2017, s 3 and Sch 1 item 16, by inserting ", or *digital currency," in para (a) of the method statement, step 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
S 79-95(3) (formula in step 3 of the method statement) substituted by No 83 of 2004, s 3 and Sch 7 item 10, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The formula in step 3 of the method statement formerly read:
" 11
11 − Applicable average input tax credit percentage"
Reduction for non-creditable insurance events
(4)
The amount of the *decreasing adjustment under subsection (1) is reduced to the extent (if any) that the payment or supply relates to one or more *non-creditable insurance events.
(1)
Except where subsection (7) applies, the
average input tax credit fraction for a *compulsory third party scheme for a *financial year is:
(a)
if paragraph (b) does not apply - the same fraction as the average input tax credit fraction for the scheme for the preceding financial year; or
(b)
if, under subsection (3), the Minister determines the average input tax credit fraction for the scheme for the financial year - that fraction.
Note:
The average input tax credit fraction for financial years beginning on or before 1 July 2006 was worked out under this section as in force before the commencement of item 146 of Schedule 3 to the Treasury Laws Amendment (2019 Measures No. 3) Act 2020.
S 79-100(1) amended by No 64 of 2020, s 3 and Sch 3 item 146, by substituting all the words after "third party scheme for a *financial year", effective 1 October 2020. The words after "third party scheme for a *financial year" formerly read:
third party scheme for a *financial year is:
(a)
for the financial year beginning on 1 July 2000, 1 July 2001 or 1 July 2002 - nil; and
(b)
for the financial year beginning on 1 July 2003, 1 July 2004, 1 July 2005 or 1 July 2006 - the business vehicle use fraction for the scheme determined by the Minister under subsection (2); and
(c)
for any later financial year:
(i)
if subparagraph (ii) does not apply - the same fraction as the average input tax credit fraction for the scheme for the preceding financial year; or
(ii)
if, under subsection (3), the Minister determines the average input tax credit fraction for the scheme for the financial year - that fraction.
S 79-100(1) amended by No 110 of 2014, s 3 and Sch 5 item 1, by substituting "Minister" for "Treasurer" in paras (b) and (c), effective 16 October 2014.
S 79-100(2) repealed by No 64 of 2020, s 3 and Sch 3 item 147, effective 1 October 2020. S 79-100(2) formerly read:
Minister to determine business vehicle use fraction for 2003-04 to 2006-07 financial years using statistical information
(2)
As soon as practicable after the commencement of this section, the Minister must, in writing, determine the business vehicle use fraction (see subsection (4)) for each *compulsory third party scheme, using statistical information that:
(a)
relates to business and total use of vehicles in the State or Territory in which the scheme operates; and
(b)
was published on 27 June 2001 by the Australian Bureau of Statistics in respect of the period 1 November 1999 to 31 October 2000.
S 79-100(2) amended by No 110 of 2014, s 3 and Sch 5 item 3, by substituting "the Minister" for "the Treasurer", effective 16 October 2014.
Minister to use statistical information to determine whether average input tax credit fraction is to be varied
(3)
As soon as practicable after the beginning of each of the following *financial years (a
determination year):
(a)
the financial year that begins on 1 July 2006;
(b)
the financial years that begin on each 1 July that occurs 3 years, or a multiple of 3 years, after 1 July 2006;
(c)
work out business vehicle use fractions (see subsection (4)) using each set of statistical information, relating to business and total use of vehicles in the State or Territory in which the scheme operates, published by the Australian Bureau of Statistics during the 3 financial years before the determination year; and
(d)
work out the average of those fractions (the
new fraction); and
(e)
if the Minister considers the new fraction is significantly different from the average input tax credit fraction that would, disregarding this subsection, apply under paragraph (1)(a) for the scheme for the financial year (the
operative year) following the determination year - by legislative instrument, determine that the new fraction is to be the average input tax credit fraction for the scheme for the operative year.
S 79-100(3) amended by No 64 of 2020, s 3 and Sch 3 items 149 and 150, by substituting "paragraph (1)(a)" for "subparagraph (1)(c)(i)" and "by legislative instrument" for "in writing" in para (e), effective 1 October 2020.
S 79-100(3) amended by No 110 of 2014, s 3 and Sch 5 item 5, by substituting "the Minister" for "the Treasurer" (wherever occurring)effective 16 October 2014.;
Business vehicle use fraction
(4)
The business vehicle use fraction is the fraction of total vehicle use, in the State or Territory in which the *compulsory third party scheme operates, represented by business vehicle use.
Publication of revised statistical information
(5)
To avoid doubt, if, after publishing statistical information relating to business and total use of vehicles in a State or Territory, the Australian Bureau of Statistics publishes a revised or replacement version of that statistical information, that revision or replacement is to be disregarded for the purposes of this section.
(6)
(Repealed by No 64 of 2020)
S 79-100(6) repealed by No 64 of 2020, s 3 and Sch 3 item 151, effective 1 October 2020. S 79-100(6) formerly read:
Gazettal of determinations
(6)
The Minister must arrange for a copy of any determination that he or she makes under subsection (2) or (3) to be published in the Gazette.
S 79-100(6) amended by No 110 of 2014, s 3 and Sch 5 item 6, by substituting "Minister" for "Treasurer", effective 16 October 2014.
Exception
(7)
If:
(a)
this section is being applied in working out the amount of a *decreasing adjustment that arises under section 79-15 (about sole operator elections); and
(b)
the cover under the *insurance policy concerned commenced before 1 July 2003;
A series of adjustments arise if, under an arrangement, an operator of a compulsory third party scheme settles a claim, arising from one or more accidents or other incidents, covered by the arrangement and other operators are obliged to contribute payments to that operator in respect of the settlement.
Meaning of
insurance policy settlement sharing arrangement (1)
An
insurance policy settlement sharing arrangement is an arrangement:
(a)
that relates to an accident or other incident or 2 or more related accidents or other incidents; and
(b)
to which the parties are the *operators of a *compulsory third party scheme or schemes who have issued *insurance policies to persons involved in the accidents or incidents; and
(i)
one party (the
managing operator) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes, relating to the accidents or incidents; and
(ii)
each other party (a
contributing operator) is to make a payment to the *managing operator in respect of that operator settling the claim.
S 80-5(1) amended by No 83 of 2004, s 3 and Sch 7 item 11, by substituting "persons" for "owners or drivers" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Meaning of
managing operator's payment or supply (2)
If a payment or supply mentioned in subparagraph (1)(c)(i) is not a *CTP ancillary payment or supply, it is a
managing operator's payment or supply.
Meaning of
contributing operator's payment (3)
A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the *managing operator for managing the process of making settlements under the arrangement, is a
contributing operator's payment.
(1)
A *contributing operator's payment is not treated as *consideration for a supply by the *managing operator, or for an acquisition by the *contributing operator.
(2)
This section has effect despite section 9-15 (which is about consideration) and section 11-5 (which is about what is a creditable acquisition).
(1)
For the purposes of Divisions 78 and 79, a *managing operator's payment or supply is treated as follows.
(2)
If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued only one *insurance policy, the *managing operator's payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.
(3)
If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued 2 or more *insurance policies, the *managing operator's payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.
Example:
3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident.
For the purposes of Division 78 or 79, half of the payment will be treated as being made under each of the policies issued by the managing operator.
(1)
For the purposes of Divisions 78 and 79, a *contributing operator's payment is treated as follows.
(2)
If the *contributing operator is a party to the *insurance policy settlement sharing arrangement because it issued only one *insurance policy, the *contributing operator's payment is treated as a payment or supply, made by the contributing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.
Example:
Assume the same facts as in the example in section 80-20. The contributing operator who issued 1 of the 3 policies covering the vehicles in the accident makes a payment to the managing operator.
For the purposes of Division 78 or 79, the payment (except to the extent that it represents a managing operator's fee) will be treated as being made by the contributing operator under the insurance policy that it issued.
(3)
If the *contributing operator is a party to the *insurance policy settlement sharing arrangement because it issued 2 or more *insurance policies, the *contributing operator's payment is treated as a payment or supply, made by the contributing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.
(1)
If:
(a)
a *contributing operator's payment is made; and
(b)
as a result of section 80-20, there was a *decreasing adjustment for the *managing operator under Division 78 or 79 in relation to the *managing operator's payment or supply;
there is an
increasing adjustment for the managing operator of the following amount:
*Contributing operator's payment
Managing operator's settlement
amount (see subsection (2))
The
managing operator's settlement amount mentioned in subsection (1) is worked out using this method statement.
Method statement
Step 1.
Add together:
(a) the sum of the payments of *money, or *digital currency, (if any) that are included in the *managing operator's payment or supply; and
(b) the *GST inclusive market value of the supplies (if any) that are included in the *managing operator's payment or supply (other than supplies that would have been *taxable supplies but for section 78-25 or 79-60).
Step 2.
If, in relation to the *managing operator's payment or supply, any payments of an excess were made to the *managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78-18 or 79-55 applies).
Example:
Assume the same facts as in the examples in sections 80-20 and 80-25. Assume also that, as a result of section 80-20, there was a decreasing adjustment under Division 78 or 79 for the managing operator's payment or supply.
The managing operator has an increasing adjustment. It equals the part of the decreasing adjustment that is attributable to the managing operator's payment or supply that was repaid by the contributing operator's contribution.
S 80-30(2) amended by No 118 of 2017, s 3 and Sch 1 item 17, by inserting ", or *digital currency," in para (a) of the method statement, step 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
Division 19 applies in relation to an *increasing adjustment that the *managing operator has under section 80-30 as a result of the making of a *managing operator's payment or supply as if:
(a)
the *contributing operator's payment were *consideration for a *taxable supply made by the managing operator; and
(b)
the adjustment were the GST payable on the taxable supply; and
(c)
any changes made to those payments were a change in the consideration for the supply.
Meaning of
nominal defendant settlement sharing arrangement (1)
A
nominal defendant settlement sharing arrangement is an arrangement:
(a)
that relates to an accident or other incident or 2 or more related accidents or other incidents; and
(b)
to which the parties are *operators of a *compulsory third party scheme, where they are parties because the person involved in the accidents or incidents was not covered under an *insurance policy; and
(i)
one party (the
managing operator) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme, relating to the accidents or incidents; and
(ii)
the other party, or one or more of the other parties, (each being a
contributing operator) is to make a payment to the *managing operator in respect of that operator settling the claim.
S 80-40(1) amended by No 83 of 2004, s 3 and Sch 7 item 12, by substituting ``person'' for ``driver'' in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Meaning of
managing operator's payment or supply (2)
If a payment or supply mentioned in subparagraph (1)(c)(i) is not a *CTP ancillary payment or supply, it is a
managing operator's payment or supply.
Meaning of
contributing operator's payment (3)
A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the *managing operator for managing the process of making settlements under the arrangement, is a
contributing operator's payment.
(1)
An *operator of a *compulsory third party scheme does not make a *taxable supply by:
(a)
entering into, or becoming a party to, a *nominal defendant settlement sharing arrangement to which this Subdivision applies; or
(b)
becoming a party to a deed created by or under a *State law or a *Territory law establishing a compulsory third party scheme, that provides for a nominal defendant settlement sharing arrangement to which this Subdivision applies.
(2)
This section has effect despite section 9-5 (which is about what are taxable supplies).
(1)
A *contributing operator's payment is not treated as *consideration for a supply by the *managing operator, or for an acquisition by the *contributing operator.
(2)
This section has effect despite section 9-15 (which is about consideration) and section 11-5 (which is about what is a creditable acquisition).
(1)
If:
(a)
a *contributing operator's payment is made; and
(b)
as a result of section 80-60, there was a *decreasing adjustment for the *managing operator under Division 79 in relation to the *managing operator's payment or supply;
there is an
increasing adjustment for the managing operator of the following amount:
*Contributing operator's payment
Managing operator's settlement
amount (see subsection (2))
The
managing operator's settlement amount mentioned in subsection (1) is worked out using this method statement.
Method statement
Step 1.
Add together:
(a) the sum of the payments of *money, or *digital currency, (if any) that are included in the *managing operator's payment or supply; and
(b) the *GST inclusive market value of the supplies (if any) that are included in the *managing operator's payment or supply (other than supplies that would have been *taxable supplies but for section 78-25 or 79-60).
Step 2.
If, in relation to the *managing operator's payment or supply, any payments of an excess were made to the *managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78-18 or 79-55 applies).
S 80-70(2) amended by No 118 of 2017, s 3 and Sch 1 item 18, by inserting ", or *digital currency," in para (a) of the method statement, step 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
Division 19 applies in relation to an *increasing adjustment that the *managing operator has under section 80-70 as a result of the making of a *managing operator's payment or supply as if:
(a)
the *contributing operator's payment were *consideration for a *taxable supply made by the managing operator; and
(b)
the adjustment were the GST payable on the taxable supply; and
(c)
any changes made to those payments were a change in the consideration for the supply.
Meaning of
hybrid settlement sharing arrangement (1)
A
hybrid settlement sharing arrangement is an arrangement:
(a)
that relates to an accident or other incident or 2 or more related accidents or other incidents; and
(b)
to which the parties are:
(i)
one party (the
managing operator) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes involved, relating to the accidents or incidents; and
(ii)
each other party (a
contributing operator) is to make a payment to the *managing operator in respect of that operator settling the claim.
S 80-80(1) amended by No 83 of 2004, s 3 and Sch 7 item 13, by substituting ``persons'' for ``owners or drivers'' in para (b)(ii), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Meaning of
managing operator's payment or supply (2)
If a payment or supply mentioned in subparagraph (1)(c)(i) is not a *CTP ancillary payment or supply, it is a
managing operator's payment or supply.
Meaning of
contributing operator's payment (3)
A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the *managing operator for managing the process of making settlements under the arrangement, is a
contributing operator's payment.
S 80-85 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
80-90
Subdivision 80-B to apply to payments or supplies by managing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement
(b)
the entity makes a payment or supply that, as a result of section 80-85, is a *managing operator's payment or supply under the hybrid settlement sharing arrangement;
then:
(c)
Subdivision 80-A does not have any other effect in relation to the payment or supply in accordance with section 80-85; but
(d)
Subdivision 80-B (other than section 80-45) applies in relation to the payment or supply as if it were a managing operator's payment or supply under the nominal defendant settlement sharing arrangement and the entity were not party to the hybrid settlement sharing arrangement.
S 80-90 amended by No 41 of 2005, s 3 and Sch 10, item 7, by substituting "*nominal defendent settlement sharing arrangement" for "*nominal defendent sharing arrangement" in para (a), applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 80-90 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
80-95
Subdivision 80-B to apply to payments or supplies by contributing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement
(b)
the entity makes a payment that, as a result of section 80-85, is a *contributing operator's payment under the hybrid settlement sharing arrangement;
then:
(c)
Subdivision 80-A does not have any other effect in relation to the payment or supply in accordance with section 80-85; but
(d)
Subdivision 80-B (other than section 80-45) applies in relation to the payment as if it were a *managing operator's payment or supply under the nominal defendant settlement sharing arrangement and the entity were not party to the hybrid settlement sharing arrangement.
S 80-95 amended by No 41 of 2005, s 3 and Sch 10, item 8, by substituting "*nominal defendent settlement sharing arrangement" for "*nominal defendent sharing arrangement" in para (a), applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 80-95 inserted by No 67 of 2003, s 3 and Sch 11 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Div 81 substituted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. No 41 of 2011, s 3 and Sch 4 item 16 contains the following application provision:
16 Application provision
(1)
The amendments made apply in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011.
(2)
However, the amendments do not apply in relation to a payment, or a discharge of a liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed before 1 July 2012 if the payment is of a kind specified by legislative instrument (a
Division 81 determination):
(a)
made for the purposes of subsection 81-5(2) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
in force immediately before 27 June 2011.
(3)
Despite the repeal of subsection 81-5(2) of the A New Tax System (Goods and Services Tax) Act 1999, a Division 81 determination continues to have effect, after 27 June 2011 and before 1 July 2012, as if the repeal had not happened.
Div 81 formerly read:
Division 81 - Payments of taxes, fees and charges
81-1 What this Division is about
GST applies to payments of taxes, fees and charges, except those taxes, fees and charges that are excluded from the GST by a determination of the Treasurer.
S 81-1 amended by No 176 of 1999, s 3 and Sch 1 item 90, by substituting ", fees and" for "and other'' (wherever occurring), effective 1 July 2000.
81-5 Payments of taxes etc. can constitute consideration
(1)
The payment of any *Australian tax, fee or charge (other than the GST) that you make, or the discharging of your liability to make such a payment, is to be treated as the provision of *consideration, to the entity to which the tax, fee or charge is payable, for a supply that the entity makes to you.
Note:
Under Division 82, the payment might not be treated as consideration for a supply if it is in return for an Australian government agency supplying a right to develop land.
S 81-5(1) note inserted by No 97 of 2002, s 3 and Sch 1 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 81-5(1) amended by No 176 of 1999, s 3 and Sch 1 item 92, by inserting ", fee or charge" after "tax" (wherever occurring), effective 1 July 2000.
(2)
However, the payment of any *Australian tax, fee or charge that is specified, by legislative instrument, by the Treasurer, or the discharging of a liability to make such a payment, is not the provision of *consideration.
S 81-5(2) amended by No 58 of 2006, s 3 and Sch 7 item 220, by substituting ", by legislative instrument, by the Treasurer" for "in a written determination of the Treasurer", effective 22 June 2006.
S 81-5(2) amended by No 176 of 1999, s 3 and Sch 1 item 93, by inserting ", fee or charge" after "tax", effective 1 July 2000.
S 81-5(3) repealed by No 58 of 2006, s 3 and Sch 7 item 221, effective 22 June 2006. S 81-5(3) formerly read:
(3)
A determination by the Treasurer under this section is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
(4)
This section has effect despite section 9-15 (which is about consideration).
81-10 Supplies need not be connected with Australia if the consideration is the payment of tax etc.
(1)
The fact that a supply is not *connected with Australia does not stop the supply being a *taxable supply if the *consideration for the supply is the payment of any *Australian tax, fee or charge, or the discharging of a liability to make such a payment.
S 81-1 substituted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For former wording and application provision, see note under Div 81 heading.
A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian tax.
However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian tax that is, or is of a kind, prescribed by the regulations.
(3)
For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the tax is payable, for a supply that the entity makes to you.
S 81-5 substituted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For former wording and application provision, see note under Div 81 heading.
81-10
Effect of payment of certain fees and charges
A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian fee or charge that is of a kind covered by subsection (4) or (5).
Prescribed fees and charges treated as consideration
(2)
However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian fee or charge that is, or is of a kind, prescribed by the regulations.
(3)
For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you.
Fees or charges paid for permissions etc.
(4)
This subsection covers a fee or charge if the fee or charge:
(a)
relates to; or
(b)
relates to an application for;
the provision, retention, or amendment, under an *Australian law, of a permission, exemption, authority or licence (however described).
Fees or charges relating to information and record-keeping etc.
(5)
This subsection covers a fee or charge paid to an *Australian government agency if the fee or charge relates to the agency doing any of the following:
(a)
recording information;
(b)
copying information;
(c)
modifying information;
(d)
allowing access to information;
(e)
receiving information;
(f)
processing information;
(g)
searching for information.
S 81-10 substituted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For former wording and application provision, see note under Div 81 heading.
81-15
Other fees and charges that do not constitute consideration
The regulations may provide that the payment of a prescribed *Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of *consideration.
S 81-15 inserted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
81-20
Division has effect despite sections 9-15 and 9-17
S 81-20 amended by No 75 of 2012, s 3 and Sch 2 item 10, by substituting "sections 9-15 and 9-17 (which are about consideration)" for "section 9-15 (which is about consideration)", applicable, and taken to have applied, from 1 July 2012.
S 81-20 inserted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to regulations made for the purposes of subsection 81-5(2) or 81-10(2) or section 81-15.
S 81-25 substituted by No 126 of 2015, s 3 and Sch 1 item 21, effective 5 March 2016. S 81-25 formerly read:
81-25 Date of effect of regulations
Despite subsection 12(2) of the Legislative Instruments Act 2003, regulations made for the purposes of subsection 81-5(2), 81-10(2) or section 81-15 may be expressed to take effect from a date before the regulations are registered under that Act.
S 81-25 inserted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Division 82 - Supplies in return for rights to develop land
GST does not apply to transactions for making supplies (commonly referred to as in kind developer contributions) in return for the supply by an Australian government agency of a right to develop land.
(1)
The supply, by an *Australian government agency, of a right to develop land is not treated as *consideration for another supply if the other supply complies with requirements imposed by or under an *Australian law.
(2)
It does not matter whether the other supply is made to the *Australian government agency.
(3)
This section has effect despite section 9-15 (which is about consideration).
(1)
The supply, by an *Australian government agency, of a right to develop land is treated as a supply that is not made for *consideration to the extent that it is made in return for another supply that complies with requirements imposed by or under an *Australian law.
(2)
It does not matter whether the other supply is made to the *Australian government agency.
(3)
If the other supply constitutes the payment of:
(a)
an *Australian tax prescribed by regulations made for the purposes of subsection 81-5(2); or
(b)
an *Australian fee or charge prescribed by regulations made for the purposes of subsection 81-10(2);
this section overrides those regulations in relation to the payment.
S 82-10(3) substituted by No 41 of 2011, s 3 and Sch 4 item 3, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading. S 82-10(3) formerly read:
(3)
If the other supply constitutes the payment of an *Australian tax, fee or charge to which subsection 81-5(1) applies, this section overrides subsection 81-5(1) in relation to the payment.
(4)
This section has effect despite section 9-15 (which is about consideration).
Div 83 heading amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone
" for "
Australia
", applicable to a tax period that commences on or after 1 July 2015.
Div 83 inserted by No 92 of 2000, s 3 and Sch 3 item 12, effective 1 July 2000.
(c)
the recipient is *registered or *required to be registered; and
(d)
the supplier and the recipient agree that the GST on the supply be payable by the recipient.
S 83-5(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
(2)
However, this section does not apply to:
(a)
a supply that is a *taxable supply under section 84-5 (which is about offshore supplies); or
(b)
a taxable supply made by a *non-resident through a *resident agent; or
(c)
a supply that is disregarded under paragraph 188-15(3)(b) or 188-20(3)(b) (which are about supplies of rights or options offshore).
Note:
GST on these taxable supplies is payable by the resident agent: see section 57-5.
S 83-5(2) amended by No 65 of 2019, s 3 and Sch 2 item 1, by omitting "or (c)" wherever occurring in para (c), effective 1 October 2019 and applicable in relation to a supply:
(a) for which consideration is first received on or after 1 July 2019; or
(b) if, before any consideration is received for the supply, an invoice is issued relation to the supply - for which an invoice is issued on or after 1 July 2019.
S 83-5(2) amended by No 77 of 2017, s 3 and Sch 1 item 24, by omitting "other than goods or real property" after "offshore supplies" from para (a), effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 83-5(2) amended by No 52 of 2016, s 3 and Sch 1 item 18, by substituting "section 84-5" for "Division 84" in para (a), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 83-5(2) amended by No 77 of 2005,s 3 and Sch 3 items 4 and 4A, by substituting "that is a *taxable supply under Division 84" for "that is not *connected with Australia but that is a *taxable supply because of Division 84" and inserting para (c), applicable to supplies made on or after 1 October 2005.
(3)
This section has effect despite section 9-40 (which is about liability for the GST).
(1)
If section 83-5 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 section 83-5.
(1)
The amount of GST on a supply to which section 83-5, 83-10 or 83-15 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).
S 83-25(1) amended by No 80 of 2007, s 3 and Sch 2 item 19, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 83-30(1) amended by No 80 of 2007, s 3 and Sch 2 item 20, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Div 84 heading substituted by No 77 of 2017, s 3 and Sch 1 item 25, effective 1 July 2017. For application provisions, see note under Div 146 heading. The heading formerly read:
Division 84 - Offshore supplies other than goods or real property
Subdivision 84-A - Offshore supplies that are taxable supplies, and "reverse charged", under this Subdivision
Subdiv 84-A heading substituted by No 77 of 2017, s 3 and Sch 1 item 26, effective 1 July 2017. For application provisions, see note under Div 146 heading. Heading formerly read:
Subdivision 84-A - Intangible supplies from offshore that are taxable supplies under this Subdivision
Subdiv 84-A heading inserted by No 52 of 2016, s 3 and Sch 1 item 19, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
This Subdivision deals with certain supplies taking place outside the indirect tax zone. The GST on a supply that is a taxable supply under this Subdivision is "reverse charged" to the recipient of the supply.
S 84-1 amended by No 77 of 2017, s 3 and Sch 1 item 27, by substituting "certain supplies" for "supplies (of things other than goods or real property)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 84-1 amended by No 52 of 2016, s 3 and Sch 1 item 21, by substituting "Subdivision" for "Division" (wherever occurring), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 84-1 substituted by No 77 of 2005, s 3 and Sch 3 item 5, applicable to supplies made on or after 1 October 2005. S 84-1 formerly read:
84-1 What this Division is about
In some limited cases, supplies (of things other than goods or real property) taking place outside Australia are brought within the GST system.
84-5
Offshore supplies that are taxable supplies under this Subdivision
(1)
A supply is a
taxable supply (except to the extent that it is *GST-free or *input taxed) if:
(a)
the supply is for *consideration; and
(b)
the *recipient of the supply is *registered, or *required to be registered; and
(c)
the supply is covered by the third column of this table.
Offshore supplies that are taxable supplies under this Subdivision
Item
Topic
These supplies are covered …
1
Intangible supply - general
a supply of anything other than goods or *real property if:
(a)
the supply is not *connected with the indirect tax zone; and
(b)
the *recipient of the supply satisfies the purpose test in subsection (1A).
2
Intangible supply - right or option
a supply of anything other than goods or *real property if:
(a)
the supply is *connected with the indirect tax zone because of paragraph 9-25(5)(c); and
(b)
the *recipient of the supply satisfies the purpose test in subsection (1A).
3
Intangible supply - supplier believed recipient was not a consumer
a supply of anything other than goods or *real property if:
(a)
the supply is *connected with the indirect tax zone because of paragraph 9-25(5)(d); and
(b)
under section 84-100, the *GST law applies in relation to the supplier as if the *recipient was not an *Australian consumer of the supply; and
(c)
the *ABN of the recipient, or the other identifying information prescribed under subsection 84-100(4) relating to the recipient, has been disclosed to the supplier; and
(d)
the recipient has provided to the supplier a declaration or information that indicates that the recipient is *registered.
4
Low value goods - general
an *offshore supply of low value goods if:
(a)
the supply is not *connected with the indirect tax zone; and
(b)
the *recipient of the supply satisfies the purpose test in subsection (1A); and
(c)
the importation of the goods is not a *taxable importation on which the recipient is liable to pay GST.
5
Low value goods - supplier believed recipient was not a consumer
an *offshore supply of low value goods if:
(a)
the supply is *connected with the indirect tax zone solely because of Subdivision 84-C; and
(b)
under section 84-105, the *GST law applies in relation to the supplier as if the *recipient was not a *consumer of the supply; and
(c)
the importation of the goods is not a *taxable importation on which the recipient is liable to pay GST.
S 84-5(1) substituted by No 77 of 2017, s 3 and Sch 1 item 29, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-5(1) formerly read:
(1)
A supply of anything other than goods or *real property that is:
(a)
a supply not *connected with the indirect tax zone; or
(b)
a supply connected with the indirect tax zone because of paragraph 9-25(5)(c); or
(ba)
subject to subsections (1A) and (1B), a supply connected with the indirect tax zone because of paragraph 9-25(5)(d);
is a
taxable supply if:
(c)
the *recipient of the supply acquires the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(ca)
the recipient of the supply does not acquire the thing supplied solely for a *creditable purpose; and
(d)
the supply is for *consideration; and
(e)
the recipient is *registered or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.
S 84-5(1) amended by No 52 of 2016, s 3 and Sch 1 item 23, by inserting para (ba), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-5(1) amended by No 52 of 2016, s 3 and Sch 2 item 9, by substituting para (c) and (ca) for para (c), applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. Para (c) formerly read:
(c)
the *recipient of the supply acquires the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone, but not solely for a *creditable purpose; and
S 84-5(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 84-5(1) substituted by No 77 of 2005, s 3 and Sch 3 item 7, applicable to supplies made on or after 1 October 2005. S 84-5(1) formerly read:
84-5 Intangible supplies from offshore may be taxable supplies
(1)
A supply of anything other than goods or *real property that is a supply not *connected with Australia is a
taxable supply if:
(a)
the *recipient of the supply acquires the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in Australia, but not solely for a *creditable purpose; and
(b)
the supply is for *consideration; and
(c)
the recipient is *registered, or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.
The purpose test referred to in items 1, 2 and 4 of the table in subsection (1) is that:
(a)
the *recipient of the supply acquires the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(b)
the recipient does not acquire the thing supplied solely for a *creditable purpose.
S 84-5(1A) substituted by No 77 of 2017, s 3 and Sch 1 item 29, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-5(1A) formerly read:
(1A)
Paragraph (1)(ba) applies to a supply only if:
(a)
under section 84-100, the *GST law applies in relation to the supplier as if the *recipient of the supply was not an *Australian consumer of the supply; and
(b)
the *ABN of the recipient of the supply, or the other identifying information prescribed under subsection 84-100(4) relating to the recipient, has been disclosed to the supplier; and
(c)
the recipient has provided to the supplier a declaration or information that indicates that the recipient is *registered.
S 84-5(1A) inserted by No 52 of 2016, s 3 and Sch 1 item 24, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
However, items 3 and 5 of the table in subsection (1) only cover a supply to the extent that it is *connected with the indirect tax zone solely because of:
(a)
for item 3 - paragraph 9-25(5)(d); or
(b)
for item 5 - Subdivision 84-C.
S 84-5(1B) substituted by No 77 of 2017, s 3 and Sch 1 item 29, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-5(1B) formerly read:
(1B)
Without limiting subsection (1A), paragraph (1)(ba) applies to a supply only to the extent that it is connected with the indirect tax zone solely because of paragraph 9-25(5)(d).
S 84-5(1B) inserted by No 52 of 2016, s 3 and Sch 1 item 24, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-5(1C) repealed by No 77 of 2017, s 3 and Sch 1 item 29, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-5(1C) formerly read:
(1C)
To the extent that paragraph (1)(ba) applies to a supply, disregard paragraphs (1)(c) and (ca).
S 84-5(1C) inserted by No 52 of 2016, s 3 and Sch 1 item 24, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-5(2) amended by No 77 of 2017, s 3 and Sch 1 item 30, by substituting "this section" for "paragraph (1)(e)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 84-5(2) amended by No 80 of 2007, s 3 and Sch 2 item 21, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 84-5(2) amended by No 77 of 2005, s 3 and Sch 3 item 8, by substituting "paragraph (1)(e)" for "paragraph (1)(c)", applicable to supplies made on or after 1 October 2005.
(3)
This section has effect despite section 9-5 (which is about what is a taxable supply).
84-10
"Reverse charge" on offshore supplies
(1)
The GST on a supply that is a *taxable supply because of section 84-5:
(a)
is payable by the *recipient of the supply; and
(b)
is not payable by the supplier.
(2)
This section has effect despite section 9-40 (which is about liability for the GST).
(3)
(1)
The amount of GST on a supply that is a *taxable supply because of section 84-5 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).
Note:
Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.
(a)
if the *recipient is the supplier's *associate and the supply is without *consideration - 100%; or
(b)
in any other case - the extent to which you provide, or are liable to provide, the consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
Definition of "extent of consideration" substituted by No 52 of 2016, s 3 and Sch 2 item 10, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. The definition formerly read:
extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of creditable purpose is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.
full input tax credit is 11/10 of what would have been the amount of the input tax credit for the acquisition if:
(a)
the supply had been or is a *taxable supply otherwise than because of section 84-5; and
(b)
the acquisition had been made solely for a creditable purpose; and
(c)
you had provided, or had been liable to provide, all of the consideration for the acquisition.
S 84-13(1) amended by No 77 of 2005, s 3 and Sch 3 item 10, by inserting "or is" after "had been" in para (a) of the definition of "full input tax credit", applicable to supplies made on or after 1 October 2005.
However, if:
(a)
an *annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and
(b)
the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b);
the amount of the input tax credit on the acquisition is worked out under section 131-40 as if
full input tax credit had the same meaning in subsection 131-40(2) as it has in subsection (1) of this section.
S 84-13(1A) inserted by No 134 of 2004, s 3 and Sch 2 item 12, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
This section has effect despite:
(a)
sections 11-25 and 11-30 (which are about the amount of input tax credits for creditable acquisitions); and
(b)
section 72-45 (which is about the amount of input tax credits on an acquisition from an associate without consideration).
S 84-13(2) substituted by No 52 of 2016, s 3 and Sch 2 item 11, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. S 84-13(2) formerly read:
(2)
This section has effect despite sections 11-25 and 11-30 (which are about the amount of input tax credits for creditable acquisitions).
This Subdivision does not apply to a supply, to the extent that it is a supply relating to an *employee share scheme, if:
(a)
the *recipient of the supply is not an entity that has acquired, or may in the future acquire, an ESS interest (within the meaning of the *ITAA 1997) under the scheme; and
S 84-14 amended by No 52 of 2016, s 3 and Sch 1 item 25, by substituting "This Subdivision" for "This Division", applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-14 amended by No 133 of 2009, s 3 and Sch 1 item 6, by substituting paras (a) and (b), applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and 83A-5(2) of the Income Tax (Transitional Provisions) Act 1997. Paras (a) and (b) formerly read:
(a)
the *recipient of the supply is not an entity that has acquired, or may in the future acquire, a share, right or stapled security (within the meaning of Division 13A of Part III of the *ITAA 1936) under the scheme; and
(b)
Division 13A of Part III of the *ITAA 1936 applies to discounts (within the meaning of that Division) given in relation to any acquisitions of shares, rights or stapled securities (within the meaning of that Division) under the scheme; and
S 84-14 amended by No 56 of 2007, s 3 and Sch 3 items 8 and 9, by substituting "share, right or stapled security (within the meaning of Division 13A of Part III of the *ITAA 1936)" for "share or right" in para (a) and substituting "shares, rights or stapled securities (within the meaning of that Division)" for "shares or rights" in para (b), effective 12 April 2007. No 56 of 2007, s 3 and Sch 3 item 39 contains the following application provision:
(1)
The amendments made by this Schedule apply to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.
(2)
In this item:
acquisition has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936.
S 84-14 inserted by No 156 of 2000, s 3 and Sch 6 item 30, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
84-15
Transfers etc. between branches of the same entity
(1)
For the purposes of section 84-5, if an entity:
(a)
*carries on an *enterprise in the indirect tax zone; and
(b)
also carries on that or another enterprise outside the indirect tax zone;
then:
(c)
the transfer of anything to the enterprise in the indirect tax zone from the enterprise outside the indirect tax zone; or
(d)
the doing of anything for the enterprise in the indirect tax zone by the enterprise outside the indirect tax zone;
An entity acquires, through a place of business it has overseas, the right to exploit a particular copyright in the indirect tax zone. That right is then transferred to a place of business that the entity has in the indirect tax zone.
Under this section, the transfer is taken to be a supply that is not connected with the indirect tax zone and, if the other requirements of section 84-5 are satisfied, the transfer is a taxable supply.
If the transfer is a transfer of the services of an employee, this section does not apply to the transfer to the extent that any payments that:
(a)
are made from the *enterprise in the indirect tax zone to the enterprise outside the indirect tax zone; and
(b)
relate to the transfer;
would be *withholding payments if they were payments from the enterprise in the indirect tax zone to the employee.
S 84-15 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
84-20
The price of taxable supplies of offshore intangibles without, or for inadequate, consideration
(1)
The
price of a supply that is a *taxable supply because of section 84-5 is the *GST inclusive market value of the supply, if:
(a)
the supply is from the *recipient's *associate; and
(b)
the supply is:
(i)
without *consideration; or
(ii)
for consideration that is less than the GST inclusive market value.
Note:
A supply to an associate without consideration may be a taxable supply, see section 72-5.
(2)
This section has effect despite section 9-75 (which is about the price of taxable supplies).
S 84-20 inserted by No 52 of 2016, s 3 and Sch 2 item 12, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
84-25
Tax periods for supplies from associates that are not connected with the indirect tax zone
(1)
This section applies if a supply that is a *taxable supply because of section 84-5 is:
(a)
a supply from the *recipient's *associate without *consideration; and
(b)
not *connected with the indirect tax zone.
Note:
If the supply is connected with the indirect tax zone, see sections 72-15 and 72-50 for the tax periods.
(2)
The tax period to which the GST on the supply, and the input tax credit on the acquisition, is attributable is the tax period in which the thing supplied starts to be done.
(3)
This section has effect despite:
(a)
sections 29-5 and 72-15 (about attributing GST to tax periods); and
(b)
sections 29-10 and 72-50 (about attributing input tax credits to tax periods).
S 84-25 inserted by No 52 of 2016, s 3 and Sch 2 item 12, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
84-30
Adjustments for acquisitions made solely for a creditable purpose
This section applies to an acquisition that relates to a supply if the supply would be a *taxable supply under section 84-5 if paragraph 84-5(1A)(b) were disregarded.
S 84-30(1) amended by No 77 of 2017, s 3 and Sch 1 item 34, by substituting "paragraph 84-5(1A)(b)" for "paragraph 84-5(1)(ca)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
For the purpose of working out whether there is an *adjustment for the acquisition, and the amount of that adjustment, disregard paragraph 84-5(1A)(b).
Note:
As a result, the adjustment (including the full input tax credit referred to in sections 129-70 and 129-75) is worked out assuming the supply is taxable and the acquisition fully creditable.
S 84-30(2) amended by No 77 of 2017, s 3 and Sch 1 item 34, by substituting "paragraph 84-5(1A)(b)" for "paragraph 84-5(1)(ca)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 84-30 inserted by No 52 of 2016, s 3 and Sch 2 item 12, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
Subdiv 84-B inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 84-45 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-50
No tax invoices or adjustment notes for inbound intangible consumer supplies
(1)
You are not required to issue a *tax invoice for a *taxable supply that you make if the supply is solely an *inbound intangible consumer supply.
(2)
You are not required to issue an *adjustment note for an *adjustment event relating to a *taxable supply that you make if the supply is solely an *inbound intangible consumer supply.
(3)
This section has effect despite sections 29-70 and 29-75 (which are about tax invoices and adjustment notes).
S 84-50 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-55
Operator of electronic distribution platform treated as supplier
(1)
If an *inbound intangible consumer supply is made through an *electronic distribution platform, the operator of the platform, instead of the supplier, is treated, for the purposes of the *GST law:
(a)
as being the supplier of, and as making, the supply; and
(b)
as having made the supply for the *consideration for which it was made; and
(c)
as having made the supply in the course or furtherance of an *enterprise that the operator *carries on.
Note:
As a consequence, GST on the supply is payable by the operator of the electronic distribution platform.
(2)
Despite subsection (1), if an *inbound intangible consumer supply is made through more than one *electronic distribution platform, that subsection only applies to the operator of any of those platforms who is:
(a)
S 84-55(2) amended by No 69 of 2023, s 3 and Sch 4 item 115, by substituting "if paragraph (a) does not apply" for "if no such agreement has been made" in para (b) and (c), effective 1 October 2023.
S 84-55(2) amended by No 69 of 2023, s 3 and Sch 4 item 114, by substituting para (a), applicable in relation to a supply that is made on or after 1 October 2023. Para (a) formerly read:
(a)
a party to a written agreement, between the operator and at least one of the other operators of the platforms, under which the operator is to be treated as the supplier; or
(3)
The Commissioner may, by legislative instrument, specify how an operator is to be determined for the purposes of paragraph (2)(b).
(4)
Despite subsections (1) and (2), this section does not apply to an operator of an *electronic distribution platform in relation to an *inbound intangible consumer supply made through the platform if:
(a)
a document, relating to the supply, issued to the *recipient of the supply identifies:
(i)
the supply; and
(ii)
the supplier as the supplier of the supply; and
(b)
the supplier and the operator of the electronic distribution platform have agreed in writing that the supplier is the entity responsible for paying GST for:
(i)
the supply; or
(ii)
a class of supplies that includes the supply; and
S 84-55(4) amended by No 77 of 2017, s 3 and Sch 1 item 35, by substituting "(whether directly or indirectly) set any of the terms and conditions" for "set the terms and conditions" in para (c)(iii), effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 84-55 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-60
Extension of section 84-55 to certain other supplies through an electronic distribution platform
Section 84-55 applies to a supply that is to be made by means of *electronic communication as if it were an *inbound intangible consumer supply if:
(a)
the supply is made through an *electronic distribution platform; and
(b)
the supply is covered by a written agreement entered into between the supplier and the operator of the platform before the supply is made; and
(c)
the operator is *registered; and
(d)
under the agreement, the supply is to be treated as if it were an inbound intangible consumer supply made through the platform.
S 84-60(1) amended by No 77 of 2017, s 3 and Sch 1 item 36, by substituting "a supply that is to be made by means of *electronic communication" for "a supply", effective 1 July 2017. For application provisions, see note under Div 146 heading.
(2)
However, subsection (1) does not apply to the supply if:
(a)
the supply is GST-free or input taxed; or
(b)
the operator would not be treated under section 84-55 as being the supplier of, and as making, the supply if it were an *inbound intangible consumer supply.
(3)
If subsection (1) applies to the supply, the supply is treated as having been made in the course or furtherance of the carrying on of the *enterprise through which the operator operates the platform.
S 84-60 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-65
Meaning of inbound intangible consumer supply
(1)
A supply of anything other than goods or *real property is an
inbound intangible consumer supply if the *recipient is an *Australian consumer, unless:
(a)
the thing is done wholly in the indirect tax zone; or
(b)
the supplier makes the supply wholly through an *enterprise that the supplier *carries on in the indirect tax zone.
(2)
Disregard section 84-55 in determining whether paragraph (1)(b) applies.
S 84-65 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
(1)
A service (including a website, internet portal, gateway, store or marketplace) is an
electronic distribution platform if:
(a)
the service allows entities to make supplies available to end-users; and
(b)
the service is delivered by means of *electronic communication; and
(c)
any of the supplies that are *inbound intangible consumer supplies are to be made by means of electronic communication.
S 84-70(1) amended by No 77 of 2017, s 3 and Sch 1 item 37, by substituting "any of the supplies that are *inbound intangible consumer supplies" for "the supply", effective 1 July 2017. For application provisions, see note under Div 146 heading.
(2)
However, a service is not an
electronic distribution platform solely because it is:
(a)
a carriage service (within the meaning of the Telecommunications Act 1997); or
(b)
a service consisting of one or more of the following:
(i)
providing access to a payment system;
(ii)
processing payments;
(iii)
providing *vouchers the supply of which are not *taxable supplies because of section 100-5.
S 84-70 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Subdivision 84-C - Offshore supplies of low value goods
Supplies of low value goods involving goods being brought to the indirect tax zone may be connected with the indirect tax zone.
An entity may be treated as the supplier of an offshore supply of low value goods, if the entity is the operator of an electronic distribution platform through which the supply is made, or the entity is a redeliverer of the goods.
The result is that the operator or redeliverer, instead of the supplier, counts the supplies towards its GST turnover and pays GST on the supplies.
Suppliers of offshore supplies of low value goods are not required to issue tax invoices and adjustment notes, but they must ensure relevant information is included in customs documents.
Note 1:
The supplies will need to meet other requirements in order to be taxable supplies: see section 9-5.
Note 2:
Offshore supplies of low value goods that are not connected with the indirect tax zone under this Subdivision may be taxable supplies, and "reverse-charged", under Subdivision 84-A.
(1)
An *offshore supply of low value goods is
connected with the indirect tax zone if the *recipient of the supply is a *consumer of the supply.
Note:
There is an exception to this rule if the supplier reasonably believes there will be a taxable importation of the goods: see section 84-83.
(2)
An entity is a
consumer of a supply made to the entity if:
(a)
the entity is not *registered; or
(b)
if the entity is registered - the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on in the indirect tax zone.
Note:
A supplier may treat a recipient as not being a consumer if the supplier reasonably believes (based on certain information) that to be the case: see section 84-105.
(3)
This section has effect in addition to section 9-25 (which is about when supplies are connected with the indirect tax zone).
Supplies of low value goods delivered etc. into the indirect tax zone by suppliers
(1)
A *supply of low value goods is an
offshore supply of low value goods if:
(a)
the supply involves the goods being brought to the indirect tax zone; and
(b)
the supplier delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone.
Supplies of low value goods made through an electronic distribution platform
(2)
Without limiting subsection (1), a *supply of low value goods is an
offshore supply of low value goods if:
(a)
the supply involves the goods being brought to the indirect tax zone; and
(b)
the supply is made through an *electronic distribution platform; and
(c)
the operator of the platform delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone.
Supplies of low value goods delivered etc. into the indirect tax zone by redeliverers
(3)
A *supply of low value goods is an
offshore supply of low value goods if:
(a)
the supply involves the goods being delivered to a place outside the indirect tax zone; and
(b)
a *redeliverer delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone.
(4)
An entity is a
redeliverer in relation to a *supply of low value goods if, as a result of an arrangement with the *recipient of the supply (or another entity acting on the recipient's behalf), the entity, in the course of *carrying on an enterprise:
(a)
delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone; and
(b)
does one or more of the following:
(i)
provides use of an address outside the indirect tax zone to which the goods are delivered;
(ii)
procures, arranges or facilitates use of an address outside the indirect tax zone to which the goods are delivered;
(iii)
purchases the goods;
(iv)
procures, arranges or facilitates purchase of the goods.
(5)
Disregard section 84-81 in applying this section.
(1)
A supply of goods is a
supply of low value goods if:
(a)
the goods supplied are covered by subsection (3); or
(b)
the goods supplied include goods covered by subsection (3).
(2)
However, if the goods supplied include goods that are not covered by subsection (3), then the supply of goods (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 consisting of goods covered by subsection (3) is to be treated as if it were a separate supply that is a
supply of low value goods (regardless of the total *customs value of the goods to which those supplies relate); and
(b)
the remainder of the actual supply is to be treated as if it were a separate supply that is not a
supply of low value goods.
Low value goods
(3)
This subsection covers goods if:
(a)
the *customs value of the goods is $1,000 or less; and
(b)
the goods are not tobacco, tobacco products or alcoholic beverages.
(4)
Work out the *customs value of goods for the purposes of this section at the time when the *consideration for the supply was first agreed, and as if:
(a)
the goods were exported from the country from which they were brought to the indirect tax zone; and
(b)
the goods were imported into Australia; and
(c)
the agreement for the supply was an agreement for the importation and for the exportation; and
(d)
to the extent that working out the value involves an assumption about the way in which the Collector (within the meaning of the Customs Act 1901) will exercise a discretion - the Collector exercised that discretion in a reasonable manner in accordance with law; and
(e)
if an amount to be taken into account in working out that value is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in any of the following ways:
(i)
in the way provided in section 161J of the Customs Act 1901;
(ii)
in the manner determined by the Commissioner under subsection (5) of this section.
(5)
The Commissioner may, by legislative instrument, determine a manner of ascertaining an amount in Australian currency for the purposes of paragraph (4)(e).
(6)
Disregard section 84-81 in applying this section.
(1)
This section does not apply to a supply to the extent it is *connected with the indirect tax zone because of a provision of this Act other than this Subdivision.
(2)
This section applies in relation to an *offshore supply of low value goods, regardless of whether the *recipient of the supply is a *consumer.
Note:
If the recipient is not a consumer, the entity treated as a supplier by this section must still ensure information is included in customs documents: see section 84-91.
Operator of electronic distribution platform - extension of section 84-55
(3)
Section 84-55 applies to a supply as if it were an *inbound intangible consumer supply if:
(a)
the supply is made through an *electronic distribution platform; and
(b)
the supply is an *offshore supply of low value goods.
Note:
Section 84-55 treats the operator of an electronic distribution platform as the supplier of supplies made through the platform.
Redeliverer
(4)
If a supply of goods is an *offshore supply of low value goods solely because of subsection 84-77(3), the *redeliverer is taken, for the purposes of this Act:
(a)
as being the supplier of, and as making, the supply; and
(b)
as having made the supply for the *consideration for which it was made; and
(c)
as having made the supply in the course or furtherance of an *enterprise that the redeliverer *carries on.
(5)
Despite subsection (4), if there is more than one *redeliverer in relation to the supply, that subsection only applies to the redeliverer who is:
(a)
the first of the redeliverers to enter into an arrangement, with the *recipient, relating to the supply; or
(b)
if paragraph (a) does not apply - the first of the redeliverers to enter into an arrangement, with an *associate of the recipient, relating to the supply; or
(c)
if paragraphs (a) and (b) do not apply - the first of the redeliverers to enter into an arrangement, of a kind referred to in subsection 84-77(4), relating to the supply; or
(d)
if paragraphs (a), (b) and (c) do not apply - the redeliverer determined in accordance with an instrument made under subsection (6).
(6)
The Commissioner may, by legislative instrument, make a determination specifying how a *redeliverer of *offshore supplies of low value goods is to be determined for the purposes of paragraph (5)(d).
(7)
Division 57 (resident agents acting for non-residents) does not apply in relation to a supply to which subsection (4) applies.
(1)
This section does not apply to a supply to the extent it is *connected with the indirect tax zone because of a provision of this Act other than this Subdivision.
(2)
An *offshore supply of low value goods is notconnected with the indirect tax zone to the extent that:
(a)
the supplier takes reasonable steps to obtain information about whether or not the goods would be imported into the indirect tax zone as a *taxable importation; and
(b)
after taking those steps, the supplier reasonably believed that the goods would be imported into the indirect tax zone as a taxable importation.
(3)
Without limiting subsection (2), paragraph (2)(a) is taken to be satisfied if the supplier's usual business systems and processes provide the supplier with a reasonable basis for forming a reasonable belief about whether or not goods to be imported into the indirect tax zone would be imported as a *taxable importation.
(4)
For the purposes of paragraph (2)(b), the time at which the supplier must have the reasonable belief is:
(a)
if subsection 84-81(4) (about redeliverers treated as suppliers) does not apply - at the most recent time before export that the *consideration for the supply was agreed; or
(b)
if subsection 84-81(4) applies - at the time of delivering the goods into the indirect tax zone, or procuring, arranging or facilitating the delivery of the goods into the indirect tax zone.
(5)
This section has effect despite section 84-75.
(1)
Subsection (2) applies to an *offshore supply of low value goods you made to the extent that:
(a)
the supply is, apart from this section, a *supplier-taxed offshore supply of low value goods; and
(b)
an importation of the goods was a *taxable importation.
Note:
This section applies if section 42-15 has not applied to treat the importation as a non-taxable importation.
(2)
The supply is treated as if it were not a *taxable supply if:
(a)
to the extent (if any) that you have *passed on the GST on the supply to another entity - you reimburse the other entity for the passed on GST; and
(b)
an entity provides to you a declaration or information that indicates that GST has been paid on the *taxable importation.
(3)
A supply of goods is a
supplier-taxed offshore supply of low value goods if the supply is:
(a)
an *offshore supply of low value goods; and
(b)
a taxable supply solely under section 9-5; and
(c)
*connected with the indirect tax zone solely because of this Subdivision.
(1)
You are not required to issue a *tax invoice for a *taxable supply that you make if the supply is a *supplier-taxed offshore supply of low value goods.
(2)
You are not required to issue an *adjustment note for an *adjustment event relating to a *taxable supply that you make if the supply is a *supplier-taxed offshore supply of low value goods.
(3)
This section has effect despite sections 29-70 and 29-75 (which are about tax invoices and adjustment notes).
(1)
You must give the *recipient of a supply a notice of the amount of GST (if any) payable in relation to the supply if the supply is a *supplier-taxed offshore supply of low value goods.
(2)
You must give the notice in the *approved form, and at the time the *consideration for the supply is first agreed.
(3)
If:
(a)
you make a *supplier-taxed offshore supply of low value goods; and
(b)
you did not give a notice under subsection (1); and
(c)
the *recipient of the supply requests you to notify the recipient of the amount of GST (if any) payable in relation to the supply;
you must, within 5 *business days after the request is made, give the recipient a notice of that amount in the *approved form.
Note:
If you do not give the notice as required by this subsection, you are liable to an administrative penalty under subsection 288-45(2A) in Schedule 1 to the Taxation Administration Act 1953.
(1)
If a *supplier-taxed offshore supply of low value goods is an *offshore supply of low value goods solely because of subsection 84-77(3), the amount of GST on the supply 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).
Note:
Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.
(1)
If:
(a)
you make an *offshore supply of low value goods; and
(b)
you are *registered, or *required to be registered;
you must ensure that the information set out in subsection (2) is included in one or more of the documents referred to in subsection (3) (regardless of whether or not the supply is *connected with the indirect tax zone).
Note:
If you do not ensure the information is included, you are liable to an administrative penalty under section 288-46 in Schedule 1 to the Taxation Administration Act 1953.
(2)
For the purposes of subsection (1), the information is as follows:
(a)
your registration number;
(b)
if the *recipient's *ABN has been disclosed to you - that ABN;
(c)
the extent (if any) to which you are treating the supply as a *taxable supply.
(3)
For the purposes of subsection (1), the documents are as follows:
(a)
an import declaration (within the meaning of the Customs Act 1901);
(b)
an import declaration advice (within the meaning of that Act);
(c)
a self-assessed clearance declaration (within the meaning of that Act);
(d)
a self-assessed clearance declaration advice (within the meaning of that Act);
(e)
a document of a kind specified in an instrument made under subsection (4).
(4)
The Commissioner may, by legislative instrument, make a determination specifying kinds of documents for the purposes of paragraph (3)(e).
Subdiv 84-D heading substituted by No 77 of 2017, s 3 and Sch 1 item 39, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Former subdiv 84-C inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
A supplier is treated in some situations to be making a supply to an entity that is not a consumer, or not an Australian consumer.
Note 1:
Whether the recipient of a supply of an intangible is an Australian consumer is one of the tests for whether the supply is connected with the indirect tax zone: see subsection 9-25(5).
Note 2:
Whether the recipient of an offshore supply of low value goods is a consumer is one of the tests for whether the supply is connected with the indirect tax zone: see subsection 84-75(1).
Note 3:
Supplies affected by this Subdivision may be supplies that are taxable supplies, and reverse charged, under Subdivision 84-A.
S 84-95 substituted by No 77 of 2017, s 3 and Sch 1 item 40, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-95 formerly read:
84-95 What this Subdivision is about
A supplier is treated in some situations to be making a supply to an entity that is not an Australian consumer.
Note:
Whether the recipient of a supply of an intangible is an Australian consumer is one of the tests for whether the supply is connected with Australia: see subsection 9-25(5).
S 84-95 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-100
When entities are treated as not being Australian consumers
(1)
The *GST law applies in relation to you as if another entity was not an *Australian consumer of a supply if:
(a)
you take reasonable steps to obtain information about whether or not the other entity is an Australian consumer of the supply; and
(b)
after taking those steps, you reasonably believe that the other entity is not an Australian consumer of the supply.
(2)
Without limiting subsection (1), the *GST law applies in relation to you as if another entity was not an *Australian consumer of a supply if:
(a)
your usual business systems and processes provide you with a reasonable basis for forming a reasonable belief about whether the other entity is an Australian consumer of the supply; and
(b)
you reasonably believe that the other entity is not an Australian consumer of the supply.
(3)
For the purposes of subsections (1) and (2), to the extent that your belief that the other entity is not an *Australian consumer of the supply is based on the other entity being *registered, your belief is reasonable only if:
(a)
the other entity's *ABN, or the other identifying information prescribed under subsection (4) relating to the other entity, has been disclosed to you; and
(b)
the other entity has provided to you a declaration or information that indicates that the other entity is registered.
(4)
The Commissioner may, by legislative instrument, prescribe identifying information for the purposes of paragraph (3)(a).
S 84-100 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-105
When entities are treated as not being consumers
(1)
The *GST law applies in relation to you as if another entity was not a *consumer of a supply if you reasonably believe that the other entity is not a consumer of the supply.
(2)
For the purposes of subsection (1), your belief is reasonable only if:
(a)
the other entity's *ABN, or the other identifying information prescribed under subsection (3) relating to the other entity, has been disclosed to you; and
(b)
the other entity has provided to you a declaration or information that indicates that the other entity is *registered.
(3)
The Commissioner may, by legislative instrument, make a determination prescribing identifying information for the purposes of paragraph (2)(a).
Former Subdiv 84-D repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Former Subdiv 84-D inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-135
What this Subdivision is about
(Repealed by No 77 of 2017)
S 84-135 repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-135 formerly read:
84-135 What this Subdivision is about
Non-residents may elect to be limited registration entities. Limited registration entities are not entitled to input tax credits for acquisitions, and must have quarterly tax periods.
Note:
The Commissioner may approve simpler approved forms for limited registration entities: see subsection 388-50(3) in Schedule 1 to the Taxation Administration Act 1953.
S 84-135 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-140
Limited registration entities
(Repealed by No 77 of 2017)
S 84-140 repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-140 formerly read:
84-140 Limited registration entities
(1)
You are a
limited registration entity for a tax period applying to you if an election under subsection (2) is in effect for you during the period.
Electing to be a limited registration entity
(2)
You may, by notifying the Commissioner in the *approved form, make an election under this subsection if:
(a)
you have made, or intend to make, one or more *inbound intangible consumer supplies; and
(b)
you are a *non-resident.
When an election is in effect
(3)
The election:
(a)
takes effect from the start of the tax period you nominate in the election; and
(b)
if your *registration is cancelled and the date of effect of the cancellation occurs after the start of that tax period - ceases to have effect on the date of effect of the cancellation; and
(c)
if paragraph (b) does not apply and, under subsection (5), you revoke the election - ceases to have effect at the start of your first tax period to start after the revocation.
(4)
However, the election never takes effect if your *registration is cancelled and the date of effect of the cancellation occurs on or before the start of the tax period you nominate in the election.
Revoking an election
(5)
You may, by notifying the Commissioner in the *approved form, revoke an election under subsection (2).
(6)
However, subsection (5) does not apply if you have been notified that the Commissioner has decided to cancel your *registration (whether or not the cancellation has already taken effect).
S 84-140 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-145
Limited registration entities cannot make creditable acquisitions
(Repealed by No 77 of 2017)
S 84-145 repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-145 formerly read:
84-145 Limited registration entities cannot make creditable acquisitions
(1)
An acquisition made by a *limited registration entity is not a *creditable acquisition if an election under subsection 84-140(2) is in effect for the entity when the acquisition is made.
(2)
However, subsection (1) does not apply, and is taken never to have applied, to the acquisition if you revoke the election under subsection 84-140(5) during:
(a)
the *financial year in which the acquisition is made; or
(b)
the next financial year.
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
S 84-145 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-150
Entries in the Australian Business Register
(Repealed by No 77 of 2017)
S 84-150 repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-150 formerly read:
84-150 Entries in the Australian Business Register
(1)
Subsection 25-10(2) does not apply if:
(a)
you become *registered; and
(b)
on the date your registration takes or took effect, you are a *limited registration entity.
Note:
Under subsection 25-10(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.
(2)
However, if:
(a)
you cease to be a *limited registration entity at a time when you are *registered; and
(b)
because of subsection (1) of this subsection, subsection 25-10(2) did not apply to your registration;
subsection 25-10(2) is taken to apply from the time you cease to be a limited registration entity.
(3)
Subsection 25-60(2) does not apply if:
(a)
your *registration is cancelled; and
(b)
because of subsection (1) of this section, the date on which your registration took effect was not entered in the *Australian Business Register; and
(c)
immediately before the cancellation took effect, you were a *limited registration entity.
Note:
Under subsection 25-60(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.
S 84-150 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
84-155
Limited registration entities have only quarterly tax periods
(Repealed by No 77 of 2017)
S 84-155 repealed by No 77 of 2017, s 3 and Sch 1 item 42, effective 1 July 2017. For application provisions, see note under Div 146 heading. S 84-155 formerly read:
84-155 Limited registration entities have only quarterly tax periods
(1)
If you are a *limited registration entity, you cannot make an election under section 27-10, and the Commissioner cannot determine your tax periods under section 27-15 or 27-37.
Note:
Sections 27-10 and 27-15 provide for each individual month to be a tax period. Section 27-37 provides for 12 complete tax periods in each year.
(2)
An election by you under section 27-10 or a determination under section 27-15 or 27-37 in relation to you is taken not to be in force at any time during which you are a *limited registration entity.
(3)
This section has effect despite sections 27-10, 27-15 and 27-37 (which are about one month tax periods).
S 84-155 inserted by No 52 of 2016, s 3 and Sch 1 item 6, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Telecommunication supplies that are effectively used or enjoyed in the indirect tax zone are included in the GST system (regardless of where the supplier has a physical presence).
S 85-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 85-1 inserted by No 177 of 1999, s 3 and Sch 1 item 96, effective 1 July 2000.
85-5
When telecommunication supplies are connected with the indirect tax zone
A *telecommunication supply is
connected with the indirect tax zone if the *recipient of the supply will effectively use or enjoy the supply in the indirect tax zone.
S 85-5(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone" for "
Australia", applicable to a tax period that commences on or after 1 July 2015.
(2)
However, subsection (1) does not apply to a *telecommunication supply, or a telecommunication supply included in a class of telecommunication supplies, if:
(a)
the supplier makes the supply through an *enterprise that is not *carried on in the indirect tax zone; and
(b)
the Commissioner determines that collection of GST on that supply or class of supplies would not be administratively feasible.
(3)
This section has effect in addition to section 9-25 (which is about when supplies are connected with the indirect tax zone), but is subject to section 9-26 (which is about when supplies are not connected with the indirect tax zone).
S 85-5(3) amended by No 52 of 2016, s 3 and Sch 2 item 13, by inserting ", but is subject to section 9-26 (which is about when supplies are not connected with the indirect tax zone)", applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 85-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 85-5 inserted by No 177 of 1999, s 3 and Sch 1 item 96, effective 1 July 2000.
A
telecommunication supply is a supply relating to the transmission, emission or reception of signals, writing, images, sounds or information of any kind by wire, radio, optical or other electromagnetic systems. It includes:
(a)
the related transfer or assignment of the right to use capacity for such transmission, emission or reception; and
(b)
provision of access to global information networks.
(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).
(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 wouldbe 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.
(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).
(1)
If section 86-5 applies to a *taxable supply butthe *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).
(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).
(c)
the value, worked out in the way set out in section 9-75, of that part of the supply that relates to provision of the commercial accommodation during the first 27 days; and
(d)
50%, or such other percentage as is specified in the regulations, of what would be the *price (if this Division did not apply) of that part of the supply that relates to provision of the commercial accommodation after the first 27 days.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
87-15
Meaning of commercial accommodation
Commercial accommodation means the right to occupy the whole or any part of *commercial residential premises, including, if it is provided as part of the right so to occupy, the supply of:
(a)
cleaning and maintenance; or
(b)
electricity, gas, air-conditioning or heating; or
(c)
telephone, television, radio or any other similar thing.
87-20
Meaning of long-term accommodation etc.
(1)
Long-term accommodation is provided to an individual if *commercial accommodation is provided, for a continuous period of 28 days or more, in the same premises:
(a)
to that individual alone; or
(b)
to that individual, together with one or more other individuals who:
(i)
are also provided with that commercial accommodation; and
(ii)
are not provided with it at their own expense (whether incurred directly or indirectly).
(2)
For the purpose of working out the number of days in the period for which an individual is provided with *commercial accommodation:
(a)
count the day on which he or she is first provided with the commercial accommodation; and
(b)
disregard the day on which he or she ceases to be provided with commercial accommodation.
(3)
*Commercial residential premises are
predominantly for long-term accommodation if at least 70% of the individuals who are provided with *commercial accommodation in the premises are provided with commercial accommodation as *long-term accommodation.
87-25
Suppliers may choose not to apply this Division
(1)
This Division does not apply to a supply of *commercial accommodation if the supplier chooses not to apply this Division to any supplies of commercial accommodation that the supplier makes.
(2)
The choice applies to all supplies of *commercial accommodation that the supplier makes after the choice is made and before the choice is revoked.
(3)
However, the supplier:
(a)
cannot revoke the choice within 12 months after the day on which the supplier made the choice; and
(b)
cannot make a further choice within 12 months after the day on which the supplier revoked a previous choice.
Note:
If you choose not to apply this Division, your supplies (other than GST-free supplies) of long-term accommodation in commercial residential premises are input taxed under section 40-35.
(2)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
90-15
Acquisitions not creditable - amalgamated company registered or required to be registered
(1)
An acquisition made by an *amalgamated company from an *amalgamating company in the course of *amalgamation is not a*creditable acquisition if, immediately after the amalgamation, the amalgamated company is *registered or *required to be registered.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
90-20
Liability after amalgamation for GST on amalgamating company's supplies
(1)
An *amalgamated company must pay the GST payable on a *taxable supply if:
(a)
apart from the *amalgamation, the GST would have been payable by any of the *amalgamating companies; and
(b)
the GST was not attributable, before the amalgamation, to a tax period applying to the amalgamating company.
(2)
This section has effect despite section 9-40 (which is about liability for GST).
90-25
Entitlement after amalgamation to input tax credits for amalgamating company's acquisitions
(1)
An *amalgamated company is entitled to the input tax credit for a *creditable acquisition if:
(a)
apart from the *amalgamation, any of the *amalgamating companies would have been entitled to the input tax credit; and
(b)
the input tax credit was not attributable, before the amalgamation, to a tax period applying to the amalgamating company.
(2)
This section has effect despite section 11-20 (which is about who is entitled to input tax credits).
90-30
Adjustments
(1)
An *amalgamated company has an *adjustment if:
(a)
apart from the *amalgamation, any of the *amalgamating companies would have had the adjustment; and
(b)
the adjustment was not attributable, before the amalgamation, to a tax period applying to the amalgamating company.
(2)
This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
90-35
Amalgamating companies accounting on a cash basis
(1)
If:
(a)
immediately before *amalgamation, an *amalgamating company *accounted on a cash basis; and
(b)
GST payable by the company on a *taxable supply, an input tax credit to which the company was entitled for a *creditable acquisition, or an *adjustment that the company had, was not attributable, before the amalgamation, to any of the tax periods applying to the company; and
(c)
the GST, input tax credit or adjustment would have been attributable to such a tax period if the company had not accounted on a cash basis during that period; and
(d)
immediately after the amalgamation, the *amalgamated company does not account on a cash basis;
the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation.
(2)
If:
(a)
immediately before *amalgamation, an *amalgamating company *accounted on a cash basis; and
(b)
GST payable by the company on a *taxable supply, an input tax credit to which the company was entitled for a *creditable acquisition, or an *adjustment that the company had, was only to some extent attributable, before the amalgamation, to any of the tax periods applying to the company; and
(c)
the GST, input tax credit or adjustment would have been solely attributable to such a tax period if the company had not accounted on a cash basis during that period; and
(d)
immediately after the amalgamation, the *amalgamated company does not account on a cash basis;
the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation, but only to the extent that it was not attributable to any of the tax periods applying to the amalgamating company.
(3)
This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits for acquisitions, and adjustments).
Division 93 - Time limit on entitlements to input tax credits
Div 93 inserted by No 20 of 2010, s 3 and Sch 1 item 7, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
Former Div 93 repealed by No 156 of 2000, s 3 and Sch 6 item 31, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Div 93 formerly read:
Division 93 - Returnable containers
93-1 What this Division is about
This Division allows for input tax credits for the acquisition of returnable containers from people who are not making taxable supplies.
93-5 Creditable acquisitions of returnable containers
(1)
If you acquire a *returnable container from an entity that is not *registered or *required to be registered, the fact that the supply of the container to you is not a *taxable supply does not stop the acquisition being a *creditable acquisition.
(2)
A container is a
returnable container if entities of a kind provided under a *State law or *Territory law are obliged under that law:
(a)
to accept delivery of that container when empty; and
(b)
to pay a refund to the entity delivering the container.
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
93-10 How much are the input tax credits for creditable acquisitions of returnable containers?
(1)
The amount of the input tax credit on a *creditable acquisition of a *returnable container is an amount equal to 1/11 of:
(a)
the *consideration that you provide, or are liable to provide, for the acquisition; or
(b)
if that consideration is more than the amount of the refund that you are obliged to pay under the *State law or *Territory law in question - the amount of the refund that you are obliged to pay.
(2)
However, this section does not apply if the supply of the container to you is a *taxable supply.
(3)
This section has effect despite section 11-25 (which is about the amount of input tax credits for creditable acquisitions).
93-15 Attributing creditable acquisitions of returnable containers
(1)
If you are entitled to the input tax credit for a *creditable acquisition of a *returnable container but the supply of the container was not a *taxable supply, the input tax credit for the acquisition is attributable to:
(a)
the tax period in which any *consideration is received for a subsequent *taxable supply of the container; or
(b)
if, before any of the consideration is received, you have issued an *invoice relating to the supply - the tax period in which the invoice is issued.
(2)
However, if you *account on a cash basis, then:
(a)
if, in a tax period, all of the *consideration is received for the subsequent *taxable supply - the input tax credit for the acquisition is attributable to that tax period; or
(b)
if, in a tax period, part of the consideration is received - the input tax credit for the acquisition is attributable to that tax period, but only to the extent that the consideration is received in that tax period; or
(c)
if, in a tax period, none of the consideration is received - none of the input tax credit for the acquisition is attributable to that tax period.
(3)
Subsection 29-10(3) does not apply in relation to a *creditable acquisition of a *returnable container if the supply of the container was not a *taxable supply.
(4)
This section has effect despite section 29-10 (which is about attributing the input tax credits for creditable acquisitions).
93-20 Ownership of returnable containers
To avoid doubt, if a *returnable container is delivered to you in circumstances under which you are obliged, under a *State law or *Territory law, to make a refund to the entity delivering the container, your acceptance of the delivery is an acquisition of the container:
(a)
whether or not you owned the container immediately prior to the delivery; and
(b)
whether or not you become the owner of the container on that delivery.
93-25 Food packaging that was supplied GST-free
This Division does not apply to the acquisition of a *returnable container if the supply of the container to the entity from which you acquired it was a supply of packaging that was *GST-free under section 38-6.
Your entitlements to input tax credits for creditable acquisitions cease unless they are included in your assessed net amounts within a limited period (generally 4 years).
S 93-1 amended by No 39 of 2012, s 3 and Sch 1 item 244, by omitting "However, this time limit does not apply in certain limited cases." after "(generally 4 years).", effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 93-1 substituted by No 39 of 2012, s 3 and Sch 1 item 81, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 93-1 formerly read:
93-1 What this Division is about
Your entitlements to input tax credits for creditable acquisitions cease unless you include them in your net amounts within 4 years.
However, this time limit might not apply to any such entitlements relating to amounts that the Commissioner has notified to you, that arise as a result of fraud or evasion, or that you have notified to the Commissioner.
Note:
These amounts are dealt with in sections 105-50 and 105-55 in Schedule 1 to the Taxation Administration Act 1953.
S 93-1 inserted by No 20 of 2010, s 3 and Sch 1 item 7, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
93-5
Time limit on entitlements to input tax credits
(1)
You cease to be entitled to an input tax credit for a *creditable acquisition to the extent that the input tax credit has not been taken into account, in an *assessment of a *net amount of yours, during the period of 4 years after the day on which you were required to give to the Commissioner a *GST return for the tax period to which the input tax credit would be attributable under subsection 29-10(1) or (2).
Note:
Section 93-10 sets out circumstances in which your entitlement to the input tax credit does not cease under this section.
(2)
This section has effect despite section 11-20 (which is about entitlement to input tax credits).
Note:
You must hold a valid tax invoice relating to a creditable acquisition to be entitled to have an input tax credit for that acquisition taken into account in working out your assessed net amount for a tax period: see subsection 29-10(3).
S 93-5 substituted by No 39 of 2012, s 3 and Sch 1 item 81, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 93-5 formerly read:
93-5 Time limit on entitlements to input tax credits
(1)
You cease to be entitled to an input tax credit for a *creditable acquisition to the extent that you have not taken it into account in working out your *net amount for:
(a)
the tax period to which the input tax credit would be attributable under subsection 29-10(1) or (2); or
(b)
any other tax period for which you give to the Commissioner a *GST return during the period of 4 years after the day on which you were required to give to the Commissioner a GST return for the tax period referred to in paragraph (a).
Note:
Section 93-10 sets out circumstances in which your entitlement to the input tax credit does not cease under this section.
(2)
This section has effect despite section 11-20 (which is about who is entitled to input tax credits for creditable acquisitions).
S 93-5 inserted by No 20 of 2010, s 3 and Sch 1 item 7, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
93-10
Exceptions to time limit on entitlements to input tax credits
S 93-10(1) repealed by No 39 of 2012, s 3 and Sch 1 item 245, effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 93-10(1) formerly read:
Commissioner has notified you of excess or refund etc.
(1)
You do not cease under section 93-5 to be entitled to an input tax credit to the extent that:
(a)
the input tax credit arises out of circumstances that also gave rise to the whole or a part of:
(i)
an amount, or an amount of an excess, in relation to which paragraph 105-50(3)(a) in Schedule 1 to the Taxation Administration Act 1953 applies; or
(ii)
a refund, other payment or credit in relation to which paragraph 105-55(1)(b) in Schedule 1 to that Act applies; and
(b)
the Commissioner gave to you the notice referred to in that paragraph not later than 4 years after the end of the tax period to which the credit would be attributable under subsection 29-10(1) or (2) of this Act.
Note 1:
Section 105-50 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which the Commissioner can recover indirect tax amounts, and section 105-55 in Schedule 1 to that Act deals with the time limit within which you can claim amounts relating to indirect tax.
Note 2:
Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.
Note 3:
Sections 105-50 and 105-55 in Schedule 1 to the Taxation Administration Act 1953 only apply in relation to tax periods starting before 1 July 2012.
Note 4:
This subsection will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.
S 93-10(1) amended by No 39 of 2012, s 3 and Sch 1 item 224, by inserting notes 3 and 4, effective 1 July 2012.
S 93-10(2) repealed by No 39 of 2012, s 3 and Sch 1 item 245, effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 93-10(2) formerly read:
Excess relates to amount avoided by fraud or evaded
(2)
You do not cease under section 93-5 to be entitled to an input tax credit to the extent that the input tax credit arises out of circumstances that also gave rise to:
(a)
the whole or a part of an amount in relation to which paragraph 105-50(3)(b) in Schedule 1 to the Taxation Administration Act 1953 applies; or
(b)
an amount of an excess, in relation to which that paragraph applies.
Note 1:
Section 105-50 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which the Commissioner can recover indirect tax amounts.
Note 2:
Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.
Note 3:
Section 105-50 in Schedule 1 to the Taxation Administration Act 1953 only applies in relation to tax periods starting before 1 July 2012.
Note 4:
This subsection will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.
S 93-10(2) amended by No 39 of 2012, s 3 and Sch 1 item 225, by inserting notes 3 and 4, effective 1 July 2012.
S 93-10(3) repealed by No 39 of 2012, s 3 and Sch 1 item 245, effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 93-10(3) formerly read:
You have notified the Commissioner of refund etc.
(3)
You do not cease under section 93-5 to be entitled to an input tax credit to the extent that:
(a)
the input tax credit arises out of circumstances that also gave rise to the whole or a part of a refund, other payment or credit in relation to which paragraph 105-55(1)(a) in Schedule 1 to the Taxation Administration Act 1953 applies; and
(b)
you gave to the Commissioner the notice referred to in that paragraph not later than 4 years after the end of the tax period to which the credit would be attributable under subsection 29-10(1) or (2) of this Act.
Note 1:
Section 105-55 in Schedule 1 to the Taxation Administration Act 1953 deals with the time limit within which you can claim amounts relating to indirect tax.
Note 2:
Section 93-15 of this Act may preclude this subsection from applying to the input tax credit, in which case section 93-5 of this Act will apply.
Note 3:
Section 105-55 in Schedule 1 to the Taxation Administration Act 1953 only applies in relation to tax periods starting before 1 July 2012.
Note 4:
This subsection will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.
S 93-10(3) amended by No 39 of 2012, s 3 and Sch 1 item 226, by inserting notes 3 and 4, effective 1 July 2012.
Amendment of assessments in relation to supplies
(4)
You do not cease under section 93-5 to be entitled to an input tax credit if:
(a)
the input tax credit is for a *creditable acquisition that relates to making a supply; and
(b)
during the period of 4 years mentioned in subsection 93-5(1), a *net amount of yours is *assessed on the basis that the supply is *input taxed; and
(c)
after the end of that 4-year period, the Commissioner amends the assessment of your net amount for the tax period to which the supply is attributable under section 155-35, 155-45 or 155-50, or paragraph 155-60(a) or (b), in Schedule 1 to the Taxation Administration Act 1953 on the basis that the supply is not input taxed; and
(d)
the input tax credit is taken into account in an assessment of a net amount of yours (the
credit assessment):
(i)
after the end of that 4-year period; and
(ii)
at a time when the Commissioner may amend the assessment of your net amount for the tax period mentioned in subsection 93-5(1) of this Act (whether the credit assessment or another assessment) under Subdivision 155-B in Schedule 1 to the Taxation Administration Act 1953 on the basis that you are entitled to the input tax credit.
S 93-10(4) inserted by No 39 of 2012, s 3 and Sch 1 item 82, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
If:
(a)
you requested the Commissioner to treat a document under subsection 29-70(1B) as a *tax invoice for the purposes of attributing an input tax credit to a tax period; and
(b)
you made the request before the end of the 4-year period mentioned in subsection 93-5(1) in relation to the tax period; and
(c)
the Commissioner agrees to the request after the end of the 4-year period;
you do not cease under section 93-5 to be entitled to the input tax credit to the extent that, had the Commissioner agreed to the request before the end of the 4-year period, you would not cease under that section to be entitled to the credit.
S 93-10(5) inserted by No 39 of 2012, s 3 and Sch 1 item 82, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 93-10 inserted by No 20 of 2010, s 3 and Sch 1 item 7, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
You are not entitled to an input tax credit for a *creditable acquisition to the extent that GST on the related supply has not been taken into account in the *assessment of the supplier's *net amount for the tax period to which that GST is attributable if:
(a)
the period of review (within the meaning of section 155-35 in Schedule 1 to the Taxation Administration Act 1953) for that assessment has ended; and
S 93-15 substituted by No 21 of 2015, s 3 and Sch 7 item 5, applicable in relation to each creditable acquisition for which the GST on the related supply is attributable to a tax period, or tax periods, starting after 19 March 2015. S 93-15 formerly read:
93-15 GST ceasing to be payable on the related supply
You are not entitled to an input tax credit for a *creditable acquisition if:
(a)
GST has ceased to be payable (other than as a result of its payment) on the supply that is related to the creditable acquisition; and
(b)
at the time of the cessation, you did not hold a *tax invoice for the creditable acquisition.
S 93-15 amended by No 39 of 2012, s 3 and Sch 1 items 83 and 84, by substituting "You are not entitled to an input tax credit for a *creditable acquisition" for "Section 93-10 does not apply" and "creditable acquisition" for "*creditable acquisition for which you would be entitled to an input tax credit but for this section" in para (a), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 93-15 inserted by No 20 of 2010, s 3 and Sch 1 item 7, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
Division 96 - Supplies partly connected with the indirect tax zone
Div 96 heading amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "
the indirect tax zone
" for "
Australia
", applicable to a tax period that commences on or after 1 July 2015.
This Division treats a supply that is partly connected with the indirect tax zone as separate supplies, so that only the part of a supply that is connected with the indirect tax zone is included in the GST system.
S 96-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
96-5
Supplies that are only partly connected with the indirect tax zone
(1)
If, because a supply (the
actual supply) is a supply of more than one of these kinds:
(a)
a supply of goods;
(b)
a supply of *real property;
(c)
a *telecommunication supply;
only part of the actual supply is *connected with the indirect tax zone, then the actual supply is to be treated as if it were separate supplies in the following way.
S 96-5(1) amended by No 177 of 1999, s 3 and Sch 1 item 97, by substituting para (c) and inserting para (d), effective 1 July 2000. Para (c) formerly read:
(c)
a supply of anything other than goods or real property;
(2)
The part of the actual supply that is *connected with the indirect tax zone is to be treated as if it were a separate supply that is connected with the indirect tax zone.
(3)
The part of the actual supply that is not *connected with the indirect tax zone is to be treated as if it were a separate supply that is not connected with the indirect tax zone.
(4)
However, if one of the kinds of supply that forms part of the actual supply may reasonably be regarded as incidental to:
(a)
the other kind of supply that forms part of the actual supply; or
(b)
one (but not both) of the other kinds of supply that form part of the actual supply;
and its value (if it were a separate *taxable supply) would not exceed $50,000, it is treated as part of that other kind of supply.
(5)
This section has effect despite section 9-25 (which is about when supplies are connected with the indirect tax zone).
S 96-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
96-10
The value of the taxable components of supplies that are only partly connected with the indirect tax zone
(1)
If a supply (the
actual supply):
(a)
is, because of section 96-5, to be treated as separate supplies; and
(b)
the part of the actual supply that is *connected with the indirect tax zone is a *taxable supply, or is partly a *taxable supply and partly a supply that is *GST-free or *input taxed;
the
value of that part of the actual supply is worked out as follows:
(c)
work out the value of the actual supply, under section 9-75, as if it were solely a taxable supply; and
(d)
work out the proportion of that value of the actual supply that the taxable supply represents; and
(e)
multiply that value by the proportion in paragraph (d).
S 96-10(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
(2)
If that part of the actual supply is partly a *taxable supply and partly a supply that is *GST-free or *input taxed, this section does not affect the operation of section 9-80 in working out the value of so much of that part of the actual supply as is a taxable supply.
(3)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
Division 99 - Deposits as security
99-1
What this Division is about
GST does not apply to the taking of a deposit as security for the performance of an obligation (unless the deposit is forfeited or is applied as consideration). GST is not attributable prior to forfeiture.
99-5
Giving a deposit as security does not constitute consideration
99-5(1)
A deposit held as security for the performance of an obligation is not treated as *consideration for a supply, unless the deposit:
(a)
is forfeited because of a failure to perform the obligation; or
(b)
is applied as all or part of the consideration for a supply.
99-5(2)
This section has effect despite section 9-15 (which is about consideration).
99-10
Attributing the GST relating to deposits that are forfeited etc.
(1)
The GST payable by you on a *taxable supply for which the *consideration is a deposit that was held as security for the performance of an obligation is attributable to the tax period during which the deposit:
(a)
is forfeited because of a failure to perform the obligation; or
(b)
is applied as all or part of the consideration for a supply.
(2)
This section has effect despite section 29-5 (which is about attributing GST for taxable supplies).
Division 100 - Vouchers
A supply of a voucher for supplies up to a stated monetary value is not subject to GST. GST may still be payable on the supply for which the voucher is redeemed, and there is an increasing adjustment for unredeemed vouchers.
Note:
Vouchers that do not have a stated monetary value can be subject to GST when supplied, but the price of the voucher is excluded when working out the GST on the supply for which the voucher is redeemed (see subsection 9-17(1)).
S 100-1 amended by No 75 of 2012, s 3 and Sch 2 item 11, by substituting "subsection 9-17(1)" for "paragraph 9-15(3)(a)" in the note, applicable, and taken to have applied, from 1 July 2012.
S 100-1 amended by No 32 of 2006, s 3 and Sch 4 item 2, by substituting "have a stated" for "state a" in the note, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
S 100-1 inserted by No 177 of 1999, s 3 and Sch 1 item 98, effective 1 July 2000.
100-5
Supplies of vouchers with a stated monetary value
(1)
A supply of a *voucher is not a *taxable supply if:
(a)
on redemption of the voucher, the holder of the voucher is entitled to supplies up to the *stated monetary value of the voucher; and
S 100-5(1) amended by No 32 of 2006, s 3 and Sch 4 items 4 and 5, by substituting "the *stated monetary value of the voucher" for "a monetary value stated on the voucher" in para (a) and substituting "the stated monetary value of the voucher" for "that monetary value" in para (b), applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
If the *consideration for supply of the voucher exceeds the *stated monetary value of the voucher, the consideration is treated (except for the purposes of this section) as if it were reduced by that monetary value.
S 100-5(2) amended by No 32 of 2006, s 3 and Sch 4 item 6, by substituting "the *stated monetary value of the voucher" for "that monetary value", applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
The
stated monetary value, in relation to a *voucher other than a *prepaid phone card or facility, means the monetary value stated on the voucher or in documents accompanying the voucher.
S 100-5(2A) inserted by No 32 of 2006, s 3 and Sch 4 item 7, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
The
stated monetary value, in relation to a *voucher that is a *prepaid phone card or facility, means the sum of:
(a)
in any case - the monetary value stated on the voucher or in documents accompanying the voucher; and
(b)
if the voucher is topped up after it is supplied - the monetary value of the top-up stated on the voucher or in documents accompanying the top-up.
However, disregard the monetary value stated on the voucher (or in documents accompanying the voucher) or top-up (as the case requires), of any bonus supplies covered by the voucher or top-up (as the case requires).
S 100-5(2B) inserted by No 32 of 2006, s 3 and Sch 4 item 7, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies) and section 9-15 (which is about consideration).
Subsection 9-17(1) (which is about the consideration for exercising rights or options) does not apply to a right or option that is granted by way of a *voucher if, on redemption of the voucher, the holder of the voucher is entitled to supplies up to the *stated monetary value of the voucher.
S 100-10(3) amended by No 75 of 2012, s 3 and Sch 2 item 12, by substituting "Subsection 9-17(1)" for "Paragraph 9-15(3)(a)", applicable, and taken to have applied, from 1 July 2012.
S 100-10(3) amended by No 32 of 2006, s 3 and Sch 4 item 8, by substituting "the *stated monetary value of the voucher" for "a monetary value stated on the voucher", applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
S 100-10 inserted by No 177 of 1999, s 3 and Sch 1 item 98, effective 1 July 2000.
(1)
To avoid doubt, the consideration for a *taxable supply of a thing acquired by fully redeeming a *voucher is taken to be the sum of:
(a)
the *stated monetary value of the voucher, reduced by any amount of that value refunded to the holder of the voucher in respect of the supply; and
(b)
any additional consideration provided for the supply.
(2)
To avoid doubt, the consideration for a *taxable supply of a thing acquired by partly redeeming a *voucher is taken to be the sum of:
(a)
the amount of the *stated monetary value of the voucher that the redemption represents; and
(b)
any additional consideration provided for the supply.
(3)
Subsections (1) and (2) have effect despite section 9-15 (which is about consideration).
(1)
You have an
increasing adjustment if:
(a)
you supplied a *voucher for *consideration; and
(b)
on redemption of the voucher, the holder of the voucher was entitled to supplies up to the *stated monetary value of the voucher; and
S 100-15(1) amended by No 32 of 2006, s 3 and Sch 4 item 11, by inserting "fully" before "redeemed" in para (c), applicable in relation to supplies made on or after 11 May 2005.
S 100-15(1) amended by No 32 of 2006, s 3 and Sch 4 item 10, by substituting "the *stated monetary value of the voucher" for "a monetary value stated on the voucher" in para (b), applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
S 100-15(2) substituted by No 32 of 2006, s 3 and Sch 4 item 12, applicable in relation to supplies made on or after 11 May 2005. S 100-15(2) formerly read:
(2)
The amount of the increasing adjustment is 1/11 of the amount written back to current income.
S 100-15 inserted by No 177 of 1999, s 3 and Sch 1 item 98, effective 1 July 2000.
(1)
An entity (the
supplier) may, in writing, enter into an arrangement with another entity under which the other entity supplies (whether or not as an agent on the supplier's behalf) a *voucher to a third party.
(2)
If, under the arrangement, the supplier pays, or is liable to pay, an amount, as a commission or similar payment, to the other entity for the other entity's supply, the supply by the other entity to the supplier, to which the supplier's payment or liability relates, is treated as if it were not a *taxable supply.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
This Division does not apply to a *voucher supplied to a *non-resident if, because of the application of subsection 38-190(3), the supply is not *GST-free.
(1)
A
voucher is any:
(a)
voucher, token, stamp, coupon or similar article; or
(b)
*prepaid phone card or facility;
the redemption of which in accordance with its terms entitles the holder to receive supplies in accordance with its terms. However, a postage stamp is not a voucher.
(2)
A
prepaid phone card or facility is any article or facility supplied for the primary purpose of enabling the holder:
(a)
to use, on a prepaid basis, telephone or like services supplied by a supplier of *telecommunications supplies; or
(b)
to make, on a prepaid basis, acquisitions that are facilitated by using telephone or like services supplied by such a supplier.
S 100-25 substituted by No 32 of 2006, s 3 and Sch 4 item 14, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000. S 100-25 formerly read:
100-25 Meaning of
voucher A
voucher is any voucher, token, stamp, coupon or similar article the redemption of which in accordance with its terms entitles the holder to receive supplies in accordance with its terms. However, a postage stamp is not a voucher.
S 100-25 inserted by No 177 of 1999, s 3 and Sch 1 item 98, effective 1 July 2000.
Division 102 - Cancelled lay-by sales
102-1
What this Division is about
If a lay-by sale is cancelled, any amount retained or recovered by the supplier is within the GST system.
102-5
Cancelled lay-by sales
(1)
If a supply by way of lay-by sale is cancelled:
(a)
any amount already paid by the *recipient that the supplier retains because of the cancellation; and
(b)
any amount the supplier recovers from the recipient because of the cancellation;
is treated as *consideration for a supply made by the supplier and as consideration for an acquisition made by the recipient.
(2)
This section has effect despite section 9-15 (which is about what is consideration).
102-10
Attributing GST and input tax credits
(1)
If an amount is retained or recovered in circumstances referred to in section 102-5:
(a)
the GST payable by you on a *taxable supply for which the amount is *consideration; or
(b)
the input tax credit to which you are entitled for a *creditable acquisition for which the amount is consideration;
is attributable to the tax period during which the amount was retained or recovered, as the case requires.
(2)
This section has effect despite sections 29-5 and 29-10 (which are about attributing GST for taxable supplies and input tax credits for creditable acquisitions).
Division 105 - Supplies in satisfaction of debts
105-1
What this Division is about
This Division makes a creditor liable for GST on supplies ofa debtor's property where the supply is in satisfaction of a debt owed to the creditor.
Note:
This Division overrides Division 58 to the extent that the creditor is a representative of the debtor and the debtor is an incapacitated entity (see section 58-95).
S 105-1 amended by No 142 of 2012, s 3 and Sch 2 item 3, by inserting the note at the end, applicable in relation to supplies made on or after the start of the first quarterly tax period starting on or after 28 September 2012. For this purpose, it does not matter whether quarterly tax periods are the tax periods that apply to you.
105-5
Supplies by creditors in satisfaction of debts may be taxable supplies
(1)
You make a
taxable supply if:
(a)
you supply the property of another entity (the
debtor) to a third entity in or towards the satisfaction of a debt that the debtor owes to you; and
(b)
had the debtor made the supply, the supply would have been a *taxable supply.
(2)
It does not matter whether:
(a)
you made the supply in the course or furtherance of an *enterprise that you *carry on; or
(b)
you are *registered, or *required to be registered.
(3)
However, the supply is not a *taxable supply if:
(a)
the debtor has given you a written notice stating that the supply would not be a taxable supply if the debtor were to make it, and stating fully the reasons why the supply would not be a taxable supply; or
(b)
if you cannot obtain such a notice - you believe on the basis of reasonable information that the supply would not be a taxable supply if the debtor were to make it.
(4)
This section has effect despite section 9-5 (which is about what is a taxable supply).
105-10
Net amounts
(1)
If you are not *registered or *required to be registered, you do not have a *net amount under Part 2-4 merely because you make a *taxable supply under section 105-5.
(2)
This section does not prevent an *adjustment arising that relates to such a supply, but you cannot have a *decreasing adjustment unless you are *registered or *required to be registered.
(3)
This section has effect despite Division 17 (which is about net amounts and adjustments).
105-15
GST returns
(1)
If, during a month:
(a)
you make any *taxable supplies under section 105-5; or
(b)
you have any *increasing adjustments that arise in relation to any such supplies (whether made in that month or a previous month);
and you are not *registered or *required to be registered during that month, you must give to the Commissioner a *GST return, within 21 days after the end of the month, relating to those supplies you made in that month and those adjustments.
S 105-15(2) repealed by No 73 of 2001, s 3 and Sch 1 item 18, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 105-15(2) formerly read:
S 105-15(3) amended by No 73 of 2001, s 3 and Sch 1 item 19, by substituting "and 31-10" for ", 31-10 and 31-15", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 105-20(1) substituted by No 39 of 2012, s 3 and Sch 1 item 85, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. No 39 of 2012, s 3 and Sch 1 item 241 also contains the following savings provision:
241 Savings provision
(1)
A specification:
(a)
made by the Commissioner for the purposes of subsection 78-90(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
in force just before the commencement of this item [1 July 2012];
has effect, from that commencement, as if it had been made for the purposes of paragraph 78-90(1A)(b) of that Act as in force after that commencement.
(2)
A specification:
(a)
made by the Commissioner for the purposes of subsection 105-20(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
in force just before the commencement of this item [1 July 2012];
has effect, from that commencement, as if it had been made for the purposes of paragraph 105-20(1A)(b) of that Act as in force after that commencement.
S 105-20(1) formerly read:
(1)
If you are not *registered or *required to be registered during a particular month, you must pay:
(a)
amounts of GST on *taxable supplies under section 105-5 that you make during that month; and
(b)
amounts of *increasing adjustments that you have that arise, during that month, in relation to supplies that are *taxable supplies under section 105-5;
within 21 days after the end of the month, and at the place and in the manner specified by the Commissioner.
(1A)
You must pay each amount:
(a)
on or before the later of:
(i)
the 21st day after the end of the month; and
(ii)
the day the Commissioner gives notice of the relevant *assessment to you under section 155-10 in Schedule 1 to the Taxation Administration Act 1953; and
(b)
at the place and in the manner specified by the Commissioner.
S 105-20(1A) inserted by No 39 of 2012, s 3 and Sch 1 item 85, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. For savings provision, see note under s 105-20(1).
(2)
This section has effect despite Division 33 (which is about payments of GST).
Division 108 - Valuation of taxable supplies of goods in bond
108-1
What this Division is about
Taxable supplies of goods in bond are given a higher value than would otherwise apply, because the price of a supply in bond does not include any excise duty that would be included after entry of the goods for home consumption.
The
value of a *taxable supply of *excisable goods that are in bond is the sum of:
(a)
the value of the supply worked out in the way set out in section 9-75; and
(b)
the amount of *excise duty to which the goods would have been subject if they had been entered for home consumption under the Excise Act 1901 at the time the supply first became a supply *connected with the indirect tax zone.
S 108-5(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 108-5(1) amended by No 176 of 1999, s 3 and Sch 1 items 99 and 100, by substituting "*excisable goods that are in bond" for "goods that are in bond or otherwise subject to the control of Customs" and substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b)
the amount of *customs duty or *excise duty to which the goods would have been subject if they had been entered for home consumption under the Customs Act 1901 or the law relating to excise (as the case requires) at the time the supply first became a supply *connected with Australia.
(2)
However, this section does not apply to a supply of goods to a *recipient who:
(a)
is *registered or *required to be registered; and
(b)
acquires the goods solely for a *creditable purpose.
(3)
This section has effect despite section 9-75 (which is about the value of taxable supplies).
Division 110 - Tax-related transactions
Div 110 (heading) substituted by No 74 of 2010, s 3 and Sch 1 item 52, applicable to tax periods starting on or after 1 July 2010. The heading formerly read:
Division 110 - Income tax-related transactions
Div 110 inserted by No 97 of 2002, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 110-1 amended by No 74 of 2010, s 3 and Sch 1 item 53, by inserting "and other taxes" after "income tax", applicable to tax periods starting on or after 1 July 2010.
S 110-1 inserted by No 97 of 2002, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 110-A - Income tax-related transactions
(1)
A supply is not a *taxable supply if the supply is:
(a)
the transfer of a *tax loss in accordance with Subdivision 170-A of the *ITAA 1997; or
(b)
the transfer of a *net capital loss in accordance with Subdivision 170-B of the ITAA 1997.
(2)
This section has effect despite section 9-5 (which is about what are taxable supplies).
S 110-10 repealed by No 143 of 2007, s 3 and Sch 1 item 6, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after 1 July 2008. No 143 of 2007, s 3 and Sch 1 Part 6 contains the following savings provisions:
Part 6 - Savings provisions
Object
225
The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:
(a)
any act done or omitted to be done; or
(b)
any state of affairs existing; or
(c)
any period ending;
before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.
Making and amending assessments, and doing other things, in relation to past matters
226
Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003):
(a)
making or amending an assessment (including under a provision that is itself repealed or amended);
(b)
exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
Example:
For the 2006-07 income year, Smart Investor Pty Ltd, an Australian resident private investment company, has assessable foreign income in the passive income class on which it has paid foreign tax for which it wishes to claim a foreign tax credit. The company also has a tax loss for the year from its Australian investments. When it lodges its tax return for the year it does not elect to claim a deduction for any of the tax loss under section 79DA of the ITAA 1936, because the Australian tax payable on its passive foreign income equals the foreign tax it has paid.
In 2009 the amount of foreign tax payable in respect of some foreign rental income it had included in its return for the 2006-07 year is reduced and Smart Investor receives a refund of the difference in foreign tax. Smart Investor Pty Ltd then applies to be able to make an election under section 79DA, that is, after the Tax Laws Amendment (2007 Measures No. 4) Act 2007 (which repeals section 79DA) receives Royal Assent. The Commissioner allows Smart Investor to submit an election to claim a deduction for so much of its 2006-07 tax loss as to reduce the amount of Australian tax payable on its 2006-07 assessable foreign income to the revised foreign tax paid, by the end of 2009.
Despite the repeal of section 79DA, item 226 allows the Commissioner to permit an election to be lodged after the return for 2006-07 has been lodged, and to amend Smart Investor's assessment for that year, because these actions relate to a thing done, and periods ending, before the repeal of section 79DA applies.
S 110-10 formerly read:
110-10 Transfers of excess foreign tax credits
(1)
A supply is not a *taxable supply if:
(a)
the supply is a transfer of an initial excess credit, or an opening excess credit balance, referred to in paragraph 160AFE(1D)(c) of the *ITAA 1936; and
(b)
the transfer is in accordance with section 160AFE of the ITAA 1936.
(2)
This section has effect despite section 9-5 (which is about what are taxable supplies).
S 110-10 inserted by No 97 of 2002, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
110-15
Supplies under operation of consolidated group regime
(1)
A supply is not a *taxable supply to the extent that it occurs because of the operation of these provisions:
(a)
Part 3-90 of the *ITAA 1997;
(b)
Part 3-90 of the Income Tax (Transitional Provisions) Act 1997.
(2)
Without limiting the scope of subsection (1), for the purposes of that subsection, the operation mentioned in that subsection includes an operation that results from:
(a)
a choice made under the provisions mentioned in that subsection; or
(b)
any other voluntary action provided for by those provisions.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
S 110-15 inserted by No 101 of 2004, s 3 and Sch 6 item 1, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
110-20
Tax sharing agreements - entering into agreement etc.
(1)
This section applies if:
(a)
an entity makes a supply because it enters into or becomes a party to an agreement; and
(b)
the agreement satisfies the requirements of subsections 721-25(1) and (2) of the *ITAA 1997 in relation to an existing or future *group liability of the *head company of a *consolidated group or *MEC group.
(2)
The supply is not a *taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
S 110-20 inserted by No 101 of 2004, s 3 and Sch 6 item 1, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
110-25
Tax sharing agreements - leaving group clear of group liability
S 110-25 inserted by No 101 of 2004, s 3 and Sch 6 item 1, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
(1)
This section applies if:
(a)
an entity makes a supply because it enters into or becomes a party to a written agreement; and
(b)
the agreement deals with the distribution of economic burdens and benefits directly related to *tax-related liabilities mentioned in subsection 721-10(2) of the *ITAA 1997 of the *head company of a *consolidated group or *MEC group, among *members and former members of the group; and
(c)
if the group is not in existence when the entity enters into or becomes a party to the agreement - the agreement contemplates that the parties to the agreement will become members of the group when it does come into existence; and
(d)
the agreement complies with the requirements (if any) set out in the regulations.
(2)
The supply is not a *taxable supply to the extent that it relates to the fact that the agreement deals with the distribution mentioned in paragraph (1)(b).
(3)
Without limiting paragraph (1)(b), the agreement deals with the distribution mentioned in that paragraph if it includes one or more of the following kinds of provisions:
(a)
provisions for *members or former members of the group to contribute towards payment of *tax-related liabilities mentioned in subsection 721-10(2) of the *ITAA 1997 of the *head company of the group;
(b)
provisions for payments to be made to a member or former member of the group in recognition of activities or attributes of that member that have the effect of reducing the amount of those liabilities.
(4)
This section has effect despite section 9-5 (which is about what are taxable supplies).
S 110-30 inserted by No 101 of 2004, s 3 and Sch 6 item 1, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
Subdivision 110-B - Other tax-related transactions
(1)
This section applies if:
(a)
an entity makes a supply because it enters into or becomes a party to an agreement; and
(b)
the agreement:
(i)
satisfies the requirements of subsections 444-90(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444-90(1) in that Schedule; or
(ii)
satisfies the requirements of subsections 444-80(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444-80(1) in that Schedule.
(2)
The supply is not a *taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
(1)
A supply made to a contributing member (within the meaning of subsection 444-90(1A) in Schedule 1 to the Taxation Administration Act 1953) of a *GST group is not a *taxable supply if:
(a)
the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the *representative member of the group that are referred to in that subsection; and
Example:
The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b)
the contributing member leaves the group in circumstances in which subsection 444-90(1B) in that Schedule applies to the contributing member.
(2)
A supply made to a contributing participant (within the meaning of subsection 444-80(1A) in Schedule 1 to the Taxation Administration Act 1953) of a *GST joint venture is not a *taxable supply if:
(a)
the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the *joint venture operator of the joint venture that are referred to in that subsection; and
Example:
The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined.
(b)
the contributing participant leaves the joint venture in circumstances in which subsection 444-80(1B) in that Schedule applies to the contributing participant.
(3)
This section has effect despite section 9-5 (which is about what are taxable supplies).
You may be entitled to input tax credits for some reimbursements you make to employees (or associates of employees), agents, officers or partners for expenses they incur. The entitlement extends to charitable bodies and government schools reimbursing their volunteers.
S 111-1 amended by No 156 of 2000, s 3 and Sch 3 item 17, by substituting ``some reimbursements you make to employees (or associates of employees), agents, officers or partners for expenses they incur'' for ``reimbursing employees, agents, officers or partners for expenses they incur in connection with the carrying on of your enterprise'', applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 111-1 amended by No 92 of 2000, s 3 and Sch 1 item 6, by inserting ``The entitlement extends to charitable bodies and government schools reimbursing their volunteers.'' at the end, effective 1 July 2000.
111-5
Creditable acquisitions relating to reimbursements
(1)
If one or more of the following applies:
(a)
you reimburse an employee or agent for an expense he or she incurs that is related directly to his or her activities as your employee or agent;
(ab)
you reimburse an employee (whether or not you are the employee's employer) for an expense that the employee or the employee's *associate incurs, and the reimbursement constitutes an *expense payment benefit;
(ac)
you reimburse an associate of an employee (whether or not you are the employee's employer) for an expense that the associate or employee incurs, and the reimbursement constitutes an expense payment benefit;
(b)
you are a *company and you reimburse an *officer for an expense he or she incurs that is related directly to his or her activities as your officer;
(c)
you are a *partnership and you reimburse a partner for an expense he or she incurs that is related directly to his or her activities as a partner in the partnership;
the reimbursement is treated as *consideration for an acquisition that you make from the employee, associate, agent, officer or partner.
Note:
This section also applies if you reimburse the recipient of certain withholding payments: see section 111-20.
S 111-5(1) amended by No 156 of 2000, s 3 and Sch 3 items 18 to 22, by substituting "If one or more of the following applies:" for "If:", substituting "agent;" for "agent; or" in para (a), inserting paras (ab) and (ac), substituting "officer;" for "officer; or" in para (b) and inserting "associate," after "employee," (last occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 111-5(1) amended by No 178 of 1999, s 3 and Sch 1 items 55 to 58, by omitting ", other *PAYE earner" before "or agent" (first occurring) and ", PAYE earner" before "or agent" (second occurring) from para (a), omitting ", PAYE earner" before ", agent" (last occurring) and inserting the Note, effective 22 December 1999.
However, the acquisition is not a *creditable acquisition:
(a)
to the extent (if any) that:
(i)
the employee, *associate, agent, *officer or partner is entitled to an input tax credit for acquiring the thing acquired in incurring the expense; or
(ii)
the acquisition would not, because of Division 69, be a creditable acquisition if you made it; or
(c)
if you would, because of Division 71, not have been entitled to an input tax credit if you had made the acquisition that the employee, associate, agent, officer or partner made.
S 111-5(3) substituted by No 110 of 2014, s 3 and Sch 5 item 92, applicable in relation to acquisitions made on or after 1 July 2000. S 111-5(3) formerly read:
(3)
However, the acquisition:
(a)
is not a *creditable acquisition to the extent (if any) that:
(i)
the employee, *associate, agent, *officer or partner is entitled to an input tax credit for acquiring the thing acquired in incurring the expense; or
(ii)
the acquisition would not, because of Division 69, be a creditable acquisition if you made it; and
(b)
is not a creditable acquisition unless the supply of the thing acquired, by the employee, associate, agent, officer or partner in incurring the expense, was a taxable supply; and
(c)
is not a creditable acquisition if you would, because of Division 71, not have been entitled to an input tax credit if you had made the acquisition that the employee, associate, agent, officer or partner made.
S 111-5(3) amended by No 156 of 2000, s 3 and Sch 3 items 23 and 24, by substituting para (a) and inserting "associate," after "employee," in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Para (a) formerly read:
(a)
is not a *creditable acquisition to the extent (if any) that the employee, agent, *officer or partner is entitled to an input tax credit for acquiring the thing acquired in incurring the expense; and
S 111-5(3) amended by No 156 of 2000, s 3 and Sch 3 item 25, by inserting para (c), applicable in relation to net amounts for tax periods ending on or after 12 October 2000.
S 111-5(3) amended by No 178 of 1999, s 3 and Sch 1 items 59 and 60, by omitting ", *PAYE earner" before ", agent" from para (a) and ", PAYE earner" before ", agent" from para (b), 22 December 1999.
In working out the extent to which a person is entitled to an input tax credit for the purposes of paragraph (3)(a), disregard sections 131-40 and 131-50 (which are about amounts of input tax credits under the annual apportionment rules).
S 111-5(3AA) inserted by No 134 of 2004, s 3 and Sch 2 item 13, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
If you are a *partnership, this section does not apply to your reimbursement of a partner for an expense he or she incurs if, even without this Division applying, you are entitled to an input tax credit arising from the incurring of the expense.
S 111-5(3A) inserted by No 92 of 2000, s 3 and Sch 11 item 11A, effective 1 July 2000.
(4)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
111-10
Amounts of input tax credits relating to reimbursements
(1)
The amount of the input tax credit for a *creditable acquisition the *consideration for which is a reimbursement to which section 111-5 applies is an amount equal to 1/11 of the amount of the reimbursement.
(2)
(b)
the incurring of the expense is only in part related directly to his or her activities as your agent or officer, or as a partner, as the case requires;
the amount of the input tax credit under subsection (1) is reduced by an extent equivalent to the extent to which the incurring of the expense is not related directly to those activities.
S 111-10(2) substituted by No 156 of 2000, s 3 and Sch 3 item 26, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 111-10(2) formerly read:
(2)
However, if:
(a)
the incurring of the expense by the employee, agent, *officer or partner is only in part related directly to his or her activities as your employee or agent or officer, or as a partner in the *partnership, as the case requires; and
(b)
the reimbursement does not constitute:
(i)
a fringe benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986; or
(ii)
a benefit that, but for paragraph (g) of the definition of
fringe benefit in subsection 136(1) of that Act, would be a fringe benefit within the meaning of that Act;
the amount of the input tax credit under subsection (1) is reduced by an extent equivalent to the extent to which the incurring of the expense is not related directly to those activities.
S 111-10(2) amended by No 178 of 1999, s 3 and Sch 1 items 61 and 62, by omitting ", *PAYE earner" before ", agent" (first occurring) and ", PAYE earner" before "or agent" from para (a), effective 22 December 1999.
(3)
This section has effect despite section 11-25 (which is about the amount of input tax credits for creditable acquisitions).
111-15
Tax invoices relating to reimbursements
For the purposes of subsection 29-10(3), you are taken to hold a *tax invoice for a *creditable acquisition the *consideration for which is a reimbursement to which section 111-5 applies if you hold a tax invoice for the *taxable supply referred to in subsection 111-5(3).
111-18
Application of Division to volunteers working for charities etc.
S 111-18(1) amended by No 169 of 2012, s 3 and Sch 2 items 102 to 105, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund" in para (a), "endorsed charity" for "institution, fund" in paras (b) and (c), and "to the endorsed charity" for "to the institution, fund", effective 3 December 2012.
S 111-18(2) repealed by No 169 of 2012, s 3 and Sch 2 item 106, effective 3 December 2012. S 111-18(2) formerly read:
(2)
Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 111-18(2) inserted by No 95 of 2004, s 3 and Sch 10 item 13, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsection (1) does not apply in relation to a reimbursement by a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
the entity is:
This subsection excludes from this section reimbursements by certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, reimbursements can be covered by this section if they relate to the principal purpose of the fund, authority or institution.
S 111-18(3) amended by No 169 of 2012, s 3 and Sch 2 item 107, by substituting para (a)(i), effective 3 December 2012. Para (a)(i) formerly read:
(i)
a charitable institution or a trustee of a charitable fund; or
S 111-18(3) inserted by No 80 of 2006, s 3 and Sch 12 item 12, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
S 111-18 inserted by No 92 of 2000, s 3 and Sch 1 item 7, effective 1 July 2000.
111-20
Application of Division to recipients of certain withholding payments
(1)
If you make, or are liable to make, *withholding payments covered by subsection (2), this Division applies to you as if:
(a)
an individual to whom you make (or are liable to make) such payments were your employee; and
(b)
his or her activities in connection with earning such payments were activities as your employee.
(2)
This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.
Withholding payments covered
Item
Provision
Subject matter
1
Section 12-35
Payment to employee
2
Section 12-40
Payment to company director
3
Section 12-45
Payment to office holder
4
Section 12-55
Voluntary agreement to withhold
5
Section 12-60
Payment under labour hire arrangement, or specified by regulations
If you make, or are liable to make:
(a)
a payment on behalf of your employee for an expense that he or she incurs that is related directly to his or her activities as your employee; or
(b)
a payment:
(i)
on behalf of an employee (whether or not you are the employee's employer) for an expense that the employee or the employee's *associate incurs; or
(ii)
on behalf of an associate of an employee (whether or not you are the employee's employer) for an expense that the associate or employee incurs;
S 111-25 substituted by No 156 of 2000, s 3 and Sch 3 item 27, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 111-25 formerly read:
111-25 Employers paying work-related expenses of employees
If you make, or are liable to make, a payment on behalf of your employee for an expense that he or she incurs that is related directly to his or her activities as your employee, this Division applies to you as if you reimbursed your employee for the expense.
S 111-25 inserted by No 92 of 2000, s 3 and Sch 11 item 11B, effective 1 July 2000.
111-30
Reimbursements etc. of former or future employees etc.
This Division applies in relation to:
(a)
reimbursements, of a kind referred to in paragraph 111-5(1)(ab) or (ac), of former employees and future employees, and of the *associates of former employees and future employees; and
(b)
payments, of a kind referred to in paragraph 111-25(b), that you make or are liable to make on behalf of former employees and future employees, and of the *associates of former employees and future employees;
in the same way that this Division applies to such reimbursements of, and such payments that you make or are liable to make to, employees and their associates.
(a) an amount must be withheld from payment for the supply because of section 12-55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and
(b) the acquisition of the thing supplied would be a creditable acquisition if the supply were a taxable supply.
A supply that you make is not a *taxable supply to the extent that you make it under an arrangement (within the meaning of the *ITAA 1997) if:
(a)
the arrangement the performance of which, in whole or in part, involves the performance of work or services (whether or not by you); and
(b)
an agreement is in force that:
(i)
complies with section 12-55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and
(ii)
states that the section covers payments under the arrangement, or payments under a series of arrangements that includes the arrangement; and
(c)
you, and the entity acquiring what you supply under the arrangement, are parties to that agreement; and
(d)
you have an *ABN that is in force and is quoted in the agreement; and
(e)
the acquisition, by that entity, of what you supply under the arrangement would be a *creditable acquisition (and not *partly creditable) if the supply were a *taxable supply.
S 113-5(1) amended by No 12 of 2012, s 3 and Sch 6 item 69, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997", effective 21 March 2012.
(2)
This section has effect despite section 9-5 (about what is a taxable supply.)
This Division treats as taxable importations several kinds of importations of goods covered by the Customs Act 1901, even though the goods are not entered for home consumption. An entity that enters for home consumption warehoused goods imported by someone else is entitled to any input tax credit for the importation.
S 114-1 amended by No 92 of 2000, s 3 and Sch 11 item 11C, by inserting ``An entity that enters for home consumption warehoused goods imported by someone else is entitled to any input tax credit for the importation.'' at the end, effective 1 July 2000.
114-5
Importations without entry for home consumption
You make a
taxable importation if:
(a)
the circumstances referred to in the third column of the following table occur; and
(b)
you are referred to in the fourth column of the table as the importer in relation to those circumstances.
However, there is not a taxable importation to the extent that the importation to which the circumstances relate is a *non-taxable importation.
Importations without entry for home consumption
Item
Topic
Circumstance
Importer
1
Personal or household effects of passengers or crew
Goods of a kind referred to in paragraph 68(1)(d) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act.
The person to whom the authorisation was granted.
2
Low value consignments by post
Goods of a kind referred to in paragraph 68(1)(e) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act.
The person to whom the authorisation was granted.
3
Other low value consignments
Goods of a kind referred to in paragraph 68(1)(f) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act.
The person to whom the authorisation was granted.
4
Other goods exempt from entry
Goods of a kind referred to in paragraph 68(1)(i) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act.
The person to whom the authorisation was granted.
5
Like customable goods
Goods are delivered into home consumption in accordance with a permission granted under section 69 of the Customs Act 1901.
The person to whom the permission was granted.
6
Special clearance goods
Goods are delivered into home consumption in accordance with a permission granted under section 70 of the Customs Act 1901.
The person to whom the permission was granted.
7-9
(Repealed by No 176 of 1999)
10
Return of seized goods
Goods that have been seized under a warrant issued under section 203 of the Customs Act 1901, or under section 203B or 203C of that Act, are delivered to a person on the basis that they are not forfeited goods.
The person to whom the goods are delivered.
11-12
(Repealed by No 176 of 1999)
13
Inwards duty free shops
Goods that are *airport shop goods purchased from an *inwards duty free shop by a *relevant traveller are removed from a *customs clearance area.
The relevant traveller.
14
(Repealed by No 82 of 2002)
15
Installations and goods on installations
Goods are deemed by section 49B of the Customs Act 1901 to be imported into the indirect tax zone.
The person who is the owner (within the meaning of the Customs Act 1901) of the goods when they are deemed to be so imported.
16
Goods not entered for home consumption when required
Goods not covered by any other item of this table are imported into the indirect tax zone, and:
The person who fails to comply with that requirement.
(a)
if they are required to be entered under section 68 of the Customs Act 1901 - they are not entered in accordance with that requirement; or
(b)
in any other case - a requirement under that Act relating to their importation has not been complied with
S 114-5(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table items 15 and 16, column headed "Circumstance", applicable to a tax period that commences on or after 1 July 2015.
S 114-5(1) amended by No 82 of 2002, s 3 and Sch 3 item 8, by repealing table item 14, effective 19 July 2005. Table item 14 formerly read:
"14
COMPILE contingency arrangements
Goods are taken into home consumption in accordance with a permission granted under section 77D of the Customs Act 1901.
The person to whom the permission is granted."
S 114-5(1) amended by No 176 of 1999, s 3 and Sch 1 items 101 to 105, by substituting: "You make a
taxable importation if: (a) the circumstances referred to in the third column of the following table occur; and (b) you are referred to in the fourth column of the table as the importer in relation to those circumstances. However, there is not a taxable importation to the extent that the importation to which the circumstances relate is a *non-taxable importation." for "The circumstances referred to in the third column of the following table are
importations of goods into Australia. You are taken to have imported the goods if you are referred to in the fourth column of the table as the importer in relation to those circumstances. This section has effect despite section 13-5.", repealing table items 7, 8, 9, 11 and 12, substituting "under a warrant issued under section 203 of the Customs Act 1901, or under section 203B or 203C of that Act," for "under section 203 of the Customs Act 1901" in table item 10, and inserting table item 16, effective 1 July 2000.
Table items 7, 8, 9, 11 and 12 formerly read:
"7
Sale or disposal of goods by Customs
Goods are sold or disposed of under section 72, 87, 96, 206 or 207 of the Customs Act 1901.
The person who was the owner (within the meaning of the Customs Act 1901) of the goods immediately before the sale or disposal.
8
Goods released on security
Goods are released under section 208 of the Customs Act 1901.
The person to whom the goods are released.
9
Goods delivered under a court order
Goods are delivered to a person under a court order made:
(a) in an action
under the
Customs Act 1901 for
condemnation
or recovery
of the goods;
or
(b) in an action
for a
declaration
that the
goods are not
forfeited
under the
Customs Act 1901.
The person to whom the goods are delivered.
11
Impounded goods that cease to be forfeited
Delivery of the goods is authorised under subsection 209(6) of the Customs Act 1901.
The person to whom the goods are delivered, or are to be delivered.
12
Goods for public exhibition, testing etc.
Goods are taken out of a warehouse under a permission granted under section 97 of the Customs Act 1901.
Once goods have been:
(a)
entered for home consumption within the meaning of the Customs Act 1901; or
(b)
taken to be imported because of the application of an item in the table in section 114-5;
they cannot subsequently be taken to be imported because of the application of an item in the table, unless they have been exported from the indirect tax zone since they were so entered or taken to be imported.
S 114-10 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 114-10 inserted by No 176 of 1999, s 3 and Sch 1 item 107, effective 1 July 2000.
114-15
Payments of amounts of assessed GST where security for payment of customs duty is forfeited
(1)
If:
(a)
a circumstance relating to goods is an importation of the goods into the indirect tax zone because of an item of the table in section 114-5; and
S 114-15(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (a), applicable to a tax period that commences on or after 1 July 2015.
(2)
This section has effect despite section 33-15 (which is about payments of amounts of assessed GST on importations).
S 114-15 substituted by No 39 of 2012, s 3 and Sch 1 item 86, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 114-15 formerly read:
114-15 Payments of amounts of GST where security for payment of customs duty is forfeited
(1)
If:
(a)
a circumstance relating to goods is an importation of the goods into Australia because of an item of the table in section 114-5; and
(b)
security has been given under the Customs Act 1901 for payment of *customs duty in respect of the goods; and
(c)
the security is forfeited;
any GST payable on the importation is to be paid when the security is forfeited.
(2)
This section has effect despite section 33-15 (which is about payments of amounts of GST on importations).
S 114-15 inserted by No 176 of 1999, s 3 and Sch 1 item 107, effective 1 July 2000.
114-20
Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act
(1)
If:
(a)
the delivery of goods into home consumption in accordance with an authorisation under section 71 of the Customs Act 1901 is an importation into the indirect tax zone because of item 1, 2, 3 or 4 of the table in section 114-5; and
S 114-20(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (a), applicable to a tax period that commences on or after 1 July 2015.
(2)
This section has effect despite sections 33-15 (which is about payments of amounts of assessed GST on importations) and 114-15.
S 114-20 substituted by No 39 of 2012, s 3 and Sch 1 item 87, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 114-20 formerly read:
114-20 Payments of amounts of GST where delivery into home consumption is authorised under section 71 of the Customs Act
(1)
If:
(a)
the delivery of goods into home consumption in accordance with an authorisation under section 71 of the Customs Act 1901 is an importation into Australia because of item 1, 2, 3 or 4 of the table in section 114-5; and
(b)
information was provided under section 71 of that Act in connection with the granting of the authorisation;
any GST payable on the importation is to be paid when the information was provided/on or before the granting of the authorisation.
(2)
This section has effect despite sections 33-15 (which is about payments of amounts of GST on importations) and 114-15.
S 114-20 inserted by No 176 of 1999, s 3 and Sch 1 item 107, effective 1 July 2000.
114-25
Warehoused goods entered for home consumption by an entity other than the importer
(1)
If you enter for home consumption (within the meaning of the Customs Act 1901) goods that are warehoused goods (within the meaning of that Act) and that were imported by another person:
(a)
you are treated, for the purposes of Division 15, as having imported the goods; and
(b)
the extent (if any) to which you entered the goods for home consumption for a *creditable purpose is treated as the extent (if any) to which you imported the goods for a creditable purpose.
(2)
This section has effect despite Division 15 (which is about creditable importations).
Div 117 heading substituted by No 156 of 2000, s 3 and Sch 2 item 6, applicable to importations into Australia on or after 12 October 2000. The heading formerly read:
Division 117 - Importations of goods that were exported for repair or renovation
Taxable importations of goods that were exported, and then re-imported, are in some cases given a lower value than would otherwise apply. The GST then applies only to the lower value, and not to the entire value, of the goods.
S 117-1 substituted by No 156 of 2000, s 3 and Sch 2 item 7, applicable to importations into Australia on or after 12 October 2000. S 117-1 formerly read:
117-1 What this Division is about
Taxable importations of goods that were exported for repair or renovation are given a lower value than would otherwise apply, so that the GST only applies to the value of the repair or renovation, and not to the entire value of the goods.
117-5
Valuation of taxable importations of goods that were exported for repair or renovation
(1)
The
value of a *taxable importation of goods that were exported from the indirect tax zone for repair or renovation, or that are part of a *batch repair process, is the sum of:
(a)
the cost, as determined by the *Comptroller-General of Customs, of materials, labour and other charges involved in the repair or renovation; and
(ba)
the amount paid or payable for a supply to which item 5A in the table in subsection 38-355(1) applies, to the extent that the amount:
(i)
is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and
Note:
Division 81 excludes certain taxes, fees and charges from the provision of consideration.
(ii)
is not already included under paragraph (a) or (b); and
S 117-5(1) amended by No 77 of 2017, s 3 and Sch 1 item 43, by substituting "*Comptroller-General of Customs" for "Comptroller-General of Customs (within the meaning of the Customs Act 1901)" in para (a), effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 117-5(1) amended by No 41 of 2015, s 3 and Sch 6 item 1, by substituting "Comptroller-General of Customs (within the meaning of the Customs Act 1901)" for "Chief Executive Officer of Customs" in para (a), effective 1 July 2015. No 41 of 2015, s 3 and Sch 6 item 2 contains the following transitional provision:
2 Transitional provision
A determination made by the Chief Executive Officer of Customs, before the commencement of this item, as mentioned in paragraph 117-5(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, has effect on and after that commencement as if it had been made by the Comptroller-General of Customs.
S 117-5(1) amended by No 41 of 2011, s 3 and Sch 4 item 4, by substituting para (ba)(i), applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading. Para (ba)(i) formerly read:
(i)
is not a tax, fee or charge to which subsection 81-5(2) applies; and
S 117-5(1) amended by No 91 of 2010, s 3 and Sch 1 item 10, by inserting para (ba), effective 29 June 2010. For application provision, see history note under s 13-20(2).
S 117-5(1) amended by No 33 of 2009, s 3 and Sch 2 item 3, by substituting "Customs" for "the Australian Customs Service" in para (a), effective 23 May 2009.
S 117-5(1) amended by No 177 of 1999, s 3 and Sch 1 item 99, by substituting subpara (b)(i), effective 1 July 2000. Subpara (b)(i) formerly read:
(i)
to transport the goods to Australia; and
S 117-5(1) amended by No 176 of 1999, s 3 and Sch 1 items 108 and 109, by substituting para (a), and omitting "(other than the amount of GST payable on the importation)" from the end of para (c), effective 1 July 2000. Para (a) formerly read:
If an amount to be taken into account under paragraph (1)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.
S 117-5(1A) amended by No 91 of 2010, s 3 and Sch 1 item 11, by inserting "or (ba)" after "paragraph (1)(b)", effective 29 June 2010. For application provision, see history note under s 13-20(2).
S 117-5(1A) inserted by No 156 of 2000, s 3 and Sch 2 item 8, applicable to importations into Australia on or after 12 October 2000.
(2)
Goods are part of a
batch repair process if:
(a)
they are part of a process to replace goods that were exported from the indirect tax zone for repair or renovation; and
(b)
they are not new or upgraded versions of the exported goods; and
(c)
they are not replacing goods that have reached the end of their effective operational life.
(3)
This section has effect despite subsection 13-20(2) (which is about the value of taxable importations).
S 117-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
117-10
Valuation of taxable importations of live animals that were exported
(1)
If there is a *taxable importation of a live animal that was exported, and the difference between:
(a)
what would have been the value of the importation if this section did not apply; and
(b)
what would have been the value of a taxable importation of the animal if it had been imported immediately before the time of the exportation;
is greater than zero, the
value of the *taxable importation is an amount equal to that difference.
(2)
In any other case, the
value of a *taxable importation of a live animal that was exported is nil.
(3)
However, this section does not apply if the ownership of the animal when it is imported is different from its ownership when it was last exported.
(4)
This section has effect despite subsection 13-20(2) (which is about the value of taxable importations).
S 117-10 inserted by No 156 of 2000, s 3 and Sch 2 item 9, applicable to importations into Australia on or after 1 July 2000.
S 117-10 repealed by No 176 of 1999, s 3 and Sch 1 item 110, effective 1 July 2000. S 117-10 formerly read:
(1)
The
value of a repair or renovation of goods that have been *imported is the *customs value of the repair or renovation if:
(a)
*customs duty has or will become payable on the importation; and
(b)
that duty is calculated solely by reference to the customs value of the repair or renovation.
(2)
The
value of a repair or renovation of goods that have been *imported is as follows if *customs duty has or will become payable on the importation and paragraph (1)(b) does not apply:
Notional
customs
value
+
*Customs duty × Notional customs value
*Customs value of the goods
where:
notional customs value is the amount that would have been the *customs value of the repair or renovation if paragraph (1)(b) had applied.
(3)
If *customs duty has not, and will not, become payable on an *importation of goods, the
value of a repair or renovation of the goods is the amount that would have been the *customs value of the repair or renovation if:
(a)
customs duty had or would have become payable on the importation; and
(b)
that duty were calculated solely by reference to the customs value of the repair or renovation.
117-15
Refunds of assessed GST on certain reimportations of live animals
S 117-15(1) amended by No 39 of 2012, s 3 and Sch 1 items 89 and 90, by substituting "*assessed GST" for "GST" in para (a) and "assessed GST payable" for "GST payable", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(2)
The amount is payable within the period and in the manner specified in the regulations.
Div 123 (heading) substituted by No 112 of 2007, s 3 and Sch 1 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The heading formerly read:
Division 123 - Simplified accounting methods for retailers
Div 123 inserted by No 176 of 1999, s 3 and Sch 1 item 111, effective 1 July 2000.
The Commissioner can create simplified accounting methods that some retailers and small enterprise entities can choose to apply with a view to reducing their costs of complying with the requirements of the GST.
S 123-1 amended by No 112 of 2007, s 3 and Sch 1 item 4, by inserting "and small enterprise entities" after "retailers", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 123-1 inserted by No 176 of 1999, s 3 and Sch 1 item 111, effective 1 July 2000.
123-5
Commissioner may determine simplified accounting methods
(1)
The Commissioner may determine in writing an arrangement (to be known as a simplified accounting method) that:
(a)
specifies the kinds of *retailers to whom it is available and provides a method for working out *net amounts of retailers to whom the method applies; or
(b)
specifies the kinds of *small enterprise entities to whom it is available and provides a method for working out *net amounts of small enterprise entities to whom the method applies.
S 123-5(1) amended by No 112 of 2007, s 3 and Sch 1 item 5, by substituting paras (a) and (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Paras (a) and (b) formerly read:
(a)
specifies the kinds of *retailers to whom it is available; and
(b)
provides a method for working out *net amounts of retailers to whom the method applies.
(2)
The kinds of *retailer specified under paragraph (1)(a) must all be kinds of retailers that:
(a)
sell *food; or
(b)
make supplies that are *GST-free under Subdivision 38-G (Non-commercial activities of charities etc.);
S 123-5(2) amended by No 169 of 2012, s 3 and Sch 2 item 108, by substituting "charities" for "charitable institutions" in para (b), effective 3 December 2012.
The kinds of *small enterprise entities specified under paragraph (1)(b) must all be kinds of small enterprise entities that, in the course or furtherance of *carrying on their *enterprises:
(a)
make both:
(ii)
acquisitions that are not creditable acquisitions because the supplies, made to the small enterprise entities, to which the acquisitions relate are GST-free.
(1)
An entity is a
small enterprise entity at a particular time if:
(a)
the entity is a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for the *income year in which the time occurs; or
(aa)
the entity is an entity covered by subsection (1A) for the income year in which the time occurs; or
(b)
at that time, the entity does not carry on a business and its *GST turnover does not exceed the *small enterprise turnover threshold.
S 123-7(1) amended by No 92 of 2020, s 3 and Sch 3 item 1, by inserting para (aa), effective 1 January 2021, applicable in relation to working out whether an entity is a small enterprise entity at or after the start of 1 July 2021.
An entity is covered by this subsection for an *income year if:
(a)
the entity is not a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for the income year; and
(b)
the entity would be such a small business entity for the income year if:
(i)
each reference in Subdivision 328-C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and
(ii)
the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.
S 123-7(1A) inserted by No 92 of 2020, s 3 and Sch 3 item 2, effective 1 January 2021, applicable in relation to working out whether an entity is a small enterprise entity at or after the start of 1 July 2021.
(2)
The
small enterprise turnover threshold is $2 million.
S 123-10(1) amended by No 112 of 2007, s 3 and Sch 1 items 8 and 9, by inserting para (aa) and substituting "under paragraph (a) or (aa)" for "to apply the method" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
(2)
However, you:
(a)
cannot revoke the choice within 12 months after the day on which you made the choice; and
(b)
cannot make a further choice as a *retailer within 12 months after the day on which you revoked a previous choice as a retailer; and
(ba)
cannot make a further choice as a *small enterprise entity within 12 months after the day on which you revoked a previous choice as a small enterprise entity; and
S 123-10(2) amended by No 112 of 2007, s 3 and Sch 1 item 10, by substituting paras (b) and (ba) for para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (b) formerly read:
(b)
cannot make a further choice within 12 months after the day on which you revoked a previous choice; and
(3)
Your choice to apply a *simplified accounting method has effect from the start of the tax period specified in your notice.
(4)
Your choice to apply a *simplified accounting method ceases to have effect:
(a)
if you made your choice as a *retailer and cease to be a retailer of the kind to whom the method is available - from the start of the tax period occurring after the day on which you cease to be such a retailer; or
(aa)
if you made your choice as a *small enterprise entity and cease to be a small enterprise entity of the kind to whom the method is available - from the start of the tax period occurring after the day on which you cease to be such a small enterprise entity; or
S 123-10(4) amended by No 112 of 2007, s 3 and Sch 1 items 11 and 12, by substituting "if you made your choice as a *retailer and cease to be a retailer" for "if you cease to be a *retailer" in para (a) and inserting para (aa), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 123-10 inserted by No 176 of 1999, s 3 and Sch 1 item 111, effective 1 July 2000.
If you are a *retailer or a *small enterprise entity who has chosen to apply a *simplified accounting method, the
net amount for a tax period during which the choice has effect is worked out using the method provided for by the simplified accounting method.
S 123-15(1) amended by No 39 of 2012, s 3 and Sch 3 items 2 and 3, by substituting "
net amount" for "net amount" and "simplified accounting method" for "method" (last occurring), effective 1 July 2012.
S 123-15(1) amended by No 112 of 2007, s 3 and Sch 1 item 13, by inserting "or a *small enterprise entity" after "*retailer", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
However, the *net amount worked out under subsection (1) for the tax period:
(a)
may be increased or decreased under Subdivision 21-A of the *Wine Tax Act; and
(b)
may be increased or decreased under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999.
Note 1:
Under Subdivision 21-A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount.
Note 2:
Under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999, amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount.
S 123-15 inserted by No 176 of 1999, s 3 and Sch 1 item 111, effective 1 July 2000.
Division 126 - Gambling
126-1
What this Division is about
Gambling is dealt with under the GST by using a global accounting system that provides for an alternative way of working out your net amounts by incorporating your net profits from taxable supplies involving gambling.
126-5
Global accounting system for gambling supplies
(1)
If you are liable for the GST on a *gambling supply, your
net amount for the tax period to which the GST on the supply is attributable is as follows:
input tax credits is the sum of all of the input tax credits to which you are entitled on the *creditable acquisitions and *creditable importations that are attributable to the tax period.
Note:
Any supplies under the global accounting system will not have attracted input tax credits.
other GST is the sum of all of the GST for which you are liable on the *taxable supplies that are attributable to the tax period, other than *gambling supplies.
For the basic rules on what is attributable to a particular period, see Division 29.
However, the *net amount worked out under subsection (1) for the tax period:
(a)
may be increased or decreased if you have any *adjustments for the tax period; and
(b)
may be increased or decreased under Subdivision 21-A of the *Wine Tax Act; and
(c)
may be increased or decreased under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999.
Under Subdivision 21-A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount.
Note 3:
Under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999, amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount.
S 126-5(3) amended by No 73 of 2001, s 3 and Sch 1 item 28, by inserting the Note, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Your
global GST amount for a tax period is as follows:
where:
total amounts wagered is the sum of the *consideration for all of your *gambling supplies that are attributable to that tax period.
total monetary prizes is the sum of:
(a)
the *monetary prizes you are liable to pay, during the tax period, on the outcome of gambling events (whether or not any of those gambling events, or the *gambling supplies to which the monetary prizes relate, take place during the tax period); and
(b)
any amounts of *money or *digital currency you are liable to pay, during the tax period, under agreements between you and *recipients of your gambling supplies, to repay to them a proportion of their losses relating to those supplies (whether or not the supplies take place during the tax period).
For the basic rules on what is attributable to a particular period, see Division 29.
S 126-10(1) amended by No 118 of 2017, s 3 and Sch 1 item 19, by inserting "or *digital currency" in para (b) of the definition of "total monetary prizes", effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
(2)
However, your
global GST amount is zero for any tax period in which total monetary prizes exceeds total amounts wagered.
(3)
In working out the total monetary prizes for a tax period, disregard any *monetary prizes you are liable to pay, during the tax period, that relate to supplies that are *GST-free.
S 126-10(3) amended by No 20 of 2010, s 3 and Sch 4 item 1, by omitting "under section 38-270" after "that are *GST-free", effective 24 March 2010. No 20 of 2010, s 3 and Sch 4 item 2 contains the following application provision:
Application
(1)
The amendment applies in relation to monetary prizes that you become liable to pay on or after the first day of the first quarterly tax period that starts on or after 24 March 2010.
(2)
For the purposes of subitem (1), it does not matter whether quarterly tax periods are the tax periods that apply to you.
S 126-10(3) amended by No 58 of 2006, s 3 and Sch 7 item 3, by substituting "section 38-270" for "Subdivision 38-H", applicable to supplies made on or after 14 December 2004.
(4)
Your
global GST amount for a tax period may be affected by sections 126-15 and 126-20.
126-15
Losses carried forward
If, for any tax period, your total monetary prizes referred to in subsection 126-10(1) exceed your total amounts wagered referred to in that subsection, the amount of that excess is to be added to your total monetary prizes, referred to in that subsection, for the next tax period.
126-20
Bad debts
(1)
You cannot have an *adjustment under Division 21 in relation to a *gambling supply.
(2)
If, in a tax period, you write off as bad the whole or part of the *consideration for a *gambling supply that is due as a debt, but has not been received, the amount written off is to be added to your total monetary prizes, referred to in subsection 126-10(1), for that tax period.
(3)
However, if, in a tax period, you recover the whole or part of the amount written off, the amount recovered is to be added to your total amounts wagered, referred to in subsection 126-10(1), for that tax period.
(4)
This section has effect despite sections 21-5 and 21-10 (which are about adjustments for writing off and recovering suppliers' bad debts).
126-25
Application of Subdivision 9-C
Subdivision 9-C does not apply to a *gambling supply.
126-27
When gambling supplies are connected with the indirect tax zone
(1)
A *gambling supply is
connected with the indirect tax zone if the *recipient of the supply is an Australian resident (unless he or she is an Australian resident solely because the definition of
Australia in the *ITAA 1997 includes the external Territories).
(2)
This section has effect in addition to section 9-25 (which is about when supplies are connected with the indirect tax zone).
S 126-27 inserted by No 52 of 2016, s 3 and Sch 1 item 26, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
126-30
Gambling supplies do not give rise to creditable acquisitions
(1)
An acquisition of a thing is not a *creditable acquisition if the supply of the thing acquired was a *gambling supply.
(2)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
126-32
Repayments of gambling losses are not consideration
(1)
A payment of *money or *digital currency is not the provision of *consideration to the extent that the payment:
(a)
is made by a supplier of *gambling supplies to a *recipient of gambling supplies that the supplier makes; and
(b)
is made, under an agreement between them, to repay to the recipient a proportion of his or her losses relating to those supplies.
S 126-32(1) amended by No 118 of 2017, s 3 and Sch 1 item 20, by substituting "*money or *digital currency" for "money", effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
(2)
This section has effect despite section 9-15 (which is about what is consideration).
126-33
Tax invoices not required for gambling supplies
(1)
You are not required to issue a *tax invoice for a *taxable supply that you make that is solely a *gambling supply.
(2)
This section has effect despite section 29-70 (which is about the requirement to issue tax invoices).
126-35
Meaning of gambling supply and gambling event
(1)
A
gambling supply is a *taxable supply involving:
(a)
the supply of a ticket (however described) in a lottery, raffle or similar undertaking; or
(b)
the acceptance of a bet (however described) relating to the outcome of a *gambling event.
(2)
A
gambling event is:
(a)
the conducting of alottery or raffle, or similar undertaking; or
(b)
a race, game, or sporting event, or any other event, for which there is an outcome.
Division 129 - Changes in the extent of creditable purpose
129-1
What this Division is about
The extent to which an acquisition or importation is for a creditable purpose affects the amount of the resulting input tax credit. When the extent of creditable purpose is changed by later events, adjustments (for the purpose of working out net amounts under Part 2-4) may need to be made.
Subdivision 129-A - General
129-5
Adjustments arising under this Division
(1)
An *adjustment can arise under this Division for:
(a)
an acquisition, even if it is not a *creditable acquisition; or
(b)
an importation, even if it is not a *creditable importation;
in respect of any *adjustment period for the acquisition or importation.
S 129-5(2) amended by No 92 of 2000, s 3 and Sch 5 item 6, by substituting ``you *exceed the financial acquisitions threshold.'' for ``your *annual turnover of financial supplies exceeds either:'' and paras (c) and (d), effective 1 July 2000. Paras (c) and (d) formerly read:
(c)
$50,000 or such other amount specified in the regulations; or
(d)
5% of your *annual turnover (treating supplies that are input taxed as part of your annual turnover).
S 129-5(2) amended by No 176 of 1999, s 3 and Sch 1 item 112, by substituting ``exceeds'' for ``does not exceed'', effective 1 July 2000.
129-10
Adjustments do not arise under this Division for acquisitions and importations below a certain value
(1)
Despite section 129-5, an adjustment cannot arise under this Division for an acquisition or importation that *relates to business finance, unless the acquisition or importation had a *GST exclusive value of more than $10,000.
(2)
Despite section 129-5, an adjustment cannot arise under this Division for an acquisition or importation that does not *relate to business finance, unless the acquisition or importation had a *GST exclusive value of more than $1,000.
(3)
An acquisition or importation
relates to business finance if, at the time of the acquisition or importation, it:
(a)
related solely or partly to making *financial supplies; and
(b)
was not solely or partly of a private or domestic nature.
129-15
Adjustments do not arise under this Division where there are adjustments under Division 130
Despite section 129-5, you cannot have an adjustment under this Division for an acquisition if you have already had an *adjustment under Division 130 (goods applied solely to private or domestic use) for the acquisition.
An
adjustment period for an acquisition or importation is a tax period applying to you that:
(a)
starts at least 12 months after the end of the tax period to which the acquisition or importation is attributable (or would be attributable if it were a *creditable acquisition or *creditable importation); and
(b)
ends:
(i)
on 30 June in any year; or
(ii)
if none of the tax periods applying to you in a particular year ends on 30 June - closer to 30 June than any of the other tax periods applying to you in that year.
In addition, a tax period provided for under section 27-39 or 27-40 or subsection 151-55(1) or 162-85(1) is an
adjustment period for the acquisition or importation.
Note:
Section 27-39 deals with an incapacitated entity's tax periods. Section 27-40 and subsections 151-55(1) and 162-85(1) deal with an entity's concluding tax period.
S 129-20(1) amended by No 118 of 2009, s 3 and Sch 1 items 26 and 27, by inserting "27-39 or" after "under section" and inserting "Section 27-39 deals with an incapacitated entity's tax periods." before "Section 27-40" in the note, effective 4 December 2009.
S 129-20(1) amended by No 134 of 2004, s 3 and Sch 3 items 2 and 3, by inserting "or 162-85(1)" after "subsection 151-55(1)" and substituting "subsections 151-55(1) and 162-85(1)" for "subsection 151-55(1)" in the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2005.
S 129-20(1) amended by No 134 of 2004, s 3 and Sch 1 items 8 and 9, by inserting "or subsection 151-55(1)" after "section 27-40" and substituting "and subsection 151-55(1) deal" for "deals" in the note, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 129-20(1) amended by No 177 of 1999, s 3 and Sch 1 item 101, by omitting "ends" before "closer" from subpara (b)(ii), effective 1 July 2000.
(2)
Despite subsection (1), for an acquisition or importation that *relates to business finance:
(a)
if the *GST exclusive value of the acquisition or importation is $50,000 or less - only the first such tax period is an
adjustment period; or
(b)
if the GST exclusive value of the acquisition or importation is more than $50,000 but less than $500,000 - only the first 5 such tax periods are
adjustment periods; or
(c)
if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are
adjustment periods.
(3)
Despite subsection (1), for an acquisition or importation that does not *relate to business finance:
(a)
if the *GST exclusive value of the acquisition or importation is $5,000 or less - only the first 2 such tax periods are
adjustment periods; or
(b)
if the GST exclusive value of the acquisition or importation is more than $5,000 but less than $500,000 - only the first 5 such tax periods are
adjustment periods; or
(c)
if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are
adjustment periods.
However, the Commissioner may, having regard to record keeping requirements for the purposes of income tax, determine in writing that a fewer number of tax periods are
adjustment periods for a particular class of acquisitions or importations that do not *relate to business finance.
129-25
Effect on adjustment periods of things being disposed of etc.
(1)
Despite section 129-20, if:
(a)
you dispose of a thing acquired or imported (other than in circumstances giving rise to a *decreasing adjustment under Division 132); or
(b)
a thing acquired or imported is lost, stolen or destroyed; or
(c)
a thing is acquired only for a particular period and that period expires;
the next tax period applying to you that ends:
(d)
on 30 June in any year; or
(e)
if none of the tax periods applying to you in a particular year ends on 30 June - closer to 30 June than any of the other tax periods applying to you in that year;
is the last *adjustment period for the acquisition or importation in question.
S 129-25(1) amended by No 177 of 1999, s 3 and Sch 1 item 102, by substituting
the next tax period applying to you that ends:
(d) on 30 June in any year; or
(e) if none of the tax periods applying to you in a particular year ends on 30 June - closer to 30 June than any of the other tax periods applying to you in that year;
is the last *adjustment period for the acquisition or importation in question.
for
the next *adjustment period to end after the disposal, loss, theft, destruction or expiry is the last adjustment period for the acquisition or importation in question.
effective 1 July 2000.
(2)
Despite section 129-20, if:
(a)
you dispose of a thing acquired or imported; and
(b)
the disposal takes place in circumstances giving rise to a *decreasing adjustment under Division 132;
then:
(c)
the last *adjustment period to end before the disposal is the last adjustment period for the acquisition or importation in question; and
(d)
if no such adjustment period ended before the disposal, there is no adjustment period for the acquisition or importation.
(3)
This section does not apply to a disposal if this Division continues to apply to the acquisition or importation of the thing because of subsection 138-17(2).
S 129-25(3) inserted by No 92 of 2000, s 3 and Sch 11 item 11E, effective 1 July 2000.
Subdivision 129-C - When adjustments for acquisitions and importations arise
129-40
Working out whether you have an adjustment
(1)
This is how to work out whether you have an *increasing adjustment or a *decreasing adjustment under this Division, for an *adjustment period, for an acquisition or importation:
Method statement
Step 1.
Work out the extent (if any) to which you have *applied the thing acquired or imported for a *creditable purpose during the period of time:
(a) starting when you acquired or imported the thing; and
(a) if you have not previously had an *adjustment under this Division for the acquisition or importation - the extent (if any) to which you acquired or imported the thing for a *creditable purpose: or
(b) if you have previously had an *adjustment under this Division for the acquisition or importation - the *actual application of the thing in respect of the last adjustment.
This is the
intended or former application of the thing.
If the thing is acquired through a *reduced credit acquisition and, at the time of the acquisition, it was wholly for a *creditable purpose because of Division 70, the extent to which it was acquired for a creditable purpose is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.
S 129-45(1) amended by No 169 of 2012, s 3 and Sch 2 item 109, by substituting "an *endorsed charity" for "a charitable institution, a trustee of a charitable fund", effective 3 December 2012.
S 129-45(2) repealed by No 169 of 2012,s 3 and Sch 2 item 110, effective 3 December 2012. S 129-45(2) formerly read:
(2)
Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 129-45(2) inserted by No 95 of 2004, s 3 and Sch 10 item 14, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
Subsection (1) does not apply in relation to a thing that you supply to a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless:
(a)
the entity is:
This subsection excludes from this section supplies to certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be covered by this section if they relate to the principal purpose of the fund, authority or institution.
S 129-45(3) amended by No 169 of 2012, s 3 and Sch 2 item 111, by substituting para (a)(i), effective 3 December 2012. Para (a)(i) formerly read:
(i)
a charitable institution or a trustee of a charitable fund; or
S 129-45(3) inserted by No 80 of 2006, s 3 and Sch 12 item 13, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
129-50
Creditable purpose
(1)
You *apply a thing for a
creditable purpose to the extent that you apply it in *carrying on your *enterprise.
(2)
However, you do not *apply a thing for a creditable purpose to the extent that:
(a)
the application relates to making supplies that are *input taxed; or
(b)
the application is of a private or domestic nature.
(3)
To the extent that an *application relates to making *financial supplies through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone, the application is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
S 129-50(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
129-55
Meaning of apply
Apply, in relation to a thing acquired or imported, includes:
(a)
supply the thing; and
(b)
consume, dispose of or destroy the thing; and
(c)
allow another entity to consume, dispose of or destroy the thing.
Subdivision 129-D - Amounts of adjustments for acquisitions and importations
129-70
The amount of an increasing adjustment
The amount of an *increasing adjustment that you have under Step 3 of the Method statement in section 129-40 for the thing acquired or imported is worked out as follows:
where:
full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your *enterprise if:
S 129-70 amended by No 77 of 2005, s 3 and Sch 3 items 11 and 12, by omitting "only" after "was a *taxable supply" and inserting "or is" after "had been" in para (b) of the definition of "full input tax credit", applicable to supplies made on or after 1 October 2005.
The amount of a *decreasing adjustment that you have under Step 4 of the Method statement in section 129-40 for the thing acquired or imported is worked out as follows:
where:
full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your *enterprise if:
S 129-75 amended by No 77 of 2005, s 3 and Sch 3 items 13 and 14, by omitting "only" after "was a *taxable supply" and inserting "or is" after "had been" in para (b) of the definition of "full input tax credit", applicable to supplies made on or after 1 October 2005.
129-80
Effect of adjustment under certain Divisions
For the purpose of working out under this Subdivision the amount of an *adjustment for an acquisition, any adjustments under Division 19, 21, 133 or 134 that you have had for the acquisition are to be taken into account in working out the full input tax credit for the purpose of section 129-70 or 129-75.
S 129-80 amended by No 21 of 2010, s 3 and Sch 1 item 11, by substituting ", 133 or 134" for "or 133", applicable in relation to payments made on or after 1 July 2010.
S 129-80 amended by No 20 of 2010, s 3 and Sch 1 item 9, by substituting "Division 19, 21 or 133" for "Division 19 or 21", applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
Subdivision 129-E - Attributing adjustments under this Division
129-90
Attributing your adjustments for changes in extent of creditable purpose
(1)
An *adjustment that you have arising in respect of an *adjustment period under this Division is attributable to the tax period that is that adjustment period.
(2)
This section has effect despite section 29-20 (which is about attributing adjustments).
Division 130 - Goods applied solely to private or domestic use
(1)
You have an
increasing adjustment if:
(a)
you made a *creditable acquisition or *creditable importation of goods; and
(b)
the acquisition or importation was solely for a *creditable purpose; and
(c)
you *apply the goods solely to private or domestic use.
(2)
The amount of the increasing adjustment is an amount equal to the amount of the input tax credit to which you were entitled for the acquisition or importation, taking account of any *adjustments for the acquisition or importation.
(3)
However, this section does not apply if you have previously had an adjustment under Division 129 for the acquisition or importation.
Div 131 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
In some cases, you may be able to claim a full input tax credit for acquisitions that are only partly for a creditable purpose. You will then have an increasing adjustment for a later tax period (that better matches your obligation to lodge an income tax return).
S 131-1 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Subdivision 131-A - Electing to have annual apportionment
Subdiv 131-A inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-5
Eligibility to make an annual apportionment election
(1)
You are eligible to make an *annual apportionment election if:
(a)
either:
(i)
you are a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for the *income year in which you make your election; or
(ii)
you do not carry on a *business and your *GST turnover does not exceed the *annual apportionment turnover threshold; 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); and
(c)
you have not made any *annual tax period election (other than such an election that is no longer in effect).
S 131-5(1) amended by No 80 of 2007, s 3 and Sch 2 item 22, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
(a)
your *annual turnover does not exceed the *annual apportionment turnover threshold; and
(2)
The
annual apportionment turnover threshold is:
(a)
$2 million; or
(b)
such higher amount as the regulations specify.
S 131-5 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(1)
You may make an *annual apportionment election if you are eligible under section 131-5.
(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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
CCH Note
Act No 80 of 2007, s 3 and Sch 2 item 69, contained the following provision:
69 Transitional - election to have annual apportionment
(1)
This item applies to you if:
(a)
before 1 July 2007, you made an annual apportionment election under subsection 131-10(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
your election was in effect immediately before 1 July 2007.
(2)
If you are carrying on a business on 1 July 2007, your election continues to have effect as if subparagraph 131-5(1)(a)(i) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule, applied.
(3)
If you are not carrying on a business on 1 July 2007, your election continues to have effect as if subparagraph 131-5(1)(a)(ii) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule, applied.
S 131-10(2) amended by No 73 of 2006, s 3 and Sch 5 item 123, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 131-10 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-15
Annual apportionment elections by representative members of GST groups
(1)
A *representative member of a *GST group cannot make an *annual apportionment election unless each *member of the GST group is eligible under section 131-5.
(2)
If the *representative member makes such an election, or revokes such an election, each *member of the *GST group is taken to have made, or revoked, the election.
S 131-15 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-20
Duration of an annual apportionment election
General rule
(1)
Your election ceases to have effect if:
(a)
you revoke it; or
(b)
the Commissioner disallows it under subsection (3); or
(c)
in a case to which subparagraph 131-5(1)(a)(i) applied - you are not a *small business entity of the kind referred to in that subparagraph for an *income year; or
(d)
in a case to which subparagraph 131-5(1)(a)(ii) applied - on 31 July in a *financial year, you do not satisfy the requirements of that subparagraph.
S 131-20(1) amended by No 80 of 2007, s 3 and Sch 2 item 23, by substituting paras (c) and (d) for para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (c) formerly read:
Revocation
(2)
A revocation of your election is taken to have had, or has, effect at the start of the earliest tax period for which, on the day of the revocation, your *GST return is not yet due.
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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 131-20(3) amended by No 73 of 2006, s 3 and Sch 5 item 124, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(4)
A disallowance of your election is taken to have had effect from the start of the tax period in which the Commissioner notifies you of the disallowance.
Not being a small business entity for an income year
(5)
If paragraph (1)(c) applies, your election is taken to have ceased to have effect from the start of the tax period in which the first day of the *income year referred to in that paragraph falls.
S 131-20(5) amended by No 80 of 2007, s 3 and Sch 2 items 24 and 25, by substituting "the first day of the *income year" for "31 July in the *financial year", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Failing to satisfy the requirements of subparagraph 131-5(1)(a)(ii)
(6)
If paragraph (1)(d) applies, your election is taken to have ceased to have effect from the start of the tax period in which 31 July in the *financial year referred to in that paragraph falls.
S 131-20(6) inserted by No 80 of 2007, s 3 and Sch 2 item 26, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 131-20 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Subdivision 131-B - Consequences of electing to have annual apportionment
Subdiv 131-B inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-40
Input tax credits for acquisitions that are partly creditable
(1)
The amount of the input tax credit on an acquisition that you make that is *partly creditable is an amount equal to the GST payable on the supply of the thing acquired if:
(a)
an *annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and
(b)
the acquisition is not an acquisition of a kind specified in the regulations.
(2)
However, if one or both of the following apply to the acquisition:
(a)
the acquisition relates to making supplies that would be *input taxed;
(b)
you provide, or are liable to provide, only part of the *consideration for the acquisition;
the amount of the input tax credit on the acquisition is as follows:
Full input
tax credit
×
Extent of
non-input-taxed purpose
×
Extent of
consideration
where:
extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of non-input-taxed purpose is the extent to which the acquisition does not relate to making supplies that would be *input taxed, expressed as a percentage of the total purpose of the acquisition.
full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a *creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.
(3)
In determining for the purposes of subsection (2) whether, or the extent to which, an acquisition relates to making supplies that would be *input taxed, subsections 11-15(3) to (5) apply in the same way that they apply for the purposes of paragraph 11-15(2)(a).
(4)
Determinations made by the Commissioner under subsection 11-30(5) apply (so far as they are capable of applying) to working out the extent to which a *partly creditable acquisition does not relate to making supplies that would be *input taxed.
(5)
This section does not apply to an input tax credit on an acquisition if the acquisition is, to any extent, a *reduced credit acquisition.
(6)
This section has effect despite sections 11-25 and 11-30 (which are about amounts of input tax credits).
S 131-40 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-45
Input tax credits for importations that are partly creditable
(1)
The amount of the input tax credit on an importation that you make that is *partly creditable is an amount equal to the GST payable on the importation if:
(a)
an *annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and
(b)
the importation is not an importation of a kind specified in the regulations.
(2)
However, if the importation relates to making supplies that would be *input taxed, the amount of the input tax credit on the importation is as follows:
Full input tax credit
×
Extent of non-input-taxed purpose
where:
extent of non-input-taxed purpose is the extent to which the importation does not relate to making supplies that would be *input taxed, expressed as a percentage of the total purpose of the importation.
full input tax credit is what would have been the amount of the input tax credit for the importation if it had been made solely for a *creditable purpose.
(3)
In determining for the purposes of subsection (2) whether, or the extent to which, an importation relates to making supplies that would be *input taxed, subsections 15-10(3) to (5) apply in the same way that they apply for the purposes of paragraph 15-10(2)(a).
(4)
Determinations made by the Commissioner under subsection 15-25(4) apply (so far as they are capable of applying) to working out the extent to which a *partly creditable importation does not relate to making supplies that would be *input taxed.
(5)
This section has effect despite sections 15-20 and 15-25 (which are about amounts of input tax credits).
S 131-45 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-50
Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars
(1)
If:
(a)
this Division applies to working out the amount of a *creditable acquisition or *creditable importation that you made; and
(b)
the acquisition or importation is an acquisition or importation of a *car;
the amount of the input tax credit on the acquisition or importation under this Division must not exceed the amount (if any) of the input tax credit worked out under section 69-10.
(2)
However, if subsection 131-40(2) or 131-45(2) applies to the acquisition or importation:
(a)
take into account the operation of section 69-10 in working out the full input tax credit for the purposes of that subsection; but
(b)
disregard subsection 69-10(3).
S 131-50 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-55
Increasing adjustments relating to annually apportioned acquisitions and importations
(1)
You have an
increasing adjustment if:
(a)
an acquisition or importation that you made was *partly creditable; and
(b)
the input tax credit on the acquisition or importation is attributable to a tax period ending in a particular *financial year; and
(c)
the amount of the input tax credit is an amount worked out under this Division.
(2)
The amount of the increasing adjustment is an amount equal to the difference between:
(a)
the amount of the input tax credit worked out under this Division; and
(b)
what would have been the amount of the input tax credit if this Division did not apply.
(3)
In working out for the purposes of paragraph (2)(a) the amount of an input tax credit, take into account any change of circumstances that has given rise to:
(a)
an adjustment for the acquisition under Division 19; or
(b)
an adjustment for the acquisition under Division 21; or
(c)
an adjustment for the acquisition under Division 134.
S 131-55(3) amended by No 21 of 2010, s 3 and Sch 1 item 12, by inserting para (c), applicable in relation to payments made on or after 1 July 2010.
(4)
In working out for the purposes of paragraph (2)(b) what would have been the amount of an input tax credit, take into account any change of circumstances that has given rise to:
(a)
an adjustment for the acquisition under Division 19 (worked out as if this Division had not applied to working out the amount of the input tax credit); or
(b)
an adjustment for the acquisition under Division 21; or
(c)
an adjustment for the acquisition under Division 134.
If this Division did not apply, the amount of the Division 21 adjustment would have been worked out under Division 136.
Example:
While an annual apportionment election has effect, you make a partly creditable acquisition for $1,100, for which you have an input tax credit of $100. The extent of your creditable purpose is 10%.
During later tax periods, the price increases by $110, for which you have a decreasing adjustment under Division 19 of $10, and the supplier writes off $660 as a bad debt, for which you have an increasing adjustment under Division 21 of $60 (subsection 136-10(3) prevents the amount from being reduced under Division 136).
The amount of your increasing adjustment under this section is $45. This is the difference between the amounts under paragraphs (2)(a) and (b).
The paragraph (2)(a) amount (which is effectively worked out on a fully creditable basis) is:
$100 + $10 − $60 = $50
The paragraph (2)(b) amount (which is based on a 10% creditable purpose) is:
S 131-55(4) amended by No 21 of 2010, s 3 and Sch 1 item 12, by inserting para (c), applicable in relation to payments made on or after 1 July 2010.
S 131-55 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
131-60
Attributing adjustments under section 131-55
(1)
An *increasing adjustment under section 131-55 is attributable to:
(a)
the tax period worked out using the method statement; or
(b)
such earlier tax period as you choose.
Method statement
Step 1.
Work out the tax period (the
ITC tax period) to which the input tax credit for the acquisition or importation to which the adjustment relates is attributable.
Step 2.
Work out in which year of income that tax period starts.
Step 3.
If you are required under section 161 of the *ITAA 1936 to lodge a return in relation to that year of income, work out the last day of the period, specified in the instrument made under that section, for you to lodge as required under that section.
Step 4.
The *increasing adjustment is attributable to the tax period in which that last day occurs.
Step 5.
If step 3 does not apply, the increasing adjustment is attributable to the tax period in which occurs 31 December in the next *financial year to start after the end of the ITC 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.
S 131-60(1) amended by No 64 of 2020, s 3 and Sch 3 item 152, by substituting "instrument made" for "notice published in the Gazette" in the method statement, step 3, effective 1 October 2020.
(2)
Despite subsection (1), if, during (but not from the start of) the *financial year in which the ITC tax period ended, your *annual apportionment election ceases to have effect because:
(a)
you revoke your annual apportionment election, or the Commissioner disallows your election, during that financial year; and
(b)
the revocation or disallowance takes effect before the end of that financial year;
the *increasing adjustment is attributable to the tax period in which the cessation takes effect, or to such earlier tax period as you choose.
However, the *increasing adjustment is attributable to a tax period provided under section 27-39 or 27-40 if that tax period ends earlier than the end of the tax period to which the increasing adjustment would, but for this subsection, be attributable under subsections (1) and (2).
S 131-60 inserted by No 134 of 2004, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Division 132 - Supplies of things acquired etc. without full input tax credits
Div 132 heading substituted by No 156 of 2000, s 3 and Sch 4 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The heading formerly read: ``
Division 132 - Supplies of things acquired, imported or applied to make financial supplies
''
You may have a decreasing adjustment if you make a supply of something that you earlier acquired or imported, or subsequently applied, to make financial supplies or for a private or domestic purpose.
S 132-1 amended by No 156 of 2000, s 3 and Sch 4 item 7, by inserting ``or for a private or domestic purpose'' at the end, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
132-5
Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable
(1)
You have a
decreasing adjustment under this Division if:
(a)
you make a *taxable supply of a thing (or a supply of a thing that would have been a taxable supply had it not been *GST-free under Subdivision 38-J); and
(b)
the supply is a supply by way of sale; and
(c)
your acquisition, importation or subsequent *application of the thing, related solely or partly to making *financial supplies, or was solely or partly of a private or domestic nature.
S 132-5(1) amended by No 41 of 2005, s 3 and Sch 10, item 10, by substituting "
decreasing adjustment" for "*decreasing adjustment", effective 1 April 2005.
S 132-5(1) amended by No 156 of 2000, s 3 and Sch 4 item 9, by substituting para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Para (c) formerly read:
(c)
your acquisition or importation of the thing related solely or partly to making *financial supplies, or you subsequently *applied the thing solely or partly to making financial supplies.
(a)
the amount of any input tax credit that was attributable to a tax period in respect of the acquisition or importation; minus
(b)
the sum of:
(i)
any *increasing adjustments, under Subdivision 19-C or Division 129, that were previously attributable to a tax period in respect of the acquisition or importation; and
(ii)
any increasing adjustment under Division 131 that has been previously, is or will be attributable to a tax period in respect of the acquisition or importation; plus
(c)
the sum of any *decreasing adjustments, under Subdivision 19-C or Division 129 or 133, that were previously attributable to a tax period in respect of the acquisition or importation.
full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your *enterprise if:
S 132-5(2) amended by No 20 of 2010, s 3 and Sch 1 item 10, by substituting "Division 129 or 133" for "Division 129" in para (c) of the definition of "adjusted input tax credit", applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 132-5(2) amended by No 77 of 2005, s 3 and Sch 3 items 15 and 16, by omitting "only" after "was a *taxable supply" and inserting "or is" after "had been" in para (b) of the definition of "full input tax credit", applicable to supplies made on or after 1 October 2005.
S 132-5(2) amended by No 134 of 2004, s 3 and Sch 2 item 15, by substituting para (b) of the definition of "adjusted input tax credit", applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Para (b) of the definition of "adjusted input tax credit" formerly read:
(3)
However, if the amount worked out under subsection (2) is greater than the difference between the full input tax credit and the adjusted input tax credit, the amount of the *decreasing adjustment is an amount equal to that difference.
(4)
In working out the adjusted input tax credit, the acquisition, importation or *application in question is treated as having been for a *creditable purpose except to the extent that the acquisition, importation or application:
(a)
relates to the making of *financial supplies; or
(b)
is of a private or domestic nature.
S 132-5(4) amended by No 156 of 2000, s 3 and Sch 4 item 10, by substituting "that the acquisition, importation or application: (a) relates to the making of *financial supplies; or (b) is of a private or domestic nature." for "that the acquisition, importation or application relates to the making of *financial supplies.", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
132-10
Attribution of adjustments under this Division
(1)
A *decreasing adjustment under this Division is attributable to:
(a)
the same tax period as the *taxable supply to which it relates; or
(b)
if it relates to a supply that is not a taxable supply - the tax period to which the supply would be attributable if it were a taxable supply.
(2)
This section has effect despite section 29-20 (which is about attributing your adjustments).
Division 133 - Providing additional consideration under gross-up clauses
Div 133 inserted by No 20 of 2010, s 3 and Sch 1 item 11, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
You may have a decreasing adjustment for an acquisition that you made if, to take account of a GST liability that the supplier is subsequently found to have, you provide additional consideration at a time when you can no longer claim an input tax credit.
S 133-1 inserted by No 20 of 2010, s 3 and Sch 1 item 11, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
133-5
Decreasing adjustments for additional consideration provided under gross-up clauses
(ii)
it was *partly creditable because the supply to which the acquisition relates was only partly a taxable supply; and
(b)
you provided *additional consideration for the acquisition in compliance with a contractual obligation that required you, or had the effect of requiring you, to provide additional consideration if:
(i)
in a case where subparagraph (a)(i) applies - the supply was later found to be a taxable supply, or to be partly a taxable supply; or
(ii)
in a case where subparagraph (a)(ii) applies - the supply was later found to be a taxable supply to a greater extent; and
(c)
GST on the supply has not ceased to be payable (other than as a result of its payment); and
(d)
at the time you provided the additional consideration, you were no longer entitled to an input tax credit for the acquisition.
Note:
Section 93-5 or 93-15 may provide a time limit on your entitlement to an input tax credit.
S 133-5(1) amended by No 39 of 2012, s 3 and Sch 1 item 91, by inserting "or 93-15" after "Section 93-5" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(i)
the *additional consideration for the acquisition had been provided as part of the original *consideration for the acquisition; and
(ii)
in a case where you have not held a *tax invoice for the acquisition - you held such an invoice; and
(iii)
subsection 29-10(4) did not apply in relation to the acquisition; and
(b)
the previously attributed input tax credit amount.
(3)
To avoid doubt,
additional consideration for an acquisition includes a part of the *consideration for the acquisition that:
(a)
relates to the amount of GST payable on the *taxable supply to which the acquisition relates; and
(b)
at the time of the acquisition, the parties to the transaction under which the acquisition was made assumed was not payable.
S 133-5 inserted by No 20 of 2010, s 3 and Sch 1 item 11, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
133-10
Availability of adjustments under Division 19 for acquisitions
(1)
If:
(a)
you have a *decreasing adjustment under this Division for an acquisition; and
(b)
the circumstances that gave rise to the adjustment also constitute an *adjustment event;
you do not have a decreasing adjustment under section 19-70 for the acquisition in relation to those circumstances.
(2)
This section has effect despite section 19-70 (which is about adjustments for acquisitions arising because of adjustment events).
S 133-10 inserted by No 20 of 2010, s 3 and Sch 1 item 11, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
You may have a decreasing adjustment if you make a payment to an entity that acquires something that you had supplied to another entity. The entity receiving the payment may have an increasing adjustment.
(1)
You have a
decreasing adjustment if:
(a)
you make a payment to an entity (the
payee) that acquires a thing that you supplied to another entity (whether or not that other entity supplies the thing to the payee); and
(b)
your supply of the thing to the other entity:
(d)
the payment is made in connection with, in response to or for the inducement of the payee's acquisition of the thing; and
(e)
the payment is not *consideration for a supply to you.
S 134-5(1) amended by No 118 of 2017, s 3 and Sch 1 items 21 and 22, by substituting "*money or *digital currency" for "money" in para (c)(i) and inserting "or digital currency" in para (c)(ii) and (iii), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
S 134-5(1) amended by No 91 of 2010, s 3 and Sch 3 item 1, by substituting para (b), applicable in relation to payments made on or after 1 July 2010. Para (b) formerly read:
(b)
your supply of the thing to the other entity was a *taxable supply; and
However, subsection (1) does not apply if:
(a)
the supply of the thing to the payee is a *GST-free supply, or is not *connected with the indirect tax zone; or
(b)
the Commissioner is required to make a payment to the payee, under Division 168 (about the tourist refund scheme), related to the payee's acquisition of the thing;
and you know, or have reasonable grounds to suspect, that the supply of the thing to the payee is a GST-free supply or is not connected with the indirect tax zone, or that the Commissioner is so required.
S 134-5(1A) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 134-5(1A) inserted by No 136 of 2010, s 3 and Sch 1 item 1, applicable, and taken to have applied, in relation to payments made on or after 1 July 2010.
(2)
The amount of the *decreasing adjustment is an amount equal to the difference between:
(a)
either:
(i)
if your supply to the other entity was a *taxable supply - the amount of GST payable on the supply; or
(ii)
if your supply to the other entity would have been a taxable supply but for a reason to which subsection (3) applies - the amount of GST that would have been payable on the supply had it been a taxable supply;
taking into account any other *adjustments that arose, or would have arisen, relating to the supply; and
(b)
the amount of GST that would have been payable, or would (but for a reason to which subsection (3) applies) have been payable, for that supply:
(i)
if the *consideration for the supply had been reduced by the amount of your payment to the payee; and
(ii)
taking into account any other adjustments that arose, or would have arisen, relating to the supply, as they would have been affected (if applicable) by such a reduction in the consideration.
S 134-5(2) amended by No 91 of 2010, s 3 and Sch 3 items 2 to 4, by substituting para (a), inserting ", or would (but for a reason to which subsection (3) applies) have been payable," after "payable" in para (b), and inserting "that arose, or would have arisen," after "adjustments" in para (b)(ii), applicable in relation to payments made on or after 1 July 2010. Para (a) formerly read:
(a)
the amount of GST payable on your supply to the other entity, taking into account any other *adjustments relating to the supply; and
This subsection applies to the following reasons why your supply of the thing to the other entity was not a *taxable supply:
(a)
you and the other entity are *members of the same *GST group;
(b)
you and the other entity are members of the same *GST religious group;
(c)
you are the *joint venture operator for a *GST joint venture, and the other entity is a *participant in the GST joint venture.
However:
(a)
paragraph (3)(a) does not apply if you and the payee are *members of the same *GST group when the payment referred to in paragraph (1)(a) is made; and
(b)
paragraph (3)(b) does not apply if you and the payee are members of the same *GST religious group when that payment is made.
(1)
You have an
increasing adjustment if:
(a)
you receive a payment from an entity (the
payer) that supplied a thing that you acquire from another entity (whether or not that other entity acquired the thing from the payer); and
(b)
your acquisition of the thing from the other entity:
(d)
the payment is made in connection with, in response to or for the inducement of your acquisition of the thing; and
(e)
the payment is not *consideration for a supply you make.
S 134-10(1) amended by No 118 of 2017, s 3 and Sch 1 items 23 and 24, by substituting "*money or *digital currency" for "money" in para (c)(i) and inserting "or digital currency" in para (c)(ii) and (iii), effective 1 July 2017. For application provision, see note under thedefinition of "digital currency" in s 195-1.
S 134-10(1) amended by No 70 of 2015, s 3 and Sch 6 item 2, by substituting "you make" to "from you" in para (e), effective 25 June 2015.
S 134-10(1) amended by No 91 of 2010, s 3 and Sch 3 item 6, by substituting para (b), applicable in relation to payments made on or after 1 July 2010. Para (b) formerly read:
(b)
your acquisition of the thing from the other entity was a *creditable acquisition; and
However, subsection (1) does not apply unless the supply of the thing by the payer:
(a)
was a *taxable supply; or
(b)
would have been a taxable supply but for any of the following:
(i)
the payer and the entity that acquired the thing from the payer being *members of the same *GST group;
(ii)
the payer and the entity that acquired the thing from the payer being members of the same *GST religious group;
S 134-10(1A) inserted by No 136 of 2010, s 3 and Sch 1 item 2, applicable, and taken to have applied, in relation to payments made on or after 1 July 2010.
(2)
The amount of the *increasing adjustment is an amount equal to the difference between:
(a)
either:
(i)
if your acquisition from the other entity was a *creditable acquisition - the amount of the input tax credit entitlement for the acquisition; or
(ii)
if your acquisition from the other entity would have been a creditable acquisition but for a reason to which subsection (3) applies - the amount that would have been the amount of the input tax credit entitlement for the acquisition had it been a creditable acquisition;
taking into account any other *adjustments that arose, or would have arisen, relating to the acquisition; and
(b)
the amount of the input tax credit to which you would have been entitled, or would (but for a reason to which subsection (3) applies) have been entitled, for that acquisition:
(i)
if the *consideration for the acquisition had been reduced by the amount of the payer's payment to you; and
(ii)
taking into account any other adjustments that arose, or would have arisen, relating to the acquisition, as they would have been affected (if applicable) by such a reduction in the consideration.
S 134-10(2) amended by No 91 of 2010, s 3 and Sch 3 items 7 to 9, by substituting para (a), inserting ", or would (but for a reason to which subsection (3) applies) have been entitled," after "entitled" in para (b), and inserting "that arose, or would have arisen," after "adjustments" in para (b)(ii), applicable in relation to payments made on or after 1 July 2010. Para (a) formerly read:
(a)
the amount of the input tax credit to which you are entitled for your acquisition from the other entity, taking into account any other *adjustments relating to the acquisition; and
However:
(a)
paragraph (3)(a) does not apply if you and the payer are *members of the same *GST group when the payment referred to in paragraph (1)(a) is made; and
(b)
paragraph (3)(b) does not apply if you and the payer are members of the same *GST religious group when that payment is made.
(1)
If:
(a)
you have a *decreasing adjustment under section 134-5; and
(b)
you do not hold a *third party adjustment note for the adjustment when you give to the Commissioner a *GST return for the tax period to which the adjustment (or any part of the adjustment) would otherwise be attributable;
then:
(c)
the adjustment (including any part of the adjustment) is not attributable to that tax period; and
(d)
the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that third party adjustment note.
However, this subsection does not apply in circumstances of a kind determined by the Commissioner, by legislative instrument, to be circumstances in which the requirement for an adjustment note does not apply.
Note:
For the giving of GST returns to the Commissioner, see Division 31.
(2)
This section does not apply to a *decreasing adjustment of an amount that does not exceed the amount provided for under subsection 29-80(2).
(3)
This section has effect despite section 29-20 (which is about attributing adjustments).
(1)
A
third party adjustment note for a *decreasing adjustment that you have under section 134-5 is a document:
(a)
that is created by you; and
(b)
a copy of which is given, in the circumstances set out in subsection (2), to the entity that received the payment that gave rise to the adjustment; and
(c)
that sets out your *ABN; and
(d)
that contains such other information as the Commissioner determines in writing; and
(e)
that is in the *approved form.
However, the Commissioner may treat as a third party adjustment note a particular document that is not a third party adjustment note.
(2)
You must give the copy of the document to the entity that received the payment:
(a)
within 28 days after the entity requests you to give the copy; or
(b)
if you become aware of the *adjustment before the copy is requested - within 28 days, or such other number of days as the Commissioner determines under subsection (4) or (6), after becoming aware of the adjustment.
(3)
Subsection (2) does not apply to an *adjustment of an amount that does not exceed the amount provided for under subsection 29-80(2).
(4)
The Commissioner may determine in writing that paragraph (2)(b) has effect, in relation to a particular document, as if the number of days referred to in that paragraph is the number of days specified in the determination.
(5)
A determination made under subsection (4) is not a legislative instrument.
(6)
The Commissioner may determine, by legislative instrument, circumstances in which paragraph (2)(b) has effect, in relation to those circumstances, as if the number of days referred to in that paragraph is the number of days specified in the determination.
(7)
A determination made under subsection (4) has effect despite any determination made under subsection (6).
(1)
For the purposes of working out whether you have an adjustment under this Division, disregard sections 48-55 and 49-50.
(2)
However, this section does not affect the application of sections 48-55 and 49-50 for the purposes of working out the amount of an adjustment under this Division.
Note:
Sections 48-55 and 49-50 require GST groups and GST religious groups to be treated as single entities for the purposes of adjustments.
The recipient of a supply of a going concern has an increasing adjustment to take into account the proportion (if any) of supplies that will be made in running the concern and that will not be taxable supplies or GST-free supplies. Later adjustments are needed if this proportion changes over time.
S 135-1 amended by No 176 of 1999, s 3 and Sch 1 item 113, by substituting ``(if any) of supplies that will be made in running the concern and that will not be taxable supplies or GST-free supplies'' for ``of input taxed supplies (if any) that will be made in running the concern'', effective 1 July 2000.
135-5
Initial adjustments for supplies of going concerns
(1)
You have an
increasing adjustment if:
(a)
you are the *recipient of a *supply of a going concern, or a supply that is *GST-free under section 38-480; and
(b)
you intend that some or all of the supplies made through the *enterprise to which the supply relates will be supplies that are neither *taxable supplies nor *GST-free supplies.
S 135-5(1) amended by No 156 of 2000, s 3 and Sch 4 item 11, by substituting ``some or all'' for ``some, but not all,'' in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 135-5(1) amended by No 176 of 1999, s 3 and Sch 1 item 114, by substituting ``neither *taxable supplies nor *GST-free supplies'' for ``*input taxed'' in para (b), effective 1 July 2000.
The amount of the increasing adjustment is as follows:
1
10
×
Supply price
×
Proportion of non-creditable use
where:
proportion of non-creditable use is the proportion of all the supplies made through the *enterprise that you intend will be supplies that are neither *taxable supplies nor *GST-free supplies, expressed as a percentage worked out on the basis of the *prices of those supplies.
supply price means the *price of the supply in relation to which the increasing adjustment arises.
S 135-5(2) substituted by No 176 of 1999, s 3 and Sch 1 item 115, effective 1 July 2000. S 135-5(2) formerly read:
(2)
The amount of the increasing adjustment is as follows:
1
11
×
*Price of the
*supply of the
going concern
×
Proportion of
input taxed
supplies
where:
proportion of input taxed supplies is the proportion of all the supplies made through the *enterprise that you intend will be supplies that are *input taxed, expressed as a percentage worked out on the basis of the *prices of those supplies.
135-10
Later adjustments for supplies of going concerns
(1)
If you are the *recipient of a *supply of a going concern, or a supply that is *GST-free under section 38-480, Division 129 (which is about changes in the extent of creditable purpose) applies to that acquisition, in relation to:
(a)
the proportion of all the supplies made through the *enterprise that you intend will be supplies that are neither *taxable supplies nor *GST-free supplies; and
(c)
in relation to the extent to which you made an acquisition for a *creditable purpose; and
(d)
in relation to the extent to which a thing acquired is *applied for a creditable purpose.
S 135-10(1) amended by No 176 of 1999, s 3 and Sch 1 items 116 and 117, by substituting ``neither *taxable supplies nor *GST-free supplies'' for ``*input taxed'' in para (a) and substituting ``neither taxable supplies nor GST-free supplies'' for ``*input taxed'' in para (b), effective 1 July 2000.
(2)
For the purpose of applying Division 129, the proportions referred to in paragraphs (1)(a) and (b) are to be expressed as percentages worked out on the basis of the *prices of the supplies in question.
(3)
This section applies in relation to any *supply of a going concern, or a supply that is *GST-free under section 38-480, whether or not it is a supply in respect of which you have had an *increasing adjustment under section 135-5.
Division 136 - Bad debts relating to transactions that are not taxable or creditable to the fullest extent
Div 136 heading substituted by No 156 of 2000, s 3 and Sch 4 item 12, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The heading formerly read:
Division 136 - Bad debts relating to partly taxable or creditable transactions
Div 136 inserted by No 177 of 1999, s 3 and Sch 1 item 106, effective 1 July 2000.
The amount of an adjustment that you have under Division 21 for a bad debt is reduced under this Division if the transaction to which the adjustment relates:
• was a supply that was partly taxable or an acquisition that was partly creditable; or
• was fully taxable or creditable, but not to the extent of 1/11 of the price or consideration for the transaction.
S 136-1 substituted by No 156 of 2000, s 3 and Sch 4 item 13, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 136-1 formerly read:
136-1 What this Division is about
If you have an adjustment under Division 21 for a bad debt relating to a supply that was partly taxable or an acquisition that was partly creditable, the amount of that adjustment is reduced under this Division.
S 136-1 inserted by No 177 of 1999, s 3 and Sch 1 item 106, effective 1 July 2000.
Subdivision 136-A - Bad debts relating to partly taxable or creditable transactions
Subdiv 136-A heading inserted by No 156 of 2000, s 3 and Sch 4 item 13, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
136-5
Adjustments relating to partly taxable supplies
If you have an *adjustment under section 21-5, 21-10, 136-30 or 136-35 in relation to a supply that was partly a *taxable supply, the amount of that adjustment is reduced to the following amount:
Full adjustment × Taxable proportion
where:
full adjustment is what would be the amount of the adjustment worked out under section 21-5, 21-10, 136-30 or 136-35 if this section did not apply.
taxable proportion is the proportion of the *value of the supply (worked out as if it were solely a taxable supply) that the taxable supply represents.
Example:
If the amount of an adjustment under section 21-5 would be $100 but the supply was only 80% taxable, the amount of the adjustment is $80.
S 136-5 amended by No 156 of 2000, s 3 and Sch 4 item 14, by substituting "section 21-5, 21-10, 136-30 or 136-35" for "section 21-5 or 21-10" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 136-5 inserted by No 177 of 1999, s 3 and Sch 1 item 106, effective 1 July 2000.
136-10
Adjustments in relation to partly creditable acquisitions
extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of creditable purpose is the extent of *creditable purpose last used to work out:
(a)
the amount of the input tax credit for the acquisition; or
(b)
the amount of any *adjustment under Division 129 in relation to the acquisition;
expressed as a percentage of the total purpose of the acquisition.
full adjustment is what would be the amount of the adjustment worked out under section 21-15, 21-20, 136-40 or 136-45 if this section did not apply.
S 136-10(1) amended by No 156 of 2000, s 3 and Sch 4 item 15, by substituting "section 21-15, 21-20, 136-40 or 136-45" for "section 21-15 or 21-20" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
percentage credit reduction is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.
full adjustment is what would be the amount of the adjustment worked out under section 21-15, 21-20, 136-40 or 136-45 if this section did not apply.
S 136-10(2) amended by No 156 of 2000, s 3 and Sch 4 item 15, by substituting "section 21-15, 21-20, 136-40 or 136-45" for "section 21-15 or 21-20" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
However, this section does not apply to an *adjustment that you have in relation to a *creditable acquisition if:
(a)
the amount of the input tax credit for the acquisition is worked out under Division 131; and
(b)
the adjustment is attributable to a tax period that is not later than the tax period to which an adjustment under section 131-55 relating to the acquisition is attributable.
S 136-10(3) inserted by No 134 of 2004, s 3 and Sch 2 item 16, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 136-10 inserted by No 177 of 1999, s 3 and Sch 1 item 106, effective 1 July 2000.
Subdivision 136-B - Bad debts relating to transactions that are taxable or creditable at less than 1/11 of the price
Subdiv 136-B inserted by No 156 of 2000, s 3 and Sch 4 item 16, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Work out the amount of GST (if any) that was payable on the supply, taking into account any previous *adjustments for the supply. This amount is the
previous GST amount.
Step 2.
Add together:
(a) the amount or amounts written off as bad from the debt to which the decreasing adjustment relates; and
(b) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).
Step 3.
Subtract the step 2 amount from the *price of the supply.
Step 4.
Work out the amount of GST (if any), taking into account any previous *adjustments for the supply (but not adjustments relating to bad debts or debts overdue), that would be payable on the supply if the *price of the supply were the step 3 amount. This amount of GST is the
adjusted GST amount.
Step 5.
Subtract the adjusted GST amount from the previous GST amount.
Work out the amount of GST (if any) that was payable on the supply, taking into account any previous *adjustments for the supply. This amount is the
previous GST amount.
Step 2.
Add together:
(a) the amount or amounts previously written off as bad from the debt to which the increasing adjustment relates; and
(b) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).
Step 3.
Subtract the step 2 amount from the *price of the supply.
Step 4.
Add to the step 3 amount an amount equal to the amount or amounts, written off or overdue for 12 months or more, that have been recovered.
Step 5.
Work out the amount of GST (if any), taking into account any previous *adjustments for the supply (but not adjustments relating to bad debts or debts overdue), that would be payable on the supply if the *price of the supply were the step 4 amount. This amount of GST is the
adjusted GST amount.
Step 6.
Subtract the previous GST amount from the adjusted GST amount.
Work out the amount of the input tax credit (if any) to which you were entitled for the acquisition, taking into account any previous *adjustments for the acquisition. This amount is the
previous credit amount.
Step 2.
Add together:
(a) the amount or amounts previously written off as bad from the debt to which the increasing adjustment relates; and
(b) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).
Step 3.
Subtract the step 2 amount from the total amount of the *consideration that you have either provided, or are liable to provide, for the acquisition.
Step 4.
Work out the amount of the input tax credit (if any), taking into account any previous *adjustments for the acquisition (but not adjustments relating to bad debts or debts overdue), to which you would be entitled for the acquisition if the *consideration for the acquisition were the step 3 amount. This amount of GST is the
adjustedcredit amount.
Step 5.
Subtract the adjusted credit amount from the previous credit amount.
Work out the amount of the input tax credit (if any) to which you were entitled for the acquisition, taking into account any previous *adjustments for the acquisition. This amount is the
previous credit amount.
Step 2.
Add together:
(a) the amount or amounts previously written off as bad from the debt to which the decreasing adjustment relates; and
(b) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).
Step 3.
Subtract the step 2 amount from the total amount of the *consideration that you have either provided, or are liable to provide, for the acquisition.
Step 4.
Add to the step 3 amount an amount equal to the amount or amounts, written off or overdue for 12 months or more, that you have paid.
Step 5.
Work out the amount of the input tax credit (if any), taking into account any previous *adjustments for the acquisition (but not adjustments relating to bad debts or debts overdue), to which you would be entitled for the acquisition if the *consideration for the acquisition were the step 4 amount. This amount of GST is the
adjusted credit amount.
Step 6.
Subtract the previous credit amount from the adjusted credit amount.
(1)
You have a
decreasing adjustment if:
(a)
you become *registered or *required to be registered; and
(b)
at that time, you hold stock for the purpose of sale or exchange, or for use as raw materials, in *carrying on your *enterprise; and
(c)
you had acquired the stock solely or partly for a *creditable purpose.
(2)
However, this section does not apply if:
(a)
you were entitled to an input tax credit for the acquisition; and
(b)
you have not had a *increasing adjustment under Division 138 (cessation of registration) relating solely or partly to the stock.
(3)
The amount of the decreasing adjustment is an amount equal to what would have been the *previously attributed input tax credit amount for the acquisition if you had been *registered at the time of the acquisition.
S 137-5 inserted by No 177 of 1999, s 3 and Sch 1 item 107, effective 1 July 2000.
Division 138 - Cessation of registration
138-1
What this Division is about
An entity whose registration has been cancelled may still have acquisitions and importations for which entitlements to input tax credits have arisen. This Division provides for an increasing adjustment to cancel those input tax credits.
138-5
Adjustments for cessation of registration
(1)
You have an
increasing adjustment if:
(a)
your *registration is cancelled; and
(b)
immediately before the cancellation takes effect, your assets include anything in respect of which you were, or are, entitled to an input tax credit.
Note:
Increasing adjustments increase your net amounts.
(2)
The amount of the adjustment, for each thing referred to in paragraph (1)(b), is as follows:
1
11
×
*Actual application of the thing
×
Applicable value
where:
applicable value is:
(a)
the *GST inclusive market value of the thing immediately before the cancellation takes effect; or
(b)
if you were, or are, entitled to an input tax credit for acquiring the thing - the amount of the *consideration that you provided, or were liable to provide, for your acquisition of the thing, but only if the amount is less than that value; or
(c)
if you were, or are, entitled to an input tax credit for importing the thing - the cost to you of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.
Definition of "applicable value" amended by No 39 of 2012, s 3 and Sch 1 item 92, by substituting "*assessed GST" for "GST" in para (c), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(3)
However, an *adjustment does not arise under this section in respect of an asset if:
(a)
there were one or more *adjustment periods for your acquisition or importation of the asset; and
(b)
the last of those adjustment periods has ended before the cancellation of your *registration takes effect.
138-10
Attributing adjustments for cessation of registration
(1)
An *adjustment that you have under this Division is attributable to:
(aa)
if you are an *incapacitated entity - your tax period under section 27-39; or
(a)
your concluding tax period under section 27-40; or
(b)
if, because of subsection 151-55(1) or 162-85(1), you do not have a concluding tax period under section 27-40 - the tax period to which that subsection applies.
S 138-10(1) amended by No 118 of 2009, s 3 and Sch 1 item 29, by inserting para (aa), effective 4 December 2009.
S 138-10(1) amended by No 134 of 2004, s 3 and Sch 3 item 4, by inserting "or 162-85(1)" after "subsection 151-55(1)" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2005.
S 138-10(1) amended by No 134 of 2004, s 3 and Sch 1 item 10, by substituting "attributable to: (a) your concluding tax period under section 27-40; or (b) if, because of subsection 151-55(1), you do not have a concluding tax period under section 27-40 -- the tax period to which that subsection applies." for "attributable to your concluding tax period under section 27-40.", applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
(2)
This section has effect despite section 29-20 (which is about attributing your adjustments).
138-15
Ceasing to be registered - amounts not previously attributed
(1)
The GST payable by you on a *taxable supply, the input tax credit to which you are entitled for a *creditable acquisition, or an *adjustment that you have, is attributable to a particular tax period, and no other, if:
(a)
during the tax period, your *registration is cancelled; and
(b)
immediately before the cancellation, you were *accounting on a cash basis; and
(c)
the GST on the supply, the input taxcredit on the acquisition, or the adjustment, was not attributable, to any extent, to a previous tax period during which you accounted on a cash basis; and
(d)
it would have been attributable to that previous tax period had you not accounted on a cash basis during that period.
(2)
This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.
138-17
Situations to which this Division does not apply
(1)
This Division does not apply to anything included in the assets of an entity whose *registration is cancelled, to the extent that the thing relates to an *enterprise that the entity *carried on before the cancellation, if:
(a)
the cancellation arises as a result of the death of the entity, and the executor or trustee of the deceased estate:
(ii)
continues, immediately after the cancellation, to carry on that enterprise; or
(b)
the cancellation arises as a result of the executor or trustee of a deceased estate ceasing to carry on any enterprise, and one or more beneficiaries of the deceased estate:
(ii)
continue, immediately after the cancellation, to carry on the enterprise that the deceased had carried on.
(2)
Division 129 (which is about changes in the extent of creditable purpose) continues to apply to the acquisition or importation of the thing immediately after the cancellation if:
(a)
Subdivision 129-A does not prevent an adjustment arising under that Division for the acquisition or importation; and
(b)
the cancellation occurs during an *adjustment period for the acquisition or importation.
(3)
For the purposes of applying Division 129 to the acquisition or importation after the cancellation:
(a)
the entity *carrying on the *enterprise in question immediately after the cancellation is taken to have made the acquisition or importation at the time it was originally made; and
(b)
the extent (if any) to which the thing was originally acquired or imported for a *creditable purpose is taken to be the extent (if any) to which the entity acquired or imported the thing for a creditable purpose; and
(c)
any *application of the thing since the original acquisition or importation is taken to be an application of the thing by the entity.
This Division (except subsections 138-17(2) and (3)) does not affect the operation of Division 129 (which is about changes in the extent of creditable purpose).
S 138-20 amended by No 92 of 2000, s 3 and Sch 11 item 11G, by inserting ``(except subsections 138-17(2) and (3))'' after ``This Division'', effective 1 July 2000.
Division 139 - Distributions from deceased estates
Distributions from deceased estates, for private consumption, that are not taxable supplies may involve disposing of assets that were acquired or imported in circumstances giving rise to entitlements to input tax credits. This Division provides for an increasing adjustment to cancel those input tax credits.
(1)
You have an
increasing adjustment if:
(a)
you are the executor or trustee of a deceased estate; and
(b)
you are *registered or *required to be registered; and
(c)
you supply an asset of the deceased estate to a beneficiary of the deceased estate; and
(d)
the supply is not a *taxable supply and is not a supply that is *GST-free or *input taxed; and
(e)
you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person's acquisition or importation of the asset.
The amount of the adjustment, for the asset, is as follows:
1
11
×
*Actual application of the thing
×
Applicable value
where:
applicable value is:
(a)
the *GST inclusive market value of the asset immediately before it is supplied; or
(b)
if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person acquiring the thing - the amount of the *consideration that you or the deceased person provided, or was liable to provide, for the acquisition of the thing, but only if the amount is less than that value; or
(c)
if you were, or are, or the deceased person was, entitled to an input tax credit for the deceased person importing the thing - the cost to you or the deceased person of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.
Definition of "applicable value" amended by No 39 of 2012, s 3 and Sch 1 item 93, by substituting "*assessed GST" for "GST" in para (c), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(3)
However, an *adjustment does not arise under this section in respect of the asset if:
(a)
the asset related to an *enterprise that the deceased person *carried on, and the beneficiary intends to continue to carry on that enterprise; or
(b)
there were one or more *adjustment periods for the deceased person's acquisition or importation of the asset, and the last of those adjustment periods has ended before the cancellation of your *registration takes effect.
(1)
An *adjustment that you have under this Division is attributable to the tax period in which it arises.
(2)
This section has effect despite section 29-20 (which is about attributing your adjustments).
(1)
You have an
increasing adjustment if:
(a)
you import *tradex scheme goods; and
(b)
you are the holder (within the meaning of the Tradex Scheme Act 1999) of the *tradex order relating to the goods; and
(c)
the importation would have been a *taxable importation if the goods had not been covered by item 21A of Schedule 4 to the Customs Tariff Act 1995 at the time of their entry for home consumption under the Customs Act 1901; and
(d)
any of the circumstances referred to in subsection 21(1) of that Act occur in respect of any of the goods.
However, the increasing adjustment only arises in relation to the first occurrence of such a circumstance following an importation of the goods.
(2)
The amount of the *increasing adjustment is the difference between:
(a)
the amount of GST that would have been payable on the importation if the importation had been a *taxable importation; and
(b)
the amount (if any) of the input tax credit to which you would have been entitled for the importation if the importation had been a taxable importation.
(1)
Tradex scheme goods are imported goods that:
(a)
are nominated goods (within the meaning of the Tradex Scheme Act 1999) in relation to a *tradex order; and
(b)
were covered by item 21A in Schedule 4 to the Customs Tariff Act 1995 at the time of their entry for home consumption under the Customs Act 1901.
(2)
Tradex order has the meaning given by section 4 of the Tradex Scheme Act 1999.
(1)
An adjustment under this Division is attributable to the tax period in which the adjustment arises.
(2)
This section has effect despite section 29-20 (which is about attributing your adjustments).
Div 142 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Excess GST is not to be refunded if this would give an entity a windfall gain.
Note:
Refunding excess GST to a supplier will give it a windfall gain if it has already passed on the excess GST in the price of the supply (and not reimbursed the recipient).
S 142-1 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Subdivision 142-A - Excess GST unrelated to adjustments
Subdiv 142-A inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
(1)
This Subdivision applies if, after disregarding any amounts covered by subsection (2), your *assessed net amount for a tax period takes into account an amount of GST exceeding that which is payable.
Note:
This Subdivision applies whether or not you have paid, or been refunded, the assessed net amount.
Example:
Sunny Co mistakenly reports a negative net amount of $4,000 made up of GST of $10,000 less input tax credits of $14,000. In fact, Sunny Co's GST should have been $8,000 making its negative net amount $6,000. Sunny Co has excess GST of $2,000.
(2)
Disregard the following amounts:
(a)
an amount of GST that was correctly payable and attributable to the tax period, but which later becomes the subject of a *decreasing adjustment;
(b)
an amount of GST that is payable, but is correctly attributable to a different tax period;
(c)
an amount of GST to which section 142-16 (about low value goods) applies.
S 142-5(2) amended by No 77 of 2017, s 3 and Sch 1 item 44, by inserting para (c), effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 142-5 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
For the purposes of each *taxation law, so much of the excess from subsection 142-5(1) (the
excess GST) as you have *passed on to another entity is taken to have always been:
(a)
payable; and
(b)
on a *taxable supply;
until you reimburse the other entity for the passed-on GST.
Note 1:
If you reimburse the passed-on GST so that this section ceases to apply there will be an adjustment event under paragraph 19-10(1)(b) or (c). You will have a decreasing adjustment (see section 19-55) and the other entity may have an increasing adjustment (see section 19-80).
Note 2:
Any excess GST you have not passed on will be refunded as described in section 155-75 in Schedule 1 to the Taxation Administration Act 1953.
Note 3:
While this section applies, paragraph 11-5(b) (about taxable supplies) is satisfied for the corresponding acquisition by the other entity.
S 142-10 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Commissioner satisfied it is inappropriate for that section to apply
(1)
Treat section 142-10 as never having applied to the extent that the Commissioner is satisfied that:
(a)
applying that section would be inconsistent with the principle that excess GST is not to be refunded if this would give an entity a windfall gain; and
(b)
you have requested a decision under this subsection in the *approved form.
Note:
Refusing to make the requested decision is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(2)
The Commissioner must notify you in writing of any decision relating to you made under subsection (1).
If there never was a supply
(3)
Treat section 142-10 as never having applied to the extent that:
(a)
you treated the excess GST as payable on a supply, but in fact there never was a supply; and
(b)
you reimburse the other entity for the *passed-on GST.
Note:
If you reimburse the passed-on GST, you will be refunded an equivalent amount as described in section 155-75 in Schedule 1 to the Taxation Administration Act 1953.
So far as it relates to your creditable acquisitions
(4)
Section 142-10 does not apply for the purposes of applying subsection 11-15(2) (about creditable purpose) to you.
If the recipient knows you have not paid the excess GST
(5)
Section 142-10 does not apply for the purposes of applying a *taxation law to the other entity if, and while, that other entity knows, or could reasonably be expected to have known, that you have not paid the excess GST to the Commissioner.
Note:
Section 142-10 still applies for the purposes of applying taxation laws to you.
S 142-15 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
142-16
No refund of excess GST relating to supplies treated as non-taxable importations
(1)
This section applies to an amount of GST on a supply (the
low value goods GST) that is taken into account in your *assessed net amount for a tax period if:
(a)
you incorrectly treated the low value goods GST as payable on a supply of goods; and
(b)
an importation of the goods was a *taxable importation, but was incorrectly treated as being a *non-taxable importation under section 42-15; and
(c)
the *recipient of the supply is a *consumer of the supply.
(2)
For the purposes of each *taxation law, the low value goods GST is taken to have always been payable on a *taxable supply until:
(a)
to the extent (if any) that you have *passed on the GST to another entity - you reimburse the other entity for the passed on GST; and
(b)
an entity provides to you a declaration or information that indicates that GST has been paid on the *taxable importation.
Subdiv 142-B inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
142-20
Refunding GST relating to cancelled supplies
(1)
This section applies if:
(a)
your *assessed net amount for a tax period takes into account an amount of GST on a supply; and
(b)
you have a *decreasing adjustment attributable to a later tax period as a result of the cancellation of the supply.
(2) Reduce:
(a)
your *decreasing adjustment; and
(b)
if the *recipient of the supply has a corresponding *increasing adjustment - the recipient's increasing adjustment;
to the extent that you have *passed on that GST to the recipient, but not reimbursed the recipient for the passed-on GST.
(3)
This section has effect despite sections 19-55 (about decreasing adjustments for supplies) and 19-80 (about increasing adjustments for acquisitions).
S 142-20 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Subdiv 142-C inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
(1)
Some or all of an amount of GST may have been
passed on to another entity even if:
(a)
a *tax invoice is not issued to or by that other entity; or
(b)
a tax invoice issued to or by that other entity relates to that GST, but does not contain enough information to enable that GST to be clearly ascertained.
(2)
If:
(a)
you issue a *tax invoice or a notice under section 84-89 to another entity, or another entity issues a *recipient created tax invoice to you; and
(c)
in a case where you must pay the *assessed net amount for a tax period to which the invoice or notice relates - you have paid that assessed net amount to the Commissioner;
S 142-25(2) amended by No 77 of 2017, s 3 and Sch 1 items 46-48, by inserting "or a notice under section 84-89" in para (a), "or notice" in para (b) and (c), and substituting "the invoice or notice is" for "the invoice is", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 142-25 inserted by No 34 of 2014, s 3 and Sch 2 item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Part 4-5 - Special rules mainly about registration
Note:
The special rules in this Part mainly modify the operation of Part 2-5, but they may affect other Parts of Chapter 2 in minor ways.
Division 144 - Taxis
144-1
What this Division is about
Taxi operators are required to be registered, regardless of turnover.
S 144-5(2) amended by No 80 of 2007, s 3 and Sch 2 item 27, by substituting "*GST turnover" for "*annual turnover" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
(3)
This section has effect despite section 23-5 (which is about who is required to be registered).
Division 146 - Limited registration entities
Div 146 inserted by No 77 of 2017, s 3 and Sch 1 item 49, effective 1 July 2017. No 77 of 2017, s 3 and Sch 1 items 65 and 66 contain the following application provisions:
65 Application
(1)
The amendments made to the A New Tax System (Goods and Services Tax) Act 1999, so far as they relate to working out net amounts for a tax period:
(a)
apply to tax periods starting on or after 1 July 2018; and
(b)
do not apply to a tax period starting before 1 July 2018.
(2)
Subject to subitem (1), the amendments made to the A New Tax System (Goods and Services Tax) Act 1999, so far as they relate to importations, apply to importations made on or after 1 July 2018.
66 Limited registration entities
66
An election under subsection 84-140(2) of the A New Tax System (Goods and Services Tax) Act 1999 that was in effect immediately before the commencement of this item continues after that commencement as if it was an election under subsection 146-5(2) of that Act as amended by this Schedule.
Non-residents may elect to be limited registration entities. Limited registration entities are not entitled to input tax credits for acquisitions and importations, and must have quarterly tax periods.
Note:
The Commissioner may approve simpler approved forms for limited registration entities: see subsection 388-50(3) in Schedule 1 to the Taxation Administration Act 1953.
(1)
You are a
limited registration entity for a tax period applying to you if an election under subsection (2) is in effect for you during the period.
Electing to be a limited registration entity
(2)
You may, by notifying the Commissioner in the *approved form, make an election under this subsection if you are a *non-resident who:
(a)
makes, or intends to make, one or more supplies that are:
(i)
*inbound intangible consumer supplies; or
(ii)
*offshore supplies of low value goods that were, or would be, *connected with the indirect tax zone, solely because of Subdivision 84-C; or
(b)
is, or intends to become, a *redeliverer of *offshore supplies of low value goods.
When an election is in effect
(3)
The election:
(a)
takes effect from the start of the tax period you nominate in the election; and
(b)
if your *registration is cancelled and the date of effect of the cancellation occurs after the start of that tax period - ceases to have effect on the date of effect of the cancellation; and
(c)
if paragraph (b) does not apply and, under subsection (5), you revoke the election - ceases to have effect at the start of your first tax period to start after the revocation.
(4)
However, the election never takes effect if your *registration is cancelled and the date of effect of the cancellation occurs on or before the start of the tax period you nominate in the election.
Revoking an election
(5)
You may, by notifying the Commissioner in the *approved form, revoke an election under subsection (2).
(6)
However, subsection (5) does not apply if you have been notified that the Commissioner has decided to cancel your *registration (whether or not the cancellation has already taken effect).
(1)
An acquisition made by a *limited registration entity is not a *creditable acquisition if an election under subsection 146-5(2) is in effect for the entity when the acquisition is made.
(2)
However, subsection (1) does not apply, and is taken never to have applied, to the acquisition if you revoke the election under subsection 146-5(5) during:
(a)
the *financial year in which the acquisition is made; or
(b)
the next financial year.
(3)
This section has effect despite section 11-5 (which is about what is a creditable acquisition).
(1)
An importation made by a *limited registration entity is not a *creditable importation if an election under subsection 146-5(2) is in effect for the entity when the importation is made.
(2)
However, subsection (1) does not apply, and is taken never to have applied, to the importation if you revoke the election under subsection 146-5(5) during:
(a)
the *financial year in which the importation is made; or
(b)
the next financial year.
(3)
This section has effect despite section 15-5 (which is about what is a creditable importation).
S 146-20 heading will be substituted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 92, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2). Heading will read:
146-20 Recorded information about registration and cancellation
(1)
Subsection 25-10(2) does not apply if:
(a)
you become *registered; and
(b)
on the date your registration takes or took effect, you are a *limited registration entity.
Note:
Under subsection 25-10(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.
CCH Note:
Pending amendment
S 146-20(1) will be amended by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 93, by substituting the note, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2). The note will read:
Note:
Subsection 25-10(2) requires the Registrar to record information relating to your registration.
(2)
However, if:
(a)
you cease to be a *limited registration entity at a time when you are *registered; and
(b)
because of subsection (1) of this section, subsection 25-10(2) did not apply to your registration;
subsection 25-10(2) is taken to apply from the time you cease to be a limited registration entity.
(3)
Subsection 25-60(2) does not apply if:
(a)
your *registration is cancelled; and
(b)
because of subsection (1) of this section, the date on which your registration took effect was not entered in the *Australian Business Register; and
(c)
immediately before the cancellation took effect, you were a *limited registration entity.
Note:
Under subsection 25-60(2), the Australian Business Registrar would otherwise be required to enter that date in the Australian Business Register.
CCH Note:
Pending amendment
S 146-20(3) will be amended by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 items 94 and 95, by substituting "information about your registration was not recorded by the *Registrar; and" for all the words after "this section," in para (b) and the note, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2). The note will read:
Note:
Subsection 25-60(2) requires the Registrar to record information relating to the cancellation of your registration.
(1)
If you are a *limited registration entity, you cannot make an election under section 27-10, and the Commissioner cannot determine your tax periods under section 27-15 or 27-37.
Note:
Sections 27-10 and 27-15 provide for each individual month to be a tax period. Section 27-37 provides for 12 complete tax periods in each year.
(2)
An election by you under section 27-10 or a determination under section 27-15 or 27-37 in relation to you is taken not to be in force at any time during which you are a *limited registration entity.
(3)
This section has effect despite sections 27-10, 27-15 and 27-37 (which are about one month tax periods).
S 147-10 repealed by No 118 of 2009, s 3 and Sch 1 item 30, effective 4 December 2009. For transitional provisions see note under Div 58 heading. S 147-10 formerly read:
Cancelling the registration of a representative under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 147-10(1) amended by No 73 of 2006, s 3 and Sch 5 item 125, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(2)
The Commissioner must notify the *representative of the cancellation.
S 147-15 repealed by No 118 of 2009, s 3 and Sch 1 item 30, effective 4 December 2009. For transitional provisions see note under Div 58 heading. S 147-15 formerly read:
147-15 Notice of cessation of representation
A *representative who ceases to be a representative of an *incapacitated entity must notify the Commissioner of that cessation, in the *approved form, within 21 days after so ceasing.
147-20
Effect of representative failing to notify the Commissioner of certain adjustments
(Repealed by No 118 of 2009)
S 147-20 repealed by No 118 of 2009, s 3 and Sch 1 item 30, effective 4 December 2009. S 147-20 formerly read:
147-20 Effect of representative failing to notify the Commissioner of certain adjustments
(1)
If:
(a)
an *increasing adjustment relates to a supply, acquisition or importation that an *incapacitated entity made before a *representative of the incapacitated entity was appointed; and
(b)
the adjustment arises after that appointment; and
(c)
the representative fails to give the Commissioner written notice that:
(i)
states that the adjustment has arisen in these circumstances; and
(ii)
specifies the amount of the adjustment;
the adjustment is to be treated as if:
(d)
the representative had the adjustment; and
(e)
the incapacitated entity did not have the adjustment.
S 147-20(1) substituted by No 118 of 2009, s 3 and Sch 1 item 10, effective 1 July 2000. S 147-20(1) formerly read:
(1)
If:
(a)
an *adjustment relates to a supply, acquisition or importation that an *incapacitated entity made before a *representative of the incapacitated entity was appointed; and
(b)
the adjustment arises after that appointment; and
(c)
in the case of an *increasing adjustment - the representative gives the Commissioner written notice that:
(i)
states that the adjustment has arisen in these circumstances; and
(ii)
specifies the amount of the adjustment;
the adjustment is to be treated as if:
(d)
the representative did not have the adjustment; and
(e)
the incapacitated entity had the adjustment.
S 147-20(1) substituted by No 156 of 2000, s 3 and Sch 4 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 147-20(1) formerly read:
(1)
Any *adjustment relating to a supply, acquisition or importation that:
(a)
an *incapacitated entity had before a *representative of an *incapacitated entity was appointed; and
(b)
was not attributable to a tax period applying to the incapacitated entity that ended before that appointment;
is to be treated as if:
(c)
the incapacitated entity did not have the adjustment; and
(d)
the representative had the adjustment.
(2)
This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
147-25
Tax periods of representatives
(Repealed by No 118 of 2009)
S 147-25 repealed by No 118 of 2009, s 3 and Sch 1 item 30, effective 4 December 2009. S 147-25 formerly read:
147-25 Tax periods of representatives
(1)
If a *representative of an *incapacitated entity is required to be registered in that capacity, the tax periods applying to the representative in that capacity are the same tax periods that apply to the incapacitated entity.
(2)
This section has effect despite Division 27 (which is about how to work out the tax periods that apply).
S 147-25 inserted by No 176 of 1999, s 3 and Sch 1 item 118, effective 1 July 2000.
Parts of the Commonwealth, a State or a Territory may register even if they are not separate legal entities. Once registered, they may become liable for GST and entitled to input tax credits. Government entities may also form GST groups.
(1)
A *government entity may apply to be *registered under section 23-10 even if:
(a)
it is not an entity; and
(b)
it is not *carrying on an *enterprise or is not intending to carry on an enterprise.
(2)
For the purposes of subsections 25-5(1) and (3), the Commissioner is to treat the government entity as an entity.
(3)
The Commissioner must *register the government entity whether or not the Commissioner is satisfied that it is *carrying on an *enterprise or intending to carry on an enterprise.
(4)
This section has effect despite section 23-10 (which is about who may be registered) and modifies the effect of section 25-5 (which is about when the Commissioner must register an entity).
S 149-10(1) amended by No 80 of 2007, s 3 and Sch 2 item 28, by substituting "*GST turnover" for "*annual turnover" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
(2)
This subsection has effect despite section 23-5.
A *government related entitysatisfies the membership requirements for a *GST group, or a proposed GST group, of government related entities if:
(a)
it is *registered; and
(b)
it is not a *member of any other GST group; and
(c)
it has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and
(d)
it accounts on the same basis as all those other members; and
(e)
all those other members are government related entities.
Note:
Some government related entities can still use section 48-10 to satisfy the membership requirements of GST groups.
Div 151 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
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).
S 151-1 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Subdivision 151-A - Electing to have annual tax periods
Subdiv 151-A inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
151-5
Eligibility to make an annual tax period election
(1)
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).
(2)
S 151-5(2) amended by No 65 of 2019, s 3 and Sch 2 item 2, by omitting "or (c)" wherever occurring, effective 1 October 2019 and applicable in relation to a supply:
(a) forwhich consideration is first received on or after 1 July 2019; or
(b) if, before any consideration is received for the supply, an invoice is issued relation to the supply - for which an invoice is issued on or after 1 July 2019.
S 151-5 amended by No 77 of 2005, s 3 and Sch 3 items 16A and 16B, by inserting s 151-5(2), applicable to supplies made on or after 1 October 2005.
S 151-5 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 151-10(2) amended by No 73 of 2006, s 3 and Sch 5 item 126, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 151-10 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
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.
S 151-15 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable inrelation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
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:
(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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 151-20(3) amended by No 73 of 2006, s 3 and Sch 5 item 127, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 151-20 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
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.
Your election also ceases to have effect at the end of your tax period under subsection 27-39(1), 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.
S 151-25(1) amended by No 74 of 2010, s 3 and Sch 1 items 33 and 34, by substituting "registered." for "registered; or" in para (c) and repealing para (d), applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. Para (d) formerly read:
S 151-25(1) amended by No 118 of 2009, s 3 and Sch 1 item 31, by inserting "tax period under subsection 27-39(1), at the end of your" after "at the end of your", effective 4 December 2009.
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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 151-25(3) amended by No 73 of 2006, s 3 and Sch 5 item 128, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(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.
S 151-25 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Subdivision 151-B - Consequences of electing to have annual tax periods
Subdiv 151-B inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(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).
S 151-40 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
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 instrument made 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.
S 151-45(1) amended by No 64 of 2020, s 3 and Sch 3 item 153, by substituting "instrument made" for "notice published in the Gazette" in para (a)(i), effective 1 October 2020.
(2)
This section has effect despite sections 31-8 and 31-10 (which are about when GST returns must be given).
S 151-45 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
151-50
When payments of assessed net amounts for annual tax periods must be made
If the *assessed net amount for an *annual tax period applying to you is greater than zero, you must pay the assessed 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.
S 151-50(1) amended by No 39 of 2012, s 3 and Sch 1 items 95 and 96, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 151-50(2) amended by No 39 of 2012, s 3 and Sch 1 item 97, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 151-50 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(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)
S 151-55(3) substituted by No 118 of 2009, s 3 and Sch 1 item 32, effective 4 December 2009. S 151-55(3) formerly read:
(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.
S 151-55 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
If an entity becomes an *incapacitated entity, or the entity for any reason ceases to exist, the entity must give the *GST return, for the *annual tax period that ends as a result, 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.
S 151-60(1) substituted by No 118 of 2009, s 3 and Sch 1 item 34, effective 4 December 2009. S 151-60(1) formerly read:
(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.
If the *assessed net amount for the *annual tax period is greater than zero, the entity must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of the annual tax period.
S 151-60(2) amended by No 39 of 2012, s 3 and Sch 1 items 98 and 99, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relateto tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
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 assessed net amounts for annual tax periods must be made).
S 151-60(3) amended by No 39 of 2012, s 3 and Sch 1 item 100, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 151-60 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
151-65
The effect of changing the membership of GST groups - end of the annual tax period
(Repealed by No 74 of 2010)
S 151-65 repealed by No 74 of 2010, s 3 and Sch 1 item 35, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 151-65 formerly read:
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).
S 151-65 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
151-70
The effect of changing the membership of GST groups - tax periods for the remainder of a financial year
(Repealed by No 74 of 2010)
S 151-70 repealed by No 74 of 2010, s 3 and Sch 1 item 35, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. S 151-70 formerly read:
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).
S 151-70 inserted by No 134 of 2004, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
Div 153 heading substituted by No 20 of 2010, s 3 and Sch 3 item 1, applicable in relation to supplies and acquisitions made on or after 1 July 2010. The heading formerly read:
Division 153 - Agents and insurance brokers
Div 153 heading substituted by No 177 of 1999, s 3 and Sch 1 item 109, effective 1 July 2000. The heading formerly read:
This Division sets out the rules for holding and issuing tax invoices and adjustment notes when your supplies or acquisitions are made through an agent, or when insurance is supplied through an insurance broker. It also allows in some cases a supply or acquisition made through, or facilitated by, an entity on your behalf to be treated as 2 separate supplies or acquisitions.
S 153-1 amended by No 20 of 2010, s 3 and Sch 3 item 2, by substituting "acquisition made through, or facilitated by, an entity on your behalf" for "acquisition made through an agent", applicable in relation to supplies and acquisitions made on or after 1 July 2010.
S 153-1 amended by No 92 of 2000, s 3and Sch 4 item 4, by inserting "It also allows in some cases a supply or acquisition made through an agent to be treated as 2 separate supplies or acquisitions." at the end, effective 1 July 2000.
S 153-1 amended by No 177 of 1999, s 3 and Sch 1 item 110, by inserting ", or when insurance is supplied through an insurance broker", effective 1 July 2000.
Subdiv 153-A heading inserted by No 92 of 2000, s 3 and Sch 4 item 5, effective 1 July 2000.
153-5
Attributing the input tax credits for your creditable acquisitions
(1)
If:
(a)
you are entitled to the input tax credit for a *creditable acquisition made through an agent; and
(b)
neither you nor your agent holds a *tax invoice for the acquisition when you give to the Commissioner a *GST return for the tax period to which the input tax credit on the acquisition would otherwise be attributable;
then:
(c)
the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(d)
the input tax credit (or the part of the input tax credit) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you or your agent holds that tax invoice.
(2)
This section has effect despite subsection 29-10(3) (which is about the requirement to hold a tax invoice).
153-10
Attributing your adjustments
(1)
If:
(a)
you have a *decreasing adjustment relating to a supply made by you through an agent or made to you through an agent; and
(b)
neither you nor your agent holds an *adjustment note or *third party adjustment note for the adjustment when you give to the Commissioner a *GST return for the tax period to which the adjustment would otherwise be attributable;
(c)
the adjustment (including any part of the adjustment) is not attributable to that tax period; and
(d)
the adjustment (or the part of the adjustment) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you or your agent holds that adjustment note or third party adjustment note.
S 153-10(1) amended by No 21 of 2010, s 3 and Sch 1 items 14 and 15, by inserting "or *third party adjustment note" after "*adjustment note" in para (b) and inserting "or third party adjustment note" at the end of para (d), applicable in relation to payments made on or after 1 July 2010.
This section has effect despite subsections 29-20(3) (which is about the requirement to hold an adjustment note) and 134-15(1) (which is about the requirement to hold a third party adjustment note).
S 153-10(2) substituted by No 21 of 2010, s 3 and Sch 1 item 16, applicable in relation to payments made on or after 1 July 2010. S 153-10(2) formerly read:
(2)
This section has effect despite subsection 29-20(3) (which is about the requirement to hold an adjustment note).
153-15
Tax invoices
(1)
If you make a *taxable supply through an agent, an obligation to issue a *tax invoice relating to the supply:
(a)
arises whether the *recipient makes a request for a tax invoice to you or the agent; and
(b)
is complied with if either you or the agent gives the recipient a tax invoice within 28 days after the request.
(2)
However, you and the agent must not both issue separate *tax invoices relating to the supply.
Note:
If Subdivision 153-B is to apply to the supply, there will be an arrangement under which only your agent can issue the tax invoice: see paragraph 153-50(1)(d).
S 153-15(2) amended by No 20 of 2010, s 3 and Sch 3 item 3, by substituting the note, applicable in relation to supplies and acquisitions made on or after 1 July 2010. The note formerly read:
If you have a *decreasing adjustment relating to a supply made by you through an agent or made to you through an agent, an obligation under subsection 29-75(2) to issue an *adjustment note for the adjustment, or an obligation under subsection 134-20(2) to issue a *third party adjustment note for the adjustment:
(a)
arises whether the *recipient makes a request for an adjustment note or a third party adjustment note to you or the agent; and
(b)
is complied with if either you or your agent gives the recipient an adjustment note or a third party adjustment note within 28 days after the request.
S 153-20(1) amended by No 21 of 2010, s 3 and Sch 1 items 17 and 18, by inserting ", or an obligation under subsection 134-20(2) to issue a *third party adjustment note for the adjustment" after "for the adjustment" and inserting "or a third party adjustment note" after "an adjustment note" in paras (a) and (b), applicable in relation to payments made on or after 1 July 2010.
S 153-20(2) amended by No 21 of 2010, s 3 and Sch 1 item 19, by inserting "or *third party adjustment notes" after "*adjustment notes", applicable in relation to payments made on or after 1 July 2010.
S 153-20(3) substituted by No 21 of 2010, s 3 and Sch 1 item 20, applicable in relation to payments made on or after 1 July 2010. S 153-20(3) formerly read:
(3)
This section has effect despite section 29-75 (which is about adjustment notes).
153-25
Insurance supplied through insurance brokers
If an insurer supplies an *insurance policy through an *insurance broker acting on behalf of the *recipient of the supply, this Subdivision has effect as if the supply were made through the insurance broker as an agent of the insurer.
This section does not affect the application of this Subdivision in relation to the acquisition of the *insurance policy through the insurance broker as an agent of the *recipient.
Act No 32 of 2006, s 3 and Sch 4 item 21 contained the following transitional provision, effective 6 April 2006.
Transitional provision
(1)
This item applies if:
(a)
a supplier of telecommunications supplies entered into an arrangement under section 153-50 of the A New Tax System (Goods and Services Tax) Act 1999 before 6 April 2006; and
(b)
the arrangement applies wholly or partly to prepaid phone cards or facilities; and
(c)
to the extent that the arrangement applies to those cards or facilities, section 153-55 of that Act did not apply to the supply of those cards or facilities merely because:
(i)
the supply was not a taxable supply; or
(ii)
the supply was not a taxable supply and another party to the arrangement was not an agent of the supplier of telecommunications supplies.
(2)
To the extent that the arrangement applies to supplies of prepaid phone cards or facilities made on or after 6 April 2006, the arrangement is taken to have effect under Subdivision 153-B of the A New Tax System (Goods and Services Tax) Act 1999 as if:
(a)
those supplies were taxable supplies; and
(b)
if subparagraph (1)(c)(ii) applies - that other party supplies those cards or facilities as the agent of the supplier of telecommunications supplies.
Subdiv 153-B heading substituted by No 20 of 2010, s 3 and Sch 3 item 4, applicable in relation to supplies and acquisitions made on or after 1 July 2010. The heading formerly read:
Subdivision 153-B - Principals and agents as separate suppliers or acquirers
Subdiv 153-B inserted by No 92 of 2000, s 3 and Sch 4 item 8, effective 1 July 2000.
153-50
Arrangements under which intermediaries are treated as suppliers or acquirers
(1)
An entity (the
principal) may, in writing, enter into an arrangement with another entity (the
intermediary) under which:
(a)
the intermediary will, on the principal's behalf, do any or all of the following:
(i)
make supplies to third parties;
(ii)
facilitate supplies to third parties (including by issuing *invoices relating to, or receiving *consideration for, such supplies);
(iii)
make acquisitions from third parties;
(iv)
facilitate acquisitions from third parties (including by providing consideration for such acquisitions); and
(b)
the kinds of supplies or acquisitions, or the kinds of supplies and acquisitions, to which the arrangement applies are specified; and
(c)
for the purposes of the GST law:
(i)
the intermediary will be treated as making the supplies to the third parties, or acquisitions from the third parties, or both; and
(ii)
the principal will be treated as making corresponding supplies to the intermediary, or corresponding acquisitions from the intermediary, or both; and
(d)
in the case of supplies to third parties:
(i)
the intermediary will issue to the third parties, in the intermediary's own name, all the *tax invoices and *adjustment notes relating to those supplies; and
(ii)
the principal will not issue to the third parties any tax invoices and adjustment notes relating to those supplies; and
S 153-50(1) amended by No 41 of 2011, s 3 and Sch 5 item 1, by substituting "intermediary's" for "agent's" in para (d)(i), effective 27 June 2011.
S 153-50(1) amended by No 20 of 2010, s 3 and Sch 3 items 6 to 9, by inserting "(1)" before "An", substituting "(the
intermediary)" for "(the
agent)", substituting para (a) and substituting "intermediary" for "agent" (wherever occurring) in paras (c), (d) and (e), applicable in relation to supplies and acquisitions made on or after 1 July 2010. Para (a) formerly read:
(a)
the agent will, on the principal's behalf:
(i)
make supplies to third parties; or
(ii)
make acquisitions from third parties; or
(iii)
make both supplies to third parties and acquisitions from third parties; and
A *taxable supply that the principal makes to a third party through the intermediary is taken to be a supply that is a taxable supply made by the intermediary to the third party, and not by the principal, if:
(a)
the supply is of a kind to which the arrangement applies; and
(b)
the supply is made in accordance with the arrangement; and
(c)
both the principal and the intermediary are *registered.
S 153-55(1) amended by No 20 of 2010, s 3 and Sch 3 item 11, by substituting "intermediary" for "agent" (wherever occurring), applicable in relation to supplies and acquisitions made on or after 1 July 2010.
In addition, the principal is taken to make a supply that is a *taxable supply to the intermediary. This supply is taken:
(a)
to be a supply of the same thing as is supplied in the taxable supply (the
intermediary's supply) that the intermediary is taken to make; and
S 153-55(2) amended by No 20 of 2010, s 3 and Sch 3 items 12 to 15, by substituting "to the intermediary" for "to the agent", substituting "
intermediary's supply) that the intermediary" for "
agent's supply) that the agent" in para (a), substituting "intermediary in respect of the intermediary's" for "agent in respect of the agent's" in para (b), and substituting "The intermediary" for "The agent", applicable in relation to supplies and acquisitions made on or after 1 July 2010.
If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the intermediary for the intermediary's supply to the third party:
(a)
for the purpose of paragraph (2)(b), the amount payable by the intermediary to the principal is taken to be reduced by the amount the principal pays, or is liable to pay, to the intermediary; and
S 153-55(3) amended by No 20 of 2010, s 3 and Sch 3 items 16 and 17, by substituting "intermediary for the intermediary's" for "agent for the agent's" and substituting "intermediary" for "agent" (wherever occurring) in paras (a) and (b), applicable in relation to supplies and acquisitions made on or after 1 July 2010.
(4)
However, this section no longer applies, and is taken never to have applied, if the principal issues to the third party, in the principal's own name, any *tax invoice or *adjustment note relating to the supply.
(4A)
S 153-55(4A) amended by No 77 of 2017, s 3 and Sch 1 items 50 and 51, by inserting "or section 84-81" and substituting the note, effective 1 July 2017. For application provisions, see note under Div 146 heading. The note formerly read:
Note:
Under section 84-55, an inbound intangible consumer supply made through an electronic distribution platform (or a supply that is taken to be such a supply because of section 84-60) is treated as having been made by the operator of the platform.
S 153-55(4A) inserted by No 52 of 2016, s 3 and Sch 1 item 27, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
(5)
This section has effect despite section 9-5 (which is about what are taxable supplies), section 9-75 (which is about the value of taxable supplies) and section 11-5 (which is about what are creditable acquisitions).
An acquisition that the principal makes from a third party through the intermediary is taken to be a *creditable acquisition made by the intermediary from the third party, and not by the principal, if:
(a)
the acquisition is of a kind to which the arrangement applies; and
(b)
the acquisition is made in accordance with the arrangement; and
(c)
both the principal and the intermediary are *registered.
S 153-60(1) amended by No 20 of 2010, s 3 and Sch 3 item 18, by substituting "intermediary" for "agent" (wherever occurring), applicable in relation to supplies and acquisitions made on or after 1 July 2010.
In addition, the intermediary is taken to make a supply that is a *taxable supply to the principal. This supply is taken:
(a)
to be a supply of the same thing as is acquired in the *creditable acquisition (the
intermediary's acquisition) that the intermediary is taken to make; and
The principal is taken to make a corresponding acquisition from the intermediary, and the acquisition is taken to be a creditable acquisition if, apart from this section, the principal's acquisition from the third party would have been a creditable acquisition.
S 153-60(2) amended by No 20 of 2010, s 3 and Sch 3 items 19 to 22, by substituting ", the intermediary" for ", the agent", substituting "
intermediary's acquisition) that the intermediary" for "
agent's acquisition) that the agent" in para (a), substituting "intermediary by the principal in respect of the intermediary's" for "agent by the principal in respect of the agent's" in para (b), and substituting "from the intermediary" for "from the agent", applicable in relation to supplies and acquisitions made on or after 1 July 2010.
If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the intermediary for the intermediary's acquisition from the third party:
(a)
for the purpose of paragraph (2)(b), the amount payable by the principal to the intermediary is taken to be increased by the amount the principal pays, or is liable to pay, to the intermediary; and
S 153-60(3) amended by No 20 of 2010, s 3 and Sch 3 items 23 and 24, by substituting "intermediary for the intermediary's" for "agent for the agent's" and substituting "intermediary" for "agent" (wherever occurring) in paras (a) and (b), applicable in relation to supplies and acquisitions made on or after 1 July 2010.
This section does not apply in relation to an acquisition if section 84-55 applies to the supply to which the acquisition relates.
Note:
Under section 84-55, an inbound intangible consumer supply, or an offshore supply of low value goods, made through an electronic distribution platform (or a supply that is taken to be such a supply because of section 84-60) is treated as having been made by the operator of the platform.
S 153-60(3A) amended by No 77 of 2017, s 3 and Sch 1 item 52, by inserting ", or an offshore supply of low value goods," in note, effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 153-60(3A) inserted by No 52 of 2016, s 3 and Sch 1 item 28, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
(4)
This section has effect despite section 11-5 (which is about what are creditable acquisitions), section 11-10 (which is about what are acquisitions), section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).
The Commissioner may determine in writing that:
(a)
supplies of a specified kind to third parties that any entity (the
intermediary) makes or facilitates (including by issuing *invoices relating to, or receiving *consideration for, such supplies) on behalf of any other entity (the
principal); or
(b)
acquisitions of a specified kind from third parties that any entity (the
intermediary) makes or facilitates (including by providing consideration for such acquisitions) on behalf of any other entity (the
principal);
are taken to be supplies or acquisitions that are of a kind to which an arrangement of a kind referred to in section 153-50 applies, and that are made in accordance with that arrangement.
S 153-65(1) substituted by No 20 of 2010, s 3 and Sch 3 item 25, applicable in relation to supplies and acquisitions made on or after 1 July 2010. S 153-65(1) formerly read:
(1)
The Commissioner may determine in writing that supplies or acquisitions of a specified kind that any entity (the
agent) makes on behalf of any other entity (the
principal) to or from third parties are taken to be supplies or acquisitions:
(a)
that are of a kind to which an arrangement of a kind referred to in section 153-50 applies; and
(b)
that are made in accordance with that arrangement.
The determination has effect accordingly, unless either the intermediary or the principal notifies the other in writing, or both notify each other in writing, that:
(a)
any supplies to third parties that the intermediary makes or facilitates (including by issuing *invoices relating to, or receiving *consideration for, such supplies) on the principal's behalf are not supplies to which such an arrangement applies; and
(b)
any acquisitions from third parties that the intermediary makes or facilitates (including by providing consideration for such acquisitions) on the principal's behalf are not acquisitions to which such an arrangement applies.
S 153-65(2) amended by No 20 of 2010, s 3 and Sch 3 items 26 to 28, by substituting "either the intermediary" for "either the agent", substituting "to third parties that the intermediary makes or facilitates (including by issuing *invoices relating to, or receiving *consideration for, such supplies)" for "that the agent makes to third parties" in para (a), and substituting "from third parties that the intermediary makes or facilitates (including by providing consideration for such acquisitions)" for "that the agent makes from third parties" in para (b), applicable in relation to supplies and acquisitions made on or after 1 July 2010.
S 153-65 inserted by No 92 of 2000, s 3 and Sch 4 item 8, effective 1 July 2000.
Division 156 - Supplies and acquisitions made on a progressive or periodic basis
156-1
What this Division is about
Supplies and acquisitions made for a period or on a progressive basis are treated as separate supplies or acquisitions for some purposes, in particular the attribution rules.
156-5
Attributing the GST on progressive or periodic supplies
(1)
The GST payable by you on a *taxable supply that is made:
(a)
for a period or on a progressive basis; and
(b)
for *consideration that is to be provided on a progressive or periodic basis;
is attributable, in accordance with section 29-5, as if each progressive or periodic component of the supply were a separate supply.
S 156-5(1) amended by No 177 of 1999, s 3 and Sch 1 item 112, by substituting ``, in accordance with section 29-5,'' for ``to one or more tax periods'', effective 1 July 2000.
If the progressive or periodic components of such a supply are not readily identifiable, the components correspond to the proportion of the total *consideration for the supply that the separate amounts of consideration represent.
The input tax credit to which you are entitled for a *creditable acquisition that is made:
(a)
for a period or on a progressive basis; and
(b)
for *consideration that is to be provided on a progressive or periodic basis;
is attributable, in accordance with section 29-10, as if each progressive or periodic component of the acquisition were a separate acquisition.
S 156-10(1) amended by No 177 of 1999, s 3 and Sch 1 item 114, by substituting ``, in accordance with section 29-10,'' for ``to one or more tax periods'', effective 1 July 2000.
If the progressive or periodic components of such an acquisition are not readily identifiable, the components correspond to the proportion of the total *consideration for the acquisition that the separate amounts of consideration represent.
If:
(a)
a *taxable supply is made for a period or on a progressive basis; and
(b)
the supply is made for *consideration that is to be provided on a progressive or periodic basis; and
(c)
the whole of a progressive or periodic component of the supply would not be *connected with the indirect tax zone if it were a separate supply;
that component is treated as if it were a separate supply that is not connected with the indirect tax zone.
S 156-15(1) substituted by No 176 of 1999, s 3 and Sch 1 item 119, effective 1 July 2000. S 156-15(1) formerly read:
(1)
If the whole of a progressive or periodic component of a *taxable supply referred to in section 156-5 would not be *connected with Australia if it were a separate supply, that component is treated as if it were a separate supply that is not connected with Australia.
(2)
This section has effect despite section 9-25 (which is about when supplies are connected with the indirect tax zone) and Division 96.
S 156-15 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
156-17
Application of Division 58 to progressive or periodic supplies and acquisitions
(1)
A supply that is made:
(a)
for a period or on a progressive basis; and
(b)
for *consideration that is to be provided on a progressive or periodic basis;
is treated, for the purposes of Division 58 (which is about representatives of incapacitated entities), as if each progressive or periodic component of the supply were a separate supply.
(2)
An acquisition that is made:
(a)
for a period or on a progressive basis; and
(b)
for *consideration that is to be provided on a progressive or periodic basis;
is treated, for the purposes of Division 58 (which is about representatives of incapacitated entities), as if each progressive or periodic component of the acquisition were a separate acquisition.
S 156-17 inserted by No 118 of 2009, s 3 and Sch 1 item 35, effective 4 December 2009.
156-20
Application of Division 129 to progressive or periodic acquisitions
An acquisition that is made:
(a)
for a period or on a progressive basis; and
(b)
for *consideration that is to be provided on a progressive or periodic basis;
is treated, for the purposes of Division 129 (which is about changes in the extent of creditable purpose), as if each progressive or periodic component of the acquisition were a separate acquisition.
156-22
Leases etc. treated as being on a progressive or periodic basis
For the purposes of this Division, a supply or acquisition by way of lease, hire or similar arrangement is to be treated as a supply or acquisition that is made on a progressive or periodic basis, for the period of the lease, hire or arrangement.
For the purposes of this Division, a supply or acquisition of goods or credit under a *hire purchase agreement is treated as not being a supply or acquisition made on a progressive or periodic basis.
S 156-25 amended by No 118 of 2009, s 3 and Sch 1 item 36, by substituting "sections 156-15 and 156-17" for "section 156-15", effective 4 December 2009.
S 156-25 amended by No 176 of 1999, s 3 and Sch 1 item 121, by inserting "(other than section 156-15)", effective 1 July 2000.
The choice available to an endorsed charity, gift-deductible entity or government school to account on a cash basis is not restricted as it is for other entities, but other restrictions may apply.
S 157-1 amended by No 169 of 2012, s 3 and Sch 2 item 113, by substituting "an endorsed charity" for "a charitable institution, trustee of a charitable fund", effective 3 December 2012.
S 157-1 inserted by No 80 of 2006, s 3 and Sch 12 item 14, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
157-5
Charities etc. choosing to account on a cash basis
S 157-5(1) amended by No 169 of 2012, s 3 and Sch 2 items 115 and 116, by substituting "An *endorsed charity" for "A charitable institution, a trustee of a charitable fund" and "endorsed charity" for "institution, trustee", effective 3 December 2012.
S 157-5(2) repealed by No 169 of 2012, s 3 and Sch 2 item 117, effective 3 December 2012. S 157-5(2) formerly read:
(2)
This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
This section does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
(3)
This section does not apply in relation to a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless the entity is:
(a)
an *endorsed charity; or
(b)
a *government school; or
(c)
a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997.
Note:
This subsection excludes from this section certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution.
S 157-10(1) amended by No 169 of 2012, s 3 and Sch 2 item 120, by substituting "*endorsed charity" for "charitable institution, any trustee of a charitable fund", effective 3 December 2012.
S 157-10(1) amended by No 80 of 2007, s 3 and Sch 2 item 29, by substituting "Paragraphs 29-50(1)(a) and (ab)" for "Paragraph 29-50(1)(a)", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 157-10(2) repealed by No 169 of 2012, s 3 and Sch 2 item 121, effective 3 December 2012. S 157-10(2) formerly read:
(2)
This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example:
This section does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
(3)
This section does not apply in relation to a *gift-deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30-120 of the ITAA 1997, unless the entity is:
(a)
an *endorsed charity; or
(b)
a *government school; or
(c)
a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997.
Note:
This subsection excludes from this section certain (but not all) gift-deductible entities that are only endorsed for the operation of a fund, authority or institution.
(1)
This section applies if you *account on a cash basis.
(2)
This Act and the regulations apply in relation to:
(a)
an acquisition you make under a *hire purchase agreement; or
(b)
an input tax credit to which you are entitled, or an *adjustment you have, under subsection 58-10(1) for an acquisition made under a hire purchase agreement;
S 158-5 inserted by No 12 of 2012, s 3 and Sch 3 item 10, applicable in relation to hire purchase agreements entered into on or after 1 July 2012.
Division 159 - Changing your accounting basis
159-1
What this Division is about
This Division tells you to which tax periods to attribute any supplies and acquisitions that are affected by a change in your accounting basis, and how to treat bad debts if your accounting basis changes.
159-5
Ceasing to account on a cash basis - amounts not previously attributed
(1)
The GST payable by you on a *taxable supply, the input tax credit to which you are entitled for a *creditable acquisition, or an *adjustment that you have, is attributable to a particular tax period (the
transition tax period), and not to any other tax period, if:
(a)
at the start of the transition tax period, you cease to *account on a cash basis; and
(b)
the GST on the supply, the input tax credit on the acquisition, or the adjustment, was not attributable, to any extent, to a previous tax period during which you accounted on a cash basis; and
(c)
it would have been attributable to that previous tax period had you not accounted on a cash basis during that period.
In tax period A in the following diagram, you issue an invoice for a supply that you made, but you receive no payment for the supply until tax period D. However, you cease to account on a cash basis at the start of tax period C (which is therefore the transition tax period).
Under section 29-5, the supply was not attributable to tax period A (because at the time you were accounting on a cash basis), but it would have been attributable to that period if you had not been accounting on a cash basis (because you issued the invoice in that period). Therefore the supply is attributable to tax period C (the transition tax period).
(2)
This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.
159-10
Ceasing to account on a cash basis - amounts partly attributed
(1)
The GST payable by you on a *taxable supply, the input tax credit to which you are entitled for a *creditable acquisition, or an *adjustment that you have, is attributable to a particular tax period (the
transition tax period), and not to any other tax period, if:
(a)
at the start of the transition tax period, you cease to *account on a cash basis; and
(b)
the GST on the supply, the input tax credit on the acquisition, or the adjustment, was only to some extent attributable to a previous tax period during which you accounted on a cash basis; and
(c)
it would have been attributable solely to that previous tax period had you not accounted on a cash basis during that period.
(2)
However, the GST on the supply, the input tax credit on the acquisition, or the adjustment, is attributable to the transition tax period only to the extent that it has not been previously attributed to one or more of those previous tax periods.
Take the example in section 159-5 as changed in the following diagram so that you receive part of the payment for the supply in tax period A. The transition tax period is still tax period C.
Under section 29-5, the supply was to some extent attributable to tax period A, but it would have been attributable only to that tax period if you had not been accounting on a cash basis. Therefore the supply is attributable to tax period C (the transition tax period), but only to the extent that it is not attributable to tax period A.
(3)
This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.
159-15
Ceasing to account on a cash basis - bad debts
(1)
If:
(a)
the GST payable by you on a *taxable supply or the input tax credit to which you are entitled for a *creditable acquisition is attributable to a particular tax period (the transition tax period) under section 159-5 or 159-10; and
(b)
before the start of the transition tax period, the whole or part of a debt relating to the *consideration for the supply or acquisition is written off as bad;
then:
(c)
the amount written off, and any part of that amount recovered before the start of the transition tax period, is to be treated, for the purposes of Division 21, as if at all relevant times you were not *accounting on a cash basis; and
(d)
any adjustment arising under Division 21 as a result is attributable to the transition tax period.
(2)
This section has effect despite subsections 21-5(2) and 21-15(2) (which preclude adjustments for bad debts when accounting on a cash basis) and section 29-20 (which is about attributing adjustments).
159-20
Starting to account on a cash basis
(1)
If, at the start of a tax period, you start to *account on a cash basis, then:
(a)
the GST payable by you on a *taxable supply that you made; or
(b)
the input tax credit to which you are entitled for a *creditable acquisition; or
(c)
an *adjustment that you have;
that was attributable to one or more previous tax periods remains attributable to those periods, and not to any other tax period.
(2)
This section has effect despite sections 29-5, 29-10 and 29-20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.
159-25
Starting to account on a cash basis - bad debts
(1)
If:
(a)
the GST payable by you on a *taxable supply, or the input tax credit to which you are entitled for a *creditable acquisition, was attributable to a tax period during which you were not *accounting on a cash basis; and
(b)
at a time when you are accounting on a cash basis, the whole or part of a debt relating to the *consideration for the supply or acquisition is written off as bad;
the amount written off, and any part of that amount that is recovered, is to be treated, for the purposes of Division 21, as if at all relevant times you were not accounting on a cash basis.
(2)
This section has effect despite subsections 21-5(2) and 21-15(2) (which preclude adjustments for bad debts when accounting on a cash basis).
159-30
Entities ceasing to exist or coming into existence
This Division does not apply in relation to an entity ceasing to *account on a cash basis as it ceases to exist, or in relation to an entity starting to account on a cash basis as it comes into existence.
Part 4-7 - Special rules mainly about returns, payments and refunds
Note:
The special rules in this Part mainly modify the operation of Part 2-7, but they may affect other Parts of Chapter 2 in minor ways.
You may be able to elect to pay GST by instalments. If you do, GST returns are given to the Commissioner annually, and quarterly instalments of GST are paid on the basis of the Commissioner's or your estimates of what your annual GST liability will be (followed by a reconciliation based on the annual GST return).
If you can average your income for income tax purposes, you only pay the last 2 quarterly instalments.
Note:
In some cases, you will only pay the last 2 quarterly instalments: see section 162-105.
S 162-1 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Subdivision 162-A - Electing to pay GST by instalments
(b)
the current tax period applying to you is not affected by:
(i)
an election under section 27-10 (election of one month tax periods); or
(ii)
a determination under section 27-15 (determination of one month tax periods); or
(iii)
a determination under section 27-37 (special determination of tax periods on request); and
(c)
your *current GST lodgment record is at least 4 months; and
(d)
you have complied with all your obligations to give *GST returns to the Commissioner; and
(e)
S 162-5(1) amended by No 52 of 2016, s 3 and Sch 1 items 29 and 30, by substituting "position; and" for "position." in para (e) and inserting para (f), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 162-5(1) amended by No 80 of 2007, s 3 and Sch 2 item 30, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
(a)
you do not exceed the *instalment turnover threshold; and
(2)
The
instalment turnover threshold is:
(a)
$2 million; or
(b)
such higher amount as the regulations specify.
(3)
You are in a
net refund position if the sum of all your *assessed net amounts is less than zero, for the tax periods for which *GST returns fell due during the period referred to in the relevant item in the third column of this table.
When you are in a net refund position
Item
If your *current GST lodgment record is …
Take into account this period to work out whether you are in a net refund position:
1
at least 13 months
the 12 months preceding the current tax period applying to you
S 162-5(3) amended by No 39 of 2012, s 3 and Sch 1 item 101, by substituting "*assessed net amounts" for "*net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-5(4) repealed by No 39 of 2012, s 3 and Sch 4 item 6, effective 15 April 2012. S 162-5(4) formerly read:
(4)
In working out *net amounts for the purposes of subsection (3), disregard any entitlements you had to special credits, under section 16 of the A New Tax System (Goods and Services Tax Transition) Act 1999, that were attributable to any of the tax periods referred to in that subsection.
S 162-5 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
(1)
If you are not a *member of a *GST group, your
current GST lodgment record is the period, immediately preceding the current tax period applying to you, that is covered by tax periods applying to you for which you have given *GST returns to the Commissioner.
(2)
If you are a *member of a *GST group, your
current GST lodgment record is the period, immediately preceding the current tax period applying to you, that is covered by tax periods applying to you:
(a)
for which you have given *GST returns to the Commissioner; and
(b)
during which the membership of the GST group has not changed.
(3)
However, if you have been (but are not currently) the *representative member of a *GST group, any tax periods applying to you during which you were such a representative member are not to be counted towards your current GST lodgment record.
S 162-10 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
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; 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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 162-15(2) amended by No 73 of 2006, s 3 and Sch 5 item 129, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 162-15(2) substituted for subsec (2), (3) and (4) by No 134 of 2004, s 3 and Sch 3 item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. S 162-15(2) formerly read:
(2)
However, the Commissioner may disallow your election, even though you are eligible under section 162-5, if the Commissioner is satisfied that you have a history of failing to comply with 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).
S 162-15(2) substituted for subsec (2), (3) and (4) by No 134 of 2004, s 3 and Sch 3 item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. S 162-15(3) formerly read:
(3)
If your election is disallowed, it is taken never to have had effect.
S 162-15(2) substituted for subsec (2), (3) and (4) by No 134 of 2004, s 3 and Sch 3 item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. S 162-15(4) formerly read:
(4)
Your election cannot relate to more than one *financial year.
S 162-15 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
CCH Note
Act No 80 of 2007, s 3 and Sch 2 item 70, contained the following transitional provision:
70 Transitional - election to pay GST by instalments
(1)
This item applies to you if:
(a)
before 1 July 2007, you made an election to pay GST by instalments under subsection 162-15(1) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b)
your election was in effect immediately before 1 July 2007.
(2)
If you are carrying on a business on 1 July 2007, your election continues to have effect as if subparagraph 162-5(1)(a)(i) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule, applied.
(3)
If you are not carrying on a business on 1 July 2007, your election continues to have effect as if subparagraph 162-5(1)(a)(ii) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule, applied.
162-20
Elections by representative members of GST groups
(1) A *representative member of a *GST group cannot elect to pay GST by instalments unless each *member of the GST group is eligible under section 162-5.
(2)
If the *representative member makes such an election, the *instalment tax period applying to the representative member also applies to each member. However, the members other than the representative member are not *GST instalment payers.
S 162-20 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
(1)
You must make your election on or before 28 October in the *financial year to which it relates.
(2)
However, if:
(a)
during the *financial year but after 28 October in that financial year, you became eligible under section 162-5 to elect to pay GST by instalments; and
(b)
this subsection had not applied to you before; and
(c)
your *current GST lodgment record is not more than 6 months;
you must make your election on or before the first day, after becoming eligible under section 162-5, on which you would, but for this Division, be required under section 31-8 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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 162-25(3) amended by No 73 of 2006, s 3 and Sch 5 item 130, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 162-25 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
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)
in a case to which subparagraph 162-5(1)(a)(i) applied - you are not a *small business entity of the kind referred to in that subparagraph for an *income year; or
(ca)
in a case to which subparagraph 162-5(1)(a)(ii) applied - on 31 July in a *financial year, you do not satisfy the requirements of that subparagraph; or
Your election also ceases to have effect at the end of your tax period under subsection 27-39(1), 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 162-85(1) applies.
S 162-30(1) amended by No 52 of 2016, s 3 and Sch 1 item 31, by inserting para (d), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 162-30(1) amended by No 85 of 2013, s 3 and Sch 3 item 1, by repealing para (d), applicable in relation to GST instalment quarters starting on or after 1 July 2013. Para (d) formerly read:
(d)
during the first tax period applying to you in a financial year, you are in a *net refund position; or
S 162-30(1) amended by No 118 of 2009, s 3 and Sch 1 item 37, by inserting "tax period under subsection 27-39(1), at the end of your" after "at the end of your", effective 4 December 2009.
S 162-30(1) amended by No 80 of 2007, s 3 and Sch 2 item 31, by substituting paras (c) and (ca) for para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (c) formerly read:
(c)
on 31 July in a *financial year, your *annual turnover exceeds the *instalment turnover threshold; or
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 Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 162-30(3) amended by No 73 of 2006, s 3 and Sch 5 item 131, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(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.
Not being a small business entity for an income year
(5)
S 162-30(5) amended by No 80 of 2007, s 3 and Sch 2 items 32 and 33, by substituting "1 July in the *income year" for "the start of the *financial year", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Failing to satisfy the requirements of subparagraph 162-5(1)(a)(ii)
(5A)
If paragraph (1)(ca) applies, your election is taken to have ceased to have effect from the start of the *financial year referred to in that paragraph.
S 162-30(6) inserted by No 52 of 2016, s 3 and Sch 1 item 32, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Former s 162-30(6) repealed by No 85 of 2013, s 3 and Sch 3 item 2, applicable in relation to GST instalment quarters starting on or after 1 July 2013. S 162-30(6) formerly read:
Being in a net refund position
(6)
If paragraph (1)(d) applies, your election is taken to have ceased to have effect from the start of the *financial year referred to in that paragraph.
S 162-30 substituted by No 134 of 2004, s 3 and Sch 3 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. S 162-30 formerly read:
Duration of your election
(1)
Your election has effect, and is taken to have had effect, for the whole of the *financial year in question.
(2)
However, if:
(a)
you make your election after 28 October in that *financial year; and
(b)
part of that financial year is already covered by one or more tax periods for which you have given the Commissioner a *GST return;
your election has effect, and is taken to have had effect, only for the part of that financial year that is not covered by those tax periods.
(3)
Your election does not cease to have effect because, after making the election, you exceed the *instalment turnover threshold at any time.
S 162-30 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Subdivision 162-B - Consequences of electing to pay GST by instalments
S 162-50(2) amended by No 134 of 2004, s 3 and Sch 3 item 7, by substituting "any" for "the", applicable in relation to net amounts for tax periods starting on or after 1 July 2005.
(3)
However, if your election has effect only for part of a *financial year, you are a
GST instalment payer only for that part of that financial year.
S 162-50 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
(1)
The tax period that applies to you, if you are a *GST instalment payer for a *financial year, is that financial year.
(2)
The tax period that applies to you, if you are a *GST instalment payer only for part of a *financial year, is that part of that financial year.
(3)
A tax period under this section is an
instalment tax period.
(4)
This section has effect despite sections 27-5, 27-10, 27-15 and 27-30 (which are about tax periods).
S 162-55 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-60
When GST returns for GST instalment payers must be given
(1)
You must give your *GST return for the *instalment 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 instalment tax period applying to you - within the period, specified in the instrument made under that section, 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 instalment 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.
S 162-60(1) amended by No 64 of 2020, s 3 and Sch 3 item 154, by substituting "instrument made" for "notice published in the Gazette" in para (a), effective 1 October 2020.
(2)
However, in relation to an *instalment tax period that:
(a)
ends on 30 June 2001; or
(b)
would have ended on 30 June 2001 but for the application of section 27-35;
the period referred to in paragraph (1)(a) that would otherwise end after 28 February 2002 is taken to end on that day.
Note:
Under section 27-35, the start or finish of a 3 month tax period could vary by up to 7 days from the start or finish of a normal quarter.
(3)
This section has effect despite sections 31-8 and 31-10 (which are about when GST returns must be given).
S 162-60 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-65
The form and contents of GST returns for GST instalment payers
(1)
If you are a *GST instalment payer only for part of a *financial year, the *approved form for your *GST return for the *instalment tax period consisting of that part of the financial year may require that the return relate to:
(a)
the instalment tax period; and
(b)
the one or more preceding tax periods applying to you that fall within the financial year;
as if they are a single tax period consisting of the whole of the financial year.
(2)
This section has effect in addition to, and does not limit the scope of, section 31-15 (which is about the form and contents of GST returns).
S 162-65 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
GST instalments are worked out under Subdivision 162-C.
Note 2:
Entities covered by section 162-80 only pay GST instalments on the last 2 GST instalment quarters.
(2)
These are the
GST instalment quarters for an *instalment tax period:
(a)
the 3 months ending on 30 September during the period;
(b)
the 3 months ending on 31 December during the period;
(c)
the 3 months ending on 31 March during the period;
(d)
the 3 months ending on 30 June during the period.
(3)
However, if the *instalment tax period is only part of a *financial year, any 3 month periods referred to in subsection (2) that do not form part of the instalment tax period are not GST instalment quarters of the instalment tax period.
(4)
You must pay your *GST instalment to the Commissioner as follows:
When GST instalments must be paid
Item
If the GST instalment quarter ends on this day …
Pay the GST instalment to the Commissioner on or before this day:
1
30 September
the following 28 October
2
31 December
the following 28 February
3
31 March
the following 28 April
4
30 June
the following 28 July
Note:
Section 255-10 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for payment of the GST instalment.
(5)
You may pay by *electronic payment any *GST instalments payable by you. Any amounts of a GST instalment that you do not pay by electronic payment must be paid in the manner determined in writing by the Commissioner.
S 162-70 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 162-75 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-80
Certain entities pay only 2 GST instalments for each year
(ii)
the *assessable income that was *derived from, or resulted from, a primary production business that you carried on in the *base year exceeded the amount of so much of your deductions in that year that are reasonably related to that income; or
(b)
both of the following conditions are satisfied:
(i)
you are a *special professional in an income year corresponding to, or ending during, the instalment tax period;
(ii)
your *assessable professional income in the base year exceeded the amount of so much of your deductions in that year that are reasonably related to that income.
S 162-80 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-85
A GST instalment payer's concluding tax period
(1)
If any of the following occurs:
(a)
a *GST instalment payer who is an individual dies;
(b)
a GST instalment payer ceases to *carry on any *enterprise;
(c)
a GST instalment payer's *registration is cancelled;
during an *instalment tax period applying to the GST instalment payer, the instalment tax period is not affected by the death, cessation or cancellation.
(2)
However, any requirement to pay *GST instalments for a *GST instalment quarter of the *instalment tax period does not apply if the GST instalment quarter commences after:
(a)
the death or cessation occurred; or
(b)
the cancellation took effect.
(3)
This section has effect despite sections 27-40 (which is about an entity's concluding tax period) and 162-70.
(4)
However, this section does not affect the application of:
(a)
section 27-39; or
(b)
if a *GST instalment payer for any reason ceases to exist - section 27-40.
S 162-85(4) substituted by No 118 of 2009, s 3 and Sch 1 item 38, effective 4 December 2009. S 162-85(4) formerly read:
(4)
However, this section does not affect the application of those sections if:
(a)
a *GST instalment payer who is an individual becomes bankrupt; or
(b)
a GST instalment payer that is not an individual goes into liquidation or receivership or for any reason ceases to exist.
S 162-85 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
If a *GST instalment payer becomes an *incapacitated entity, or for any reason ceases to exist, the GST instalment payer must give the *GST return, for the *instalment tax period that ends as a result, to the Commissioner:
(a)
on or before the 21st day of the month following the end of the instalment tax period; or
(b)
within such further period as the Commissioner allows.
S 162-90(1) substituted by No 118 of 2009, s 3 and Sch 1 item 40, effective 4 December 2009. S 162-90(1) formerly read:
(1)
If:
(a)
a *GST instalment payer who is an individual becomes bankrupt; or
(b)
a GST instalment payer that is not an individual goes into liquidation or receivership or for any reason ceases to exist;
the GST instalment payer must give the *GST return, for the *instalment 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 instalment tax period; or
(d)
within such further period as the Commissioner allows.
If the *assessed net amount for the *instalment tax period is greater than zero, the *GST instalment payer must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of the instalment tax period.
S 162-90(2) amended by No 39 of 2012, s 3 and Sch 1 items 102 and 103, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
This section has effect despite sections 162-60 (which is about when GST instalment payers must give GST returns) and 162-110 (which is about when GST instalment payers must pay assessed net amounts).
S 162-90(3) amended by No 39 of 2012, s 3 and Sch 1 item 104, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-90 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-95
The effect of changing the membership of GST groups
the instalment 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 *instalment tax period to the Commissioner:
(a)
on or before the 21st day of the month following the end of the instalment tax period; or
(b)
within such further period as the Commissioner allows.
(3)
S 162-95(3) amended by No 39 of 2012, s 3 and Sch 1 items 105 and 106, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
This section has effect despite sections 162-55 (which is about tax periods for GST instalment payers), 162-60 (which is about when GST instalment payers must give GST returns) and 162-110 (which is about when GST instalment payers must pay assessed net amounts).
S 162-95(4) amended by No 39 of 2012, s 3 and Sch 1 item 107, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-95 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
If you fail to pay some or all of a *GST instalment by the time by which the GST instalment is due to be paid, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:
(a)
started at the beginning of the day by which the GST instalment was due to be paid; and
(b)
finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i)
the GST instalment;
(ii)
general interest charge on any of the instalment.
S 162-100 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 162-105 amended by No 39 of 2012, s 3 and Sch 3 item 6, by inserting ", 123-15" after "17-5" in para (a), effective 1 July 2012.
S 162-105 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-110
When payments of assessed net amounts must be made - GST instalment payers
you must pay the assessed net amount to the Commissioner on or before the day on which, under section 162-60, you are required to give to the Commissioner your *GST return for the instalment tax period.
S 162-110(1) amended by No 39 of 2012, s 3 and Sch 1 items 109 and 110, by substituting "*assessed net amount" for "*net amount" in para (b) and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-110(2) amended by No 39 of 2012, s 3 and Sch 1 item 111, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-110 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 162-130 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Your
notified instalment amount for a *GST instalment quarter is the amount that is:
(a)
worked out by the Commissioner; and
(b)
notified by the Commissioner to you before the day on which the *GST instalment is due.
S 162-135(1) amended by No 85 of 2013, s 3 and Sch 3 item 3, by inserting "The amount must not be less than zero." at the end, applicable in relation to GST instalment quarters starting on or after 1 July 2013.
(2)
However, the Commissioner is not to work out or notify a *notified instalment amount for a *GST instalment quarter if you had a *varied instalment amount for an earlier GST instalment quarter of the same *instalment tax period.
S 162-135 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
The amount substituted is your
varied instalment amount for the GST instalment quarter.
(2)
The amount substituted must not be less than zero.
(3)
You must give the notice to the Commissioner on or before the day on which the *GST instalment for the *GST instalment quarter is due.
(4)
You must include in the notice an estimate of your *annual GST liability relating to the *instalment tax period in question. This estimate is your
estimated annual GST amount relating to the *GST instalment quarter.
Note 1:
You may be liable to penalty under Subdivision 162-D if your variation of the notified instalment amount is too much of an underestimate of your total GST liability.
Note 2:
Your estimated annual GST amount is taken to be zero if it would otherwise be less than zero (see subsection (6)).
S 162-140(4) amended by No 85 of 2013, s 3 and Sch 3 items 4 and 5, by substituting "Note 1" for "Note" and inserting Note 2, applicable in relation to GST instalment quarters starting on or after 1 July 2013.
(5)
However, if paragraph 162-130(3)(b) applies to a *GST instalment quarter but you do not, under subsection (1) of this section, substitute another amount by notifying the Commissioner in the *approved form:
(a)
your
varied instalment amount for the GST instalment quarter is 25% of your *estimated annual GST amount relating to the preceding GST instalment quarter; and
(b)
your
estimated annual GST amount relating to the GST instalment quarter is your *estimated annual GST amount relating to the preceding GST instalment quarter.
(6)
Your
estimated annual GST amount relating to the *GST instalment quarter is zero if, apart from this subsection, this estimate would be less than zero.
S 162-140(6) inserted by No 85 of 2013, s 3 and Sch 3 item 6, applicable in relation to GST instalment quarters starting on or after 1 July 2013.
S 162-140 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
(1)
Your
annual GST liability, for an *instalment tax period that is a *financial year, is the amount that would be your *net amount for the period if it were not reduced under section 162-105.
(2)
Your
annual GST liability, for an *instalment tax period that is only part of a *financial year, is the sum of:
(a)
the amount that would be your *net amount for the period if it were not reduced under section 162-105; and
(b)
your *early net amounts for the financial year (subtracting any of those amounts that are less than zero).
(3)
Your
early net amounts for the *financial year are your *assessed net amounts for any tax periods that:
(a)
started, or would but for section 27-35 have started, at the start of or during that financial year; and
(b)
ended before the start of the *instalment tax period applying to you that forms part of that financial year.
Note:
Under section 27-35, the start or finish of a 3 month tax period could vary by up to 7 days from the start or finish of a normal quarter.
S 162-145(3) amended by No 39 of 2012, s 3 and Sch 1 item 112, by substituting "your *assessed net amounts" for "your *net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-145 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Subdivision 162-D - Penalty payable in certain cases if varied instalment amounts are too low
There are 3 circumstances where a penalty can arise if a varied instalment amount is too low:
(a) your payments are too low a proportion of your annual GST liability (see section 162-175);
(b) your estimated annual GST amount is too low a proportion of your annual GST liability (see section 162-180);
(c) the varied instalment amount is too low a proportion of your estimated annual GST amount (see section 162-185).
The penalty is based on the general interest charge rate, and the machinery provisions of Division 298 in Schedule 1 to the Taxation Administration Act 1953 apply.
S 162-170 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-175
GST payments are less than 85% of annual GST liability
(1)
You are liable to pay a penalty, for a *GST instalment quarter of an *instalment tax period applying to you, if you have a *varied instalment amount for the GST instalment quarter, and:
(a)
if the instalment tax period is a *financial year - the sum of your *GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your *annual GST liability for the instalment tax period; or
(b)
if the instalment tax period is only part of a financial year - the sum of:
(i)
your *GST instalments for all the GST instalment quarters of the instalment tax period; and
(ii)
your *early net amounts for the financial year (subtracting any of those amounts that are less than zero);
is less than 85% of your annual GST liability for the instalment tax period.
(2)
The amount of the penalty, for a particular day, is worked out by applying the *general interest charge:
(a)
for each day in the period in section 162-190; and
(b)
in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953;
(3)
Your
GST instalment shortfall, under this section, for the *GST instalment quarter is the amount worked out as follows:
where:
GST already payable is the sum of:
(a)
the *varied instalment amount; and
(b)
all your other *GST instalments (if any) for earlier *GST instalment quarters of the *instalment tax period in question; and
(c)
if the instalment tax period is only part of a *financial year - your *early net amounts for the financial year (subtracting any of those amounts that are less than zero).
(4)
However, if:
(a)
the *GST instalment quarter is not the first GST instalment quarter of the *instalment tax period in question; and
(b)
you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;
then:
(c)
your
GST instalment shortfall, under this section, for the *GST instalment quarter is the difference between:
(i)
the amount worked out using the formula in subsection (3); and
(ii)
the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and
(d)
if that sum is greater than the amount worked out using the formula in subsection (3) - you are not liable to pay a penalty under this section in relation to the GST instalment quarter.
(5)
The
appropriate percentage for a *GST instalment quarter is:
(a)
if the GST instalment quarter ends on 30 September - 25%; or
(b)
if the GST instalment quarter ends on 31 December - 50%; or
(c)
if the GST instalment quarter ends on 31 March - 75%; or
(d)
if the GST instalment quarter ends on 30 June - 100%.
S 162-175 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-180
Estimated annual GST amount is less than 85% of annual GST liability
(ii)
if the GST instalment quarter ends on 30 September 2001 - 75% of your *annual GST liability for the instalment tax period; and
(d)
the varied instalment amount is less than or equal to 25% of your annual GST liability for the instalment tax period.
(2)
The amount of the penalty, for a particular day, is worked out by applying the *general interest charge:
(a)
for each day in the period in section 162-190; and
(b)
in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953;
(3)
Your
GST instalment shortfall, under this section, for the *GST instalment quarter is the amount worked out as follows:
(4)
However, if:
(a)
the *GST instalment quarter is not the first GST instalment quarter of the *instalment tax period in question; and
(b)
you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;
then:
(c)
your
GST instalment shortfall, under this section, for the *GST instalment quarter is the difference between:
(i)
the amount worked out using the formula in subsection (3); and
(ii)
the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and
(d)
if that sum is greater than the amount worked out using the formula in subsection (3) - you are not liable to pay a penalty under this section in relation to the GST instalment quarter.
(5)
For the purpose of working out your *GST instalment shortfall under this section, your *estimated annual GST amount relating to the *GST instalment quarter is taken to be the amount worked out as follows, if the amount is less than that estimated annual GST amount:
S 162-180inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-185
Shortfall in GST instalments worked out on the basis of estimated annual GST amount
(iii)
if the instalment tax period is only part of a *financial year - your *early net amounts for the financial year (subtracting any of those amounts that are less than zero).
(2)
The amount of the penalty, for a particular day, is worked out by applying the *general interest charge:
(a)
for each day in the period in section 162-190; and
(b)
in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953;
S 162-185 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
You are liable to pay the penalty under this Subdivision for each day in the period that:
(a)
started at the beginning of the day by which the *GST instalment, for the *GST instalment quarter to which the charge relates, was due to be paid; and
(b)
finishes at the end of the day before which you must, under section 162-110, pay to the Commissioner your *assessed net amount for the *instalment tax period that includes that GST instalment quarter.
S 162-190 amended by No 39 of 2012, s 3 and Sch 1 item 113, by substituting "*assessed net amount" for "*net amount" in para (b), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-190 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-195
Reduction in penalties if notified instalment amount is less than 25% of annual GST liability
(ii)
you do not have a notified instalment amount, but the Commissioner is satisfied that, if you had such a notified instalment amount, it would be less than 25% of your annual GST liability for the instalment tax period.
(a)
the *notified instalment amount, or, if you do not have a notified instalment amount for the *GST instalment quarter, the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; and
(b)
for each of the earlier GST instalment quarters (if any) of the *instalment tax period in question:
(i)
the notified instalment amount; or
(ii)
if you do not have a notified instalment amount for the *GST instalment quarter - the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; and
S 162-195 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-200
Reduction in penalties if GST instalment shortfall is made up in a later instalment
(2)
The *GST instalment shortfall is reduced by applying so much of the top up as does not exceed the GST instalment shortfall.
(3)
However, if some of the top up has already been applied (under any other application or applications of this section) to reduce a *GST instalment shortfall for a different *GST instalment quarter of the *instalment tax period, the GST instalment shortfall is reduced by applying so much of the top up as has not already been applied, and does not exceed the GST instalment shortfall.
(4)
The reduction under subsection (2) has effect for each day in the period that:
(a)
started at the beginning of the day on which you paid the *GST instalment for the later *GST instalment quarter; and
(b)
finishes at the end of the day before which you must, under section 162-110, pay to the Commissioner your *assessed net amount for the *instalment tax period.
S 162-200(4) amended by No 39 of 2012, s 3 and Sch 1 item 114, by substituting "*assessed net amount" for "*net amount" in para (b), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 162-200 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
162-205
This Subdivision does not create a liability for general interest charge
S 162-205 inserted by No 73 of 2001, s 3 and Sch 1 item 29, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Division 165 - Anti-avoidance
165-1
What this Division is about
The object of this Division is to deter schemes to give entities benefits by reducing GST, increasing refunds or altering the timing of payment of GST or refunds.
If the dominant purpose or principal effect of a scheme is to give an entity such a benefit, the Commissioner may negate the benefit an entity gets from the scheme by declaring how much GST or refund would have been payable, and when it would have been payable, apart from the scheme.
This Division is aimed at artificial or contrived schemes. It is not, for example, intended to apply to:
• an exporter electing to have monthly tax periods in order to bring forward the entitlement to input tax credits; or
• a supplier of child care applying to be approved under the A New Tax System (Family Assistance) (Administration) Act 1999 (this would make the supplies of child care GST-free); or
• a supplier choosing under section 9-25 of the Wine Tax Act to use the average wholesale price method for working out the taxable value of retail sales of grape wine; or
• a bank having its car fleet serviced earlier than usual, and before 1 July 2000, so that the servicing does not, at least initially, bear the GST.
S 165-1 amended by No 39 of 2012, s 3 and Sch 4 item 7, by substituting "Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999", effective 15 April 2012.
S 165-1 amended by No 156 of 2000, s 3 and Sch 1 item 13, by substituting "to be approved under the A New Tax System (Family Assistance) (Administration) Act 1999 (this" for "to register under the Childcare Rebate Act 1993 (registration", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Subdivision 165-A - Application of this Division
165-5
When does this Division operate?
General rule
(1)
This Division operates if:
(a)
an entity (the
avoider) gets or got a *GST benefit from a *scheme; and
(b)
the GST benefit is not attributable to the making, by any entity, of a choice, election, application or agreement that is expressly provided for by the *GST law, the *wine tax law or the *luxury car tax law; and
(c)
taking account of the matters described in section 165-15, it is reasonable to conclude that either:
(i)
an entity that (whether alone or with others) entered into or carried out the scheme, or part of the scheme, did so with the sole or dominant purpose of that entity or another entity getting a *GST benefit from the scheme; or
(ii)
the principal effect of the scheme, or of part of the scheme, is that the avoider gets the GST benefit from the scheme directly or indirectly; and
(d)
the scheme:
(i)
is a scheme that has been or is entered into on or after 2 December 1998; or
(ii)
is a scheme that has been or is carried out or commenced on or after that day (other than a scheme that was entered into before that day).
Territorial application
(2)
It does not matter whether the *scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.
A *GST benefit that the avoider gets or got from a *scheme is not taken, for the purposes of paragraph (1)(b), to be attributable to a choice, election, application or agreement of a kind referred to in that paragraph if:
(a)
the scheme, or part of the scheme, was entered into or carried out for the sole or dominant purpose of creating a circumstance or state of affairs; and
(b)
the existence of the circumstance or state of affairs is necessary to enable the choice, election, application or agreement to be made.
S 165-5(3) inserted by No 145 of 2008, s 3 and Sch 1 item 11, applicable in relation to choices, elections, applications and agreements made on or after 9 December 2008.
165-10
When does an entity get a GST benefit from a scheme?
(1)
An entity gets a
GST benefit from a *scheme if:
(a)
an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or
(b)
an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, larger than it would be apart from the scheme or a part of the scheme; or
(c)
all or part of an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable later than it would have been apart from the scheme or a part of the scheme; or
(d)
all or part of an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, payable earlier than it would have been apart from the scheme or a part of the scheme; or
(e)
each of the following applies:
(i)
the entity is the *recipient of a *supply that is not *connected with the indirect tax zone;
(ii)
apart from the scheme or apart of the scheme, the supply would be, or could reasonably be expected to be, connected with the indirect tax zone solely because of Subdivision 84-C;
(iii)
an amount that is payable, in relation to the supply, by another entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme;
(iv)
the amount by which that amount is smaller is not, or could not reasonably be expected to be, equal to the amount of any decrease in the amount of any input tax credit to which the recipient is entitled in relation to the acquisition of the thing supplied.
S 165-10(1) amended by No 77 of 2017, s 3 and Sch 1 item 53, by inserting para (e), effective 1 July 2017. For application provisions, see note under Div 146 heading.
What is a
scheme?
(2)
A
scheme is:
(a)
any arrangement, agreement, understanding, promise or undertaking:
(i)
whether it is express or implied; and
(ii)
whether or not it is, or is intended to be, enforceable by legal proceedings; or
(b)
any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
GST benefit can arise even if no economic alternative
(3)
An entity can get a *GST benefit from a *scheme even if the entity or entities that entered into or carried out the scheme, or a part of the scheme, could not have engaged economically in any activities:
(a)
of the kind to which this Act applies; and
(b)
that would produce an effect equivalent (except in terms of this Act) to the effect of the scheme or part of the scheme;
other than the activities involved in entering into or carrying out the scheme or part of the scheme.
165-15
Matters to be considered in determining purpose or effect
(1)
The following matters are to be taken into account under section 165-5 in considering an entity's purpose in entering into or carrying out the *scheme from which the avoider got a *GST benefit, and the effect of the scheme:
(a)
the manner in which the scheme was entered into or carried out;
(b)
the form and substance of the scheme, including:
(i)
the legal rights and obligations involved in the scheme; and
(ii)
the economic and commercial substance of the scheme;
(c)
the purpose or object of this Act, the Customs Act 1901 (so far as it is relevant to this Act) and any relevant provision of this Act or that Act (whether the purpose or object is stated expressly or not);
(d)
the timing of the scheme;
(e)
the period over which the scheme was entered into and carried out;
(f)
the effect that this Act would have in relation to the scheme apart from this Division;
(g)
any change in the avoider's financial position that has resulted, or may reasonably be expected to result, from the scheme;
(h)
any change that has resulted, or may reasonably be expected to result, from the scheme in the financial position of an entity (a
connected entity) that has or had a connection or dealing with the avoider, whether the connection or dealing is or was of a family, business or other nature;
(i)
any other consequence for the avoider or a connected entity of the scheme having been entered into or carried out;
(j)
the nature of the connection between the avoider and a connected entity, including the question whether the dealing is or was at arm's length;
(k)
the circumstances surrounding the scheme;
(l)
any other relevant circumstances.
(2)
Subsection (1) applies in relation to consideration of an entity's purpose in entering into or carrying out a part of a *scheme from which the avoider gets or got a *GST benefit, and the effect of part of the scheme, as if the part were itself the *scheme from which the avoider gets or got the GST benefit.
Subdivision 165-B - Commissioner may negate effects of schemes for GST benefits
165-40
Commissioner may make declaration for purpose of negating avoider's GST benefits
(1)
For the purpose of negating a *GST benefit the avoider mentioned in section 165-5 gets or got from the *scheme, the Commissioner may make a declaration stating either or both of the following:
(a)
the amount that is (and has been at all times) the avoider's *net amount for a specified tax period that has ended;
(b)
the amount that is (and has been at all times) the amount of GST on a specified *taxable importation that was made (or is stated in the declaration to have been made) by the avoider.
S 165-40(1) amended by No 39 of 2012, s 3 and Sch 1 items 116 and 117, by renumbering from s 165-40 and repealing the note, effective 1 July 2012. No 39 of 2012, s 3 and Sch 1 items 239 and 240 contain the following application provisions:
239 Application of amendments
(1)
The amendments made apply in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012.
(2)
The amendments made also apply in relation to payments and refunds that:
(a)
do not relate to any tax periods or fuel tax return periods; and
(b)
relate to liabilities or entitlements that arose on or after 1 July 2012.
240 Application of amendments - declarations
Despite item 239, item 2 of the table in subsection 350-10(1) in Schedule 1 to the Taxation Administration Act 1953 applies, in relation to declarations under the A New Tax System (Goods and Services Tax) Act 1999 or the Fuel Tax Act 2006, as mentioned in subsection 350-10(2) in that Schedule.
The note formerly read:
Note:
A declaration of the Commissioner under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 165-40 amended by No 73 of 2006, s 3 and Sch 5 item 132, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 165-40(2) inserted by No 39 of 2012, s 3 and Sch 1 item 118, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
165-45
Commissioner may reduce an entity's net amount or GST to compensate
(1)
This section operates if:
(a)
the Commissioner has made a declaration under subsection 165-40(1) to negate the *GST benefit an entity gets or got from a *scheme; and
(b)
the Commissioner considers that another entity (the
loser) gets or got a *GST disadvantage from the scheme; and
(c)
the Commissioner considers that it is fair and reasonable that the loser's GST disadvantage be negated or reduced.
S 165-45(1) amended by No 39 of 2012, s 3 and Sch 1 item 119, by substituting "subsection 165-40(1)" for "section 165-40" in para (a), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
(2)
An entity gets a
GST disadvantage from a *scheme if:
(a)
an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, larger than it would have been apart from the scheme or a part of the scheme; or
(b)
an amount that is payable to the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would have been apart from the scheme or a part of the scheme; or
(c)
all or part of an amount that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable earlier than it would have been apart from the scheme or a part of the scheme; or
(d)
all or part of an amount that is payable to the entity under this Act apart from this Division is, or could reasonably expected to be, payable later than it would have been apart from the scheme or a part of the scheme.
(3)
For the purposes of negating or reducing the loser's *GST disadvantage from the *scheme, the Commissioner may make a declaration (under this section) stating either or both of the following:
(a)
the amount that is (and has been at all times) the loser's *net amount for a specified tax period that has ended;
(b)
the amount that is (and has been at all times) the amount of GST on a specified *taxable importation that was made (or is stated in the declaration to have been made) by the loser.
S 165-45(3) amended by No 39 of 2012, s 3 and Sch 1 item 120, by repealing the note, effective 1 July 2012. No 39 of 2012, s 3 and Sch 1 items 239 and 240 contain the following application provisions:
239 Application of amendments
(1)
The amendments made apply in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012.
(2)
The amendments made also apply in relation to payments and refunds that:
(a)
do not relate to any tax periods or fuel tax return periods; and
(b)
relate to liabilities or entitlements that arose on or after 1 July 2012.
240 Application of amendments - declarations
Despite item 239, item 2 of the table in subsection 350-10(1) in Schedule 1 to the Taxation Administration Act 1953 applies, in relation to declarations under the A New Tax System (Goods and Services Tax) Act 1999 or the Fuel Tax Act 2006, as mentioned in subsection 350-10(2) in that Schedule.
The note formerly read:
Note:
A declaration of the Commissioner under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 165-45(3) amended by No 73 of 2006, s 3 and Sch 5 item 133, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
(4)
An amount stated in a declaration as the loser's *net amount or the amount of GST on a *taxable importation must not be less than the net amount or amount of GST (as appropriate) would have been apart from the *scheme, or part of the scheme, and the declaration.
(5)
An entity may give the Commissioner a written request to make a declaration under this section relating to the entity. The Commissioner must decide whether or not to grant the request, and give the entity notice of the Commissioner's decision.
S 165-45(5) amended by No 39 of 2012, s 3 and Sch 1 item 121, by repealing the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. The note formerly read:
Note:
A decision of the Commissioner under subsection (5) is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 165-45(5) amended by No 73 of 2006, s 3 and Sch 5 item 134, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
165-50
Declaration has effect according to its terms
For the purpose of making an *assessment, a statement in a declaration under this Subdivision has effect according to its terms, despite the provisions of this Act outside of this Division.
S 165-50 substituted by No 39 of 2012, s 3 and Sch 1 item 122, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 165-50 formerly read:
165-50 GST or refund payable in accordance with declaration
A statement in a declaration under this Subdivision has effect according to its terms, for the purposes of Division 33 (about payments of GST) and Division 35 (about refunds), despite the provisions of this Act outside those Divisions and this Division.
165-55
Commissioner may disregard scheme in making declarations
For the purposes of making a declaration under this Subdivision, the Commissioner may:
(a)
treat a particular event that actually happened as not having happened; and
(b)
treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as:
(i)
having happened at a particular time; and
(ii)
having involved particular action by a particular entity; and
(c)
treat a particular event that actually happened as:
(i)
having happened at a time different from the time it actually happened; or
(ii)
having involved particular action by a particular entity (whether or not the event actually involved any action by that entity).
165-60
One declaration may cover several tax periods and importations
To avoid doubt, statements relating to different tax periods and different *taxable importations may be included in a single declaration under this Subdivision.
165-65
Commissioner must give copy of declaration to entity affected
(1)
The Commissioner must give a copy of a declaration under this Subdivision to the entity whose *net amount or GST liability is stated in the declaration.
(2)
A failure to comply with subsection (1) does not affect the validity of the declaration.
(Subdivision 165-C heading repealed)
S 165-80 repealed by No 92 of 2000, s 3 and Sch 9 item 8, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year. S 165-80 formerly read:
165-80 Penalty
(1)
The avoider mentioned in section 165-5 must pay the Commonwealth a penalty.
(2)
The amount of the penalty is worked out as follows:
Method statement
Step 1. For each tax period for which a declaration under section 165-40 states as the avoider's *net amount, an amount exceeding the amount that would be the avoider's *net amount apart from the statement, work out the excess.
Step 2. For each *taxable importation (or event stated by the declaration to be a *taxable importation) for which the declaration states as the amount of GST, an amount exceeding the amount that would be the amount of GST apart from the statement, work out the excess.
Step 3. Total all the excesses worked out under Steps 1 and 2.
Step 4. Double the total from Step 3.
(3)
The penalty is in addition to any payment the avoider must make apart from this section.
(4)
Part VI of the Taxation Administration Act 1953 applies to the penalty in the same way as it applies to penalty an entity is liable to pay under that Part.
Note:
That Part deals with remission, notice, payment and recovery of penalty (among other things).
Division 168 - Tourist refund scheme
168-1
What this Division is about
If you take goods overseas as accompanied baggage, or you are a resident of an external Territory and send goods home, you may be entitled to a refund of the GST that was payable on the supply of the goods to you.
S 168-1 amended by No 20 of 2010, s 3 and Sch 2 item 5, by inserting "or you are a resident of an external Territory and send goods home," after "baggage,", applicable in relation to goods acquired, and wine purchased, on or after 1 July 2010.
Exporting goods as accompanied baggage
(1)
If:
(a)
you make an acquisition of goods the supply of which to you is a *taxable supply; and
(b)
the acquisition is of a kind specified in the regulations; and
(c)
you leave the indirect tax zone, and export the goods from the indirect tax zone as accompanied baggage, in the circumstances specified in the regulations;
the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:
(d)
the amount of the GST payable on the taxable supply; or
(e)
such proportion of that amount of GST as is specified in the regulations.
Resident of external Territory sending goods home
(1A)
If:
(a)
you make an acquisition of goods the supply of which to you is a *taxable supply; and
(b)
the acquisition is of a kind specified in the regulations; and
(c)
at the time of the acquisition, you are an individual to whom one of the following subparagraphs applies:
(i)
you reside in an external Territory;
(ii)
your domicile is in an external Territory;
(iii)
you have actually been in an external Territory, continuously or intermittently, during more than half of the last 12 months; and
(d)
at the time of the acquisition, you are not *registered or *required to be registered; and
(e)
you leave the indirect tax zone, and export the goods to the external Territory:
(i)
in circumstances not covered by paragraph (1)(c); and
(ii)
in circumstances specified in the regulations;
the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:
(f)
the amount of the GST payable on the taxable supply; or
(g)
such proportion of that amount of GST as is specified in the regulations.
S 168-5(2) amended by No 20 of 2010, s 3 and Sch 2 item 9, by substituting "An amount payable under this section" for "The amount", applicable in relation to goods acquired, and wine purchased, on or after 1 July 2010.
You may be found not to be a resident of an external Territory
(3)
Subparagraph (1A)(c)(iii) does not apply to you if the Commissioner is satisfied:
(a)
that your usual place of abode is outside that external Territory; and
(b)
that you do not intend to take up residence in that Territory.
S 168-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
168-10
Supplies later found to be GST-free supplies
(1)
If:
(a)
you are paid an amount under subsection 168-5(1A) for a supply; and
(b)
the supply is or becomes a *GST-free supply;
you become liable to repay the amount (the
recoverable amount) to the Commonwealth on the later of the following days (the
due day):
(c)
the day you were paid the recoverable amount;
(d)
the day the supply becomes a GST-free supply.
(2)
You are liable to pay general interest charge on the whole, or any part, of the recoverable amount that remains unpaid after the due day for each day in the period that:
(a)
starts on the due day; and
(b)
finishes at the end of the last day at the end of which any of the following remains unpaid:
(i)
the recoverable amount;
(ii)
general interest charge on any of the recoverable amount.
Security or undertakings can be required under the Customs Act 1901 before a temporary import is permitted. In these cases, this Division delays the requirement to pay assessed GST on the importation.
S 171-1 amended by No 39 of 2012, s 3 and Sch 1 item 123, by substituting "assessed GST" for "GST", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
171-5
Security or undertaking given under section 162 or 162A of the Customs Act
(1)
An amount of *assessed GST on a *taxable importation of goods is not payable if:
(a)
a security or undertaking described in section 162 of the Customs Act 1901 has been given; and
(b)
the provisions of the regulations mentioned in paragraph 162(3)(a) of that Act are complied with; and
(c)
either:
(i)
the goods are exported within the relevant period mentioned in paragraph 162(3)(b) of that Act; or
(ii)
one or more of the circumstances or conditions specified in the regulations mentioned in paragraph 162(3)(b) of that Act apply in relation to the goods.
Note:
Section 162 of the Customs Act 1901 allows delivery of imported goods if the importer gives a security or undertaking to pay any customs duty, assessed GST and assessed luxury car tax relating to the importation.
S 171-5(1) amended by No 39 of 2012, s 3 and Sch 1 items 124 and 125, by substituting "*assessed GST" for "GST" and "assessed GST and assessed luxury car tax" for "GST and luxury car tax" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 171-5(1) amended by No 156 of 2000, s 3 and Sch 2 item 10, by substituting para (c), applicable to importations into Australia on or after 1 July 2000. Para (c) formerly read:
(c)
the goods are exported within the relevant period mentioned in paragraph 162(3)(b) of that Act.
S 171-5(1) substituted by No 176 of 1999, s 3 and Sch 1 item 122, effective 1 July 2000. S 171-5(1) formerly read:
(1)
If:
(a)
you make a *taxable importation of goods; and
(b)
a security or undertaking has been given under section 162 or 162A of the Customs Act 1901 for the payment of *customs duty on the goods;
any amount of GST on the importation is not payable while, under subsection 162(3) or 162A(5) of that Act (as the case requires), customs duty is not payable on the goods.
An amount of *assessed GST on a *taxable importation of goods is not payable if:
(a)
a security or undertaking described in section 162A of the Customs Act 1901 has been given; and
(b)
the goods are not dealt with in contravention of regulations made for the purposes of that section; and
(c)
one or more of the following applies:
(i)
the goods are exported within the relevant period mentioned in paragraph 162A(5)(b) of that Act;
(ii)
if the goods are described in subsection 162A(5A) of that Act - the goods are exported before the end of the relevant day mentioned in paragraph 162A(5A)(b) of that Act;
(iii)
one or more of the circumstances or conditions specified in the regulations mentioned in paragraph 162A(5)(b) of that Act apply in relation to the goods.
Note:
Section 162A of the Customs Act 1901 allows delivery of imported goods if the importer gives a security or undertaking to pay any customs duty, assessed GST and assessed luxury car tax relating to the importation.
S 171-5(1A) amended by No 39 of 2012, s 3 and Sch 1 items 126 and 127, by substituting "*assessed GST" for "GST" and "assessed GST and assessed luxury car tax" for "GST and luxury car tax" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 171-5(1A) amended by No 156 of 2000, s 3 and Sch 2 item 11, by substituting para (c), applicable to importations into Australia on or after 1 July 2000. Para (c) formerly read:
(c)
either:
(i)
the goods are exported within the relevant period mentioned in paragraph 162A(5)(b) of that Act; or
(ii)
if the goods are described in subsection 162A(5A) - the goods are exported before the end of the relevant day mentioned in paragraph 162A(5A)(b).
S 171-5(1A) inserted by No 176 of 1999, s 3 and Sch 1 item 122, effective 1 July 2000.
S 171-5(2) amended by No 39 of 2012, s 3 and Sch 1 item 128, by substituting "assessed GST" for "GST", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Chapter 5 - Miscellaneous
Part 5-1 - Miscellaneous
Division 176 - Endorsement of charities etc.
Div 176 substituted by No 169 of 2012, s 3 and Sch 2 item 123, effective 3 December 2012. No 169 of 2012, s 3 and Sch 2 items 124 and 125 contained the following transitional provisions:
124 Transitional provision - endorsements as charities
An entity that, just before 3 December 2012, was endorsed:
(a)
as a charitable institution under subsection 176-1(1) of the A New Tax System (Goods and Services Tax) Act 1999; or
(b)
as a trustee of a charitable fund under subsection 176-5(1) of that Act;
is taken, from 3 December 2012, to have been endorsed as a charity under subsection 176-1(1) of that Act, as amended.
125 Transitional provision - applications for endorsement
An application for endorsement:
(a)
made under paragraph 176-1(1)(b) or 176-5(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 before 3 December 2012; and
(b)
not withdrawn or finally dealt with before 3 December 2012;
is taken, from 3 December 2012, to have been made under paragraph 176-1(1)(b) of that Act as amended.
Div 176 formerly read:
Division 176 - Endorsement of charitable institutions etc.
176-1 Endorsement by Commissioner as charitable institution
(1)
The Commissioner must endorse an entity as a charitable institution if:
(a)
the entity is entitled to be endorsed as a charitable institution (see subsection (2)); and
(b)
the entity has applied for that endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
(2)
An entity is entitled to be endorsed as a charitable institution if the entity:
(a)
is a charitable institution; and
(b)
has an *ABN.
S 176-1 inserted by No 95 of 2004, s 3 and Sch 10 item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of sec 176-5.
176-5 Endorsement by Commissioner as trustee of a charitable fund
(1)
The Commissioner must endorse an entity as a trustee of a charitable fund if:
(a)the entity is entitled to be endorsed as a trustee of a charitable fund (see subsection (2)); and
(b)
the entity has applied for that endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
(2)
An entity is entitled to be endorsed as a trustee of a charitable fund if the entity:
(a)
is a trustee of a charitable fund; and
(b)
has an *ABN.
S 176-5 inserted by No 95 of 2004, s 3 and Sch 10 item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2005.
Act No 95 of 2004, s 3 and Sch 10 item 44, contained the following transitional provision:
Transitional - GST and FBT endorsements
(1)
This item applies in relation to an entity if:
(a)
immediately before 1 July 2005, the entity was endorsed under section 30-120 or section 50-105 of the Income Tax Assessment Act 1997; and
(b)
the entity failed to notify the Commissioner in writing before 1 July 2005 that it chose not to have this item apply to it.
(2)
The entity is taken to have made an application to the Commissioner under section 426-15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:
(a)
endorsement as a charitable institution under subsection 176-1(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(b)
endorsement as a trustee of a charitable fund under subsection 176-5(1) of the A New Tax System (Goods and Services Tax) Act 1999.
(3)
The entity is taken to have made an application to the Commissioner under section 426-15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:
(a)
endorsement as a public benevolent institution under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986;
(b)
endorsement for the operation of a public benevolent institution under subsection 123C(3) of the Fringe Benefits Tax Assessment Act 1986;
(c)
endorsement as a health promotion charity under subsection 123D(1) of the Fringe Benefits Tax Assessment Act 1986;
(d)
endorsement under subsection 123E(1) of the Fringe Benefits Tax Assessment Act 1986 as a charitable institution covered by paragraph 65J(1)(baa) of that Act.
(1)
The Commissioner must endorse an entity as a charity if:
(a)
the entity is entitled to be endorsed as a charity (see subsection (2)); and
(b)
the entity has applied for that endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
(2)
An entity is entitled to be endorsed as a charity if the entity:
(a)
is an *ACNC-registered charity; and
(b)
has an *ABN.
S 176-1 substituted by No 169 of 2012, s 3 and Sch 2 item 123, effective 3 December 2012. For transitional provisions and former wording, see history note under Div 176 heading.
Division 177 - Miscellaneous
177-1
Commonwealth etc. not liable to pay GST
(1)
The Commonwealth and *untaxable Commonwealth entities are not liable to pay GST payable under this Act. However, it is the Parliament's intention that the Commonwealth and untaxable Commonwealth entities should:
(a)
be notionally liable to pay GST payable under this Act; and
(b)
be notionally entitled to input tax credits arising under this Act; and
(c)
notionally have *adjustments arising under this Act.
S 177-1(1) amended by No 58 of 2006, s 3 and Sch 7 items 6 and 7, by substituting "*untaxable Commonwealth entities" for "*Commonwealth entities" and substituting "untaxable Commonwealth entities should" for "Commonwealth entities should", effective 22 June 2006.
The *Finance Minister may give such written directions as are necessary or convenient for carrying out or giving effect to subsection (1) and, in particular, may give directions in relation to the transfer of money within an account, or between accounts, operated by the Commonwealth or an *untaxable Commonwealth entity.
S 177-1(2) amended by No 58 of 2006, s 3 and Sch 7 item 8, by substituting "an *untaxable Commonwealth entity" for "a *Commonwealth entity", effective 22 June 2006.
The directions given under subsection (2) may also take account of the provisions of the A New Tax System (Goods and Services Tax Transition) Act 1999.
If the Commonwealth or an *untaxable Commonwealth entity is notionally liable to pay GST for a supply made to another entity (other than the Commonwealth or an untaxable Commonwealth entity), the *GST law applies in relation to the other entity as if:
(a)
the supply were a *taxable supply to that entity; and
(b)
the amount of GST for which the Commonwealth or an untaxable Commonwealth entity is notionally liable for the supply is treated as the amount of GST payable for the supply.
S 177-1(4) amended by No 58 of 2006, s 3 and Sch 7 items 9 and 10, by substituting "an *untaxable Commonwealth entity" for "a *Commonwealth entity" (first occurring) and substituting "an untaxable Commonwealth entity" for "a *Commonwealth entity" (second and third occurring), effective 22 June 2006.
Untaxable Commonwealth entity means a Commonwealth entity (within the meaning of the Public Governance, Performance and Accountability Act 2013) that cannot be made liable to taxation by a law of the Commonwealth.
S 177-1(5) substituted by No 36 of 2015, s 3 and Sch 5 item 2, effective 14 April 2015. No 36 of 2015, s 3 and Sch 5 items 74-77, contain the following transitional and application provisions:
Part 2 - Transitional and application provisions
74 Corporate and strategic plans
An amendment made by an item of this Schedule that relates to a corporate plan or a strategic plan (however described) applies in relation to reporting periods that commence on or after 1 July 2015.
75 Annual reports
An amendment made by an item of the Schedule that relates to an annual report applies in relation to reporting periods that commence on or after 1 July 2014.
76 Disclosing interests
(1)
This item applies if:
(a)
before this item commences, a person discloses an interest in accordance with a provision in an Act; and
(b)
the provision is:
(i)
amended; or
(ii)
repealed; or
(iii)
repealed and substituted;
by an item of this Schedule.
(2)
The person is taken to have disclosed the interest in accordance with section 29 of the Public Governance, Performance andAccountability Act 2013 and rules made for the purposes of that section.
77 Saving instruments in force at commencement
(1)
This item applies if:
(a)
a provision of an Act provides that an instrument (whether or not a legislative instrument) may be made under, or for the purposes of, the provision; and
(b)
an instrument made under, or for the purposes of, the provision is in force immediately before the commencement of this Schedule; and
(c)
the provision is:
(i)
amended; or
(ii)
repealed and substituted;
by an item of this Schedule; and
(d)
after the provision has been amended or repealed and substituted, the provision still provides in the same or similar terms that an instrument may be made under, or for the purposes of, the provision.
(2)
If the provision is amended, the amendment referred to in subparagraph (1)(c)(i) does not affect the continuity of the instrument.
(3)
If the provision is repealed and substituted, the instrument is taken, after the commencement of this Schedule, to have been made under, or for the purposes of, the provision as substituted.
S 177-1(5) formerly read:
(5)
Untaxable Commonwealth entity means:
(a)
an Agency (within the meaning of the Financial Management and Accountability Act 1997); or
(b)
a Commonwealth authority (within the meaning of the Commonwealth Authorities and Companies Act 1997);
that cannot be made liable to taxation by a Commonwealth law.
S 177-1(5) substituted by No 58 of 2006, s 3 and Sch 7 item 11, effective 22 June 2006. S 177-1(5) formerly read:
(5)
Commonwealth entity means:
(a)
an Agency (within the meaning of the Financial Management and Accountability Act 1997); or
(b)
a Commonwealth authority (within the meaning of the Commonwealth Authorities and Companies Act 1997);
that cannot be made liable to taxation by a Commonwealth law.
(b)
the agency is not liable for GST on the supply, but an amount relating to the agency's notional liability for GST on the supply is included in the *consideration for the supply;
the *GST law applies in relation to the other entity as if:
(c)
the supply were a *taxable supply to that entity; and
(d)
the amount of GST for which the agency is notionally liable on the supply is the amount of GST payable on the supply.
S 177-3 amended by No 58 of 2006, s 3 and Sch 7 item 12, by substituting "an *untaxable Commonwealth entity" for "a *Commonwealth entity" in para (a), effective 22 June 2006.
177-5
Cancellation of exemptions from GST
(1)
This section cancels the effect of a provision of another Act that would have the effect of exempting a person from liability to pay GST payable under this Act.
(2)
The cancellation does not apply if the provision of the other Act:
(a)
commences after this section commences; and
(b)
refers specifically to GST payable under this Act.
177-10
Ministerial determinations
(1)
S 177-10(1) amended by No 58 of 2006, s 3 and Sch 7 item 222, by inserting ", by legislative instrument," after "Minister may", effective 22 June 2006.
S 177-10(1) amended by No 143 of 2004, s 3 and Sch 1 item 7, by inserting para (ca), effective 14 December 2004. For application provisions, see note under s 38-25(3).
S 177-10(1) amended by No 176 of 1999, s 3 and Sch 1 item 124, by repealing para (a), effective 1 July 2000. Para (a) formerly read:
S 177-10(2) amended by No 22 of 2017, s 3 and Sch 3 item 8, by substituting "section 38-150" for "paragraph 38-150(e)", effective 5 April 2017.
S 177-10(2) amended by No 58 of 2006, s 3 and Sch 7 item 223, by inserting ", by legislative instrument," after "Minister may", effective 22 June 2006.
The *Student Assistance Minister may, by legislative instrument, make a determination under:
(a)
paragraphs (a) and (b) of the definition of
adult and community education course in the Dictionary; or
(b)
paragraph (b) of the definition of
primary course in the Dictionary; or
(c)
paragraph (b) of the definition of
secondary course in the Dictionary; or
(d)
paragraph (b) of the definition of
tertiary course in the Dictionary.
S 177-10(3) amended by No 15 of 2017, s 3 and Sch 4 item 9, by substituting "*Student Assistance Minister" for "*Education Minister", effective 1 April 2017.
S 177-10(3) amended by No 58 of 2006, s 3 and Sch 7 item 224, by inserting ", by legislative instrument," after "Minister may", effective 22 June 2006.
The *Health Minister may, by legislative instrument, make a determination for the purposes of:
(a)
paragraph 38-15(c); or
(b)
subsection 38-47(1); or
(c)
paragraph 38-50(5)(b).
S 177-10(4) amended by No 58 of 2006, s 3 and Sch 7 item 225, by inserting ", by legislative instrument," after "Minister may", effective 22 June 2006.
S 177-10(5) inserted by No 124 of 2013, s 3 and Sch 9 item 2, applicable in relation to supplies made on or after the commencement of section 37 of the National Disability Insurance Scheme Act 2013 [1 July 2013].
Former s 177-10(5) repealed by No 58 of 2006, s 3 and Sch 7 item 226, effective 22 June 2006. S 177-10(5) formerly read:
(5)
A determination under this section is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to determinations made under subsection (5) of this section.
S 177-10(6) substituted by No 126 of 2015, s 3 and Sch 1 item 22, effective 5 March 2016. S 177-10(6) formerly read:
(6)
Despite subsection 12(2) of the Legislative Instruments Act 2003, determinations made under subsection (5) of this section may be expressed to take effect from a date before the determinations are registered under that Act.
S 177-10(6) inserted by No 124 of 2013, s 3 and Sch 9 item 2, applicable in relation to supplies made on or after the commencement of section 37 of the National Disability Insurance Scheme Act 2013 [1 July 2013].
The *Aged Care Secretary may, in writing, delegate his or her powers under paragraph 38-25(3B)(b) to:
(a)
a person in relation to whom there is in force a delegation by the Aged Care Secretary of functions under subsection 96-2(5) of the Aged Care Act 1997; or
(b)
a person:
(i)
who is a person of a kind specified in a determination that is in force and that is made by the *Aged Care Minister for the purposes of paragraph 38-25(3B)(a); and
(ii)
whom the Aged Care Secretary is satisfied is qualified and experienced to make assessments of the kind referred to in paragraph 38-25(3B)(b).
(1)
In any Act, unless the contrary intention appears, a reference to a *price relating to a supply, or proposed supply, is taken to include the *net GST (if any) that is, or would be, payable by an entity making the supply.
(2)
Subsection (1) applies in relation to:
(a)
any fee or charge made, or required to be made; or
(b)
any *consideration provided, or required to be provided;
for or in connection with the supply in the same way that it applies to a *price relating to a supply.
(3)
In any Act, unless the contrary intention appears, a reference to the value relating to a thing is taken not to include the GST (if any) that would be payable if an entity were to make a supply of the thing.
(4)
This section does not apply to:
(a)
this Act; or
(b)
the *ITAA 1997; or
(d)
the A New Tax System (Luxury Car Tax) Act 1999; or
(e)
Schedule 1 to the Taxation Administration Act 1953; or
(f)
the Income Tax Assessment Act 1936; or
(g)
the Fringe Benefits Tax Assessment Act 1986; or
(h)
the Petroleum Resource Rent Tax Assessment Act 1987.
S 177-12(4) amended by No 96 of 2014, s 3 and Sch 1 items 7 and 8, by substituting "1987." for "1987; or" in para (h) and repealing para (i), effective 30 September 2014. No 96 of 2014, s 3 and Sch 1 items 122-124 contain the following transitional provisions:
Part 3 - Transitional provisions
122 Objects
122
The objects of this Part are:
(a)
to provide for the winding-up of the minerals resource rent tax; and
(b)
to ensure the administration, collection and recovery of the minerals resource rent tax for the MRRT years ending on or before the day this Schedule commences; and
(c)
to continue taxpayers' rights and obligations relating to MRRT years ending before that commencement.
123 Effect of repeals and amendments on preceding MRRT years
123(1)
Despite the repeals and amendments made by this Schedule, the Acts amended or repealed continue to apply, after the commencement of this Schedule, in relation to any MRRT year ending on or before the day this Schedule commences as if those repeals and amendments had not happened.
123(2)
For the purposes of that continued application, any MRRT year that:
(a)
started before the commencement of this Schedule; and
(b)
would, apart from this subitem, end on or after that commencement;
is taken to end on the day this Schedule commences.
123(3)
To avoid doubt, for the purposes of that continued application, section 190-20 of the Minerals Resource Rent Tax Act 2012 applies in relation to an MRRT year referred to in subitem (2) whether or not the MRRT year is an accounting period referred to in section 190-10 of that Act.
Note 1:
Section 190-20 of the Minerals Resource Rent Tax Act 2012 (to the extent that it continues to apply because of this item) will adjust threshold amounts under that Act in relation to the final MRRT year.
Note 2:
Subsection 115-110(2) in Schedule 1 to the Taxation Administration Act 1953 (to the extent that it continues to apply because of this item) will adjust instalment quarters under that Act in relation to the final MRRT year.
124 Continuation of Commissioner's power to make certain legislative instruments
124(1)
Despite the repeal by this Act of section 117-5 in Schedule 1 to the Taxation Administration Act 1953, the Commissioner's power under subsection 117-5(5) in that Schedule to make legislative instruments continues after that repeal.
124(2)
This item does not affect any other powers of the Commissioner under Schedule 1 to the Taxation Administration Act 1953, as it continues to apply because of item 123 of this Schedule.
Para (i) formerly read:
(i)
the Minerals Resource Rent Tax Act 2012.
S 177-12(4) amended by No 14 of 2012, s 3 and Sch 3 item 2, by inserting para (i), effective 1 July 2012.
S 177-12(4) amended by No 39 of 2012, s 3 and Sch 4 item 8, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999" in para (c), effective 15 April 2012.
S 177-12(4) amended by No 12 of 2012, s 3 and Sch 6 item 70, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997" in para (b), effective 21 March 2012.
S 177-12 inserted by No 177 of 1999, s 3 and Sch 1 item 116, effective 1 July 2000.
177-15
Regulations
The Governor-General may make regulations prescribing matters:
(a)
required or permitted by this Act to be prescribed; or
(b)
necessary or convenient to be prescribed for carrying out or giving effect to this Act.
177-20
Review of provisions relating to offshore supplies of low value goods
(1)
By the day after this section commences, the Productivity Minister must, under Part 3 of the Productivity Commission Act 1998, refer to the Productivity Commission for inquiry the matter of the amendments to this Act made by the amending Act, including:
(a)
the effectiveness of the amendments; and
(b)
whether models for collecting goods and services tax in relation to *offshore supplies of low value goods other than the amendments might be suitable (including evaluation of the effects of the models on Australian small businesses and *consumers); and
(c)
any other aspect the Productivity Commission considers relevant to the implementation of the amendments.
(2)
In referring the matter to the Productivity Commission for inquiry, the Productivity Minister must:
(a)
under paragraph 11(1)(a) of the Productivity Commission Act 1998, require the Productivity Commission to hold hearings for the purposes of the inquiry; and
(b)
under paragraph 11(1)(b) of that Act, specify the period ending on 31 October 2017 as the period within which the Productivity Commission must submit its report on the inquiry; and
(c)
under paragraph 11(1)(d) of that Act, require the Productivity Commission to make recommendations in relation to the matter referred to in subsection (1).
Note:
Under section 12 of the Productivity Commission Act 1998, the Productivity Minister must cause a copy of the Productivity Commission's report to be tabled in each House of the Parliament.
(3)
The Productivity Minister must not withdraw the reference before the Productivity Minister has received the report.
(4)
For the purposes of paragraph 6(1)(a) of the Productivity Commission Act 1998, the matter mentioned in subsection (1) is taken to be a matter relating to industry, industry development and productivity.
(5)
In this section:
amending Act means the Treasury Laws Amendment (GST Low Value Goods) Act 2017.
Productivity Minister means the Minister administering the Productivity Commission Act 1998.
S 177-20 inserted by No 77 of 2017, s 3 and Sch 1 item 53A, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Chapter 6 - Interpreting this Act
Part 6-1 - Rules for interpreting this Act
Division 182 - Rules for interpreting this Act
182-1
What forms part of this Act
(1)
These all form part of this Act:
• the headings to the Chapters, Parts, Divisions and Subdivisions of this Act;
• the headings to the sections and subsections of this Act;
• the headings for groups of sections of this Act (group headings);
• the notes and examples (however described) that follow provisions of this Act.
(2)
The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.
182-5
What does not form part of this Act
These do not form part of this Act:
• footnotes and endnotes;
• Tables of Subdivisions.
182-10
Explanatory sections, and their role in interpreting this Act
(1)
An
explanatory section is:
(a)
any section that is the first section in a Division and that has as its heading ``What this Division is about''; or
(b)
any section in Chapter 1 (other than sections 1-1 and 1-2); or
(c)
any section in Division 5 or 37; or
(d)
any section that is the last section in a Division or Subdivision of Chapter 2 and that has a checklist of special rules in Chapter 4; or
(e)
any section that a note states to be an explanatory section.
(2)
Explanatory sections form part of this Act, but they are not operative provisions. In interpreting an operative provision, an explanatory section may only be considered:
(a)
in determining the purpose or object underlying the provision; or
(b)
to confirm that the provision's meaning is the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision; or
(c)
in determining the provision's meaning if the provision is ambiguous or obscure; or
(d)
in determining the provision's meaning if the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision, leads to a result that is manifestly absurd or is unreasonable.
182-15
Schedules 1, 2 and 3
The second columns of the tables in Schedules 1, 2 and 3 are not operative. In interpreting an item in those tables, or any other operative provision, those columns may only be considered for a purpose for which an *explanatory section may be considered under subsection 182-10(2).
S 182-15 amended by No 176 of 1999, s 3 and Sch 1 item 126, by substituting ``Schedules 1, 2 and 3'' for ``Schedules 1 and 2'', effective 1 July 2000.
Part 6-2 - Meaning of some important concepts
Division 184 - Meaning of entity
184-1
Entities
(1)
Entity means any of the following:
(a)
an individual;
(b)
a body corporate;
(c)
a corporation sole;
(d)
a body politic;
(e)
a *partnership;
(f)
any other unincorporated association or body of persons;
(g)
a trust;
(h)
a *superannuation fund.
Note:
The term "entity" is used in a number of different but related senses. It covers all kinds of legal persons. It also covers groups of legal persons, and other things, that in practice are treated as having a separate identity in the same way as a legal person does.
S 184-1(1A) inserted by No 92 of 2000, s 3 and Sch 7 item 20, effective 1 July 2000.
(2)
The trustee of a trust or of a *superannuation fund is taken to be an entity consisting of the person who is the trustee, or the persons who are the trustees, at any given time.
Note 1:
This is because a right or obligation cannot be conferred or imposed on an entity that is not a legal person.
Note 2:
The entity that is the trustee of a trust or fund does not change merely because of a change in the person who is the trustee of the trust or fund, or persons who are the trustees of the trust or fund.
S 184-1(2) amended by No 19 of 2010, s 3 and Sch 1 items 14 and 15, by substituting "Note 1" for "Note" in the note and inserting Note 2, effective 24 March 2010.
(3)
A legal person can have a number of different capacities in which the person does things. In each of those capacities, the person is taken to be a different entity.
Example:
In addition to his or her personal capacity, an individual may be:
• sole trustee of one or more trusts; and
• one of a number of trustees of a further trust.
In his or her personal capacity, he or she is one entity. As trustee of each trust, he or she is a different entity. The trustees of the further trust are a different entity again, of which the individual is a member.
(4)
If a provision refers to an entity of a particular kind, it refers to the entity in its capacity as that kind of entity, not to that entity in any other capacity.
Example:
A provision that refers to a company does not cover a company in a capacity as trustee, unless it also refers to a trustee.
Note:
For GST purposes, non-profit sub-entities are treated as entities (see Division 63), and government entities can be treated as entities (see Division 149).
(1)
For the avoidance of doubt, a supply, acquisition or importation made by or on behalf of a partner of a *partnership in his or her capacity as a partner:
(a)
is taken to be a supply, acquisition or importation made by the partnership; and
(b)
is not taken to be a supply, acquisition or importation made by that partner or any other partner of the partnership.
Note:
Section 444-30 in Schedule 1 to the Taxation Administration Act 1953 deals with the liability of partners for the obligations imposed on a partnership under theGST law.
S 184-5(1) amended by No 73 of 2006, s 3 and Sch 5 item 135, by substituting "Section 444-30 in Schedule 1 to" for "Section 50 of" in the note, effective 1 July 2006.
(2)
For the avoidance of doubt, a supply, acquisition or importation made by or on behalf of one or more members of the committee of management of an unincorporated association or body of persons (other than a *partnership), in their capacity as members of that committee:
(a)
is taken to be a supply, acquisition or importation made by the body; and
(b)
is not taken to be a supply, acquisition or importation made by any members of the association or body.
Note:
Section 444-5 in Schedule 1 to the Taxation Administration Act 1953 deals with the liability of members of committees of management for the obligations imposed on an unincorporated association or body of persons under the GST law.
S 184-5(2) amended by No 73 of 2006, s 3 and Sch 5 item 136, by substituting "Section 444-5 in Schedule 1 to" for "Section 52 of" in the note, effective 1 July 2006.
S 184-5 inserted by No 177 of 1999, s 3 and Sch 1 item 118, effective 1 July 2000.
S 186-1 repealed by No 176 of 1999, s 3 and Sch 1 item 127, effective 1 July 2000. S 186-1 formerly read:
186-1 Approved forms
(1)
A notice, application or other document is in the
approved form if:
(a)
it is in the form approved in writing by the Commissioner in relation to that kind of notice, application or other document; and
(b)
it contains the information that the form requires, and such further information as the Commissioner requires; and
(c)
it is lodged at the place and in the manner that the Commissioner requires.
(2)
The Commissioner may combine in the same approved form more than one notice, application or other document.
Div 188 (heading) substituted by No 80 of 2007, s 3 and Sch 2 item 35, applicable to net amount for tax periods starting on or after 1 July 2007. The heading formerly read:
In some important respects, the way that this Act applies to you depends on your GST turnover. There are several turnover thresholds, and whether your GST turnover meets a particular turnover threshold, or whether it does not exceed a particular turnover threshold, can determine how this Act applies to you.
S 188-1 amended by No 80 of 2007, s 3 and Sch 2 item 36, by substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
This table specifies the turnover thresholds and indicates how they affect the operation of this Act.
Turnover thresholds
Item
This turnover threshold …
Is relevant to working out:
1
Registration turnover threshold
whether you are required to be registered (see section 23-5).
2
Tax period turnover threshold
whether tax periods must be monthly (see section 27-15).
3
Cash accounting turnover threshold
whether you can elect to account on a cash basis (see section 29-40)
4
Electronic lodgment turnover threshold
whether you must lodge GST returns electronically (see section 31-25);
whether you must pay amounts of GST electronically (see section 33-10).
4AA
Small enterprise turnover threshold
whether you can choose to apply a simplified accounting method as a small enterprise entity (see section 123-7)
4A
Annual apportionment turnover threshold
whether you can make an annual apportionment election (see subsection 131-5(2))
5
Instalment turnover threshold
whether you can elect to pay GST by instalments (see subsection 162-5(2))
Note 1:
The provisions referred to in the table indicate if the issue in relation to the turnover threshold in question is whether the threshold is met, or whether the threshold is not exceeded.
Note 2:
Items 3, 4A and 5 of the table apply to you only if you do not carry on a business.
S 188-5 amended by No 112 of 2007, s 3 and Sch 1 item 14, by inserting table item 4AA, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-5 amended by No 80 of 2007, s 3 and Sch 2 item 37, by substituting notes 2 and 3 for note 2, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Note 2 formerly read:
Note 2:
This section is an explanatory section.
S 188-5 amended by No 134 of 2004, s 3 and Sch 2 item 17, by inserting table item 4A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 188-5 amended by No 73 of 2001, s 3 and Sch 1 item 30, by inserting table item 5, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
188-10
Whether your GST turnover meets, or does not exceed, a turnover threshold
(1)
You have a
GST turnover that meets a particular *turnover threshold if:
(a)
your *current GST turnover is at or above the turnover threshold, and the Commissioner is not satisfied that your *projected GST turnover is below the turnover threshold; or
S 188-10(1) amended by No 80 of 2007, s 3 and Sch 2 items 39 and 40, by substituting "a
GST turnover" for "an
annual turnover" and substituting "GST turnover" for "annual turnover" (wherever occurring) in paras (a) and (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
You have a
GST turnover that does not exceed a particular *turnover threshold if:
(a)
your *current GST turnover is at or below the turnover threshold, and the Commissioner is not satisfied that your *projected GST turnover is above the turnover threshold; or
S 188-10(2) amended by No 80 of 2007, s 3 and Sch 2 items 41 and 42, by substituting "a
GST turnover" for "an
annual turnover" and substituting "GST turnover" for "annual turnover" (wherever occurring) in paras (a) and (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-10(3) amended by No 112 of 2007, s 3 and Sch 1 item 15, by inserting para (ba), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-10(3) amended by No 134 of 2004, s 3 and Sch 2 item 18, by inserting para (aaa), applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 188-10(3) amended by No 73 of 2001, s 3 and Sch 1 items 31 and 32, by relettering para (a) (first occurring) as para (aa), and inserting para (ab) before para (b), applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Your
current GST turnover at a time during a particular month is the sum of the *values of all the supplies that you have made, or are likely to make, during the 12 months ending at the end of that month, other than:
(a)
supplies that are *input taxed; or
(b)
supplies that are not for *consideration (and are not *taxable supplies under section 72-5); or
(c)
supplies that are not made in connection with an *enterprise that you *carry on.
S 188-15(1) amended by No 80 of 2007, s 3 and Sch 2 item 44, by substituting "
current GST turnover" for "
current annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
If you are a *member of a *GST group, your
current GST turnover at a time during a particular month is the sum of the *values of all the supplies that you or any other member of the group have made, or are likely to make, during the 12 months, other than:
(a)
supplies made from one member of the group to another member of the group; or
(b)
supplies that are *input taxed; or
(c)
supplies that are not for *consideration (and are not *taxable supplies under section 72-5); or
(d)
supplies that are not made in connection with an *enterprise that you *carry on.
S 188-15(2) amended by No 80 of 2007, s 3 and Sch 2 item 44, by substituting "
current GST turnover" for "
current annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
In working out your
current GST turnover, disregard:
(a)
any supply that is not *connected with the indirect tax zone; and
(b)
any supply that is connected with the indirect tax zone because of paragraph 9-25(5)(c), unless:
(i)
the supply is made to an *Australian consumer; and
(ii)
the supply is not *GST-free; and
(iii)
the thing to be acquired under the right or option referred to in that paragraph is not goods or *real property; and
(c)
(Repealed by No 65 of 2019)
(d)
any *GST-free supply made by a *non-resident that does not make the supply through an *enterprise that the non-resident *carries on in the indirect tax zone.
S 188-15(3) amended by No 65 of 2019, s 3 and Sch 2 item 3, by repealing para (c), effective 1 October 2019 and applicable in relation to a supply:
(a) for which consideration is first received on or after 1 July 2019; or
(b) if, before any consideration is received for the supply, an invoice is issued relation to the supply - for which an invoice is issued on or after 1 July 2019.
Para (c) formerly read:
(c)
any supply (other than a supply covered by paragraph (a) or (b)):
S 188-15(3) amended by No 52 of 2016, s 3 and Sch 1 item 7, by substituting para (b), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading. Para (b) formerly read:
(b)
any supply that is connected with the indirect tax zone because of paragraph 9-25(5)(c); and
S 188-15(3) amended by No 52 of 2016, s 3 and Sch 2 item 21, by inserting para (d), applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 188-15(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 188-15(3) amended by No 80 of 2007, s 3 andSch 2 item 44, by substituting "
current GST turnover" for "
current annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-15(3) substituted by No 77 of 2005, s 3 and Sch 3 item 16C, applicable to supplies made on or after 1 October 2005. No 77 of 2005, s 3 and Sch 3 item 18 contains the following transitional provision:
18 Transitional provision
For the purposes of sections 188-15 and 188-20 of the A New Tax System (Goods and Services Tax) Act 1999, in working out an enterprise's current annual turnover, or projected annual turnover, at a time during July, August or September 2005, disregard a supply if:
(a)
the enterprise through which the supply is made is not carried on in Australia; and
(b)
the supply:
(i)
is a supply of a right or option to use commercial accommodation in Australia; and
(ii)
is not made in Australia.
S 188-15(3) formerly read:
Supplies must be connected with Australia
(3)
In working out your
current annual turnover, disregard any supplies that are not *connected with Australia.
S 188-15(3) inserted by No 176 of 1999, s 3 and Sch 1 item 128, effective 1 July 2000.
Your
projected GST turnover at a time during a particular month is the sum of the *values of all the supplies that you have made, or are likely to make, during that month and the next 11 months, other than:
(a)
supplies that are *input taxed; or
(b)
supplies that are not for *consideration (and are not *taxable supplies under section 72-5); or
(c)
supplies that are not made in connection with an *enterprise that you *carry on.
S 188-20(1) amended by No 80 of 2007, s 3 and Sch 2 item 46, by substituting "
projected GST turnover" for "
projected annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
If you are a *member of a *GST group, your
projected GST turnover at a time during a particular month is the sum of the *values of all the supplies that you or any other member of the group have made, or are likely to make, during that month and the next 11 months other than:
(a)
supplies made from one member of the group to another member of the group; or
(b)
supplies that are *input taxed; or
(c)
supplies that are not for *consideration (and are not *taxable supplies under section 72-5); or
(d)
supplies that are not made in connection with an *enterprise that you *carry on.
S 188-20(2) amended by No 80 of 2007, s 3 and Sch 2 item 46, by substituting "
projected GST turnover" for "
projected annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
In working out your
projected GST turnover, disregard:
(a)
any supply that is not *connected with the indirect tax zone; and
(b)
any supply that is connected with the indirect tax zone because of paragraph 9-25(5)(c), unless:
(i)
the supply is made to an *Australian consumer; and
(ii)
the supply is not *GST-free; and
(iii)
the thing to be acquired under the right or option referred to in that paragraph is not goods or *real property; and
(c)
(Repealed by No 65 of 2019)
(d)
any *GST-free supply made by a *non-resident that does not make the supply through an *enterprise that the non-resident *carries on in the indirect tax zone.
S 188-20(3) amended by No 65 of 2019, s 3 and Sch 2 item 3, by repealing para (c), effective 1 October 2019 and applicable in relation to a supply:
(a) for which consideration is first received on or after 1 July 2019; or
(b) if, before any consideration is received for the supply, an invoice is issued relation to the supply - for which an invoice is issued on or after 1 July 2019.
Para (c) formerly read:
(c)
any supply (other than a supply covered by paragraph (a) or (b)):
(ii)
that is not made in the indirect tax zone; and
(iii)
that is made through an *enterprise that the supplier does not *carry on in the indirect tax zone; and
S 188-20(3) amended by No 52 of 2016, s 3 and Sch 1 item 8, by substituting para (b), applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading. Para (b) formerly read:
(b)
any supply that is connected with the indirect tax zone because of paragraph 9-25(5)(c); and
S 188-20(3) amended by No 52 of 2016, s 3 and Sch 2 item 21, by inserting para (d), applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 188-20(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
S 188-20(3) amended by No 80 of 2007, s 3 and Sch 2 item 46, by substituting "
projected GST turnover" for "
projected annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-20(3) substituted by No 77 of 2005, s 3 and Sch 3 item 16D, applicable to supplies made on or after 1 October 2005. No 77 of 2005, s 3 and Sch 3 item 18 contains the following transitional provision:
18 Transitional provision
For the purposes of sections 188-15 and 188-20 of the A New Tax System (Goods and Services Tax) Act 1999, in working out an enterprise's current annual turnover, or projected annual turnover, at a time during July, August or September 2005, disregard a supply if:
(a)
the enterprise through which the supply is made is not carried on in Australia; and
(b)
the supply:
(i)
is a supply of a right or option to use commercial accommodation in Australia; and
(ii)
is not made in Australia.
S 188-20(3) formerly read:
Supplies must be connected with Australia
(3)
In working out your
projected annual turnover, disregard any supplies that are not *connected with Australia.
S 188-20(3) inserted by No 176 of 1999, s 3 and Sch 1 item 129, effective 1 July 2000.
188-22
Settlements of insurance claims to be disregarded
In working out your *current GST turnover or your *projected GST turnover, disregard any supply that you have made to the extent that the *consideration for the supply:
(a)
is a payment of *money or *digital currency, or a supply, by an insurer in settlement of a claim under an *insurance policy; or
S 188-22 amended by No 118 of 2017, s 3 and Sch 1 item 25, by inserting "or *digital currency" in para (a), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
S 188-22 amended by No 80 of 2007, s 3 and Sch 2 item 47, by substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-22 amended by No 67 of 2003, s 3 and Sch 11 item 19, by inserting para (aa), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 188-22 amended by No 169 of 2001, s 3 and Sch 5 item 11 (as amended by No 57 of 2002, s 3 and Sch 12 item 57), by substituting the words after "*consideration" for "for the supply is a payment of *money, or a supply, by an insurer in settlement of a claim under an *insurance policy." applicable:
(a) in relation to net amounts for tax periods starting, or that started, on or after 15 March 2001; and
(b) in relation to payments and supplies, of a kind referred to in section 78-120 of the A New Tax System (Goods and Services Tax) Act 1999, that are, or have been, made on or after 15 March 2001 to an entity that is neither registered nor required to be registered.
S 188-22 inserted by No 176 of 1999, s 3 and Sch 1 item 130, effective 1 July 2000.
188-23
Supplies "reverse charged" under Division 83 or 86 not to be included in a recipient's GST turnover
S 188-23 amended by No 76 of 2017, s 3 and Sch 1 item 8, by inserting "or 86", effective 27 June 2017.
S 188-23 amended by No 80 of 2007, s 3 and Sch 2 items 48 and 49, by substituting the heading with "Supplies "reverse charged" under Division 83 not to be included in a recipient's GST turnover" and substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-23 inserted by No 92 of 2000, s 3 and Sch 3 item 13, effective 1 July 2000.
188-24
Supplies to which Subdivision 153-B applies
In working out your *current GST turnover or your *projected GST turnover, you may choose to treat the *value of any *taxable supply that, under subsection 153-55(1), you are taken to make as an intermediary as being an amount equal to the difference between:
(a)
what is, apart from this section, the value of the supply; and
(b)
the value of the taxable supply that, under subsection 153-55(2), is taken to be made to you in relation to the taxable supply that you are taken to make.
S 188-24(1) amended by No 20 of 2010, s 3 and Sch 3 item 29, by substituting "intermediary" for "agent", applicable in relation to supplies and acquisitions made on or after 1 July 2010.
S 188-24(1) amended by No 80 of 2007, s 3 and Sch 2 item 50, by substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-24(2) amended by No 20 of 2010, s 3 and Sch 3 item 29, by substituting "intermediary" for "agent", applicable in relation to supplies and acquisitions made on or after 1 July 2010.
S 188-24(2) amended by No 80 of 2007, s 3 and Sch 2 item 50, by substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 188-24 inserted by No 92 of 2000, s 3 and Sch 4 item 9, effective 1 July 2000.
188-25
Transfer of capital assets, and termination etc. of enterprise, to be disregarded
In working out your *projected GST turnover, disregard:
(a)
any supply made, or likely to be made, by you by way of transfer of ownership of a capital asset of yours; and
(b)
any supply made, or likely to be made, by you solely as a consequence of:
S 188-25 amended by No 80 of 2007, s 3 and Sch 2 item 51, by substituting "GST turnover" for "annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
For the purposes only of this Division, the value of a supply that is not a *taxable supply is taken to be 11/10 of what would be the *value of the supply if it were a taxable supply.
For the basic rules on the value of taxable supplies, see Subdivision 9-C.
S 188-30 substituted by No 176 of 1999, s 3 and Sch 1 item 131, effective 1 July 2000. S 188-30 formerly read:
188-30 The value of non-taxable supplies
For the purposes only of this Division, work out the value of a supply that is not a *taxable supply in the same way that you would work out the *value of the supply if it were a taxable supply, but without any discount for the amount of GST (if any) payable on the supply.
For the basic rules on the value of taxable supplies, see Subdivision 9-C.
For the purposes only of this Division, the value of all the *gambling supplies that an entity makes during a particular period is taken to be an amount equal to 11 times:
(a)
the entity's *global GST amount for that period; or
(b)
if that period is not a tax period - what would have been the entity's global GST amount for the period if that period had been a tax period.
To the extent that a supply is constituted by a loan of *money or *digital currency, any repayment of the principal, and any obligation to repay the principal, is to be disregarded in working out the value of the supply.
S 188-35 amended by No 118 of 2017, s 3 and Sch 1 item 26, by inserting "or *digital currency", effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1.
S 188-35 inserted by No 176 of 1999, s 3 and Sch 1 item 132, effective 1 July 2000.
188-40
Supplies of employee services by overseas entities to be disregarded for the registration turnover threshold
disregard the supply to the extent that the payments that the non-resident makes to the employee for performing those services would, if they were made by the recipient, be *withholding payments.
S 188-40(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (c), applicable to a tax period that commences on or after 1 July 2015.
S 188-40(1) amended by No 80 of 2007, s 3 and Sch 2 item 52, by substituting "GST turnover" for "annual turnover" (wherever occurring), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
You can be entitled to input tax credits for your acquisitions relating to financial supplies (even though financial supplies are input taxed) if you do not exceed the financial acquisitions threshold.
General
(1)
You
exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the *financial acquisitions you have made, or are likely to make, during the 12 months ending at the end of that month were made solely for a *creditable purpose, either or both of the following would apply:
(a)
the amount of all the input tax credits to which you would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;
(b)
the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you would be entitled for all your acquisitions and importations during that 12 months (including the financial acquisitions).
S 189-5(1) amended by No 12 of 2012, s 3 and Sch 3 item 1, by substituting "$150,000" for "$50,000" in para (a), applicable for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.
Members of GST groups
(2)
If you are a *member of a *GST group, you
exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the *financial acquisitions you or any other member of the group have made, or are likely to make, during the 12 months ending at the end of that month were made solely for a *creditable purpose, either or both of the following would apply:
(a)
the amount of all the input tax credits to which you or any other member of the group would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;
(b)
the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you or any other member of the group would be entitled for all acquisitions and importations of any member of the group during that 12 months (including the financial acquisitions).
S 189-5(2) amended by No 12 of 2012, s 3 and Sch 3 item 1, by substituting "$150,000" for "$50,000" in para (a), applicable for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.
S 189-5 inserted by No 92 of 2000, s 3 and Sch 5 item 7, effective 1 July 2000.
189-10
Exceeding the financial acquisitions threshold - future acquisitions
General
(1)
You
exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the *financial acquisitions you have made, or are likely to make, during that month and the next 11 months were made solely for a *creditable purpose, either or both of the following would apply:
(a)
the amount of all the input tax credits to which you would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;
(b)
the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you would be entitled for all your acquisitions and importations during those months (including the financial acquisitions).
S 189-10(1) amended by No 12 of 2012, s 3 and Sch 3 item 2, by substituting "$150,000" for "$50,000" in para (a), applicable for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.
Members of GST groups
(2)
If you are a *member of a *GST group, you
exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the *financial acquisitions you or any other member of the group have made, or are likely to make, during that month and the next 11 months were made solely for a *creditable purpose, either or both of the following would apply:
(a)
the amount of all the input tax credits to which you or any other member of the group would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;
(b)
the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you or any other member of the group would be entitled for all acquisitions and importations of any member of the group during those months (including the financial acquisitions).
S 189-10(2) amended by No 12 of 2012, s 3 and Sch 3 item 2, by substituting "$150,000" for "$50,000" in para (a), applicable for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.
S 189-10 inserted by No 92 of 2000, s 3 and Sch 5 item 7, effective 1 July 2000.
S 189-15 inserted by No 92 of 2000, s 3 and Sch 5 item 7, effective 1 July 2000.
Division 190 - 90% owned groups of companies
190-1
90% owned groups
Two companies are members of the same
90% owned group if:
(a)
one of the companies has *at least a 90% stake in the other company; or
(b)
a third company has *at least a 90% stake in each of the two companies.
190-5
When a company has at least a 90% stake in another company
A *company (the
holding company) has
at least a 90% stake in another company (the
subsidiary company) if the holding company:
(a)
controls, or is able to control, at least 90% of the voting power in the subsidiary company (whether directly, or indirectly through one or more interposed companies); and
(b)
has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any *dividends that the subsidiary company may pay; and
(c)
has the right to receive (whether directly, or indirectly through one or more interposed companies) at least 90% of any distribution of capital of the subsidiary company.
Part 6-3 - Dictionary
Division 195 - Dictionary
195-1
Dictionary
Definition of "100% subsidiary" inserted by No 156 of 2000, s 3 and Sch 6 item 33, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
account on a cash basis : you account on a cash basis while a choice you make under section 29-40, or a permission of the Commissioner under section 29-45 in relation to you, has effect.
account on the same basis : 2 or more *companies account on the same basis if:
(a)
each company *accounts on a cash basis; or
(b)
none of the companies account on a cash basis.
ACNC-registered charity means an entity that is registered under the Australian Charities and Not-for-profits Commission Act 2012 as the type of entity mentioned in column 1 of item 1 of the table insubsection 25-5(5) of that Act.
Definition of "ACNC-registered charity" inserted by No 169 of 2012, s 3 and Sch 2 item 126, effective 3 December 2012.
ACNC-registered religious institution means an institution that is:
(a)
an *ACNC-registered charity; and
(b)
registered under the Australian Charities and Not-for-profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 4 of the table in subsection 25-5(5) of that Act.
Definition of "ACNC-registered religious institution" amended by No 96 of 2013, s 3 and Sch 1 item 5, by substituting "item 4" for "item 3" in para (b), effective 1 January 2014.
Definition of "ACNC-registered religious institution" inserted by No 169 of 2012, s 3 and Sch 2 item 127, effective 3 December 2012.
acquisition has the meaning given by section 11-10.
actual application of a thing has the meaning given by section 129-40.
additional consideration includes the meaning given by subsection 133-5(3).
Definition of "additional consideration" inserted by No 20 of 2010, s 3 and Sch 1 item 12, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
Definition of "adjustment event" amended by No 156 of 2000, s 3 and Sch 3 item 28, by substituting "sections 19-10 and 69-50" for "section 19-10", applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
adjustment note means a document that complies with the requirements of subsection 29-75(1) and (if applicable) section 54-50.
adjustment period has the meaning given by Subdivision 129-B.
adult and community education course means a course of study or instruction that is likely to add to the employment related skills of people undertaking the course and:
(a)
is of a kind determined by the *Student Assistance Minister to be an adult and community education course and is provided by, or on behalf of, a body:
Definition of "adult and community education course" amended by No 15 of 2017, s 3 and Sch 4 items 10 and 11, by substituting "*Student Assistance Minister" for "*Education Minister" in para (a) and "Student Assistance Minister" for "*Education Minister" in para (b), effective 1 April 2017.
Aged Care Minister means the Minister administering the Aged Care Act 1997.
Aged Care Secretary means the Secretary of the Department that administers the Aged Care Act 1997.
Definition of "Aged Care Secretary" inserted by No 143 of 2004, s 3 and Sch 1 item 9, effective 14 December 2004. For application provisions, see note under s 38-25(3).
aircraft's stores has the meaning given by section 130C of the Customs Act 1901.
airport shop goods has the same meaning as in the Customs Act 1901.
amalgamated company , in relation to an *amalgamation, means the single *company that is, or will be, the result of the amalgamation, and that continues, or will continue, after the amalgamation. It may be one of the *amalgamating companies or a new company.
amalgamating company , in relation to an *amalgamation, means any *company that amalgamates with one or more other companies under the amalgamation.
amalgamation means any procedure, under an *Australian law or a *foreign law, by which 2 or more *companies amalgamate and continue as one company.
amount includes a nil amount.
annual apportionment election means an election made under section 131-10.
Definition of "annual apportionment election" inserted by No 134 of 2004, s 3 and Sch 2 item 19, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
annual apportionment turnover threshold has the meaning given by subsection 131-5(2).
Definition of "annual apportionment turnover threshold" inserted by No 134 of 2004, s 3 and Sch 2 item 20, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
Definition of "annual GST liability" inserted by No 73 of 2001, s 3 and Sch 1 item 33, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
annual tax period has the meaning given by section 151-40.
Definition of "annual tax period" inserted by No 134 of 2004, s 3 and Sch 1 item 12, applicable in relation to net amounts for tax periods starting, or that started on, or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
annual tax period election means an election made under section 151-10.
Definition of "annual tax period election" inserted by No 134 of 2004, s 3 and Sch 1 item 13, applicable in relation to net amounts for tax periods starting, or that started on, or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
Definition of "annual turnover" repealed by No 80 of 2007, s 3 and Sch 2 item 53, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The definition formerly read:
annual turnover means:
(a)
in relation to meeting a *turnover threshold - has the meaning given by subsection 188-10(1); and
(b)
in relation to not exceeding a *turnover threshold - has the meaning given by subsection 188-10(2).
annual turnover of financial supplies (Repealed by No 92 of 2000)
Definition of "annual turnover of financial supplies" repealed by No 92 of 2000, s 3 and Sch 5 item 8, effective 1 July 2000. The definition formerly read:
annual turnover of financial supplies means the amount that would be your *current annual turnover, or your *projected annual turnover (if that would be greater), if:
(a)
the *financial supplies that you made, or would be likely to make, during the 12 month period in question were *taxable supplies; and
(b)
those supplies were the only supplies that you made, or would be likely to make, during that period.
apply , in relation to a thing acquired or imported, has the meaning given by section 129-55.
Definition of "appropriate percentage" inserted by No 73 of 2001, s 3 and Sch 1 item 35, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
approved form has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953.
Definition of "approved form" substituted by No 92 of 2000, s 3 and Sch 9 item 9, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year. The definition formerly read:
approved form has the meaning given by section 995-1 of the *ITAA 1997.
Definition of "approved form" substituted by No 176 of 1999, s 3 and Sch 1 item 133, effective 1 July 2000. The definition formerly read:
approved form has the meaning given by section 186-1.
approved pathology practitioner means a person who is an approved pathology practitioner for the purposes of the Health Insurance Act 1973.
approved valuation has the meaning given by subsection 75-35(2).
Definition of "approved valuation" inserted by No 78 of 2005, s 3 and Sch 6 item 22, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
assessable income has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "assessable income" inserted by No 73 of 2001, s 3 and Sch 1 item 36, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
assessable professional income has the meaning given by subsection 405-20(1) of the *ITAA 1997.
Definition of "assessable professional income" inserted by No 73 of 2001, s 3 and Sch 1 item 37, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Definition of "assessed GST" inserted by No 39 of 2012, s 3 and Sch 1 item 3, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Definition of "assessed net amount" inserted by No 39 of 2012, s 3 and Sch 1 item 4, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
assessment has the meaning given by the *ITAA 1997.
Definition of "assessment" inserted by No 39 of 2012, s 3 and Sch 1 item 5, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
associate has the meaning given by section 318 of the *ITAA 1936.
at least a 90% stake in a *company has the meaning given by section 190-5.
Definition of "Australia" repealed by No 2 of 2015, s 3 and Sch 4 item 25, applicable to a tax period that commences on or after 1 July 2015. The definition formerly read:
Australia does not include any external Territory. However, it includes an installation (within the meaning of the Customs Act 1901) that is deemed by section 5C of the Customs Act 1901 to be part of Australia.
Australian-based business recipient has the meaning given by subsection 9-26(2).
Definition of "Australian-based business recipient" inserted by No 52 of 2016, s 3 and Sch 2 item 14, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
Australian Business Register means the register established under section 24 of the A New Tax System (Australian Business Number) Act 1999.
CCH Note:
Pending amendment
Definition of "Australian Business Register" will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 96, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2).
Definition of "Australian Business Registrar" will be repealed by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 97, effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2).
Definition of "Australian consumer" inserted by No 52 of 2016, s 3 and Sch 1 item 33, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Australian fee or charge means a fee or charge (however described), other than an *Australian tax, imposed under an *Australian law and payable to an *Australian government agency.
Definition of "Australian fee or charge" inserted by No 41 of 2011, s 3 and Sch 4 item 5, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposedon or after 1 July 2011. For application provision, see note under Div 81 heading.
Australian government agency has the meaning given by section 995-1 of the *ITAA 1997.
Australian law has the meaning given by section 995-1 of the *ITAA 1997.
Australian resident means a person who is a resident of Australia for the purposes of the *ITAA 1936.
Australian tax means a tax (however described) imposed under an *Australian law.
Definition of "Australian tax" inserted by No 41 of 2011, s 3 and Sch 4 item 6, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Former definition of "Australian tax" repealed by No 176 of 1999, s 3 and Sch 1 item 136, effective 1 July 2000. The definition formerly read:
Australian tax means a tax (however described) imposed under an *Australian law.
Australian tax, fee or charge (Repealed by No 41 of 2011)
Definition of "Australian tax, fee or charge" repealed by No 41 of 2011, s 3 and Sch 4 item 7, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading. The definition formerly read:
Australian tax, fee or charge means:
(a)
a tax (however described) imposed under an *Australian law; or
(b)
a fee or charge (however described) imposed under an Australian law and payable to an *Australian government agency.
Definition of "Australian tax, fee or charge" inserted by No 176 of 1999, s 3 and Sch 1 item 137, effective 1 July 2000.
average income has the meaning given by subsection 392-45(1) of the *ITAA 1997.
Definition of "average income" inserted by No 73 of 2001, s 3 and Sch 1 item 34, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
average input tax credit fraction has the meaning given by section 79-100.
Definition of "average input tax credit fraction" inserted by No 67 of 2003, s 3 and Sch 11 item 20, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
base year has the meaning given by sections 45-320 and 45-470 in Schedule 1 to the Taxation Administration Act 1953.
Definition of "base year" inserted by No 73 of 2001, s 3 and Sch 1 item 38, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
batch repair process has the meaning given by section 117-5.
beverage has the meaning given by subsection 38-4(2).
borrowing has the meaning given by section 995-1 of the *ITAA 1997.
business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.
business day has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "business day" inserted by No 77 of 2017, s 3 and Sch 1 item 54, effective 1 July 2017. For application provisions, see note under Div 146 heading.
car has the meaning given by section 995-1 of the *ITAA 1997.
car depreciation limit (Repealed by No 77 of 2001)
Definition of "car depreciation limit" repealed by No 77 of 2001, s 3 and Sch 2 item 13, applicable to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June 2001; or
(ii) you constructed where the construction started after that day; or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.
Definition of "car depreciation limit" formerly read:
car depreciation limit has the meaning given by section 42-80 of the *ITAA 1997.
car limit has the meaning given by section 40-230 of the *ITAA 1997.
CCH Note:
The car limit for the 2024/25 financial year is $69,674 (The indexation factor is 1.023, calculated as 445.7 divided by 435.5). The car limit for the 2023/24 financial year is $68,108. The car limit for the 2022/23 financial year was $64,741. The car limit for the 2021/22 financial years was $60,733. The car limit for the 2020/21 financial years was $59,136.
(a)
bodies for those cars (including insulated bodies, tank-bodies, and other bodies designed for the transport or delivery of goods or other property of particular kinds); and
(b)
underbody hoists, and other equipment or apparatus of a kind ordinarily fitted to cars for use in connection with the transport or delivery of goods or other property by those road vehicles.
carried on in Australia (Repealed by No 2 of 2015)
Definition of "carried on in Australia" repealed by No 2 of 2015, s 3 and Sch 4 item 26, applicable to a tax period that commences on or after 1 July 2015. The definition formerly read:
carried on in Australia , in relation to an *enterprise, has the meaning given by subsection 9-25(6).
carried on in the indirect tax zone , in relation to an *enterprise, has the meaning given by section 9-27.
Definition of "carried on in the indirect tax zone" amended by No 52 of 2016, s 3 and Sch 2 item 15, by substituting "section 9-27" for "subsection 9-25(6)", applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
Definition of "carried on in the indirect tax zone" inserted by No 2 of 2015, s 3 and Sch 4 item 27, applicable to a tax period that commences on or after 1 July 2015.
carrying on an *enterprise includes doing anything in the course of the commencement or termination of the enterprise.
cash accounting turnover threshold has the meaning given by subsection 29-40(3).
Definition of "cash accounting turnover threshold" amended by No 176 of 1999, s 3 and Sch 1 item 138, by substituting "subsection 29-40(3)" for "subsection 29-40(2)", effective 1 July 2000.
cease to be a member of a GST group (Repealed by No 12 of 2012)
Definition of "cease to be a member of a GST group" repealed by No 12 of 2012, s 3 and Sch 6 item 103, applicable to tax periods starting on or after 22 March 2012. The definition formerly read:
cease to be a member of a GST group means:
(a)
your approval as a *member of a *GST group is revoked; or
(b)
the approval of a GST group of which you are a member is revoked.
Definition of "cease to be a member of a GST group" inserted by No 177 of 1999, s 3 and Sch 1 item 119, effective 1 July 2000.
cease to be a participant of a GST joint venture (Repealed by No 12 of 2012)
Definition of "cease to be a participant of a GST joint venture" repealed by No 12 of 2012, s 3 and Sch 6 item 104, applicable to tax periods starting on or after 22 March 2012. The definition formerly read:
cease to be a participant of a GST joint venture means:
(a)
your approval as a *participant of a *GST joint venture is revoked; or
(b)
the approval of a GST joint venture of which you are a participant is revoked.
Definition of "cease to be a participant of a GST joint venture" inserted by No 177 of 1999, s 3 and Sch 1 item 120, effective 1 July 2000.
Child Care Minister means the Minister administering the Child Care Act 1972 and the family assistance law (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999.
Definition of "Child Care Minister" amended by No 156 of 2000, s 3 and Sch 1 item 14, by inserting "and the family assistance law (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999" after "1972", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
commercial accommodation has the meaning given by section 87-15.
commercial residential premises means:
(a)
a hotel, motel, inn, hostel or boarding house; or
(b)
premises used to provide accommodation in connection with a *school; or
(c)
a *ship that is mainly let out on hire in the ordinary course of a *business of letting ships out on hire; or
(d)
a ship that is mainly used for *entertainment or transport in the ordinary course of a *business of providing ships for entertainment or transport; or
(da)
a marina at which one or more of the berths are occupied, or are to be occupied, by *ships used as residences; or
(e)
a caravan park or a camping ground; or
(f)
anything similar to *residential premises described in paragraphs (a) to (e).
However, it does not include premises to the extent that they are used to provide accommodation to students in connection with an *education institution that is not a *school.
Definition of "commercial residential premises" amended by No 156 of 2000, s 3 and Sch 6 item 34, by inserting para (da), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "company" amended by No 92 of 2000, s 3 and Sch 7 item 21, by inserting "or a *non-entity joint venture" at the end, effective 1 July 2000.
complying superannuation fund has the meaning given by section 995-1 of the *ITAA 1997.
Definition of "Comptroller-General of Customs" inserted by No 77 of 2017, s 3 and Sch 1 item 54, effective 1 July 2017. For application provisions, see note under Div 146 heading.
compulsory third party scheme is a scheme or arrangement:
(a)
that is established by an *Australian law; and
(b)
that is specified in the regulations, or that is of a kind specified in the regulations, made for the purposes of this definition.
Definition of "compulsory third party scheme" inserted by No 67 of 2003, s 3 and Sch 11 item 21, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
connected with Australia (Repealed by No 2 of 2015)
Definition of "connected with Australia" repealed by No 2 of 2015, s 3 and Sch 4 item 28, applicable to a tax period that commences on or after 1 July 2015. The definition formerly read:
connected with Australia , in relation to a supply, has the meaning given by sections 9-25 and 85-5.
Note:
This meaning is also affected by section 96-5.
Definition of "connected with Australia" amended by No 41 of 2011, s 3 and Sch 4 item 8, by substituting "section 96-5" for "sections 81-10 and 96-5" in the note at the end, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Definition of "connected with Australia" amended by No 177 of 1999, s 3 and Sch 1 item 121, by substituting "sections 9-25 and 85-5" for "section 9-25", effective 1 July 2000.
connected with the indirect tax zone , in relation to a supply, has the meaning given by sections 9-25, 84-75, 85-5 and 126-27.
Note:
This meaning is also affected by sections 9-26, 84-83 and 96-5.
Definition of "connected with the indirect tax zone" amended by No 77 of 2017, s 3 and Sch 1 items 55 and 56, by inserting ", 84-75" and substituting the note, effective 1 July 2017. For application provisions, see note under Div 146 heading. The note formerly read:
Note:
This meaning is also affected by sections 9-26 and 96-5.
Definition of "connected with the indirect tax zone" amended by No 52 of 2016, s 3 and Sch 1 item 34, by substituting "sections 9-25, 85-5 and 126-27" for "sections 9-25 and 85-5", applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Definition of "connected with the indirect tax zone" amended by No 52 of 2016, s 3 and Sch 2 item 16, by substituting the note, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. The note formerly read:
Note:
This meaning is also affected by section 96-5.
Definition of "connected with the indirect tax zone" inserted by No 2 of 2015, s 3 and Sch 4 item 29, applicable to a tax period that commences on or after 1 July 2015.
consideration , for a supply or acquisition, means any consideration, within the meaning given by sections 9-15 and 9-17, in connection with the supply or acquisition.
Definition of "consideration" amended by No 75 of 2012, s 3 and Sch 2 item 13, by substituting "sections 9-15 and 9-17" for "section 9-15", applicable, and taken to have applied, from 1 July 2012.
Definition of "consideration" amended by No 41 of 2011, s 3 and Sch 4 item 9, by inserting "81-10, 81-15," in the note at the end, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Definition of "consideration" amended by No 32 of 2006, s 3 and Sch 4 item 15, by inserting ", 100-12" after "100-5", applicable in relation to supplies made on or after 11 May 2005.
Definition of "consideration" amended by No 78 of 2005, s 3 and Sch 6 item 23, by inserting "75-12, 75-13, 75-14," after "sections" in the note, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Definition of "consideration" amended by No 67 of 2003, s 3 and Sch 11 item 22, by inserting "79-60, 79-65, 79-80, 80-15, 80-55," in the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "consideration" amended by No 97 of 2002, s 3 and Sch 1 item 5, by inserting "82-5, 82-10", applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "consideration" amended by No 177 of 1999, s 3 and Sch 1 items 122 and 123, by substituting "78-20, 78-35, 78-45, 78-50" for "78-30, 78-35" and inserting ", 100-5" in the Note, effective 1 July 2000.
consolidated group has the meaning given by section 703-5 of the *ITAA 1997.
Definition of "consolidated group" inserted by No 101 of 2004, s 3 and Sch 6 item 2, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
Definition of "consumer" inserted by No 77 of 2017, s 3 and Sch 1 item 57, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Definition of "contributing operator" inserted by No 67 of 2003, s 3 and Sch 11 item 23, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
contributing operator's payment has the meaning given by subsection 80-5(3), 80-40(3) or 80-80(3).
Definition of "contributing operator's payment" inserted by No 67 of 2003, s 3 and Sch 11 item 24, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
contribution amount has the meaning given by paragraph 721-25(1)(b) of the *ITAA 1997.
Definition of "contribution amount" inserted by No 101 of 2004, s 3 and Sch 6 item 3, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
corrected GST amount has the meaning given by paragraph 19-40(c).
corrected input tax credit amount has the meaning given by paragraph 19-70(c).
course materials , in relation to an *education course, means materials provided by the entity supplying the course that are necessarily consumed or transformed by the students undertaking the course for the purposes of the course.
creditable acquisition has the meaning given by section 11-5.
Definition of "creditable acquisition" amended by No 52 of 2016, s 3 and Sch 1 item 35, by inserting ", 84-145" in the note, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
Definition of "creditable acquisition" amended by No 39 of 2012, s 3 and Sch 1 item 129, by inserting ", 93-15" after "93-5" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Definition of "creditable acquisition" amended by No 92 of 2000, s 3 and Sch 1 item 7A, by inserting "49-35," after "sections" in the Note, effective 1 July 2000.
Definition of "creditable acquisition" amended by No 177 of 1999, s 3 and Sch 1 items 124 and 125, by omitting "and subsection 78-5(2)" from the end of the definition and substituting "78-30" for "78-15" in the Note, effective 1 July 2000.
creditable at less than 1/11 of the consideration has the meaning given by subsection 136-50(2).
Definition of "creditable at less than 1/11 of the consideration" inserted by No 156 of 2000, s 3 and Sch 4 item 18, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
creditable importation has the meaning given by section 15-5.
Note:
This meaning is affected by sections 60-10 and 69-5.
creditable purpose :
(a)
in relation to the acquisition of a thing - has the meaning given by sections 11-15 and 60-20; and
(b)
in relation to the importation of a thing - has the meaning given by sections 15-10 and 60-20; and
(c)
in relation to the *application of a thing acquired or imported - has the meaning given by section 129-50.
Definition of "CTP ancillary payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 25, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
CTP compensation or ancillary payment or supply has the meaning given by subsection 79-35(1).
Definition of "CTP compensation or ancillary payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 26, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
CTP compensation payment or supply has the meaning given by subsection 79-35(2).
Note:
Section 79-90 also treats certain payments or supplies as CTP compensation payments or supplies.
Definition of "CTP compensation payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 27, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
CTP dual premium or election payment or supply means a payment or supply to which section 79-5 or 79-15 applies.
Definition of "CTP dual premium or election payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 28, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
CTP hybrid payment or supply has the meaning given by section 79-25.
Definition of "CTP hybrid payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 29, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "CTP premium" inserted by No 67 of 2003, s 3 and Sch 11 item 30, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
current annual turnover (Repealed by No 80 of 2007)
Definition of "current annual turnover" repealed by No 80 of 2007, s 3 and Sch 2 item 54, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The definition formerly read:
current annual turnover has the meaning given by section 188-15.
Note:
This meaning is affected by section 188-22.
Definition of "current annual turnover" amended by No 176 of 1999, s 3 and Sch 1 item 139, by inserting the Note, effective 1 July 2000.
current GST lodgment record has the meaning given by section 162-10.
Definition of "current GST lodgment record" inserted by No 73 of 2001, s 3 and Sch 1 item 39, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
current GST turnover has the meaning given by section 188-15.
Definition of "current GST turnover" inserted by No 80 of 2007, s 3 and Sch 2 item 55, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
customs clearance area means a place identified under section 234AA of the Customs Act 1901.
customs duty means any duty of customs imposed by that name under a law of the Commonwealth, other than:
(a)
the A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999; or
(aa)
the A New Tax System (Goods and Services Tax Imposition (Recipients) - Customs) Act 2005; or
(b)
the A New Tax System (Wine Equalisation Tax Imposition - Customs) Act 1999; or
(c)
the A New Tax System (Luxury Car Tax Imposition - Customs) Act 1999.
Definition of "customs duty" amended by No 10 of 2005, s 3 and Sch 1 item 4, by inserting para (aa), effective 1 July 2005.
Definition of "customs duty" substituted by No 176 of 1999, s 3 and Sch 1 item 140, effective 1 July 2000. The definition formerly read:
customs duty means any duty of customs imposed by that name under a law of the Commonwealth, (other than A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999).
customs value , in relation to goods, means the customs value of the goods for the purposes of Division 2 of Part VIII of the Customs Act 1901.
dealer in precious metal means an entity that satisfies the Commissioner that a principal part of *carrying on its *enterprise is the regular supply and acquisition of *precious metal.
Definition of "dealer in precious metal" amended by No 177 of 1999, s 3 and Sch 1 item 126, by omitting "for investment purposes" from the end of the definition, effective 1 July 2000.
decreasing adjustment means an amount arising under one of the following provisions:
Definition of "decreasing adjustment" amended by No 69 of 2023, s 3 and Sch 4 item 109, by substituting "real property under the margin scheme" for "*real property under the *margin scheme" in table item 4AA, "compulsory third party schemes" for "*compulsory third party schemes" in table item 4A, "Decreasing adjustments under compulsory third party schemes" for "*Decreasing adjustments under *compulsory third party schemes" in table item 4B, "Decreasing adjustments under compulsory third party schemes" for "*Decreasing adjustments under *compulsory third party schemes" in table item 4C and "Decreasing adjustments for additional consideration" for "*Decreasing adjustments for *additional consideration" in table item 6A, effective 1 October 2023.
Definition of "decreasing adjustment" amended by No 21 of 2010, s 3 and Sch 1 item 21, by inserting table item 6B, applicable in relation to payments made on or after 1 July 2010.
Definition of "decreasing adjustment" amended by No 20 of 2010, s 3 and Sch 1 item 13, by inserting table item 6A, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
Definition of "decreasing adjustment" amended by No 78 of 2005, s 3 and Sch 6 item 24, by inserting table item 4AA, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Definition of "decreasing adjustment" amended by No 41 of 2005, s 3 and Sch 10, item 11, by substituting "Section 132-5" for "Section 132-15" in table item 6, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Definition of "decreasing adjustment" amended by No 67 of 2003, s 3 and Sch 11 item 32, by substituting table item 4A and inserting table items 4B and 4C, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 4A formerly read: "4A Section 78-10 Payments or supplies made in settlement of insurance claims".
Definition of "decreasing adjustment" amended by No 177 of 1999, s 3 and Sch 1 items 127 and 128, by inserting table items 4A and 7, effective 1 July 2000.
dental practitioner has the meaning given by subsection 3(1) of the Health Insurance Act 1973.
deposit account : an account is a
deposit account if:
(a)
the account is made available by an Australian ADI (within the meaning of the Corporations Act 2001) in the course of carrying on a banking business (within the meaning of the Banking Act 1959); and
(b)
amounts credited to the account represent money taken by the ADI on deposit (other than as part-payment for identified goods or services); and
(c)
amounts credited to the account do not relate to a debenture (as defined in section 9 of the Corporations Act 2001) of the ADI.
Definition of "derived" inserted by No 73 of 2001, s 3 and Sch 1 item 40, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
digital currency means digital units of value that:
(a)
are designed to be fungible; and
(b)
can be provided as *consideration for a supply; and
(c)
are generally available to members of the public without any substantial restrictions on their use as consideration; and
(d)
either:
(i)
are not denominated in any country's currency; or
(ii)
are denominated in a currency that is not issued by, or under the authority of, an *Australian government agency or a foreign government agency (within the meaning of the Income Tax Assessment Act 1997); and
(e)
do not have a value that depends on, or is derived from, the value of anything else; and
(f)
do not give an entitlement to receive, or to direct the supply of, a particular thing or things, unless the entitlement is incidental to:
(i)
holding the digital units of value; or
(ii)
using the digital units of value as consideration;
but does not include a thing that, if supplied, would be a *financial supply for a reason other than being a supply of:
(g)
one or more digital units of value to which paragraphs (a) to (f) apply; or
(h)
*money.
Definition of "digital currency" amended by No 29 of 2023, s 3 and Sch 2 items 1 and 2, by substituting para (d) and the words after para (f), effective 1 July 2023 and applicable in relation to supplies or payments made on or after 1 July 2021. Para (d) formerly read:
(d)
are not denominated in any country's currency; and
The words after para (f) formerly read:
but does not include:
(g)
*money; or
(h)
a thing that, if supplied, would be a *financial supply for a reason other than being a supply of one or more digital units of value to which paragraphs (a) to (f) apply.
Definition of "digital currency" inserted by No 118 of 2017, s 3 and Sch 1 item 27, effective 1 July 2017. No 118 of 2017, s 3 and Sch 1 item 30 contains the following application provision:
30 Application of amendments etc.
(1)
The amendments made apply in relation to supplies or payments made on or after 1 July 2017.
(2)
Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to regulations made for the purposes of subsection 40-5(2) or 70-5(1) of the A New Tax System (Goods and Services Tax) Act 1999, if the regulations:
(a)
relate to digital currency; and
(b)are made within 6 months after the day this Act receives the Royal Assent.
Disability Services Minister means the Minister administering the National Disability Insurance Scheme Act 2013.
Definition of "Disability Services Minister" inserted by No 124 of 2013, s 3 and Sch 9 item 3, applicable in relation to supplies made on or after the commencement of section 37 of the National Disability Insurance Scheme Act 2013 [1 July 2013].
dividend has the meaning given by subsections 6(1), (4) and (5) of the *ITAA 1936.
early net amount has the meaning given by subsection 162-145(3).
Definition of "early net amount" inserted by No 73 of 2001, s 3 and Sch 1 item 41, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Definition of "education course" amended by No 143 of 2007, s 3 and Sch 7 item 3, by repealing para (e), effective 1 July 2006. Para (e) formerly read:
(e)
a *Masters or Doctoral course; or
education institution has the meaning given by subsection 3(1) of the Student Assistance Act 1973.
Definition of "electronic communication" inserted by No 52 of 2016, s 3 and Sch 1 item 36, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
electronic distribution platform has the meaning given by section 84-70.
Definition of "electronic distribution platform" inserted by No 52 of 2016, s 3 and Sch 1 item 36, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
electronic lodgment turnover threshold has the meaning given by subsection 31-25(4).
electronic payment means a payment by way of electronic transmission, in an electronic format approved by the Commissioner.
Definition of "electronic signature" repealed by No 12 of 2012, s 3 and Sch 6 item 184, effective 21 March 2012. The definition formerly read:
electronic signature has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997.
Definition of "electronic signature" substituted by No 92 of 2000, s 3 and Sch 9 item 10, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year. The definition formerly read:
electronic signature , in relation to a person, means a unique identification in an electronic form that is approved by the Commissioner for the purposes of the *ITAA 1936.
eligible Australian carbon credit unit means:
(a)
a Kyoto Australian carbon credit unit (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011); or
(b)
a non-Kyoto Australian carbon credit unit (within the meaning of that Act) issued in relation to an eligible offsets project (within the meaning of that Act) for a reporting period (within the meaning of that Act), where:
(i)
if it were assumed that the reporting period had ended before the Kyoto abatement deadline (within the meaning of that Act), a Kyoto Australian carbon credit unit would have been issued in relation to the project for the reporting period instead of the non-Kyoto Australian carbon credit unit; and
(ii)
the non-Kyoto Australian carbon credit unit is not of a kind specified in the regulations; or
(c)
an Australian carbon credit unit (within the meaning of that Act) of a kind specified in the regulations.
Subparagraph (b)(ii) and paragraph (c) do not, by implication, limit the application of subsection 13(3) of the Legislation Act 2003 to other instruments under this Act.
Definition of "eligible Australian carbon credit unit" amended by No 126 of 2015, s 3 and Sch 1 item 23, by substituting "Legislation Act 2003" for "Legislative Instruments Act 2003", effective 5 March 2016.
Definition of "eligible Australian carbon credit unit" inserted by No 83 of 2014, s 3 and Sch 1 item 7, effective 1 July 2014. No 83 of 2014, s 3 and Sch 1 item 330, contains the following transitional provision:
330 Transitional -
A New Tax System (Goods and Services Tax) Act 1999 Despite the amendments of the A New Tax System (Goods and Services Tax) Act 1999 made by this Schedule, that Act continues to apply, in relation to carbon units issued before the designated carbon unit day, as if those amendments had not been made.
eligible emissions unit means:
(a)
an *eligible international emissions unit; or
(b)
an *eligible Australian carbon credit unit.
Definition of "eligible emissions unit" substituted by No 83 of 2014, s 3 and Sch 1 item 8, effective 1 July 2014. For transitional provision see note under definition of "eligible Australian carbon credit unit". The definition formerly read:
eligible emissions unit has the same meaning as in the Clean Energy Act 2011.
Definition of "eligible emissions unit" inserted by No 132 of 2011, s 3 and Sch 2 item 2, effective 10 May 2012.
eligible international emissions unit has the same meaning as in the Australian National Registry of Emissions Units Act 2011.
Definition of "eligible international emissions unit" inserted by No 83 of 2014, s 3 and Sch 1 item 9, effective 1 July 2014. For transitional provision see note under definition of "eligible Australian carbon credit unit".
employee share scheme has the meaning given by the *ITAA 1997.
Definition of "employee share scheme" amended by No 133 of 2009, s 3 and Sch 1 item 7, by substituting "the *ITAA 1997" for "section 139C (including as affected by Subdivision DB of Division 13A of Part III) of the *ITAA 1936", applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and 83A-5(2) of the Income Tax (Transitional Provisions) Act 1997.
Definition of "employee share scheme" amended by No 56 of 2007, s 3 and Sch 3 item 10, by inserting "(including as affected by Subdivision DB of Division 13A of Part III)" after "section 139C", effective 12 April 2007. No 56 of 2007, s 3 and Sch 3 item 39 contains the following application provision:
(1)
The amendments made by this Schedule apply to acquisitions of stapled securities, and of rights to acquire stapled securities, on or after 1 July 2006.
(2)
In this item:
acquisition has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936.
Definition of "employee share scheme" inserted by No 156 of 2000, s 3 and Sch 6 item 35, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
endorsed charitable institution (Repealed by No 169 of 2012)
Definition of "endorsed charitable institution" repealed by No 169 of 2012, s 3 and Sch 2 item 128, effective 3 December 2012. The definition formerly read:
endorsed charitable institution means a charitable institution that is endorsed under subsection 176-1(1).
Definition of "endorsed charitable institution" inserted by No 95 of 2004, s 3 and Sch 10 item 16, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
endorsed charity means an entity that is endorsed as a charity under subsection 176-1(1).
Definition of "endorsed trustee of a charitable fund" repealed by No 169 of 2012, s 3 and Sch 2 item 130, effective 3 December 2012. The definition formerly read:
endorsed trustee of a charitable fund means a trustee of a charitable fund who is endorsed under subsection 176-5(1).
Definition of "endorsed trustee of a charitable fund" inserted by No 95 of 2004, s 3 and Sch 10 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
English language course for overseas students means a course of study or education supplied to overseas students that:
(a)
includes study or education in the English language; and
(b)
is supplied by an entity that is accredited to provide such courses by a State or Territory authority responsible for their accreditation.
essential prerequisite : a qualification is an
essential prerequisite in relation to the entry to, or the commencement of the practice of, a particular profession or trade if the qualification is imposed:
(a)
by or under an *industrial instrument; or
(b)
if there is no industrial instrument for that profession or trade but there is a professional or trade association that has uniform national requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned - by that association; or
(c)
if neither paragraph (a) nor (b) applies but there is a professional or trade association in a State or Territory that has requirements relating to the entry to, or the commencement of the practice of, the profession or trade concerned - by that association.
Definition of "essential prerequisite" amended by No 176 of 1999, s 3 and Sch 1 item 141, by inserting ", or the commencement of the practice of," after "the entry to" in paras (b) and (c), effective 1 July 2000.
estimated annual GST amount has the meaning given by section 162-140.
Definition of "estimated annual GST amount" amended by No 85 of 2013, s 3 and Sch 3 item 7, by substituting "section 162-140" for "subsection 162-140(4) and paragraph 162-140(5)(b)", applicable in relation to GST instalment quarters starting on or after 1 July 2013.
Definition of "estimated annual GST amount" inserted by No 73 of 2001, s 3 and Sch 1 item 42, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
exceed the financial acquisitions threshold has the meaning given by Division 189.
Definition of "excisable goods" amended by No 176 of 1999, s 3 and Sch 1 item 142, by substituting "subsection 4(1)" for "section 4", effective 1 July 2000.
excise duty means any duty of excise imposed by that name under a law of the Commonwealth.
exempt entity has the meaning given by section 995-1 of the *ITAA 1997.
expense payment benefit means a *fringe benefit that is a benefit of a kind referred to in section 20 of the Fringe Benefits Tax Assessment Act 1986.
Definition of "expense payment benefit" inserted by No 156 of 2000, s 3 and Sch 3 item 29, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
explanatory section has the meaning given by section 182-10.
Definition of "family" repealed by No 156 of 2000, s 3 and Sch 1 item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The definition formerly read:
family has the meaning given by section 5 of the Childcare Rebate Act 1993.
family member has the meaning given by subsection 48-15(2).
Definition of "FBT year" inserted by No 156 of 2000, s 3 and Sch 3 item 30, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
Definition of "Finance Minister" amended by No 36 of 2015, s 3 and Sch 5 item 3, by substituting "Public Governance, Performance and Accountability Act 2013" for "Financial Management and Accountability Act 1997", effective 14 April 2015. For transitional and application provisions, see note under s 177-1(5).
financial acquisition has the meaning given by section 189-15.
Definition of "financial institution account" repealed by No 179 of 1999, s 3 and Sch 15 item 6, effective 1 July 2000. The definition formerly read:
financial institution account means an account maintained by an entity:
(a)
with an authorised deposit taking institution within the meaning of the Banking Act 1959; or
(b)
with an organisation registered as a permanent building society, or as a credit union, under a *State law or *Territory law;
into which money received on deposit from the entity is paid.
financial supply has the meaning given by the regulations made for the purposes of subsection 40-5(2).
Definition of "financial supply" amended by No 177 of 1999, s 3 and Sch 1 item 129, by substituting "the regulations made for the purposes of subsection 40-5(2)" for "section 40-5", effective 1 July 2000.
financial year means a period of 12 months beginning on 1 July.
first aid or life saving course means a course of study or instruction that:
(a)
principally involves training individuals in one or more of the following:
(i)
first aid, resuscitation or other similar life saving skills including personal aquatic survival skills but not including swimming lessons;
(ii)
surf life saving;
(iii)
aero-medical rescue; and
(b)
is provided by an entity:
(i)
that is registered (or otherwise approved) by a State or Territory authority that has responsibility for registering (or otherwise approving) entities that provide such courses; or
(ii)
that is approved to provide such courses by a State or Territory body that has responsibility for approving the provision of such courses; or
(iii)
thatuses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Austswim Limited (ACN 097 784 122); or
(iv)
that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by Surf Life Saving Australia Limited (ACN 003 147 180); or
(v)
that uses, as the instructor for the course, a person who holds a training qualification for that course that was issued by The Royal Life Saving Society - Australia (ACN 008 594 616); or
(vi)
that uses, as the instructor for the course, a person who holds a training qualification for that course that is a qualification (in life saving) specified in, or of a kind specified in, the regulations.
Definition of "first aid or life saving course" amended by No 20 of 2004, s 3 and Sch 1 items 1-5, by:
(a) substituting "an entity" for "a body that is" in para (b);
(b) inserting "that is" and substituting "entities" for "bodies" in para (b)(i);
(c) inserting "that is" in para (b)(ii); and
(d) inserting para (b)(iii) to (vi);
applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "first aid or life saving course" amended by No 156 of 2000, s 3 and Sch 1 item 15A, by inserting "including personal aquatic survival skills but not including swimming lessons" at the end of para (a)(i), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "first aid or life saving course" amended by No 176 of 1999, s 3 and Sch 1 items 143 and 144, by substituting para (a) and omitting "non-profit" before "body" (first occurring) from para (b), effective 1 July 2000. Para (a) formerly read:
(a)
principally involves training individuals in first aid, resuscitation or other similar life saving skills; and
floating home means a structure that is composed of a floating platform and a building designed to be occupied (regardless of the term of occupation) as a residence that is permanently affixed to the platform, but does not include any structure that has means of, or is capable of being readily adapted for, self-propulsion.
Definition of "floating home" amended by No 80 of 2006, s 3 and Sch 15 item 8, by inserting "(regardless of the term of occupation)" after "occupied", applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Definition of "Foreign Minister" inserted by No 52 of 2016, s 3 and Sch 1 item 36, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
formation , in relation to a *GST joint venture, means 2 or more entities becoming *participants in the joint venture as mentioned in subsection 51-7(1).
Definition of "formation" inserted by No 74 of 2010, s 3 and Sch 1 item 36, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading.
freight container means a container within the meaning of the Customs Convention on Containers, 1972, signed in Geneva on 2 December 1972, as affected by any amendment of the Convention that has come into force.
Definition of "freight container" inserted by No 176 of 1999, s 3 and Sch 1 item 145, effective 1 July 2000.
fringe benefit has the meaning given by section 995-1 of the *ITAA 1997 but includes a benefit within the meaning of subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 that is an exempt benefit for the purposes of that Act.
Definition of "fund-raising event" inserted by No 92 of 2000, s 3 and Sch 1 item 8, effective 1 July 2000.
futures exchange means:
(a)
a body corporate in relation to which an approval under section 1126 of the Corporations Act 2001 is in force, or is taken to be in force because of subsection 1126(3) of that Act; or
(b)
a body corporate that is recognised as a futures exchange in a foreign country and operates as a futures exchange under the laws of that country.
Definition of "futures exchange" amended by No 55 of 2001, s 3 and Sch 3 item 31 and 32, by substituting "Corporations Act 2001" for "Corporations Law", and by substituting "that Act" for "that Law", effective 15 July 2001.
gambling event has the meaning given by subsection 126-35(2).
gambling supply has the meaning given by subsection 126-35(1).
general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.
Definition of "general interest charge" amended by No 101 of 2006, s 3 and Sch 2 item 1019, by omitting "Division 1 of" before "Part IIA", effective 14 September 2006.
Definition of "general interest charge" inserted by No 73 of 2001, s 3 and Sch 1 item 43, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
gift-deductible entity : an entity is a gift-deductible entity if gifts or contributions made to it can be deductible under Division 30 of the *ITAA 1997.
gift-deductible purpose , of an entity, means a purpose that is the principal purpose of:
(a)
if the entity legally owns a fund for the operation of which the entity is entitled, under subsection 30-125(2) of the *ITAA 1997, to be so endorsed - that fund; or
(b)
if the entity includes an authority or institution for the operation of which the entity is entitled, under subsection 30-125(2) of the ITAA 1997, to be so endorsed - that authority or institution.
Definition of "gift-deductible purpose" inserted by No 80 of 2006, s 3 and Sch 12 item 15, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
global GST amount has the meaning given by sections 126-10, 126-15 and 126-20.
goods means any form of tangible personal property.
government entity has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.
Definition of "government entity" inserted by No 177 of 1999, s 3 and Sch 1 item 130, effective 1 July 2000.
government related entity is:
(a)
a *government entity; or
(b)
an entity that would be a government entity but for subparagraph (e)(i) of the definition of
government entity in the A New Tax System (Australian Business Number) Act 1999; or
(c)
a local governing body established by or under a *State law or *Territory law.
Definition of "group liability" inserted by No 101 of 2004, s 3 and Sch 6 item 4, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
GST means tax that is payable under the *GST law and imposed as goods and services tax by any of these:
(a)
the A New Tax System (Goods and Services Tax Imposition - General) Act 1999; or
(b)
the A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999; or
(c)
the A New Tax System (Goods and Services Tax Imposition - Excise) Act 1999; or
(d)
the A New Tax System (Goods and Services Tax Imposition (Recipients) - General) Act 2005; or
(e)
the A New Tax System (Goods and Services Tax Imposition (Recipients) - Customs) Act 2005; or
(f)
the A New Tax System (Goods and Services Tax Imposition (Recipients) - Excise) Act 2005.
Definition of "GST-creditable benefit" repealed by No 156 of 2000, s 3 and Sch 3 item 31, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. The definition formerly read:
GST-creditable benefit has the meaning given by section 149A of the Fringe Benefits Tax Assessment Act 1986.
Definition of "GST-creditable benefit" inserted by No 92 of 2000, s 3 and Sch 5 item 10B, effective 1 July 2000.
GST disadvantage has the meaning given by subsection 165-45(2).
GST exclusive market value , in relation to a supply or acquisition:
Definition of "GST exclusive market value" substituted by No 177 of 1999, s 3 and Sch 1 item 132, effective 1 July 2000. The definition formerly read:
GST exclusive market value , in relation to a supply or acquisition, is 10/11 of the *GST inclusive market value of the supply or acquisition.
GST exclusive value :
(a)
in relation to an acquisition:
(i)
other than of a *luxury car - means 10/11 of the *price of the supply of the thing being acquired; or
(ii)
of a *luxury car - means 10/11 of the *price of the supply of the luxury car (excluding any *luxury car tax payable on the supply); and
(b)
in relation to an importation that is a *taxable importation, means the *value of the importation; and
(c)
in relation to an importation that is not a taxable importation, means the amount that would be the value of the importation if it were a taxable importation.
Definition of "GST exclusive value" amended by No 177 of 1999, s 3 and Sch 1 item 133, by substituting para (a), effective 1 July 2000. Para (a) formerly read:
(a)
in relation to an acquisition, means 10/11 of the *price of the supply of the thing being acquired; and
GST-free has the meaning given by subsection 9-30(1) and Division 38.
Definition of "GST inclusive market value" amended by No 177 of 1999, s 3 and Sch 1 item 134, by substituting "any amount of GST or *luxury car tax" for "the amount of GST (if any)", effective 1 July 2000.
GST instalment has the meaning given by subsection 162-70(1).
Definition of "GST instalment" inserted by No 73 of 2001, s 3 and Sch 1 item 44, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
GST instalment payer has the meaning given by section 162-50.
Definition of "GST instalment payer" inserted by No 73 of 2001, s 3 and Sch 1 item 45, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
GST instalment quarter has the meaning given by subsections 162-70(2) and (3).
Definition of "GST instalment quarter" inserted by No 73 of 2001, s 3 and Sch 1 item 46, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
GST instalment shortfall , for a *GST instalment quarter in relation to which you are liable to pay a penalty under Subdivision 162-D, means:
(a)
if the penalty is payable under section 162-175 - the amount worked out under subsection 162-175(3) or paragraph 162-175(4)(c) (whichever is applicable); or
(b)
if the penalty is payable under section 162-180 - the amount worked out under subsection 162-180(3) or paragraph 162-180(4)(c) (whichever is applicable); or
(c)
if the penalty is payable under section 162-185 - the amount worked out under subsection 162-185(3).
Note:
The amount of a GST instalment shortfall can be reduced under section 162-195 or 162-200 (or both).
Definition of "GST instalment shortfall" inserted by No 73 of 2001, s 3 and Sch 1 item 47, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
GST joint venture has the meaning given by section 51-5.
GST law means:
(a)
this Act; and
(b)
any Act that imposes GST; and
(c)
the A New Tax System (Goods and Services Tax Transition) Act 1999; and
(d)
the Taxation Administration Act 1953, so far as it relates to any Act covered by paragraphs (a) to (c); and
(e)
any other Act, so far as it relates to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered); and
(f)
regulations under any Act, so far as they relate to any Act covered by paragraphs (a) to (e) (or to so much of that Act as is covered).
GST religious group has the meaning given by section 49-5.
Definition of "GST religious group" inserted by No 92 of 2000, s 3 and Sch 1 item 8B, effective 1 July 2000.
GST return means a return of the kind referred to in Division 31, that complies with all the requirements of sections 31-15 and 31-25 of this Act and section 388-75 in Schedule 1 to the Taxation Administration Act 1953, and includes a return given in accordance with section 58-50 of this Act.
Definition of "GST return" amended by No 118 of 2009, s 3 and Sch 1 item 41, by inserting ", and includes a return given in accordance with section 58-50 of this Act" at the end, effective 4 December 2009.
Definition of "GST return" amended by No 92 of 2000, s 3 and Sch 9 item 11, by substituting "and 31-25 of this Act and section 388-75 in Schedule 1 to the Taxation Administration Act 1953" for ", 31-25 and 31-30", applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
GST turnover :
(a)
in relation to meeting a *turnover threshold - has the meaning given by subsection 188-10(1); and
(b)
in relation to not exceeding a *turnover threshold - has the meaning given by subsection 188-10(2).
Definition of "GST turnover" inserted by No 80 of 2007, s 3 and Sch 2 item 56, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Definition of "head company" inserted by No 101 of 2004, s 3 and Sch 6 item 5, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
Health Minister means the Minister administering the National Health Act 1953.
higher education institution means an entity that is a higher education provider as defined in section 16-1 of the Higher Education Support Act 2003.
Definition of "HIH company" inserted by No 169 of 2001, s 3 and Sch 5 item 12, applicable:
(a) in relation to net amounts for tax periods starting, or that started, on or after 15 March 2001; and
(b) in relation to payments and supplies, of a kind referred to in section 78-120 of the A New Tax System (Goods and Services Tax) Act 1999, that are, or have been, made on or after 15 March 2001 to an entity that is neither registered nor required to be registered.
HIH rescue entity means:
(a)
the HIH Claims Support Trust (established on 6 July 2001); or
(b)
the Commonwealth; or
(c)
an entity prescribed for the purposes of subsection 322-5(1) of the *ITAA 1997.
Definition of "HIH rescue entity" inserted by No 169 of 2001, s 3 and Sch 5 item 13, applicable:
(a) in relation to net amounts for tax periods starting, or that started, on or after 15 March 2001; and
(b) in relation to payments and supplies, of a kind referred to in section 78-120 of the A New Tax System (Goods and Services Tax) Act 1999, that are, or have been, made on or after 15 March 2001 to an entity that is neither registered nor required to be registered.
hire purchase agreement has the meaning given by section 995-1 of the *ITAA 1997.
home care has the meaning given by section 45-3 of the Aged Care Act 1997.
Definition of "hospital treatment" substituted by No 14 of 2009, s 3 and Sch 4 item 1, effective 26 March 2009. The definition formerly read:
hospital treatment has the meaning given by subsection 67(4) of the National Health Act 1953 (as in force immediately before the commencement of the Private Health Insurance Act 2007).
Definition of "hospital treatment" amended by No 32 of 2007, s 3 and Sch 2 item 2A, by inserting "(as in force immediately before the commencement of the Private Health Insurance Act 2007)" at the end, effective 30 March 2007.
hybrid settlement sharing arrangement has the meaning given by subsection 80-80(1).
Definition of "hybrid settlement sharing arrangement" inserted by No 67 of 2003, s 3 and Sch 11 item 31, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
import means import goods into the indirect tax zone.
Definition of "import" amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
Definition of "import" amended by No 176 of 1999, s 3 and Sch 1 item 146, by substituting "import" for "*import", effective 1 July 2000.
importation of goods into Australia (Repealed by No 176 of 1999)
Definition of "importation of goods into Australia" repealed by No 176 of 1999, s 3 and Sch 1 item 147, effective 1 July 2000. The definition formerly read:
importation of goods into Australia has the meaning given by subsection 13-5(2) and section 114-5.
inbound intangible consumer supply has the meaning given by section 84-65.
Definition of "inbound intangible consumer supply" inserted by No 52 of 2016, s 3 and Sch 1 item 36, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
incapacitated entity means:
(a)
an individual who is a bankrupt; or
(b)
an entity that is in liquidation or receivership; or
(c)
an entity that has a *representative.
Definition of "incapacitated entity" amended by No 156 of 2000, s 3 and Sch 6 item 37, by inserting para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
incidental valuable metal goods means goods:
(a)
acquired for the purposes of sale or exchange (but not for manufacture) in the ordinary course of *business; and
(b)
that consist wholly or partly of *valuable metal; and
(c)
in relation to which any of the following applies:
(i)
the goods are collectables or antiques, and the goods are not *precious metals;
(ii)
at the time of the acquisition, the market value of the goods exceeds the *valuable metal threshold;
(iii)
the goods are in a class determined by the Minister, by legislative instrument, for the purposes of this subparagraph.
Definition of "increasing adjustment" amended by No 69 of 2023, s 3 and Sch 4 item 110, by substituting "real property under the margin scheme" for "*real property under the *margin scheme" in table item 4AAA, "compulsory third party schemes" for "*compulsory third party schemes" in table item 4AA, "Increasing adjustments under compulsory third party schemes" for "*Increasing adjustments under *compulsory third party schemes" in table item 4AB, "Increasing adjustments under compulsory third party schemes" for "*Increasing adjustments under *compulsory third party schemes" in table item 4AC, "Increasing adjustments under insurance policy settlement sharing arrangements" for "*Increasing adjustments under *insurance policy settlement sharing arrangements" in table item 4AD and "Increasing adjustments under nominal defendant settlement sharing arrangements" for "*Increasing adjustments under *nominal defendant settlement sharing arrangements" in table item 4AE, effective 1 October 2023.
Definition of "increasing adjustment" amended by No 21 of 2010, s 3 and Sch 1 item 22, by inserting table item 6, applicable in relation to payments made on or after 1 July 2010.
Definition of "increasing adjustment" amended by No 78 of 2005, s 3 and Sch 6 item 25, by inserting table item 4AAA, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Definition of "increasing adjustment" amended by No 41 of 2005, s 3 and Sch 10, item 13, by omitting table item 6, effective 1 April 2005. Table item 6 formerly read: "6 Section 132-10 Supplies of things acquired or imported to make supplies".
Definition of "increasing adjustment" amended by No 134 of 2004, s 3 and Sch 2 item 21, by inserting table item 5B, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Definition of "increasing adjustment" amended by No 67 of 2003, s 3 and Sch 11 item 33, by substituting table item 4AA and inserting table items 4AB, 4AC, 4AD and 4AE, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 4AA formerly read: "4AA Section 78-18 Payments of excess under insurance policies".
Definition of "increasing adjustment" amended by No 156 of 2000, s 3 and Sch 6 item 38, by inserting table item 4AA, applicable in relation to net amounts for tax periods starting on or after 17 August 2000.
Definition of "increasing adjustment" amended by No 92 of 2000, s 3 and Sch 11 item 12B, by inserting table item 8A, effective 1 July 2000.
Definition of "increasing adjustment" amended by No 177 of 1999, s 3 and Sch 7 items 135 and 136, by inserting table items 4A and 5A, effective 1 July 2000.
Definition of "increasing adjustment" amended by No 176 of 1999, s 3 and Sch 7 item 14, by inserting table item 9, effective 1 July 2000.
indirect tax zone means Australia (within the meaning of the *ITAA 1997), but does not include any of the following:
(a)
the external Territories;
(b)
an offshore area for the purpose of the Offshore Petroleum and Greenhouse Gas Storage Act 2006;
(c)
(Repealed by No 59 of 2019)
other than an installation (within the meaning of the Customs Act 1901) that is deemed by section 5C of the Customs Act 1901 to be part of Australia and that is located in an offshore area.
Definition of "indirect tax zone" amended by No 59 of 2019, s 3 and Sch 2 items 1 and 2, effective 30 August 2019, by repealing para (c) and by omitting "or the Joint Petroleum Development Area" after "an offshore area". Para (c) formerly read:
(c)
the Joint Petroleum Development Area (within the meaning of the Petroleum (Timor Sea Treaty) Act 2003);
Definition of "indirect tax zone" inserted by No 2 of 2015, s 3 and Sch 4 item 30, applicable to a tax period that commences on or after 1 July 2015.
individual means a natural person.
industrial instrument has the meaning given by section 995-1 of the *ITAA 1997.
ineligible for the margin scheme has the meaning given by subsections 75-5(3) and (4).
Definition of "ineligible for the margin scheme" inserted by No 78 of 2005, s 3 and Sch 6 item 26, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Definition of "in existence" repealed by No 41 of 2005, s 3 and Sch 10, item 14, effective 1 April 2005. The definition formerly read:
in existence has the meaning given by section 995-1 of the *ITAA 1997.
Definition of "in existence" amended by Act No 101 of 2003, s 3 and Sch 6 item 2, by substituting "995-1" for "995-100", with effect from 1 July 2000.
inherit : you inherit a freehold interest in land, a stratum unit or a long-term lease if you become an owner of the interest, unit or lease:
(a)
under the will of a deceased person, or that will as varied by a court order; or
(b)
by operation of an intestacy law, or such a law as varied by a court order; or
(c)
because it is appropriated to you by the legal personal representative of a deceased person in satisfaction of a pecuniary legacy or some other interest or share in the deceased person's estate; or
(d)
under a deed of arrangement if:
(i)
you entered into the deed to settle a claim to participate in the distribution of the deceased person's estate; and
(ii)
any *consideration given by you for the interest, unit or lease consisted only of the variation or waiver of a claim to one or more other assets that formed part of the estate.
Definition of "inherit" inserted by No 78 of 2005, s 3 and Sch 6 item 26A, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
input tax credit means an entitlement arising under section 11-20 or 15-15.
input taxed has the meaning given by subsection 9-30(2) and Division 40.
instalment tax period has the meaning given by subsection 162-55(3).
Definition of "instalment tax period" inserted by No 73 of 2001, s 3 and Sch 1 item 48, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
instalment turnover threshold has the meaning given by subsection 162-5(2).
Definition of "instalment turnover threshold" inserted by No 73 of 2001, s 3 and Sch 1 item 49, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
insurance broker has the meaning given by section 11 of the Insurance Contracts Act 1984.
Definition of "insurance broker" inserted by No 177 of 1999, s 3 and Sch 1 item 138, effective 1 July 2000.
insurance policy means a policy of insurance (or of reinsurance) against loss, damage, injury or risk of any kind, whether under a contract or a law. However, it does not include such a policy to the extent that it does not relate to insurance (or reinsurance) against loss, damage, injury or risk of any kind.
Definition of "insurance policy settlement sharing arrangement" inserted by No 67 of 2003, s 3 and Sch 11 item 34, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
intended or former application of a thing has the meaning given by section 129-40.
international transport means:
(a)
in relation to the export of goods - the transport of the goods from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or
(b)
in relation to the import of goods - the transport of the goods from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone.
Definition of "international transport" amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" (wherever occurring), applicable to a tax period that commences on or after 1 July 2015.
Definition of "international transport" substituted by No 91 of 2010, s 3 and Sch 1 item 12, effective 29 June 2010. For application provision, see history note under s 13-20(2). The definition formerly read:
international transport means:
(a)
in relation to the export of goods - the transport of the goods from their *place of export in Australia to a destination outside Australia (including loading and handling within Australia that is part of that transport); or
(b)
in relation to the import of goods - the transport of the goods from a place outside Australia to their *place of consignment in Australia (excluding loading and handling within Australia).
Definition of "international transport" inserted by No 176 of 1999, s 3 and Sch 1 item 148, effective 1 July 2000.
invoice means a document notifying an obligation to make a payment.
inwards duty free shop has the same meaning as in section 96B of the Customs Act 1901.
ITAA 1936 means the Income Tax Assessment Act 1936.
ITAA 1997 means the Income Tax Assessment Act 1997.
joint venture operator , of a *GST joint venture, is the entity last nominated in relation to the joint venture as mentioned in paragraph 51-5(1)(ea) or 51-70(1)(c), but does not include an entity that does not satisfy the requirements of paragraphs 51-10(c) and (f).
Definition of "joint venture operator" substituted by No 74 of 2010, s 3 and Sch 1 item 37, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. The definition formerly read:
joint venture operator , for a *GST joint venture, is the entity nominated to be the joint venture operator under paragraph 51-5(e), or approved as a replacement joint venture operator for the joint venture under paragraph 51-70(1)(c).
Definition of "joint venture operator" amended by No 92 of 2000, s 3 and Sch 7 item 22, by substituting "entity" for "*company", effective 1 July 2000.
Definition of "joint venture operator" amended by No 177 of 1999, s 3 and Sch 1 item 139, by substituting "*company nominated to be the joint venture operator under paragraph 51-5(e)" for "*participant of the joint venture nominated as mentioned in paragraph 51-5(e)", effective 1 July 2000.
legal practitioner means a person who is enrolled as a barrister, a solicitor or a barrister and solicitor of:
(a)
a federal court; or
(b)
a court of a State or Territory.
life insurance policy means a policy of insurance on the life of an individual.
limited registration entity has the meaning given by section 146-5.
Definition of "limited registration entity" amended by No 77 of 2017, s 3 and Sch 1 item 58, by substituting "section 146-5" for "section 84-140", effective 1 July 2017. For application provisions, see note under Div 146 heading.
Definition of "limited registration entity" inserted by No 52 of 2016, s 3 and Sch 1 item 36, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
liquidator has the meaning given by subsection 6(1) of the *ITAA 1936.
Definition of "local entry" amended by No 39 of 2012, s 3 and Sch 4 item 9, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999", effective 15 April 2012.
Definition of "local entry" inserted by No 176 of 1999, s 3 and Sch 1 item 149, effective 1 July 2000.
lodged electronically has the meaning given by subsection 31-25(3).
long-term accommodation has the meaning given by subsection 87-20(1).
long-term lease means a supply by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) for at least 50 years if:
(a)
at the time of the lease, hire or licence, or the renewal or extension of the lease, hire or licence, it was reasonable to expect that it would continue for at least 50 years; and
(b)
unless the supplier is an *Australian government agency - the terms of the lease, hire or licence, or the renewal or extension of the lease, hire or licence, as they apply to the *recipient are substantially the same as those under which the supplier held the premises.
luxury car has the same meaning as in section 25-1 of the A New Tax System (Luxury Car Tax) Act 1999.
Definition of "managing operator" inserted by No 67 of 2003, s 3 and Sch 11 item 35, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
managing operator's payment or supply has the meaning given by subsection 80-5(2), 80-40(2) or 80-80(2).
Definition of "managing operator's payment or supply" inserted by No 67 of 2003, s 3 and Sch 11 item 36, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "margin" amended by No 84 of 2013, s 3 and Sch 8 item 18, by inserting the note at the end, applicable in relation to taxable supplies made on or after the start of the first quarterly tax period starting on or after 28 June 2013. For this purpose, it does not matter whether quarterly tax periods are the tax periods that apply to you.
Definition of "margin" amended by No 145 of 2008, s 3 and Sch 1 item 12, by substituting ", 75-11 and 75-16" for "and 75-11", effective 9 December 2008. For application provision, see history note under s 75-5(1B).
Definition of "margin" amended by No 78 of 2005, s 3 and Sch 6 item 27, by substituting "sections 75-10 and 75-11" for "subsection 75-10(2)", applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Definition of "margin scheme" amended by No 78 of 2005, s 3 and Sch 6 item 27A, by substituting "subsection 75-5(1) applies" for "you choose, under section 75-5, to use the margin scheme in working out the amount of GST on the supply", applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
Masters or Doctoral course (Repealed by No 143 of 2007)
Definition of "Masters or Doctoral course" repealed by No 143 of 2007, s 3 and Sch 7 item 4, effective 1 July 2006. The definition formerly read:
Masters or Doctoral course means a course of study or instruction, accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution.
MEC group has the meaning given by section 719-5 of the *ITAA 1997.
Definition of "MEC group" inserted by No 101 of 2004, s 3 and Sch 6 item 6, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
medical practitioner means a person who is a medical practitioner for the purposes of the Health Insurance Act 1973.
medical service means:
(a)
a service for which medicare benefit is payable under Part II of the Health Insurance Act 1973; or
(b)
any other service supplied by or on behalf of a *medical practitioner or *approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the *recipient of the supply.
Definition of "medical service" substituted by No 92 of 2000, s 3 and Sch 2 item 7, effective 1 July 2000. The definition formerly read:
medical service means a service supplied by or on behalf of a *medical practitioner or *approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the *recipient of the supply.
member:
(a)
in relation to a *GST group - has the meaning given by section 48-7; or
Definition of "member" amended by No 41 of 2011, s 3 and Sch 5 items 2 and 3, by omitting "means" after "
member:" and inserting "means" in para (b), effective 27 June 2011.
Definition of "member" amended by No 74 of 2010, s 3 and Sch 1 item 38, by substituting para (a), applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. Para (a) formerly read:
(a)
in relation to a *GST group - an entity, a *non-profit sub-entity or a *government related entity currently approved as one of the members of the group under section 48-5 or paragraph 48-70(1)(a); or
Definition of "member" amended by No 101 of 2004, s 3 and Sch 6 item 7, by inserting paragraph (c), applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
Definition of "member" substituted by No 92 of 2000, s 3 and Sch 1 item 8C, effective 1 July 2000. The definition formerly read:
member , in relation to a *GST group, means an entity or a *government related entity currently approved as one of the members of the group under section 48-5 or paragraph 48-70(1)(a).
Definition of "member" substituted by No 177 of 1999, s 3 and Sch 1 item 141, effective 1 July 2000. The definition formerly read:
member , in relation to a *GST group, means a *company currently approved as one of the companies of the group under section 48-5 or paragraph 48-70(1)(a).
mineral deposit means a deposit of *minerals, and includes a deposit of sand or gravel.
minerals has the meaning given by section 40-730 of the *ITAA 1997.
Definition of "minerals" amended by No 77 of 2001, s 3 and Sch 2 item 14, by substituting "section 40-730" for "section 330-25", effective applicable to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June 2001; or
(ii) you constructed where the construction started after that day; or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.
Definition of "minerals" inserted by No 92 of 2000, s 3 and Sch 7 item 24, effective 1 July 2000.
monetary prize means:
(a)
any prize, or part of a prize, in the form of *money or *digital currency; or
(b)
if the prize is given at a casino - any prize, or part of a prize, in the form of:
(i)
money or digital currency; or
(ii)
gambling chips that may be redeemed for money or digital currency.
Definition of "monetary prize" amended by No 118 of 2017, s 3 and Sch 1 items 28 and 29, by inserting "or *digital currency" in para (a) and substituting para (b), effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. Para (b) formerly read:
(b)
if the prize is given at a casino - any prize, or part of a prize, in the form of *money or in the form of gambling chips that may be redeemed for money.
money includes:
(a)
currency (whether of Australia or of any other country); and
(b)
promissory notes and bills of exchange; and
(c)
any negotiable instrument used or circulated, or intended for use or circulation, as currency (whether of Australia or of any other country); and
(d)
postal notes and money orders; and
(e)
whatever is supplied as payment by way of:
(i)
credit card or debit card; or
(ii)
crediting or debiting an account; or
(iii)
creation or transfer of a debt.
However, it does not include:
(f)
a collector's piece; or
(g)
an investment article; or
(h)
an item of numismatic interest; or
(i)
currency the market value of which exceeds its stated value as legal tender in the country of issue; or
(j)
one or more digital units of value to which paragraphs (a) to (f) of the definition of
digital currency apply.
Definition of "money" amended by No 29 of 2023, s 3 and Sch 2 item 3, by inserting para (j), effective 1 July 2023 and applicable in relation to supplies or payments made on or after 1 July 2021.
net amount , for a tax period, has the meaning given by section 17-5. However:
(a)
it has the meaning given by section 162-105 if the tax period is an *instalment tax period; or
(b)
it has the meaning given by section 123-15 if a choice under Division 123 to apply a *simplified accounting method has effect during the tax period, and paragraph (a) does not apply; or
(c)
it has the meaning given by section 126-5 if you are liable for GST on a *gambling supply that is attributable to the tax period, and paragraphs (a) and (b) do not apply.
Note:
Subdivision 21-A of the Wine Tax Act and Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999 can affect the net amount.
Definition of "net amount" substituted by No 39 of 2012, s 3 and Sch 3 item 7, effective 1 July 2012. The definition formerly read:
net amount has the meaning given by sections 17-5, 126-5 and 162-105.
Definition of "net amount" amended by No 73 of 2001, s 3 and Sch 1 item 50, by substituting "sections 17-5, 126-5 and 162-105" for "section 17-5 and 126-5", applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
net capital loss has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "net capital loss" inserted by No 97 of 2002, s 3 and Sch 1 item 14, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
net GST: the
net GST that is or would be payable by an entity for a supply is:
(a)
the GST that is or would be payable by the entity on the supply; plus
(b)
the sum of any *increasing adjustments that the entity has or would have relating to the supply; minus
(c)
the sum of any *decreasing adjustments that the entity has or would have relating to the supply.
Definition of "net refund position" inserted by No 73 of 2001, s 3 and Sch 1 item 51, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
new recreational boat has the meaning given by subsection 38-185(5).
Definition of "new residential premises" substituted by No 156 of 2000, s 3 and Sch 1 item 16, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The definition formerly read:
new residential premises means *residential premises that:
(a)
have not previously been sold as residential premises and have not previously been the subject of a *long-term lease; or
(b)
have been created through *substantial renovations of a building; or
(c)
have been built, or contain a building that has been built, to replace demolished premises on the same land.
To avoid doubt, if the residential premises are *new residential premises because of paragraph (b) or (c) of this definition, the new residential premises include land of which the new residential premises are a part.
Definition of "new residential premises" substituted by No 176 of 1999, s 3 and Sch 1 item 151, effective 1 July 2000. The definition formerly read:
new residential premises means *residential premises that have not previously been sold as residential premises and have not previously been the subject of a *long-term lease.
nominal defendant settlement sharing arrangement has the meaning given by subsection 80-40(1).
Definition of "nominal defendant settlement sharing arrangement" inserted by No 67 of 2003, s 3 and Sch 11 item 37, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
non-cash benefit has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "non-cash benefit" amended by No 12 of 2012, s 3 and Sch 6 item 71, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997", effective 21 March 2012.
Definition of "non-cash benefit" inserted by No 178 of 1999, s 3 and Sch 1 item 65, effective 22 December 1999.
non-creditable insurance event has the meaning given by subsection 78-10(3).
non-deductible expense has the meaning given by subsections 69-5(3) and (3A).
Definition of "non-deductible expense" amended by No 156 of 2000, s 3 and Sch 3 item 32, by substituting "subsections 69-5(3) and (3A)" for "subsection 69-5(3)", applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
non-entity joint venture has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "non-entity joint venture" inserted by No 92 of 2000, s 3 and Sch 7 item 25, effective 1 July 2000.
non-government higher education institution means an institution that is not a *higher education institution and that:
(a)
is established as a non-government higher education institution under the law of a State or Territory; or
(b)
is registered by a State or Territory higher education recognition authority.
non-profit association means an entity all the members of which are non-profit bodies.
Non-profit sub-entity has the meaning given by subsection 63-15(3).
Definition of "notified instalment amount" inserted by No 73 of 2001, s 3 and Sch 1 item 52, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
officer has the meaning given by the Corporations Act 2001.
CCH Note:
No 76 of 2023, s 3 and Sch 6 item 9 provides, effective 1 October 2023, that the amendments made by Division 2 of Part 2 of Schedule 3 to the Treasury Laws Amendment (2021 Measures No 5) Act 2021 (No 127 of 2021), which includes s 3 and Sch 3 item 45, do not apply, and are taken never to have applied, in relation to:
(a) a disability certificate that:
(i) was issued before 1 January 2022; and
(ii) met the requirements of s 38-510(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as in force immediately before 1 January 2022; or
(b) a certificate of medical eligibility that:
(i) was issued before 1 January 2022; and
(ii) met the requirements of s 38-510(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as it operated immediately before 1 January 2022 because of the modification determined by the Taxation Administration (Remedial Power - Certificate for GST-free supplies of Cars for Disabled People) Determination 2020.
Definition of "officer" amended by No 127 of 2021, s 3 and Sch 3 item 45, by deleting ", except in section 38-510," before "has the meaning", effective 1 January 2022.
Definition of "officer" amended by No 55 of 2001, s 3 and Sch 3 item 33, by substituting "Corporations Act 2001" for "Corporations Law", effective 15 July 2001.
offshore supply of low value goods has the meaning given by section 84-77.
Definition of "offshore supply of low value goods" inserted by No 77 of 2017, s 3 and Sch 1 item 59, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Definition of "operator" inserted by No 67 of 2003, s 3 and Sch 11 item 38, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
outwards duty free shop has the same meaning as in section 96A of the Customs Act 1901.
overdue : a debt is overdue if there has been a failure to discharge the debt, and that failure is a breach of the debtor's obligations in relation to the debt.
Definition of "participant" substituted by No 74 of 2010, s 3 and Sch 1 item 39, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 51 heading. The definition formerly read:
participant , in relation to a *GST joint venture, means an entity currently approved as one of the participants of the joint venture under section 51-5 or paragraph 51-70(1)(a).
Definition of "participant" amended by No 92 of 2000, s 3 and Sch 7 item 23, by substituting "an entity" for "a *company", effective 1 July 2000.
partly creditable :
(a)
in relation to an acquisition, has the meaning given by sections 11-30 and 70-20; or
(b)
in relation to an importation, has the meaning given by section 15-25.
partly creditable land transport (Repealed by No 176 of 1999)
Definition of "partly creditable land transport" repealed by No 176 of 1999, s 3 and Sch 1 item 152, effective 1 July 2000. The definition formerly read:
partly creditable land transport has the meaning given by subsection 123-55(1).
partnership has the meaning given by section 995-1 of the *ITAA 1997.
passed on has a meaning affected by section 142-25.
Definition of "passed on" inserted by No 34 of 2014, s 3 and Sch 2 item 11, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
(a)
if the goods are posted to a place in the indirect tax zone - the place in the indirect tax zone to which the goods are addressed; or
(aa)
if the supplier of the goods is to deliver the goods to a place in the indirect tax zone - the place in the indirect tax zone to which the goods are to be delivered under the contract for the supply of the goods; or
(ab)
if:
(i)
neither paragraph (a) nor (aa) applies; and
(ii)
the goods are to be transported into the indirect tax zone by an entity supplying a transport service to an entity that is to import the goods into the indirect tax zone;
the place in the indirect tax zone to which the goods are to be delivered under the contract for the supply of the transport service; or
(b)
in any other case - the port or airport of final destination as indicated on the *transportation document.
Definition of "place of consignment" amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "a place in the indirect tax zone" for "Australia" (first occurring) and "the indirect tax zone" for "Australia" (second occurring) in para (a), "to a place in the indirect tax zone" for "in Australia" (first occurring) and "in the indirect tax zone" for "in Australia" (second occurring) in para (aa), and "the indirect tax zone" for "Australia" (wherever occurring) in para (ab), applicable to a tax period that commences on or after 1 July 2015.
Definition of "place of consignment" amended by No 91 of 2010, s 3 and Sch 1 item 13, by inserting paras (aa) and (ab), effective 29 June 2010. For application provision, see history note under s 13-20(2).
Definition of "place of consignment" inserted by No 176 of 1999, s 3 and Sch 1 item 153, effective 1 July 2000.
place of export of goods means:
(a)
if the goods were posted from a place in the indirect tax zone - the place from which they were posted; or
(b)
if paragraph (a) does not apply and the goods were packed in a *freight container:
(i)
the last place from which they were collected, or to which they were delivered, prior to being so packed; or
(ii)
if subparagraph (i) does not apply - the place where they were so packed; or
(c)
if the goods are self transported goods - the place, or last place, from which the goods departed the indirect tax zone; or
(d)
if paragraphs (a), (b) and (c) do not apply - the place, or first place, where the goods were placed on board a ship or aircraft for export from the indirect tax zone.
Definition of "place of export" amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "a place in the indirect tax zone" for "Australia" (first occurring) and "the indirect tax zone" for "Australia" (second and third occurring), applicable to a tax period that commences on or after 1 July 2015.
Definition of "place of export" amended by No 91 of 2010, s 3 and Sch 1 item 14, by substituting para (b), effective 29 June 2010. For application provision, see history note under s 13-20(2). Para (b) formerly read:
(b)
if paragraph (a) does not apply and the goods were packed in a *freight container - the place where they were so packed; or
Definition of "place of export" inserted by No 176 of 1999, s 3 and Sch 1 item 154, effective 1 July 2000.
potential residential land means land that it is permissible to use for residential purposes, but that does not contain any buildings that are *residential premises.
Definition of "potential residential land" amended by No 176 of 1999, s 3 and Sch 1 item 155, by inserting "buildings that are" after "contain any", effective 1 July 2000.
precious metal means:
(a)
gold (in an investment form) of at least 99.5% fineness; or
(b)
silver (in an investment form) of at least 99.9% fineness; or
(c)
platinum (in an investment form) of at least 99% fineness; or
(d)
any other substance (in an investment form) specified in the regulations of a particular fineness specified in the regulations.
Definition of "precious metal" amended by No 177 of 1999, s 3 and Sch 1 items 145 and 146, by substituting "in an investment form" for "in any form" (wherever occurring) and inserting "(in an investment form)" after "substance" in para (d), effective 1 July 2000.
predominantly for long-term accommodation has the meaning given by subsection 87-20(3).
pre-establishment acquisition has the meaning given by section 60-15.
pre-establishment importation has the meaning given by section 60-15.
premises , in relation to a supply of *food, has the meaning given by section 38-5.
premium selection test is satisfied has the meaning given by subsection 79-5(2).
Definition of "premium selection test is satisfied" inserted by No 67 of 2003, s 3 and Sch 11 item 39, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
prepaid phone card or facility has the meaning given by subsection 100-25(2).
Definition of "prepaid phone card or facility" inserted by No 32 of 2006, s 3 and Sch 4 item 16, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
pre-school course means a course that is delivered:
(a)
in accordance with a pre-school curriculum recognised by:
(i)
the education authority of the State or Territory in which the course is delivered; or
(ii)
a State or Territory body that has the responsibility for recognising pre-school curricula for courses delivered in that State or Territory; and
(b)
by a *school that is recognised as a pre-school under the law of the State or Territory.
Definition of "pre-school course" amended by No 177 of 1999, s 3 and Sch 1 item 147, by substituting para (a), effective 1 July 2000. Para (a) formerly read:
(a)
in accordance with a pre-school curriculum recognised by the education authority of the State or Territory in which the course is delivered; and
previously attributed GST amount has the meaning given by section 19-45.
previously attributed input tax credit amount has the meaning given by section 19-75.
price , in relation to a supply, has the meaning given by sections 9-75 and 84-20.
Definition of "price" amended by No 52 of 2016, s 3 and Sch 2 item 17, by substituting "sections 9-75 and 84-20" for "section 9-75", applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
primary course means:
(a)
a course of study or instruction that is delivered:
(i)
in accordance with a primary curriculum recognised by the education authority of the State or Territory in which the course is delivered; and
(ii)
by a *school that is recognised as a primary school under the law of the State or Territory; or
(b)
any other course of study or instruction that the *Student Assistance Minister has determined is a primary course for the purposes of this Act.
Definition of "primary course" amended by No 15 of 2017, s 3 and Sch 4 item 13, by substituting "*Student Assistance Minister" for "*Education Minister" in para (b), effective 1 April 2017.
primary production business has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "primary production business" inserted by No 73 of 2001, s 3 and Sch 1 item 53, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
principal member , for a *GST religious group, is the *member of the group nominated as mentioned in paragraph 49-5(c), or approved as a replacement principal member for the group under paragraph 49-70(1)(c).
Definition of "principal member" inserted by No 92 of 2000, s 3 and Sch 1 item 8D, effective 1 July 2000.
private health insurance means insurance provided under a contract of insurance that was entered into by a private health insurer (within the meaning of the Private Health Insurance Act 2007) in the course of carrying on health insurance business (within the meaning of Division 121 of that Act).
Definition of "private health insurance" substituted by No 32 of 2007, s 3 and Sch 2 item 3, effective 1 April 2007. The definition formerly read:
private health insurance means insurance provided under a contract of insurance that was entered into by a registered organisation (within the meaning of Part VI of the National Health Act 1953) in the course of carrying on health insurance business (within the meaning of subsection 67(4) of that Act).
professional or trade course means a course leading to a qualification that is an *essential prerequisite:
(a)
for entry to a particular profession or trade in Australia; or
(b)
to commence the practice of (but not to maintain the practice of) a profession or trade in Australia.
professional service has the meaning given by subsection 3(1) of the Health Insurance Act 1973.
projected annual turnover (Repealed by No 80 of 2007)
Definition of "projected annual turnover" repealed by No 80 of 2007, s 3 and Sch 2 item 57, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The definition formerly read:
projected annual turnover has the meaning given by section 188-20.
Note:
This meaning is affected by sections 188-22 and 188-25.
Definition of "projected annual turnover" amended by No 176 of 1999, s 3 and Sch 1 item 156, by inserting the Note, effective 1 July 2000.
projected GST turnover has the meaning given by section 188-20.
Note:
This meaning is affected by sections 188-22 and 188-25.
Definition of "projected GST turnover" inserted by No 80 of 2007, s 3 and Sch 2 item 58, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
property subdivision plan means a plan:
(a)
for the division of *real property; and
(b)
that is registered (however described) under an *Australian law.
Note:
Examples are strata title plans and plans to subdivide land.
Definition of "property subdivision plan" inserted by No 12 of 2012, s 3 and Sch 4 item 10, applicable in relation to supplies of residential premises on or after 27 January 2011. For further application provisions, see note under s 40-75(2B) and (2C).
Quality of Care Principles means the principles made under section 96-1 of the Aged Care Act 1997.
quarterly tax period has the meaning given by subsection 31-8(2).
Definition of "quarterly tax period" inserted by No 73 of 2001, s 3 and Sch 1 item 20, applicable in relationto GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
real property includes:
(a)
any interest in or right over land; or
(b)
a personal right to call for or be granted any interest in or right over land; or
(c)
a licence to occupy land or any other contractual right exercisable over or in relation to land.
recipient , in relation to a supply, means the entity to which the supply was made.
recipient created tax invoice has the meaning given by subsection 29-70(3).
recipients contribution has the meaning given by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 but includes any consideration paid in respect of the provision of a benefit that is an exempt benefit for the purposes of that Act.
Definition of "recipient's payment" inserted by No 52 of 2000, s 3 and Sch 2 item 4, effective 30 May 2000.
recognised professional : a person is a recognised professional, in relation to the supply of a service of a kind specified in the table in subsection 38-10(1), if:
(a)
the service is supplied in a State or Territory in which the person has a permission or approval, or is registered, under a *State law or a *Territory law prohibiting the supply of services of that kind without such permission, approval or registration; or
(b)
the service is supplied in a State or Territory in which there is no State law or Territory law requiring such permission, approval or registration, and the person is a member of a professional association that has uniform national registration requirements relating to the supply of services of that kind; or
(c)
in the case of services covered by item 3 in the table - the service is supplied by an accredited service provider within the meaning of section 4 of the Hearing Services Administration Act 1997.
Definition of "recognised professional" amended by No 156 of 2000,s 3 and Sch 7 item 6, by substituting "item 3" for "item 2" in para (c), effective 1 July 2000.
recognised tax adviser has the meaning given by section 995-1 of the *ITAA 1997.
redeliverer , of a *supply of low value goods, has the meaning given by subsection 84-77(4).
Definition of "redeliverer" inserted by No 77 of 2017, s 3 and Sch 1 item 59, effective 1 July 2017. For application provisions, see note under Div 146 heading.
reduced credit acquisition has the meaning given by section 70-5.
Definition of "reduced credit acquisition" amended by No 92 of 2000, s 3 and Sch 5 item 11, by substituting "section 70-5" for "subsection 70-5(1)", effective 1 July 2000.
reduced credit land transport (Repealed by No 58 of 2006)
Definition of "reduced credit land transport" repealed by No 58 of 2006, s 3 and Sch 7 item 14, effective 22 June 2006. The definition formerly read:
reduced credit land transport has the meaning given by section 123-55.
refiner of precious metal means an entity that satisfies the Commissioner that it regularly converts or refines *precious metal in *carrying on its *enterprise.
registered means:
(a)
in relation to an entity - registered under Part 2-5; or
(b)
in relation to a branch of an entity - registered under Division 54.
Definition of "registered tax agent" repealed by No 114 of 2009, s 3 and Sch 1 item 1, effective 1 March 2010. The definition formerly read:
registered tax agent means an entity that is registered as a tax agent under Part VIIA (Registration of tax agents) of the *ITAA 1936.
CCH Note:
Pending amendment
Definition of "Registrar" will be inserted by No 69 of 2020 (as amended by No 35 of 2022), s 3 and Sch 1 item 98, effective 22 June 2022 or a day or days to be fixed by Proclamation. effective 1 July 2026 or a day or days to be fixed by Proclamation. For application and transitional provisions, see note under s 25-10(2). The definition will read:
Registrar has the same meaning as in the A New Tax System (Australian Business Number) Act 1999.
registration turnover threshold has the meaning given by sections 23-15 and 63-25.
Definition of "registration turnover threshold" amended by No 177 of 1999, s 3 and Sch 1 item 148, by substituting "sections 23-15 and 63-25" for "section 23-15", effective 1 July 2000.
relates to business finance has the meaning given by subsection 129-10(3).
relevant traveller :
(a)
in relation to goods that are exported - has the same meaning as in section 96A of the Customs Act 1901; and
(b)
in relation to goods that are *airport shop goods - has the same meaning as in section 96B of the Customs Act 1901.
Definition of "relevant traveller" amended by No 92 of 2000, s 3 and Sch 2 item 8, by substituting "*airport shop goods" for "imported or *excisable goods" in para (b), effective 1 July 2000.
religious practitioner means:
(a)
a minister of religion; or
(b)
a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or
(c)
a full-time member of a religious order; or
(d)
a student at a college conducted solely for training persons to become members of religious orders.
Definition of "religious practitioner" inserted by No 168 of 2001, s 3 and Sch 1 item 5, applicable to activities done by a religious practitioner on or after 1 July 2000.
representative means:
(a)
a trustee in bankruptcy; or
(b)
a *liquidator; or
(c)
a receiver; or
(ca)
a controller (within the meaning of section 9 of the Corporations Act 2001); or
(d)
an administrator appointed to an entity under Division 2 of Part 5.3A of the Corporations Act 2001; or
(e)
a person appointed, or authorised, under an *Australian law to manage the affairs of an entity because it is unable to pay all its debts as and when they become due and payable; or
(f)
an administrator of a deed of company arrangement executed by the entity.
Definition of "representative" amended by No 118 of 2009, s 3 and Sch 1 item 42, by inserting para (ca), effective 4 December 2009.
Definition of "representative" paragraph (d) amended by No 55 of 2001, s 3 and Sch 3 item 34, by substituting "Corporations Act 2001" for "Corporations Law", effective 15 July 2001.
Definition of "representative" amended by No 156 of 2000, s 3 and Sch 6 item 39, by inserting paras (d) to (f), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "representative member" substituted by No 74 of 2010, s 3 and Sch 1 item 40, applicable to tax periods starting on or after 1 July 2010. For transitional provisions, see note under Div 48 heading. The definition formerly read:
representative member , for a *GST group, is the *member of the group nominated as mentioned in paragraph 48-5(1)(c), or approved as a replacement representative member for the group under paragraph 48-70(1)(c) or subsection 48-72(4).
Definition of "representative member" amended by No 118 of 2009, s 3 and Sch 1 item 43, by inserting "or subsection 48-72(4)" at the end, effective 4 December 2009.
required to be registered has the meaning given by sections 23-5, 57-20, 58-20 and 144-5.
Definition of "required to be registered" amended by No 118 of 2009, s 3 and Sch 1 item 44, by substituting "58-20 and 144-5" for "144-5 and 147-5", effective 4 December 2009.
Definition of "residential care" repealed by No 143 of 2004, s 3 and Sch 1 item 10, effective 14 December 2004. For application provisions, see note under s 38-25(3). The definition formerly read:
residential care has the meaning given by section 41-3 of the Aged Care Act 1997.
Note:
Residential care can include respite care.
residential care service has the meaning given by the Dictionary in Schedule 1 to the Aged Care Act 1997.
residential premises means land or a building that:
(a)
is occupied as a residence or for residential accommodation; or
(b)
is intended to be occupied, and is capable of being occupied, as a residence or for residential accommodation;
(regardless of the term of the occupation or intended occupation) and includes a *floating home.
Definition of "residential premises" substituted by No 80 of 2006, s 3 and Sch 15 item 9, applicable, and taken to have applied, in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000. The definition formerly read:
residential premises means land or a building that:
(a)
is occupied as a residence; or
(b)
is intended to be occupied, and is capable of being occupied, as a residence;
and includes a *floating home.
Definition of "residential premises" substituted by No 176 of 1999, s 3 and Sch 1 item 157, effective 1 July 2000. The definition formerly read:
residential premises means land or a building occupied or intended to be occupied as a residence, and includes a *floating home.
retailer means an entity that, in the course or furtherance of *carrying on its *enterprise, sells *goods to people who buy them for private or domestic use or consumption.
Definition of "retailer" inserted by No 176 of 1999, s 3 and Sch 1 item 158, effective 1 July 2000.
retirement village : premises are a retirement village if:
(a)
the premises are *residential premises; and
(b)
accommodation in the premises is intended to be for persons who are at least 55 years old, or who are a certain age that is more than 55 years; and
(c)
the premises include communal facilities for use by the residents of the premises;
but the following are not retirement villages:
(d)
premises used, or intended to be used, for the provision of residential care (within the meaning of the Aged Care Act 1997) by an approved provider (within the meaning of the Aged Care Quality and Safety Commission Act 2018);
(e)
*commercial residential premises.
Definition of "retirement village" amended by No 116 of 2019, s 3 and Sch 1 item 72, by substituting "the Aged Care Quality and Safety Commission Act 2018" for "that Act" in para (d), effective 1 January 2020.
Definition of "retirement village" inserted by No 143 of 2004, s 3 and Sch 1 item 11, effective 14 December 2004. For application provisions, see note under s 38-25(3).
Definition of "returnable container" repealed by No 156 of 2000, s 3 and Sch 6 item 40, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The definition formerly read:
returnable container has the meaning given by subsection 93-5(2).
reviewable GST decision has the meaning given by Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953.
Definition of "reviewable GST decision" amended by No 73 of 2006, s 3 and Sch 5 item 137, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of", effective 1 July 2006.
Definition of "satisfies the membership requirements" amended by No 92 of 2000, s 3 and Sch 1 items 8E and 9, by substituting the definition, and then by substituting ", 63-50 or 149-25" for "or 149-25" in para (a), effective 1 July 2000. The definition formerly read:
satisfies the membership requirements for a *GST group has the meaning given by section 48-10 or 149-25.
Definition of "satisfies the membership requirements" amended by No 177 of 1999, s 3 and Sch 1 item 149, by inserting "or 149-25", effective 1 July 2000.
satisfies the participation requirements for a *GST joint venture has the meaning given by section 51-10.
scheme has the meaning given by subsection 165-10(2).
(a)
a course of study or instruction that is a secondary course determined by the *Student Assistance Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or
(b)
any other course of study or instruction that the Student Assistance Minister has determined is a secondary course for the purposes of this Act.
Definition of "secondary course" amended by No 15 of 2017, s 3 and Sch 4 items 14 and 15, by substituting "*Student Assistance Minister" for "*Education Minister" in para (a) and "Student Assistance Minister" for "*Education Minister" in para (b), effective 1 April 2017.
second-hand goods does not include:
(a)
goods (except *incidental valuable metal goods) to the extent that they consist of *valuable metal; or
(b)
(Repealed by No 76 of 2017)
(c)
animals or plants.
Definition of "second-hand goods" amended by No 76 of 2017, s 3 and Sch 1 item 10, by substituting para (a) for para (a) and (b), applicable in relation to goods acquired on or after 1 April 2017. Para (b) formerly read:
(b)
goods to the extent that they consist of gold, silver, platinum, or any other substance which, if it were of the required fineness, would be precious metal; or
Definition of "second-hand goods" amended by No 177 of 1999, s 3 and Sch 1 item 150, by substituting para (c), effective 1 July 2000. Para (c) formerly read:
(c)
*live stock that you did not acquire in a supply to you.
serviced apartment : an apartment (however described) is a serviced apartment in relation to a *retirement village if:
(a)
the apartment is designed to be occupied by aged residents who require either or both of the following:
(i)
the services set out in item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles;
(ii)
the services set out in item 3.8 (nursing services) of Part 3 of that Schedule; and
(b)
at least one responsible person is continuously:
(i)
on call to render emergency assistance to the residents of the apartment; and
(ii)
in reasonable proximity to the apartment; and
(c)
the apartment is part of a single complex of apartments to which paragraphs (a) and (b) apply, and is accessible from a common corridor linking the apartment to the other apartments in the complex; and
(d)
there is in the retirement village a communal dining facility that is available for use by the residents of apartments in the retirement village to which paragraphs (a), (b) and (c) apply.
However, a detached house, row house, terrace house, town house or villa unit is not a serviced apartment.
Definition of "serviced apartment" inserted by No 143 of 2004, s 3 and Sch 1 item 12, effective 14 December 2004. For application provisions, see note under s 38-25(3).
settlement amount has the meaning given by subsection 78-15(4).
Definition of "small business entity" inserted by No 80 of 2007, s 3 and Sch 2 item 59, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
small enterprise entity has the meaning given by subsection 123-7(1).
Definition of "small enterprise entity" inserted by No 112 of 2007, s 3 and Sch 1 item 16, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
small enterprise turnover threshold has the meaning given by subsection 123-7(2).
Definition of "small enterprise turnover threshold" inserted by No 112 of 2007, s 3 and Sch 1 item 17, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
special education course means a course of education that provides special programs designed specifically for children with disabilities or students with disabilities (or both).
Definition of "special education course" substituted by No 176 of 1999, s 3 and Sch 1 item 160, effective 1 July 2000. The definition formerly read:
special education course means a course of education that provides special programs designed specifically for children with disabilities or students with disabilities (or both) and that is supplied at:
(a)
a centre conducted by or on behalf of a State or Territory; or
(b)
any other place that is not a school.
special professional has the meaning given by subsection 405-25(1) of the *ITAA 1997.
Definition of "special professional" inserted by No 73 of 2001, s 3 and Sch 1 item 54, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
stated monetary value has the meanings given by subsections 100-5(2A) and (2B).
Definition of "stated monetary value" inserted by No 32 of 2006, s 3 and Sch 4 item 17, applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
State law has the meaning given by section 995-1 of the *ITAA 1997.
statutory compensation scheme has the meaning given by section 78-105.
Definition of "Student Assistance Minister" inserted by No 15 of 2017, s 3 and Sch 4 item 16, effective 1 April 2017.
Subdivision 38-P period , in relation to the supply of a *car to an individual, means the period starting when he or she acquires it and ending at the earliest of the following times:
(a)
the end of 2 years after the acquisition;
(b)
the time when the car is no longer reasonably capable of being used for the purpose for which cars of that kind are ordinarily used;
(c)
a time that the Commissioner considers to be appropriate in special circumstances.
substantial renovations of a building are renovations in which all, or substantially all, of a building is removed or replaced. However, the renovations need not involve removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases.
Definition of "supplier-taxed offshore supply of low value goods" inserted by No 77 of 2017, s 3 and Sch 1 item 59, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Definition of "supply of low value goods" inserted by No 77 of 2017, s 3 and Sch 1 item 59, effective 1 July 2017. For application provisions, see note under Div 146 heading.
taxable at less than 1/11 of the price has the meaning given by subsection 136-50(1).
Definition of "taxable at less than 1/11 of the price" inserted by No 156 of 2000, s 3 and Sch 4 item 19, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
taxable dealing , in relation to *wine, has the meaning given by section 33-1 of the *Wine Tax Act.
Definition of "taxable dealing" inserted by No 52 of 2016, s 3 and Sch 2 item 24, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
taxable importation has the meaning given by subsections 13-5(1) and 114-5(1).
Definition of "taxable importation" amended by No 176 of 1999, s 3 and Sch 1 item 163, by substituting "subsections 13-5(1) and 114-5(1)" for "subsection 13-5(1)", effective 1 July 2000.
taxable importation of a luxury car has the meaning given by section 27-1 of the A New Tax System (Luxury Car Tax) Act 1999.
Definition of "taxable importation of a luxury car" inserted by No 52 of 2016, s 3 and Sch 2 item 24, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
taxable supply has the meaning given by sections 9-5, 78-50, 84-5 and 105-5.
Definition of "taxable supply" amended by No 8 of 2019, s 3 and Sch 8 item 20, by substituting "80-50, 84-85, 90-5, 100-5, 100-18," for "80-50 84-85,, 90-5, 100-5, 100-18" in the note, effective 1 April 2019.
Definition of "taxable supply" amended by No 77 of 2017, s 3 and Sch 1 item 60, by inserting "84-85," in the note, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Definition of "taxable supply" amended by No 34 of 2014, s 3 and Sch 2 item 12, by substituting ", 113-5 and 142-10" for "and 113-5", applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
Definition of "taxable supply" amended by No 41 of 2011, s 3 and Sch 4 item 10, by omitting "81-10," after "80-50" from the note at the end, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading.
Definition of "taxable supply" amended by No 143 of 2007, s 3 and Sch 1 item 7, by omitting "110-10," after "110-5," in the note, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after 1 July 2008. For savings provisions, see note under s 110-10.
Definition of "taxable supply" amended by No 32 of 2006, s 3 and Sch 4 item 18, by inserting "100-18" before "110-5", applicable in relation to supplies made on or after 6 April 2006.
Definition of "taxable supply" amended by No 101 of 2004, s 3 and Sch 6 item 8, by inserting "110-15, 110-20, 110-25 and 110-30" after "110-10" in the note, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
Definition of "taxable supply" amended by No 67 of 2003, s 3 and Sch 11 item 40, by inserting "79-60, 79-85, 80-10, 80-50," after "78-70," in the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "taxable supply" amended by No 97 of 2002, s 3 and Sch 1 item 15, by inserting ", 110-5, 110-10" in the note, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "taxable supply" amended by No 92 of 2000, s 3 and Sch 1 item 8F, by inserting "49-30," after "sections" in the Note, effective 1 July 2000.
Definition of "taxable supply" amended by No 177 of 1999, s 3 and Sch 1 items 153 to 155 (as amended by No 156 of 2000, s 3 and Sch 7 item 9), by substituting "78-50" for "78-30" in the definition and "66-45, 72-5, 78-25, 78-60" for "72-5, 78-45, 78-50" and ", 100-5 and 113-5" for "and 113-1" in the Note, effective 1 July 2000.
Definition of "taxable supply" amended by No 178 of 1999, s 3 and Sch 1 item 67, by substituting ", 90-5 and 113-1" for "and 90-5" in the Note, effective 22 December 1999.
taxation law has the meaning given by section 2 of the Taxation Administration Act 1953.
tax invoice has the meaning given by subsections 29-70(1) and 48-57(1), and includes a document that the Commissioner treats as a tax invoice under subsection 29-70(1B). However, it does not include a document that does not comply with the requirements of section 54-50 (if applicable).
Definition of "tax invoice" substituted by No 74 of 2010, s 3 and Sch 3 item 4, applicable in relation to net amounts for tax periods starting on or after 1 July 2010. The definition formerly read:
tax invoice means a document that complies with the requirements of subsection 29-70(1) and (if applicable) section 54-50.
taxi travel means travel that involves transporting passengers, by taxi or limousine, for fares.
tax loss has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "tax loss" inserted by No 97 of 2002, s 3 and Sch 1 item 16, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
tax period means a tax period applying to you under:
(a)
Division 27 (about quarterly and one month tax periods); or
(b)
section 48-73 (about GST groups with incapacitated entities); or
(c)
section 57-35 (about resident agents); or
(d)
section 58-35 (about representatives of incapacitated entities); or
(e)
section 151-40 (about annual tax periods); or
(f)
section 162-55 (about instalment tax periods).
Definition of "tax period" substituted by No 39 of 2012, s 3 and Sch 4 item 10, effective 15 April 2012. The definition formerly read:
tax period means a tax period applying to you under Division 27 or section 48-73, 57-35, 58-35 or 151-40.
Definition of "tax period" amended by No 118 of 2009, s 3 and Sch 1 item 45, by substituting "48-73, 57-35, 58-35 or 151-40" for "57-35, 147-25 or 151-40", effective 4 December 2009.
Definition of "tax period" amended by No 134 of 2004, s 3 and Sch 1 item 14 by substituting ", 147-25 or 151-40" for "or 147-25", applicable in relation to net amounts for tax periods starting, or that started on, or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
Definition of "tax period" amended by No 176 of 1999, s 3 and Sch 1 item 162, by inserting "or 147-25", effective 1 July 2000.
tax period turnover threshold has the meaning given by subsection 27-15(3).
tax-related liability has the meaning given by section 255-1 in Schedule 1 to the Taxation Administration Act 1953.
Definition of "tax-related liability" inserted by No 101 of 2004, s 3 and Sch 6 item 9, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
telecommunication supply has the meaning given by section 85-10.
Definition of "telecommunication supply" inserted by No 177 of 1999, s 3 and Sch 1 item 156, effective 1 July 2000.
Territory law has the meaning given by section 995-1 of the *ITAA 1997.
tertiary course means:
(a)
a course of study or instruction that is a tertiary course determined by the *Student Assistance Minister under subsection 5D(1) of the Student Assistance Act 1973 for the purposes of that Act; or
(aa)
a course of study or instruction accredited at Masters or Doctoral level and supplied by a *higher education institution or a *non-government higher education institution; or
(b)
any other course of study or instruction that the Student Assistance Minister has determined is a tertiary course for the purposes of this Act.
Definition of "tertiary course" amended by No 15 of 2017, s 3 and Sch 4 items 17 and 18, by substituting "*Student Assistance Minister" for "*Education Minister" in para (a) and "Student Assistance Minister" for "Education Minister" in para (b), effective 1 April 2017.
Definition of "tertiary course" amended by No 143 of 2007, s 3 and Sch 7 item 5, by inserting para (aa), effective 1 July 2006.
tertiary residential college course means a course supplied in connection with a *tertiary course at premises that are used to provide accommodation to students undertaking tertiary courses.
Definition of "tertiary residential college course" substituted by No 143 of 2007, s 3 and Sch 7 item 6, effective 1 July 2006. The definition formerly read:
tertiary residential college course means a course supplied in connection with a *tertiary course or a *Masters or Doctoral course at premises that are used to provide accommodation to students undertaking tertiary courses or Masters or Doctoral courses.
thing means anything that can be supplied or imported.
third party adjustment note means a document that complies with the requirements of section 134-20 and (if applicable) section 54-50.
Definition of "third party adjustment note" inserted by No 21 of 2010, s 3 and Sch 1 item 23, applicable in relation to payments made on or after 1 July 2010.
total Subdivision 66-B credit amount has the meaning given by subsection 66-65(1).
Definition of "tradex scheme goods" inserted by No 176 of 1999, s 3 and Sch 7 item 16, effective 1 July 2000.
transportation document includes the following:
(a)
a consignment note;
(b)
a house bill of lading;
(c)
an ocean bill of lading;
(d)
a house air waybill;
(e)
a master air waybill;
(f)
a sea waybill;
(g)
a straight line air waybill;
(h)
a sub-master air waybill;
(i)
other similar documents.
Definition of "TSA contributing member" inserted by No 101 of 2004, s 3 and Sch 6 item 10, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2002.
turnover threshold has the meaning given by subsection 188-10(3).
Definition of "turnover threshold" substituted by No 80 of 2007, s 3 and Sch 2 item 60, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The definition formerly read:
turnover threshold means:
(a)
the *cash accounting turnover threshold; or
(b)
the *electronic lodgment turnover threshold; or
(c)
the *registration turnover threshold; or
(d)
the *tax period turnover threshold.
unit trust has the meaning given by subsection 202A(1) of the *ITAA 1936.
untaxable Commonwealth entity has the meaning given by section 177-1.
Definition of "untaxable Commonwealth entity" inserted by No 58 of 2006, s 3 and Sch 7 item 15, effective 22 June 2006.
valid meal entertainment register means a valid meal entertainment register within the meaning of section 37CA of the Fringe Benefits Tax Assessment Act 1986.
Definition of "valid meal entertainment register" inserted by No 156 of 2000, s 3 and Sch 3 item 33, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
valuable metal means:
(a)
gold, silver or platinum; or
(b)
any other substance specified for the purposes of paragraph (d) of the definition of
precious metal in this section.
Section 188-30 contains a means of working out, for the purposes of Division 188, the value of a supply that is not a taxable supply, and section 188-32 contains a means of working out, for those purposes, the value of gambling supplies.
Definition of "value" amended by No 67 of 2003, s 3 and Sch 11 item 41, by inserting "79-40, 79-85," after "78-95," in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Definition of "value" amended by No 156 of 2000, s 3 and Sch 2 item 12, by substituting ", 117-5 and 117-10" for "and 117-5" in para (a), applicable to importations into Australia on or after 1 July 2000.
Definition of "value" amended by No 92 of 2000, s 3 and Sch 11 item 13, by inserting ", and section 188-32 contains a means of working out, for those purposes, the value of gambling supplies" at the end, effective 1 July 2000.
Definition of "value" amended by No 177 of 1999, s 3 and Sch 1 items 159 to 161, by substituting "78-5, 78-60, 78-95" for "78-40, 78-45", omitting "and" (last occurring) in para (b) and repealing para (c), effective 1 July 2000. Para (c) formerly read:
(c)
value of a repair or renovation of goods has the meaning given by section 117-10; and
Definition of "value" amended by No 176 of 1999, s 3 and Sch 1 item 165, by inserting para (d), effective 1 July 2000.
varied instalment amount has the meaning given by subsection 162-140(1) and paragraph 162-140(5)(a).
Definition of "varied instalment amount" inserted by No 73 of 2001, s 3 and Sch 1 item 55, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
voucher has the meaning given by subsection 100-25(1).
Definition of "voucher" amended by No 32 of 2006, s 3 and Sch 4 item 19, by substituting "subsection 100-25(1)" for "section 100-25", applicable, and taken to have applied, in relation to supplies made on or after 1 July 2000.
Definition of "voucher" inserted by No 177 of 1999, s 3 and Sch 1 item 162, effective 1 July 2000.
wine has the meaning given by Subdivision 31-A of the *Wine Tax Act.
Definition of "wine" inserted by No 52 of 2016, s 3 and Sch 2 item 24, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
wine tax has the meaning given by section 33-1 of the *Wine Tax Act.
Definition of "wine tax" amended by No 39 of 2012, s 3 and Sch 4 item 11, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999", effective 15 April 2012.
Definition of "wine tax" inserted by No 176 of 1999, s 3 and Sch 1 item 166, effective 1 July 2000.
Wine Tax Act means the A New Tax System (Wine Equalisation Tax) Act 1999.
Definition of "wine tax law" amended by No 39 of 2012, s 3 and Sch 4 item 13, by substituting "*Wine Tax Act" for "A New Tax System (Wine Equalisation Tax) Act 1999", effective 15 April 2012.
withholding payment covered by a particular provision in Schedule 1 to the Taxation Administration Act 1953 has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "withholding payment" (second occurring) amended by No 12 of 2012, s 3 and Sch 6 item 72, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997", effective 21 March 2012.
Definition of "withholding payment" (second occurring) inserted by No 178 of 1999, s 3 and Sch 1 item 69, effective 22 December 1999.
withholding payment has the meaning given by subsection 995-1(1) of the *ITAA 1997.
Definition of "withholding payment" amended by No 12 of 2012, s 3 and Sch 6 item 73, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997", effective 21 March 2012.
Definition of "withholding payment" inserted by No 178 of 1999, s 3 and Sch 1 item 68, effective 22 December 1999.
you : if a provision of this Act uses the expression
you, it applies to entities generally, unless its application is expressly limited.
Note:
The expression
you is not used in provisions that apply only to entities that are not individuals.
The second column of the table is not operative (see section 182-15).
1
1
Food that is not GST-free
*Food specified in the third column of the table is not GST-free.
Food that is not GST-free
Item
Category
Food
1
Prepared food
quiches
2
sandwiches (using any type of bread or roll)
3
pizzas, pizza subs, pizza pockets and similar *food
4
*food marketed as a prepared meal, but not including soup
5
platters etc. of cheese, cold cuts, fruit or vegetables and other arrangements of *food
6
hamburgers, chicken burgers and similar *food
7
hot dogs
8
Confectionery
confectionery, *food marketed as confectionery, food marketed as ingredients for confectionery or food consisting principally of confectionery
9
popcorn
10
confectionery novelties
11
*food known as muesli bars or health food bars, and similar foodstuffs
12
crystallised fruit, glace fruit and drained fruit
13
crystallised ginger and preserved ginger
14
edible cake decorations
15
Savoury snacks
potato crisps, sticks or straws, corn crisps or chips, bacon or pork crackling or prawn chips
16
seeds or nuts that have been processed or treated by salting, spicing, smoking or roasting, or in any other similar way
17
caviar and similar fish roe
18
*food similar to that covered by item 15 or 16, whether or not it consists wholly or partly of any vegetable, herb, fruit, meat, seafood or dairy product or extract and whether or not it is artificially flavoured
19
*food consisting principally of food covered by items 15 to 18
20
Bakery products
cakes, slices, cheesecakes, pancakes, waffles, crepes, muffins and puddings
21
pavlova and meringues
22
pies (meat, vegetable or fruit), pasties and sausage rolls
23
tarts andpastries
24
doughnuts and croissants
25
pastizzi, calzoni and brioche
26
scones and scrolls
27
bread (including buns) with a sweet filling or coating
28
Ice-cream food
ice-cream, ice-cream cakes, ice-creams and ice-cream substitutes
29
frozen confectionery, frozen yoghurt and frozen fruit products (but not frozen whole fruit)
30
flavoured iceblocks (whether or not marketed in a frozen state)
31
any *food similar to food listed in items 28 to 30
32
Biscuit goods
*food that is, or consists principally of, biscuits, cookies, crackers, pretzels, cones or wafers
2
2
Prepared food, bakery products and biscuit goods
For the purpose of determining whether particular *food is covered by any of the items in the table relating to the category of prepared food, bakery products or biscuit goods, it does not matter whether it is supplied hot or cold, or requires cooking, heating, thawing or chilling prior to consumption.
3
3
Prepared meals
Item 4 in the table only applies to *food that requires refrigeration or freezing for its storage.
4
4
Candied peel
None of the items in the table relating to the category of confectionery include candied peel.
5
5
Goods that are not biscuit goods
None of the items in the table relating to the category of biscuit goods include:
(a)
breakfast *food consisting principally of compressed, rolled or flattened cereal; or
(b)
rusks for infants or invalids, or goods consisting principally of those rusks.
Schedule 2 - Beverages that are GST-free
The second column of the table is not operative (see section 182-15).
1
1
Beverages that are GST-free
*Beverages specified in the third column of the table are GST-free.
Beverages that are GST-free
Item
Category
Beverages
1
Milk products
any of the following products:
(a)
milk, skim milk or buttermilk (whether liquid, powdered, concentrated or condensed);
(b)
casein;
(c)
whey, whey powder or whey paste
2
*beverages consisting of products referred to in item 1 (or a combination of those products), to the extent of at least 95%, but not including flavoured beverages
3
lactose
4
Soy milk and rice milk
*beverages consisting principally of soy milk or rice milk, but not including flavoured beverages
5
Tea, coffee etc.
tea (including herbal tea, fruit tea, ginseng tea and other similar *beverage preparations), coffee and coffee essence, chicory and chicory essence, and malt
6
malt extract, if it is marketed principally for drinking purposes
7
preparations for drinking purposes that are marketed principally as tea preparations, coffee preparations, or preparations for malted *beverages
8
preparations marketed principally as substitutes for preparations covered by item 6 or 7
9
dry preparations marketed for the purpose of flavouring milk
10
Fruit and vegetable juices
concentrates for making non-alcoholic *beverages, if the concentrates consist of at least 90% by volume of juices of fruits
11
non-alcoholic carbonated *beverages, if they consist wholly of juices of fruits or vegetables
12
non-alcoholic non-carbonated *beverages, if they consist of at least 90% by volume of juices of fruits or vegetables
13
Beverages for infants or invalids
*beverages, and ingredients for beverages, of a kind marketed principally as *food for infants or invalids
14
Water
natural water, non-carbonated and without any other additives
Cl 1 amended by No 176 of 1999, s 3 and Sch 1 item 167, by omitting "bottled" from table item 14, effective 1 July 2000.
2
2
Tea, coffee etc.
None of the items in the table relating to the category of tea, coffee etc. include any *beverage that is marketed in a ready-to-drink form.
3
3
Fruit and vegetable juices
For the purposes of items 11 and 12 in the table, herbage is treated as vegetables.
Schedule 3 - Medical aids and appliances
Note 1:
GST-free supplies of medical aids and appliances are dealt with in section 38-45.
Note 2:
The second column of the table is not operative (see section 182-15).
Sch 3 amended by No 176 of 1999, s 3 and Sch 1 item 168, by substituting Notes 1 and 2 for the Note, effective 1 July 2000. The Note formerly read:
Note:
GST-free supplies of medical aids and appliances are dealt with in section 38-45.
Medical aids and appliances
Item
Category
Medical aids or appliances
1
Cardiovascular
heart monitors
2
pacemakers
3
surgical stockings
4
Communication aids for people with disabilities
communication boards and voice output devices
5
communication cards
6
page turners
7
eye pointing frames
8
software programs specifically designed for people with disabilities
9
printers and scanners specifically designed for software and hardware used by people with disabilities
10
switches and switch interfaces
11
mouth/head sticks/pointers
12
alternative keyboards
13
electrolarynx replacements
14
speech amplification/clarification aids
15
Continence
urine/faecal drainage/collection devices
16
waterproof covers or mattress protectors
17
absorbent pads for beds and chairs
18
disposable/reusable continence pads, pants and nappies required for continence use (excluding nappies for babies, sanitary pads or tampons)
19
enuresis alarms
20
incontinence appliances
21
hospital/medical/continence deodorising products
22
waterproof protection for beds and chairs
23
sterile plastic bags
24
electric bag emptiers
25
enemas, suppositories and applicators
26
urinals and bedpans
27
penile clamps
28
Daily living for people with disabilities
customised eating equipment for people with disabilities
29
customised toothbrushes for people with disabilities
30
dentures and artificial teeth
31
environmental control units designed for the disability of a particular person
32
computer modifications required for people with disabilities
33
"medical alert" devices
34
Diabetes
finger prickers
35
alcohol skin wipes
36
test strips
37
needles and syringes
38
glucose monitors
39
Dialysis
home dialysis machines
40
Enteral nutrition
enteral nutrition and associated delivery equipment
41
Footwear for people with disabilities
surgical shoes, boots, braces and irons
42
orthotics
43
Hearing/speech
hearing aids
44
visual display units specifically designed for deaf people, or for people with a speech impairment, to communicate with others
45
telephone communication devices specifically designed to allow deaf people to send and receive messages by telephone
46
batteries specifically designed specifically for use with hearing aids
47
visual/tactile alerting devices
48
interactive and broadcast videotext systems
49
closed caption decoding devices
50
external processors for cochlear implants
51
Home modifications for people with disabilities
bidet/bidet toilet attachments
52
special door fittings relating to the disability of a particular person
53
Mobility of people with disabilities - motor vehicles
special purpose car seats
54
car seat harness specifically designed for people with disabilities
55
wheelchair and occupant restraint
56
wheelchair ramp
57
electric/hydraulic wheelchair lifting device
58
motor vehicle modifications
59
Mobility of people with disabilities - physical: bedding for people with disabilities
manually operated adjustable beds
60
electronically operated adjustable beds
61
hospital-type beds
62
customised bed rails for people with disabilities
63
bed cradles
64
bed restraints
65
bed poles and sticks
66
pressure management mattresses and overlays
67
backrests, leg rests and footboards for bed use
68
Mobility of people with disabilities - physical: orthoses
spinal orthoses
69
lower limb orthoses
70
upper limb orthoses
71
pressure management garments and lymphoedema pumps
72
callipers
73
corsets (surgical)
74
handsplints and cervical collars
75
mandibular advancement splints
76
Mobility of people with disabilities - physical: positioning aids
alternative positional seating corner chairs
77
alternative positional seating abduction cushions or long leg wedges
78
alternative positional seating modifications
79
standing frames
80
standing frames or tilt table modifications
81
side lying boards
82
night-time positioning equipment modifications
83
Mobility of people with disabilities - physical: prostheses
artificial limbs and associated supplements and aids
84
mammary
85
Mobility of people with disabilities - physical: seating aids
postural support seating trays
86
electrically operated therapeutic lounge/recliner chairs specifically designed for people with disabilities
87
cushions specifically designed for people with disabilities
88
Mobility of people with disabilities - physical: transfer aids
manual, electric, ceiling track or pool hoists specifically designed for people with disabilities
89
hoist slings
90
goosenecks
91
transfer boards
92
transfer sheets, mats or belts
93
stairlifts
94
portable stair climbers
95
monkey rings for people with disabilities
96
Mobility of people with disabilities - physical: walking aids
crutches
97
walking sticks - specialised
98
walking frames - standard adult
99
walking frames - standard child
100
walking frames - specialised
101
walking frame modifications
102
specialised ambulatory orthoses
103
specialised ambulatory orthosis modifications
104
quadrupod and tripod walking aids
105
Mobility of people with disabilities - physical: wheelchairs and accessories
wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities
106
accessories associated with wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities
107
battery chargers for wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities
108
stair-aid apparatuses designed for carrying people with disabilities in wheelchairs up or down stairs
109
Pain relief delivery systems
syringe drivers
110
patient control analgesia
111
Personal hygiene for people with disabilities
bathboards or toilet seats for people with disabilities
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