A New Tax System (Goods and Services Tax) Act 1999
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(Repealed by No 154 of 1999)
Hide history note1-3 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.
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:
Chapter 2 has the basic rules for the GST, including:
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.
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.
(3)
The following basic terms used throughout the Act are not identified with an asterisk.
| Common definitions that are not asterisked | |
| Item | This term: |
| 1 | acquisition |
| 2 | amount |
| 3 | Commissioner |
| 4 | entity |
| 5 | goods |
| 6 | GST |
| 7 | import |
| 8 | indirect tax zone |
| 9 | individual |
| 10 | input tax credit |
| 11 | supply |
| 12 | tax period |
| 13 | thing |
| 14 | you |
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 sectionsOne 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 materialThe 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:
The diagram on the next page shows how the basic rules in this Chapter relate to each other. It also shows their relationship with:
GST is payable on *taxable supplies and *taxable importations.
(2)
Entitlements to input tax credits arise on *creditable acquisitions and *creditable importations.
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.
7-10 Tax periodsEvery entity that is *registered, or *required to be registered, has tax periods applying to it.
For registration, see Part 2-5.
For tax periods, see Part 2-6.
7-15 Payments and refundsThe 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.
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.
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
(d) you are *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.
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).
(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.
(4)
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.
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.
(2B)
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.
(3)
(Repealed by No 75 of 2012)
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
does not exceed the supplier's anticipated or actual costs of making those supplies.
(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;
(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.
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 trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or (e) 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.
(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).(3)
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).
(4)
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 12-60 | Payment under labour hire arrangement, or specified by regulations |
9-25 Supplies connected with the indirect tax zone
Supplies of goods wholly within the indirect tax zone
(1)
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.
Supplies of goods from the indirect tax zone
(2)
A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone .
Supplies of goods to the indirect tax zone
(3)
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.
(3A)
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.
Supplies of real property
(4)
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.
Supplies of anything else
(5)
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
(b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or
(c) all of the following apply:
(i) neither paragraph (a) nor (b) applies in respect of the thing;
(ii) the thing is a right or option to acquire another thing;
(iii) the supply of the other thing would be connected with the indirect tax zone; or
(d) the *recipient of the supply is an *Australian consumer.
Example:
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.
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).
Meaning of Australian consumer
(7)
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.
9-26 Supplies by non-residents that are not connected with the indirect tax zone (1)
A supply is not connected 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 not connected 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).
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.
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).
Input taxed
(2)
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).
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.)
View history note
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.
9-39 Special rules relating to taxable supplies
Chapter 4 contains special rules relating to taxable supplies, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Agents and insurance brokers | Division 153 |
| 1 | Associates | Division 72 |
| 2 | Cancelled lay-by sales | Division 102 |
| 3 | Company amalgamations | Division 90 |
| 3A | Compulsory third party schemes | Division 79 |
| 4 | Deposits as security | Division 99 |
| 5 | Gambling | Division 126 |
| 5A | GST religious groups | Division 49 |
| 5B | (Repealed by No 74 of 2010) | |
| 6 | Insurance | Division 78 |
| 7 | Offshore supplies | Division 84 |
| 8 | Payments of taxes, fees and charges | Division 81 |
| 8AA | Resident agents acting for non-residents | Division 57 |
| 8A | Second-hand goods | Division 66 |
| 8B | Settlement sharing arrangements | Division 80 |
| 9 | Supplies and acquisitions made on a progressive or periodic basis | Division 156 |
| 9A | Supplies in return for rights to develop land | Division 82 |
| 10 | Supplies in satisfaction of debts | Division 105 |
| 11 | Supplies partly connected with the indirect tax zone | Division 96 |
| 12 | Supply under arrangement covered by PAYG voluntary agreement | Division 113 |
| 12A | Tax-related transactions | Division 110 |
| 13 | Telecommunication supplies | Division 85 |
| 14 | Vouchers | Division 100 |
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
Chapter 4 contains special rules relating to liability for GST on taxable supplies, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1 | Company amalgamations | Division 90 |
| 2 | GST groups | Division 48 |
| 3 | GST joint ventures | Division 51 |
| 4 | Offshore supplies | Division 84 |
| 4A | Non-residents making supplies connected with the indirect tax zone | Division 83 |
| 4B | Representatives of incapacitated entities | Division 58 |
| 5 | Resident agents acting for non-residents | Division 57 |
| 6 | Valuable metals | Division 86 |
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:
(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).
(2)
However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:
| Luxury car tax value | × |
10
11 |
where:
luxury car tax value
has the meaning given by section 5-20 of the A New Tax System (Luxury Car Tax) Act 1999.
(3)
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.
(4)
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.
9-80 The value of taxable supplies that are partly GST-free or input taxed (1)
If a supply (the actual supply ) is:
(a) partly a *taxable supply; and
(b) partly a supply that is *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.
(2)
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).
9-85 Value of taxable supplies to be expressed in Australian currency (1)
For the purposes of this Act, the *value of a *taxable supply is to be expressed in Australian currency.
(2)
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.
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.
Chapter 4 contains special rules relating to the amount of GST on taxable supplies, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Agents and insurance brokers | Division 153 |
| 1 | Associates | Division 72 |
| 2 | Company amalgamations | Division 90 |
| 2A | Compulsory third party schemes | Division 79 |
| 3 | Gambling | Division 126 |
| 4 | Long-term accommodation in commercial residential premises | Division 87 |
| 4AA | Non-residents making supplies connected with the indirect tax zone | Division 83 |
| 4A | Offshore supplies | Division 84 |
| 5 | Sale of freehold interests etc. | Division 75 |
| 6 | (Repealed by 176 of 1999) | |
| 7 | Supplies partly connected with the indirect tax zone | Division 96 |
| 8 | Transactions relating to insurance policies | Division 78 |
| 8A | Valuable metals | Division 86 |
| 9 | Valuation of taxable supplies of goods in bond | Division 108 |
| 10 | Excess GST | Division 142 |
Note:
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).
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.
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).
(3)
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.
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.
(4)
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.
(5)
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
(b) the borrowing relates to you making supplies that are not input taxed.
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:
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)
(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.
11-99 Special rules relating to acquisitions
Chapter 4 contains special rules relating to acquisitions, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Agents and insurance brokers | Division 153 |
| 1B | Annual apportionment of creditable purpose | Division 131 |
| 1 | Associates | Division 72 |
| 2 | Company amalgamations | Division 90 |
| 2A | Compulsory third party schemes | Division 79 |
| 3 | Financial supplies (reduced credit acquisitions) | Division 70 |
| 3A | Fringe benefits provided by input taxed suppliers | Division 71 |
| 4 | Gambling | Division 126 |
| 5 | GST groups | Division 48 |
| 6 | GST joint ventures | Division 51 |
| 6A | GST religious groups | Division 49 |
| 7 | Insurance | Division 78 |
| 7A | Limited registration entities | Division 146 |
| 8 | Non-deductible expenses | Division 69 |
| 8A | Offshore supplies | Division 84 |
| 9 | Pre-establishment costs | Division 60 |
| 10 | Reimbursement of employees etc. | Division 111 |
| 10A | Representatives of incapacitated entities | Division 58 |
| 11 | Resident agents acting for non-residents | Division 57 |
| 12 | (Repealed by No 156 of 2000) | |
| 13 | Sale of freehold interests etc. | Division 75 |
| 14 | Second-hand goods | Division 66 |
| 15 | Settlement sharing arrangements | Division 80 |
| 16 | Time limit on entitlements to input tax credits | Division 93 |
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.
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.
(2)
(Repealed by No 176 of 1999)
(3)
However, an importation of *money is not an importation of goods into the indirect tax zone.
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
(b) the amount paid or payable:
(i) for the *international transport of the goods to their *place of consignment in the indirect tax zone; and
to the extent that the amount is not already included under paragraph (a); and
(ii) to insure the goods for that transport;
(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
(c) any *customs duty payable in respect of the importation of the goods; and
(d) any *wine tax payable in respect of the *local entry of the goods.
(2A)
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.
(3)
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.
(4)
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.
(5)
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.
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 importationsChapter 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).
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.
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.
(4)
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.
(5)
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.
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:
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)
(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.
(4)
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.
15-99 Special rules relating to creditable importations
Chapter 4 contains special rules relating to creditable importations, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1AA | Annual apportionment of creditable purpose | Division 131 |
| 1A | Fringe benefits provided by input taxed suppliers | Division 71 |
| 1 | GST groups | Division 48 |
| 2 | GST joint ventures | Division 51 |
| 2AA | Importations without entry for home consumption | Division 114 |
| 2A | Non-deductible expenses | Division 69 |
| 3 | Pre-establishment costs | Division 60 |
| 3A | Representatives of incapacitated entities | Division 58 |
| 4 | Resident agents acting for non-residents | Division 57 |
A net amount is worked out for each tax period that applies to you.
Adjustments can be made to the net amount. Increasing adjustments increase your net amount, and decreasing adjustments decrease your net amount.
Note:
GST on taxable importations is not included in the net amount. It is dealt with separately under section 33-15.
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.
(2)
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.
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)
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)
The matters must relate to correction of errors that were made in working out *net amounts for tax periods to which subsection (2A) applies.
(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.
(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.
Chapter 4 contains special rules relating to net amounts or adjustments, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Annual apportionment of creditable purpose | Division 131 |
| 1 | Anti-avoidance | Division 165 |
| 2 | Cessation of registration | Division 138 |
| 3 | Changes in the extent of creditable purpose | Division 129 |
| 4 | Company amalgamations | Division 90 |
| 4AA | Compulsory third party schemes | Division 79 |
| 4A | Distributions from deceased estates | Division 139 |
| 5 | Gambling | Division 126 |
| 5A | Goods applied solely to private or domestic use | Division 130 |
| 6 | GST branches | Division 54 |
| 7 | GST groups | Division 48 |
| 8 | GST joint ventures | Division 51 |
| 8A | GST religious groups | Division 49 |
| 9 | Insurance | Division 78 |
| 9AA | Non-deductible expenses | Division 69 |
| 9A | Non-profit sub-entities | Division 63 |
| 9B | Payment of GST by instalments | Division 162 |
| 9C | Providing additional consideration under gross-up clauses | Division 133 |
| 10 | Representatives of incapacitated entities | Division 58 |
| 11 | Resident agents acting for non-residents | Division 57 |
| 11A | Sale of freehold interests etc. | Division 75 |
| 12 | Second-hand goods | Division 66 |
| 12AA | Settlement sharing arrangements | Division 80 |
| 12A | Simplified accounting methods for retailers and small enterprise entities | Division 123 |
| 12B | Stock on hand on becoming registered etc. | Division 137 |
| 13 | Supplies in satisfaction of debts | Division 105 |
| 14 | Supplies of going concerns | Division 135 |
| 15 | Supplies of things acquired etc. without full input tax credits | Division 132 |
| 15A | Third party payments | Division 134 |
| 16 | Tradex scheme goods | Division 141 |
| 17 | Vouchers | Division 100 |
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.
19-5 Explanation of the effect of adjustment eventsThe following diagram shows how an *adjustment event for a supply or acquisition can give rise to an *increasing adjustment or a *decreasing adjustment.
Note:
This section is an explanatory section.
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.
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.
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.
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 ).
(2)
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
(b) if an adjustment relating to the acquisition under Division 131 was attributable to an earlier tax period:
(i) do not take into account that adjustment; and
(ii) treat the acquisition as one in relation to which Division 131 had not applied.
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.
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
Chapter 4 contains special rules relating to *adjustment events in particular cases, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1AA | Compulsory third party schemes | Division 79 |
| 1AB | Excess GST and cancelled supplies | Division 142 |
| 1A | GST religious groups | Division 49 |
| 1 | Insurance | Division 78 |
| 2 | Non-deductible expenses | Division 69 |
| 2A | Providing additional consideration under gross-up clauses | Division 133 |
| 3 | Settlement sharing arrangements | Division 80 |
| 4 | Third party payments | Division 134 |
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).
21-5 Writing off bad debts (taxable supplies) (1)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.
(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.
The amount of the increasing adjustment is 1/11 of the amount recovered.
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.
(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.
The amount of the decreasing adjustment is 1/11 of the amount recovered.
Chapter 4 contains special rules relating to adjustments for bad debts, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Bad debts relating to transactions that are not taxable or creditable to the fullest extent | Division 136 |
| 1 | Changing your accounting basis | Division 159 |
| 2 | Gambling | Division 126 |
| 2A | Representatives of incapacitated entities | Division 58 |
| 3 | Sale of freehold interests etc. | Division 75 |
This diagram shows when you are required to be, and when you may, be registered.
Note:
This section is an explanatory section.
You are required to be registered under this Act if:
(a) you are *carrying on an *enterprise; and
(b) your *GST turnover meets the *registration turnover threshold.
Note:
It is the entity that carries on the enterprise that is required to be registered (and not the enterprise).
You may be *registered under this Act if you are carrying on an *enterprise (whether or not your *GST turnover is at, above or below the *registration turnover threshold).
(2)
You may be *registered under this Act if you intend to carry on an *enterprise from a particular date.
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.
The registration turnover threshold was increased from $50,000 ($100,000 for non-profit bodies) to $75,000 ($150,000 for non-profit bodies) with effect from 1 July 2007. For details, see reg 23-15.01 and 23-15.02 of the A New Tax System (Goods and Services Tax) Regulations 2019.
Despite section 23-5, you are treated as not having been *required to be registered under this Act on a day if your *registration could not take effect from that day because of subsection 25-10(1A).
Note:
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.
Chapter 4 contains special rules relating to who is *required to be registered, or who may be *registered, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Government entities | Division 149 |
| 1B | Non-profit sub-entities | Division 63 |
| 1 | Representatives of incapacitated entities | Division 58 |
| 2 | Resident agents acting for non-residents | Division 57 |
| 3 | Taxis | Division 144 |
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).
(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).
(3)
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.
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
(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.
(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
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).
(1A)
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.
(2)
The *Australian Business Registrar must enter in the *Australian Business Register the date on which your *registration takes or took effect.
Pending amendment
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:
(i) the A New Tax System (Australian Business Number) Act 1999;
(ii) the A New Tax System (Goods and Services Tax) Act 1999;
(iii) the Australian Prudential Regulation Authority Act 1998;
(iv) the Income Tax Assessment Act 1997;
(v) the Superannuation Industry (Supervision) Act 1993;
(vi) the Taxation Administration Act 1953; or
(b) an item specified under subitem (2).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:
(i) the A New Tax System (Australian Business Number) Act 1999;
(ii) the A New Tax System (Goods and Services Tax) Act 1999;
(iii) the Australian Prudential Regulation Authority Act 1998;
(iv) the Commonwealth Registers Act 2020;
(v) the Income Tax Assessment Act 1997;
(vi) the Superannuation Industry (Supervision) Act 1993;
(vii) the Taxation Administration Act 1953; and
(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).Note:
For specification by class, see subsection 13(3) of the Legislation Act 2003.
(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.
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.
25-49 Special rules relating to registrationChapter 4 contains special rules relating to *registration in particular cases, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Government entities | Division 149 |
| 1 | GST branches | Division 54 |
| 1AA | Limited registration entities | Division 146 |
| 2 | Non-profit sub-entities | Division 63 |
| 3 | Non-residents making supplies connected with the indirect tax zone | Division 83 |
| 4 | (Repealed by No 77 of 2017) |
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).
(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).
(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.
25-57 When the Commissioner may cancel your registration (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).
(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).
(2)
The *Australian Business Registrar must enter in the *Australian Business Register the date on which the cancellation of your *registration takes effect.
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.
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 registrationChapter 4 contains special rules relating to cancellation of *registration in particular cases, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Government entities | Division 149 |
| 1 | GST branches | Division 54 |
| 1AA | Limited registration entities | Division 146 |
| 1B | Non-profit sub-entities | Division 63 |
| 1C | (Repealed by No 77 of 2017) | |
| 2 | Representatives of incapacitated entities | Division 58 |
| 3 | Resident agents acting for non-residents | Division 57 |
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.
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.
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
(b) the Commissioner is satisfied that the period for which you will be *carrying on an *enterprise in the indirect tax zone is less than 3 months; 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).
(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).
(2A)
(Repealed by No 73 of 2001)
(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)
You may, by notifying the Commissioner in the *approved form, withdraw an election under section 27-10, unless your *GST turnover meets the *tax period turnover threshold.
(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 (1)
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).
(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).
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).
(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).
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).
(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).
(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).
(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).
(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.
If:
(a) an individual dies; or
(b) another entity 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 or cessation.
(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.
(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
Chapter 4 contains special rules relating to tax periods, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1AAA | Annual tax periods | Division 151 |
| 1 | Changes in the extent of creditable purpose | Division 129 |
| 1AA | GST groups | Division 48 |
| 1AB | Limited registration entities | Division 146 |
| 1AC | Payment of GST by instalments | Division 162 |
| 1A | Representatives of incapacitated entities | Division 58 |
| 2 | Resident agents acting for non-residents | Division 57 |
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.
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.
(4)
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.
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.
(2)
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.
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.
View history note
(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
Chapter 4 contains special rules relating to attribution rules, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1 | Agents and insurance brokers | Division 153 |
| 2 | Associates | Division 72 |
| 3 | Cancelled lay-by sales | Division 102 |
| 4 | Cessation of registration | Division 138 |
| 5 | Changes in the extent of creditable purpose | Division 129 |
| 6 | Changing your accounting basis | Division 159 |
| 7 | Company amalgamations | Division 90 |
| 8 | Deposits as security | Division 99 |
| 8A | Distributions from deceased estates | Division 139 |
| 8AA | Hire purchase agreements | Division 158 |
| 8B | Non-deductible expenses | Division 69 |
| 9 | Pre-establishment costs | Division 60 |
| 10 | Reimbursement of employees etc. | Division 111 |
| 11 | Representatives of incapacitated entities | Division 58 |
| 11A | Second-hand goods | Division 66 |
| 12 | Supplies and acquisitions made on a progressive or periodic basis | Division 156 |
| 13 | Supplies of things acquired etc. without full input tax credits | Division 132 |
| 13A | Third party payments | Division 134 |
| 14 | Tradex scheme goods | Division 141 |
You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if:
(a) 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 choice; or
(ab) you do not carry on a *business and your *GST turnover does not exceed the *cash accounting turnover threshold; or
(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.
(2)
(Repealed by No 80 of 2006)
(2A)
(Repealed by No 80 of 2006)
(3)
The cash accounting turnover threshold is:
(a) $2 million; or
(b) such higher amount as the regulations specify.
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:
(i) the nature and size of the *enterprise that you *carry on; and
(ii) the nature of the accounting system that you use;
it is appropriate to permit you to account on a cash basis.
(iii) (Repealed by 176 of 1999)
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).
(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).
29-50 Ceasing to account on a cash basis (1)
You cease to *account on a cash basis if:
(a) in a case to which paragraph 29-40(1)(a) applied - you are not a *small business entity of the kind referred to in that paragraph for an *income year and you do not have permission to *account on a cash basis; or
(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
(b) you notify the Commissioner, in the *approved form, that you are ceasing to *account on a cash basis.
(2)
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.
(3)
The Commissioner must revoke any permission for you to *account on a cash basis if the Commissioner is satisfied that:
(a) either:
(i) you carry on a *business but you are not a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for an *income year; or
(ii) you do not carry on a business and your *GST turnover meets the *cash accounting turnover threshold; and
(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).
(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).
(5)
(Repealed by No 80 of 2006)
(6)
(Repealed by No 80 of 2006)
29-69 29-69 Special rules relating to accounting on a cash basis
Chapter 4 contains special rules relating to accounting on a cash basis, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1 | Accounting basis of charities etc. | Division 157 |
| 2 | Hire purchase agreements | Division 158 |
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.
(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.
(1B)
However, the Commissioner may treat as a *tax invoice a particular document that would not, apart from this subsection, be a tax invoice.
(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)
An adjustment note for an *adjustment that arisesfrom an *adjustment event relating to a *taxable supply:
(a) must be issued by the supplier of the *taxable supply in the circumstances set out in subsection (2); and
(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.
(2)
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;
give to the recipient an *adjustment note for the *adjustment, 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).
(3)
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.
(4)
Those circumstances may, for example, include the kind of the *taxable supply.
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.
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
Chapter 4 contains special rules relating to tax invoices and adjustment notes,as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1 | Agents and insurance brokers | Division 153 |
| 1A | Annual apportionment of creditable purpose | Division 131 |
| 2 | Gambling | Division 126 |
| 3 | GST branches | Division 54 |
| 3A | GST groups | Division 48 |
| 4 | Non-residents making supplies connected with the indirect tax zone | Division 83 |
| 4A | Offshore supplies | Division 84 |
| 5 | Sale of freehold interest etc. | Division 75 |
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.
31-10 When GST returns must be given - other tax periods
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.
(2)
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.
31-15 The form and contents of GST returns (1)
Your *GST return for a tax period must be in the *approved form.
(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.
(3)
(Repealed by No 21 of 2015)
31-20 Additional GST returns (1)
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.
(2)
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.
31-25 Electronic lodgment of GST returns (1)
You may give your *GST returns to the Commissioner by *lodging them electronically.
Note:
Section 388-75 in Schedule 1 to the Taxation Administration Act 1953 deals with signing returns.
(2)
However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must give your *GST returns to the Commissioner by *lodging them electronically, unless the Commissioner otherwise approves.
Note 1:
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.
(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)
Chapter 4 contains special rules relating to *GST returns, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Annual tax periods | Division 151 |
| 1 | GST branches | Division 54 |
| 2 | GST groups | Division 48 |
| 3 | GST joint ventures | Division 51 |
| 4 | Insurance | Division 78 |
| 4A | Payment of GST by instalments | Division 162 |
| 4B | Representatives of incapacitated entities | Division 58 |
| 5 | Resident agents acting for non-residents | Division 57 |
| 6 | Supplies in satisfaction of debts | Division 105 |
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.
If: (a) the *assessed net amount for a tax period applying to you is greater than zero; and
you must pay the assessed net amount to the Commissioner as follows:
| When quarterly GST payments must be made | ||
| Item | If this day falls within the quarterly tax period … | Pay the assessed net amount 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 |
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.
(2)
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.
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.
(2)
However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must pay by *electronic payment any *assessed net amounts payable by you.
Note 1:
A penalty applies if you fail to pay electronically as required - see section 288-20 in Schedule 1 to the Taxation Administration Act 1953.
Note 2:
You must also pay other tax debts electronically - see section 8AAZMA in that Act.
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.
(2)
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.
33-20 Commissioner may extend time for payment
(Repealed by No 179 of 1999)
(Repealed by No 179 of 1999)
(Repealed by No 179 of 1999)
Chapter 4 contains special rules relating to payments of GST, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1A | Annual tax periods | Division 151 |
| 1 | Anti-avoidance | Division 165 |
| 2 | Customs security etc. given on taxable importations | Division 171 |
| 3 | GST branches | Division 54 |
| 4 | GST joint ventures | Division 51 |
| 4A | Importations without entry for home consumption | Division 114 |
| 5 | Insurance | Division 78 |
| 5A | Payment of GST by instalments | Division 162 |
| 6 | Supplies in satisfaction of debts | Division 105 |
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.
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.
(2)
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
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;
(ii) applied under the Taxation Administration Act 1953;
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.
35-10 When entitlement arises
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).
Chapter 4 contains special rules relating to refunds, as follows:
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1 | Anti-avoidance | Division 165 |
| 1A | Excess GST | Division 142 |
| 2 | GST branches | Division 54 |
| 3 | GST joint ventures | Division 51 |
| 4 | Tourist refund scheme | Division 168 |
The provisions set out in the table contain special rules relating to the matters indicated.
| Checklist of special rules | ||
| Item | For this case … | See: |
| 1AA | Accounting basis of charities etc. | Division 157 |
| 1 | Agents and insurance brokers | Division 153 |
| 1A | Annual apportionment of creditable purpose | Division 131 |
| 1B | Annual tax periods | Division 151 |
| 2 | Anti-avoidance | Division 165 |
| 3 | Associates | Division 72 |
| 3A | Bad debts relating to transactions that are not taxable or creditable to the fullest extent | Division 136 |
| 4 | Cancelled lay-by sales | Division 102 |
| 5 | Cessation of registration | Division 138 |
| 6 | Changes in the extent of creditable purpose | Division 129 |
| 7 | Changing your accounting basis | Division 159 |
| 8 | Company amalgamations | Division 90 |
| 8A | Compulsory third party schemes | Division 79 |
| 9 | Customs security etc. given for taxable importations | Division 171 |
| 10 | Deposits as security | Division 99 |
| 10A | Distributions from deceased estates | Division 139 |
| 10B | Excess GST | Division 142 |
| 11 | Financial supplies (reduced credit acquisitions) | Division 70 |
| 11A | Fringe benefits provided by input taxed suppliers | Division 71 |
| 12 | Gambling | Division 126 |
| 12A | Goods applied solely to private or domestic use | Division 130 |
| 12B | Government entities | Division 149 |
| 13 | GST branches | Division 54 |
| 14 | GST groups | Division 48 |
| 15 | GST joint ventures | Division 51 |
| 15A | GST religious groups | Division 49 |
| 16 | (Repealed by No 156 of 2000) | |
| 17 | Importations without entry for home consumption | Division 114 |
| 17A | (Repealed by No 74 of 2010) | |
| 18 | Insurance | Division 78 |
| 18A | Limited registration entities | Division 146 |
| 19 | Long-term accommodation in commercial residential premises | Division 87 |
| 20 | Non-deductible expenses | Division 69 |
| 20A | Non-profit sub-entities | Division 63 |
| 20B | Non-residents making supplies connected with the indirect tax zone | Division 83 |
| 21 | Offshore supplies | Division 84 |
| 21A | Payment of GST by instalments | Division 162 |
| 22 | Payments of taxes | Division 81 |
| 23 | Pre-establishment costs | Division 60 |
| 23A | Providing additional consideration under gross-up clauses | Division 133 |
| 24 | Reimbursement of employees etc. | Division 111 |
| 25 | Representatives of incapacitated entities | Division 58 |
| 26 | Resident agents acting for non-residents | Division 57 |
| 27 | (Repealed by No 156 of 2000) | |
| 28 | Sale of freehold interests etc. | Division 75 |
| 29 | Second-hand goods | Division 66 |
| 29AA | Settlement sharing arrangements | Division 80 |
| 29A | Simplified accounting methods for retailers and small enterprise entities | Division 123 |
| 29B | Stock on hand on becoming registered etc. | Division 137 |
| 30 | Supplies and acquisitions made on a progressive or periodic basis | Division 156 |
| 30A | Supplies in return for rights to develop land | Division 82 |
| 31 | Supplies in satisfaction of debts | Division 105 |
| 32 | Supplies of going concerns | Division 135 |
| 33 | Supplies of things acquired etc. without full input tax credits | Division 132 |
| 33A | Supply under arrangement covered by PAYG voluntary agreement | Division 113 |
| 34 | Supplies partly connected with the indirect tax zone | Division 96 |
| 35 | Taxis | Division 144 |
| 35AA | Tax-related transactions | Division 110 |
| 35A | Telecommunication supplies | Division 85 |
| 35B | Third party payments | Division 134 |
| 35C | Time limit on entitlements to input tax credits | Division 93 |
| 36 | Tourist refund scheme | Division 168 |
| 36A | Tradex scheme goods | Division 141 |
| 36AA | Valuable metals | Division 86 |
| 36B | Valuation of re-imported goods | Division 117 |
| 37 | Valuation of taxable supplies of goods in bond | Division 108 |
| 38 | Vouchers | Division 100 |
This Division sets out the supplies that are GST-free. If a supply is GST-free, then:
For the basic rules about supplies that are GST-free, see sections 9-30 and 9-80.
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;
(d) ingredients for 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.
(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 (or for which medicare benefit would be payable under that Part if section 19AD of that Act were disregarded).
(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) |
| 9 | Naturopathy |
| 10 | Nursing |
| 11 | Occupational therapy |
| 12 | Optometry |
| 13 | Osteopathy |
| 14 | Paramedical |
| 15 | Pharmacy |
| 16 | Psychology |
| 17 | Physiotherapy |
| 18 | Podiatry |
| 19 | Speech pathology |
| 20 | Speech therapy |
| 21 | Social work |
(2)
However, a supply of a pharmacy service is not GST-free under subsection (1) unless it is: (a) a supply relating to a supply 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.
(3A)
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.
(3B)
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.
(3C)
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.
(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)
A supply is GST-free if:
(a) it is made to a person who is a person of a kind referred to in paragraph (3)(c); and
(b) it is:
(i) a supply, by way of lease, hire or licence, of *residential premises consisting of a *serviced apartment in a *retirement village; or
(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
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
(ii) the determination is not restricted under subsection (3C) in such a way that the determination excludes the person;
(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).
(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.
(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.
(4)
A supply of care is GST-free if: (a) the supplier receives funding from the Commonwealth, a State or a Territory in connection with the 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.
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
(d) is of a kind that the *Disability Services Minister has determined in writing.
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 is GST-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
(b) the drug or medicinal preparation is a pharmaceutical benefit (within the meaning of Part VII of the National Health Act 1953).
(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 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.
(3)
Subsection (2) does not cover the supply of a drug or medicinal preparation of a kind specified in the regulations.
(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.
(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
(b) the drug or medicinal preparation is of a kind the supply of which is declared by the *Health Minister to be GST-free, by determination in writing.
(6)
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.
(7)
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.
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 .
(3)
However, a supply of re-insurance is not GST-free under this section.
38-60 Third party procured GST-free health supplies
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.
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.
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
(b) in any case - any supply of *food as part of the excursion or field trip is not GST-free under this section.
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.
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 carers under the family assistance law
(Repealed by No 22 of 2017)
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).
A supply is GST-free if it is a supply of childcare 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.
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
(b) supplied by, or on behalf of, the supplier of the child care.
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. | |||
| 4A | Export of new recreational boats | a supply of a *ship, but only if: | ||
| (a) | 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 | a supply of goods to a *relevant traveller, but only if: | ||
| (a) | the supply is made in accordance with the rules specified in the regulations; and | |||
| (b) | the goods are exported as accompanied baggage of the relevant traveller. |
(2)
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.
(3)
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.
However, if the goods are reimported into the indirect tax zone, the supply is not GST-free unless the reimportation is a *taxable importation.
Note:
The entity will be covered by paragraph 168-5(1A)(c) if the entity is an individual who resides in an external Territory.
(4)
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:
(i) is an *associate of the supplier; and
(ii) is not *registered or *required to be registered; and
(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.
However, if the goods are reimported into the indirect tax zone, the supply is not GST-free unless the reimportation is a *taxable importation.
Note:
The associate will be covered by paragraph 168-5(1A)(c) if the associate is an individual who resides in an external Territory.
Export of new recreational boats
(5)
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.
(6)
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.
(d) for *consideration, unless the consideration:
(i) consists of the provision of services by an employee of an enterprise carried on by the *recipient outside the indirect tax zone; or
(ii) is in respect of the recipient competing in a race or other sporting event (e.g. a prize).
38-187 Lease etc. of goods for use outside the indirect tax zone
A supply of goods is GST-free if:
(a) the supply is by way of lease or hire; and
(b) the goods are used outside the indirect tax zone.
Note:
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).
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.
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. |
(2)
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.
(2A)
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.
(3)
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 an employee 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.
(4)
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.
(5)
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:(d) insuring transport covered by paragraph (a); (e) arranging transport covered by paragraph (a), or insurance covered by paragraph (d).
The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.
Note:
The supply might still be GST-free under item 5, 5A, 6 or 7 in the table in subsection 38-355(1).
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.
A supply is GST-free if it is a supply of service that:
(a) is supplied by a *ACNC-registered religious institution; and
(b) is integral to the practice of that religion.
A supply is GST-free if:
(a) the supplier is an *endorsed charity, a *gift-deductible entity or a *government school; and
(b) the supply is for *consideration that:
(i) if the supply is a supply of accommodation - is less than 75% of the *GST inclusive market value of the supply; or
(ii) if the supply is not a supply of accommodation - is less than 50% of the GST inclusive market value of the supply.
(2)
A supply is GST-free if:
(a) the supplier is an *endorsed charity, a *gift-deductible entity or a *government school; and
(b) the supply is for *consideration that:
(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.
(3)
(Repealed by No 169 of 2012)
(4)
Subsections (1) and (2) do 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:
(i) an *endorsed charity; or
(ii) a *government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a *gift-deductible purpose of the supplier.
Note:
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.
38-255 Second-hand goods (1)
A supply of *second-hand goods is GST-free if:
(a) the supplier is an *endorsed charity, a *gift-deductible entity or a *government school; and
(b) the goods were supplied to the endorsed charity, gift-deductible entity or government school:
(i) as a gift; or
(ii) by way of a supply that was GST-free because of a previous application of this section.
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.
(2)
(Repealed by No 169 of 2012)
(3)
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:
(i) an *endorsed charity; or
(ii) a *government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a *gift-deductible purpose of the supplier.
Note:
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.
38-260 Supplies of retirement village accommodation etc.
A supply is GST-free if:
(a) the supplier is an *endorsed charity that operates a *retirement village; and
(b) the supply is made to a resident of the retirement village; and
(c) the supply is:
(i) a supply of accommodation in the retirement village, or a supply of a service related to the supply of the accommodation; or
(ii) a supply of meals.
A supply is GST-free if: (a) the supplier is an *endorsed charity, a *gift-deductible entity or a *government school; and (b) the supply is:
(i) a supply of a ticket in a raffle; or
(ii) an acceptance of a person's participation in a game of bingo; or
(c) the supply does not contravene a *State law or a *Territory law.
(iii) a *gambling supply of a kind specified in the regulations; and
(2)
(Repealed by No 169 of 2012)
(3)
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:
(i) an *endorsed charity; or
(ii) a *government school; or
(b) each purpose to which the supply relates is a *gift-deductible purpose of the supplier.
(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or
Note:
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.
(Subdivision 38-H heading repealed by No 143 of 2004)
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 (1)
A supply of sewerage services is GST-free .
(2)
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.
(3)
A supply that consists of servicing a domestic self-contained sewage system is GST-free .
38-295 Emptying of septic tanks
A supply of a service that consists of the emptying of a septic tank is GST-free . 38-300 Drainage
A supply of a service that consists of draining storm water is GST-free .
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 (1)
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. | ||
| 5A | Loading or handling etc. | subject to subsections (2) and (3): | |
| (a) | loading or handling of goods, the *international transport of which is covered by item 5, during the course of the international transport; or | ||
| (b) | supply of a service, during the course of the international transport of goods covered by item 5, that facilitates the international transport. | ||
| 6 | Insuring transport etc. | subject to subsection (3): | |
| (a) | 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. | ||
| 7 | Arranging transport etc. | subject to subsection (3): | |
| (a) | arranging transport covered by item 1, 2, 3 or 4; or | ||
| (b) | arranging the *international transport of goods covered by item 5; or | ||
| (c) | arranging insurance covered by item 6. |
(2)
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
(b) the supply is done by the supplier of the transport of the goods from or to the indirect tax zone (whichever is relevant).
(ii) is not in the indirect tax zone when the thing supplied is done in the indirect tax zone; or
(3)
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.
38-360 Travel agents arranging overseas supplies
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.
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.
A supply is GST-free if the supply is a sale of *airport shop goods through an *inwards duty free shop to a *relevant traveller.
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.
(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:
(i) was GST-free under subsection (1); or
(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.
Subdivision 38-O - Farm land 38-475 Subdivided farm land (1)
The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, *potential residential land is GST-free if:
(a) the land is subdivided from land on which a *farming business has been *carried on for at least 5 years; and
(b) the supply is made to an *associate of the supplier of the land 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.
A supply is GST-free if it is a supply of a *car to an individual who: (a) has served in the Defence Force or in any other armed force of the Sovereign; and (b) as a result of that service:
(i) has lost a leg or both arms; or
(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
(c) intends to use the car in his or her personal transportation during all of the *Subdivision 38-P period.
(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
(2)
However, a supply covered by subsection (1) is not GST-free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.
(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.
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:
(2)
However, a supply covered by subsection (1) is not GST-free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.
(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.
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
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).
(iii) another internationally recognised identifier;
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:
(i) *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and
(ii) does not *carry on in the indirect tax zone such an enterprise.
Supply by Australian resident telecommunications supplier
(3)
This subsection covers the supply if: (a) the supply is made by an *Australian resident that is:
(i) a carrier, or a carriage service provider, as defined in the Telecommunications Act 1997; or
(b) the supply is provided to the user in the indirect tax zone of the device; and (c) the supply is made to a *non-resident that:
(ii) an internet service provider as defined in the Online Safety Act 2021; and
(i) *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and
(ii) does not *carry on in the indirect tax zone such an enterprise.
A supply of an *eligible emissions unit is GST-free .
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.
This Division provides for the supplies that are input taxed. If a supply is input taxed, then:
For the basic rules about supplies that are input taxed, see sections 9-30 and 9-80.
A *financial supply is input taxed .
(2)
Financial supply has the meaning given by the regulations.
(3)
(Repealed by No 177 of 1999)
(4)
(Repealed by No 177 of 1999)
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.
(1A)
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.
(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.
Subdivision 40-C - Residential premises 40-65 Sales of residential premises (1)
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).
(2)
However, the sale is not input taxed to the extent that the *residential premises are:
(a) *commercial residential premises; or
(b) *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.
Note:
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.
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
(b) the supply is by way of *long-term lease.
(2)
However, the supply is not input taxed to the extent that the *residential premises are:
(a) *commercial residential premises; or
(b) *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.
40-75 Meaning of new residential premises
When premises are new residential premises
(1)
*Residential premises are new residential premises if they:
(a) have not previously been sold as residential premises (other than *commercial 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.
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)).
(2)
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
(b) if paragraph (1)(b) applies - the premises were last *substantially renovated; or
(c) if paragraph (1)(c) applies - the premises were last built;
the premises have only been used for making supplies that are *input taxed because of paragraph 40-35(1)(a).
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).
Disregard certain supplies of the premises
(2A)
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:
(i) it is a supply by the *joint venture operator of a *GST joint venture to another entity that is a *participant in the joint venture; and
(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.
(2B)
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).
(2C)
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).
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.
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.
(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.
A supply is input taxed if:
(a) the supplier is an *endorsed charity, a *gift-deductible entity or a *government school; and
(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.
(2)
(Repealed by No 169 of 2012)
(3)
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:
(i) an *endorsed charity; or
(ii) a *government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30-125(1)(b) of the ITAA 1997; or
(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.
40-165 Meaning of fund-raising event (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).
(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).
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.
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.
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.
(1A)
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
(b) the container will be exported from the indirect tax zone without being put to any other use.
(1B)
(Repealed by No 92 of 2000)
(1C)
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
(b) regulations made for the purposes of this subsection.
(2)
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.
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.
(2)
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.
Note:
An importation covered by this section may also be duty-free under item 17 of Schedule 4 to the Customs Tariff Act 1995.
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.
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 rulesThe 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 groupsAct No 74 of 2010, s 3 and Sch 1 item 43 contains the following transitional provisions:
then, on the date of effect specified in the application: then: then, on and after that commencement, the group is taken to continue in existence as if: then: 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. then:
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;
(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;
(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
before that commencement;
(ii)
did not refuse the application;
(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 thatAct 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
before that commencement;
(ii)
did not refuse the application;
(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;
(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;
(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
(ii)
the action took effect on that day.
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).
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 .
(2)
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.
A member of a *GST group is an entity that:
(a) formed the group under section 48-5, or was added to the group under section 48-70; and
(b) *satisfies the membership requirements of the group.
(2)
However, the entity is not a member of the *GST group if the entity has, since the last time the entity became such a member:
(a) left, or been removed from, the group under section 48-70; or
(b) ceased to *satisfy the membership requirements of the group.
(3)
The *representative member of a *GST group must notify the Commissioner, in the *approved form, if a *member of the group no longer *satisfies the membership requirements for the GST group.
(4)
The notice must be given within 21 days after the *member no longer *satisfies the membership requirements for the *GST group.
Note:
Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.
An entity satisfies the membership requirements of a *GST group, or a proposed GST group, if the entity:
(a) is:
(i) a *company; or
(ii) a *partnership, trust or individual that satisfies the requirements specified in the regulations; and
(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
(e) accounts on the same basis as all the other members of the GST group or proposed GST group; and
(f) is not a member of any other GST group; and
(g) does not have any branch that is registered under Division 54.
(2)
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.
(2A)
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).
(3)
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.
48-15 Relationship of companies and non-companies in a GST group (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
(c) the company has more than one member, each of whom is:
(iii) is a *family member of that partner or individual; or
(i) a partner in the same partnership that is a member of the GST group or proposed GST group; or
and one of the following applies:
(ii) a family member of any such partner;
(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;
(d) the company has more than one member, each of whom is:
(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
(i) an individual who is a member of the GST group or proposed GST group; or
(e) 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:
(ii) a family member of that individual; or
(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
(iii) an *endorsed charity or a *gift-deductible entity.
(1AA)
(Repealed by No 169 of 2012)
(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.
(2)
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.
Subdivision 48-B - Consequences 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).
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).
(1A)
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).
(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
(ii) the entity is a participant in a *GST joint venture and acquired the thing supplied from the *joint venture operator for the joint venture; and
(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.
(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).
(2)
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.
(3)
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).
(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
(b) the representative member had the adjustment.
(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.
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.
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.
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;
then, when the *representative member of the GST group applies section 129-40 for the first time after you became a member of the GST group, the *intended or former application of the thing is the extent of *creditable purpose last used to work out:
(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;
as the case requires.
(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).
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.
(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.
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.
(Repealed by No 74 of 2010)
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.
(1A)
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.
(1B)
A notice under subsection (1) must be given to the Commissioner within 21 days after the *member becomes an *incapacitated entity.
(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).
If:
(a) the *representative member of a *GST group becomes an *incapacitated entity; and
(b) the representative member does not cease to be a *member of the group;
the representative member ceases to be the representative member of the group unless all the other *members of the group are incapacitated entities.
(2)
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.
(Repealed by No 74 of 2010)
(Repealed No 74 of 2010)
(Repealed by No 74 of 2010)
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).
(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).
48-115 Changes in extent of creditable purpose after you cease to be a member of a GST group (1)
If:
(a) either:
(i) 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; 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
(b) you cease to be a member of the first GST group;
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) the amount of the input tax credit to which you or the *representative member was entitled for the acquisition or importation; or
(d) the amount of any *adjustment you or the representative member had under Division 129 in relation to the thing.
(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.
Division 49 - GST religious groups
Some registered charitable bodies can be approved as a GST religious group. Transactions between members of the group are then excluded from the GST.
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).
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.
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).
49-35 Acquisitions between members of GST religious groups (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).
49-40 Adjustment events (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).
49-45 Changes in the extent of creditable purpose (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).
49-50 GST religious groups treated as single entities for certain purposes (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).
Subdivision 49-C - Administrative matters
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).
Changes made without application
(2)
The Commissioner must revoke the approval of one of the *members of a *GST religious group if satisfied that the member does not *satisfy the membership requirements for the GST religious group.
Note:
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).
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).
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).
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.
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).
49-90 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 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.
| 50-5 | GST treatment of religious practitioners |
If a *religious practitioner:
(a) does an activity, or a series of activities:
(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.
Act No 74 of 2010, s 3 and Sch 1 item 44 contains the following transitional provisions:
then, on the date of effect specified in the application: then: then, on and after that commencement, the joint venture is taken to continue in existence as if: then: 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. then:
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;
(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;
(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
before that commencement;
(ii)
did not refuse the application;
(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
before that commencement;
(ii)
did not refuse the application;
(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;
(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;
(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
(ii)
the action took effect on that day.
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).
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)
(d) each of those entities *satisfies the participation requirements for that GST joint venture; and
(e) each of those entities agrees in writing to the *formation of the joint venture as a GST joint venture; and
(ea) one of those entities, or another entity, is nominated, in that agreement, to be the *joint venture operator of the joint venture; and
(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).
Such a joint venture is a GST joint venture .
(2)
Not all of the entities that are engaged in, or intend to engage in, the joint venture need to become *participants in the *GST joint venture.
(3)
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).
(4)
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.
51-7 Participants in GST joint ventures (1)
Aparticipant in a *GST joint venture is an entity that:
(a) became a participant in the joint venture under section 51-5 or was added to the joint venture under section 51-70; and
(b) *satisfies the participation requirements for the joint venture.
(2)
However, the entity is not a participant in the *GST joint venture if the entity has, since the last time the entity became such a participant:
(a) left, or been removed from, the joint venture under section 51-70; or
(b) ceased to *satisfy the participation requirements for the joint venture.
(3)
The *joint venture operator of a *GST joint venture must notify the Commissioner, in the *approved form, if a *participant in the joint venture no longer *satisfies the participation requirements for the GST joint venture.
(4)
The notice must be given within 21 days after the *participant no longer *satisfies the participation requirements for the *GST joint venture.
Note:
Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.
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
(c) is *registered; and
(d) (Repealed by No 176 of 1999)
(e) (Repealed by No 176 of 1999)
(f) accounts on the same basis as all those other participants.
(g) (Repealed by No 176 of 1999)
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.
Note:
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.
