WAN 2021/1

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A New Tax System (Goods And Services Tax) Act 1999

Explanatory Statement

General Outline of Determination

1. This determination is made under subsection 29-20(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

2. This determination allows a member to attribute a decreasing adjustment arising from an adjustment event in respect of an eftpos interchange service without holding an adjustment note in certain circumstances.

3. This determination is a legislative instrument for the purposes of the Legislation Act 2003.

4. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Date of effect

5. This determination commences on the day after it is registered on the Federal Register of Legislation.

6. Under section 12(2) of the Legislation Act 2003, this determination does not adversely affect the rights or liabilities of any person other than the Commonwealth.

What is this determination about?

7. The basic attribution rules in subsection 29-20(3) of the GST Act generally require an entity to hold an adjustment note before being able to attribute the adjustment (or any part of the adjustment) to a tax period if the decreasing adjustment arises from an adjustment event.

8. Subsection 29-20(3) of the GST Act also provides that the requirement to hold an adjustment note 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.

9. This determination specifies when there is no requirement to hold an adjustment note before being able to attribute a decreasing adjustment that relates to the acquisition of eftpos interchange services.

What is the effect of this determination?

10. The effect of this determination is that a member that satisfies the requirements in section 7 of this determination is not required to hold an adjustment note in order to attribute a decreasing adjustment relating to the acquisition of eftpos interchange services.

Compliance cost assessment

11. Compliance Cost Impact: Minor - there will be minimal impact for both implementation and ongoing compliance costs. The determination is minor or machinery in nature.

Background

12. This determination has been developed to reduce the compliance costs of members of the eftpos payment system.

Consultation

13. Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.

14. For this instrument, public consultation was undertaken for a period of 4 weeks commencing on 5 March 2021.

15. The draft instrument and draft explanatory statement were published on the ATO Legal database. Publication was advertised via the 'What's new' page on that system and via the 'Open Consultation' page on ato.gov.au. Major tax and superannuation publishers and associations monitor these pages and include the details in the daily and weekly Alerts and newsletters to their subscribers and members. This ensures advice of the draft is disseminated widely across the tax professional community, and that they are in an informed position to provide comments and feedback.

16. No feedback was received.

Statement of compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Goods and Services Tax: Waiver of Adjustment Note Requirement (eftpos Interchange Services Reports) Determination 2021

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Commissioner determines under subsection 29-20(3) of the A New Tax System (Goods and Services Tax) Act 1999 that the requirement to hold an adjustment note does not apply in circumstances where a member holds an eftpos interchange services report that satisfies the requirements set out in section 8 of the determination.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms. It allows for a member to attribute a decreasing adjustment without holding an adjustment note in certain circumstances.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

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29 April 2021

Louise Clarke
Deputy Commissioner of Taxation
Policy, Analysis and Legislation
Law Design and Practice

Legislative References:
Acts Interpretation Act 1901
the Act

A New Tax System (Goods And Services Tax) Act 1999
the Act

Legislation Act 2003
the Act

Human Rights (Parliamentary Scrutiny) Act 2011
the Act

Related Legislative Determinations:
WAN 2021/1