House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

General Outline

This Bill amends the Taxation Administration Act 1953 to provide support for the administration and collection of the goods and services tax (GST).

Purpose of the provisions

This Bill amends the Taxation Administration Act 1953 to provide support for the administration and collection of the goods and services tax (GST).

Purpose of the provisions

The main purposes of the provisions in the A New Tax System (Goods and Services Tax Administration) Bill 1998 (referred to as the GST Administration Bill ) are to:

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establish who is to administer the GST law;

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support the collection and recovery of GST;

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set maximum penalties for breaching GST obligations;

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permit entities to rely on the Commissioners interpretation of the law;

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set time limits on GST liability and on credit entitlements;

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adopt existing mechanisms for the review of assessments and other GST decisions;

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confer powers on the Commissioner for the gathering of information; and

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protect the confidentiality of information disclosed for GST purposes.

Some administrative provisions are also contained in Division 177 of the A New Tax System (Goods and Services Tax) Act 1998 (the GST Act ).

Date of effect

The amendments to the Taxation Administration Act 1953 will apply from 1 July 2000.

Financial impact and compliance cost impact

This information is contained in the Regulation Impact Statement.