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

Chapter 2 - The basic rules

Part 2-7 - Returns, payments and refunds

Division 35 - Refunds

35-5 Entitlement to refund

(1)

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.

View history note

History

S 35-5(1) amended by No 34 of 2014, s 3 and Sch 2 item 4, by omitting " , and section 105-65 in Schedule 1 to, " after " Part IIB of " in note 1, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.

S 35-5(1) amended by No 39 of 2012, s 3 and Sch 1 item 66, by substituting " *assessed net amount " for " *net amount " , applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.

S 35-5(1) amended by No 20 of 2010, s 3 and Sch 5 item 1, by inserting " (1) " before " If " , effective 24 March 2010.

S 35-5 amended by No 73 of 2006 , s 3 and Sch 5 item 89, by substituting " of, and section 105-65 in Schedule 1 to, " for " and section 39 of " in Note 1, effective 1 July 2006.

S 35-5 substituted by No 179 of 1999, s 3 and Sch 15 item 1, effective 1 July 2000. Section 35-5 formerly read:

35-5 When refunds must be made
(1)
If the *net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you within 14 days after you give to the Commissioner, under Division 31, your *GST return for that tax period.
Note:

Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commonwealth is late in making the payment.

(2)
However, if you have a liability to the Commonwealth arising under or because of an Act of which the Commissioner has the general administration, the Commissioner may:

(a) apply that *net amount against the liability; and

(b) pay to you any part of that net amount not so applied.

(2)

View history reference

However, if:

(a) the Commissioner amends the * assessment of your * net amount ; and

(b) your * assessed net amount before the amendment was less than zero; and

(c) the amount that, because of the assessment, was:

(i) paid; or

(ii) applied under the Taxation Administration Act 1953 ;

exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;

the amount of the excess is to be treated as if:

(d) the excess were an assessed net amount for the tax period; and

(e) that assessed net amount were an amount greater than zero and equal to the amount of the excess; and

(f) despite Division 33 , that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.

Note:

Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3-10 and Divisions 268 and 269 in Schedule 1 to the Taxation Administration Act 1953 , such as a liability to pay the general interest charge under section 105-80 in that Schedule.

View history note

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