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

Chapter 4 - The special rules

Part 4-2 - Special rules mainly about supplies and acquisitions

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 81 - Payments of taxes, fees and charges

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History

Div 81 substituted by No 41 of 2011, s 3 and Sch 4 item 2, applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. No 41 of 2011, s 3 and Sch 4 item 16 contains the following application provision:

16 Application provision
(1)
The amendments made apply in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011.

(2)
However, the amendments do not apply in relation to a payment, or a discharge of a liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed before 1 July 2012 if the payment is of a kind specified by legislative instrument (a Division 81 determination ):

(a) made for the purposes of subsection 81-5(2) of the A New Tax System (Goods and Services Tax) Act 1999 ; and

(b) in force immediately before 27 June 2011.

(3)
Despite the repeal of subsection 81-5(2) of the A New Tax System (Goods and Services Tax) Act 1999 , a Division 81 determination continues to have effect, after 27 June 2011 and before 1 July 2012, as if the repeal had not happened.

Div 81 formerly read:

Division 81 - Payments of taxes, fees and charges
81-1 What this Division is about

GST applies to payments of taxes, fees and charges, except those taxes, fees and charges that are excluded from the GST by a determination of the Treasurer.

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S 81-1 amended by No 176 of 1999, s 3 and Sch 1 item 90, by substituting " , fees and " for " and other ' ' (wherever occurring), effective 1 July 2000.

81-5 Payments of taxes etc. can constitute consideration
(1)
The payment of any * Australian tax , fee or charge (other than the GST) that you make, or the discharging of your liability to make such a payment, is to be treated as the provision of * consideration , to the entity to which the tax, fee or charge is payable, for a supply that the entity makes to you.
Note:

Under Division 82 , the payment might not be treated as consideration for a supply if it is in return for an Australian government agency supplying a right to develop land.

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History

S 81-5(1) note inserted by No 97 of 2002, s 3 and Sch 1 item 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.

S 81-5(1) amended by No 176 of 1999, s 3 and Sch 1 item 92, by inserting " , fee or charge " after " tax " (wherever occurring), effective 1 July 2000.

(2)
However, the payment of any * Australian tax , fee or charge that is specified, by legislative instrument, by the Treasurer, or the discharging of a liability to make such a payment, is not the provision of * consideration .
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S 81-5(2) amended by No 58 of 2006 , s 3 and Sch 7 item 220, by substituting " , by legislative instrument, by the Treasurer " for " in a written determination of the Treasurer " , effective 22 June 2006.

S 81-5(2) amended by No 176 of 1999, s 3 and Sch 1 item 93, by inserting " , fee or charge " after " tax " , effective 1 July 2000.

(3)
(Repealed by No 58 of 2006 )
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S 81-5(3) repealed by No 58 of 2006 , s 3 and Sch 7 item 221, effective 22 June 2006. S 81-5(3) formerly read:

(3)
A determination by the Treasurer under this section is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

(4)
This section has effect despite section 9-15 (which is about consideration).
81-10 Supplies need not be connected with Australia if the consideration is the payment of tax etc.
(1)
The fact that a supply is not * connected with Australia does not stop the supply being a * taxable supply if the * consideration for the supply is the payment of any * Australian tax , fee or charge, or the discharging of a liability to make such a payment.
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S 81-10(1) amended by No 176 of 1999, s 3 and Sch 1 item 95, by inserting " , fee or charge " after " tax " , effective 1 July 2000.

(2)
This section has effect despite section 9-5 (which is about taxable supplies).

Div 81 heading substituted by No 176 of 1999, s 3 and Sch 1 item 89, effective 1 July 2000. The heading formerly read:

Division 81 - Payments of taxes

81-10 Effect of payment of certain fees and charges

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Certain fees and charges not consideration

(1)

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A payment, or the discharging of a liability to make a payment, is not the provision of * consideration to the extent the payment is an * Australian fee or charge that is of a kind covered by subsection (4) or (5).

Prescribed fees and charges treated as consideration

(2)
However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of * consideration to the extent the payment is an * Australian fee or charge that is, or is of a kind, prescribed by the regulations.

(3)
For the purposes of subsection (2), the * consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you.

Fees or charges paid for permissions etc.

(4)
This subsection covers a fee or charge if the fee or charge:

(a) relates to; or

(b) relates to an application for;

the provision, retention, or amendment, under an * Australian law , of a permission, exemption, authority or licence (however described).

Fees or charges relating to information and record-keeping etc.

(5)
This subsection covers a fee or charge paid to an *Australian government agency if the fee or charge relates to the agency doing any of the following:

(a) recording information;

(b) copying information;

(c) modifying information;

(d) allowing access to information;

(e) receiving information;

(f) processing information;

(g) searching for information.

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