A New Tax System (Managing the GST Rate and Base) Act 1999
Note: See section 13
View history note
Hide history noteSch 1 repealed by No 12 of 2009, s 3 and Sch 1 item 20, effective 1 July 2009. Sch 1 formerly read:
Schedule 1 - Transitional arrangements
Overview
1
This Schedule contains provisions that apply for the first 3 GST years and other GST years that are prescribed. Clause 2 requires the Treasurer to specify the guaranteed minimum amount for each State. Clauses 3, 4, 5, 6 and 7 adjust the amount of grants, and provide for loans, in certain circumstances.Guaranteed minimum amountHistoryCl 1 amended by No 21 of 2004, s 3 and Sch 1 item 11, by substituting " , 6 and 7 " for " and 6 " , effective 23 March 2004.
2(1)
The Treasurer must, before 20 June in a transitional GST year, determine the guaranteed minimum amount for each State for the GST year. The determination must be made in writing.HistoryClause 2(1) amended by No 21 of 2004, s 3 and Sch 1 item 9, by substituting " 20 June " for " 10 June " , effective 23 March 2004. For application provisions see note under s 5(5).
2(2)
Before making the determination, the Treasurer must consult each of the States.
First GST year - GST revenue does not exceed guaranteed minimum amounts
3(1)
This clause applies if the GST revenue for the 2000-01 transitional GST year is less than, or equal to, the sum of the guaranteed minimum amounts for all of the States.
3(2)
If this clause applies, a State is not entitled to the payment of so much of a grant under section 13 for the GST year as exceeds the guaranteed minimum amount for the State for the GST year.
3(3)
If, apart from this subclause, a State would have been entitled to the payment of a grant under section 13 for the GST year of an amount that is less than its guaranteed minimum amount for that year:
(a) the amount to which the State is entitled under section 13 is to be increased by the amount worked out under subclause (4); and
(b) the State is entitled to the payment, by way of financial assistance, of an amount worked out under subclause (5).
3(4)
The amount of the increase for the GST year is:
Redistribution amount × State shortfall
Total shortfallwhere:
redistribution amount
means the sum of amounts to which States are not entitled in the GST year because of subclause (2).State shortfall
means the amount by which the State " s guaranteed minimum amount exceeds the amount to which, apart from subclause (2), the State would be entitled under section 13 for the GST year.total shortfall
means the sum of the State shortfalls for the GST year.
3(5)
The amount to which a State is entitled under this subclause is the amount by which the State " s guaranteed minimum amount exceeds the amount to which the State is entitled under section 13 (as increased by paragraph (3)(a) of this clause) for the GST year.
3(6)
The Treasurer may determine, in writing, that the whole or a part of the amount to which a State is entitled under subclause (5) is a grant. If the Treasurer makes such a determination, the remainder of the amount (if any) is a loan. If the Treasurer does not make a determination, the whole of the amount is a loan.
3(7)
The Treasurer may deduct an amount equal to the amount of a loan to a State under subclause (5) from any amount that the State is entitled to receive by way of financial assistance under this Act for the 2001-02 transitional GST year.
Second GST year - GST revenue does not exceed guaranteed minimum amounts
4(1)
This clause applies if the GST revenue for the 2001-02 transitional GST year is less than, or equal to, the sum of the guaranteed minimum amounts for all of the States.
4(2)
If this clause applies, a State is not entitled to so much of a grant under section 13 for the GST year as exceeds the guaranteed minimum amount for the State for the GST year.
4(3)
If, apart from this subclause, a State would have been entitled to the payment of a grant under section 13 for the GST year of an amount that is less than its guaranteed minimum amount for that year:
(a) the amount to which the State is entitled under section 13 is to be increased by the amount worked out under subclause (4); and
(b) the State is entitled to the payment, by way of financial assistance, of a grant worked out under subclause (5).
4(4)
The amount of the increase for the GST year is:
Redistribution amount × State shortfall
Total shortfallwhere:
redistribution amount
means the sum of amounts to which States are not entitled in the GST year because of subclause (2).State shortfall
means the amount by which the State " s guaranteed minimum amount exceeds the amount to which, apart from subclause (2), the State would be entitled under section 13 for the GST year.total shortfall
means the sum of the State shortfalls for the GST year.
4(5)
The amount of the grant to which a State is entitled under this subclause is the amount by which the State " s guaranteed minimum amount exceeds the amount to which the State is entitled under section 13 (as increased by paragraph (3)(a) of this clause) for the GST year.
First 2 transitional GST years - GST revenue exceeds guaranteed minimum amounts
5(1)
This clause applies if the GST revenue for the 2000-01 or 2001-02 transitional GST year is more than the sum of the guaranteed minimum amounts for all of the States but the amount of the grant to which at least one State is entitled under section 13 is less than the guaranteed minimum amount for the State.
5(2)
If, apart from this subclause, the amount to which a State would be entitled under section 13 is more than the guaranteed minimum amount for that State for the GST year, the amount to which the State is entitled under that section is instead worked out using the formula:
Guaranteed
minimum amount+ ( State excess
Total excess× Excess GST
amount) where:
excess GST amount
is the amount by which the GST revenue for the GST year exceeds the sum of the guaranteed minimum amounts for all of the States for the GST year.guaranteed minimum amount
means the guaranteed minimum amount for the State for the GST year.State excess
is the amount by which the amount to which, apart from this subclause, the State would be entitled under section 13 exceeds the guaranteed minimum amount for the State for the GST year.total excess
is the total of the State excesses for each State to which this subclause applies for the GST year.
5(3)
If, apart from this subclause, the amount to which a State would be entitled under section 13 is less than the guaranteed minimum amount for that State for the GST year, the amount to which the State is entitled under that section is instead the guaranteed minimum amount for the State for the GST year.
Third or prescribed transitional GST years - guaranteed minimum amount
6(1)
This clause applies for:
(a) the 2002-03 GST year; and
(b) any GST year that is prescribed to be a transitional GST year for the purpose of paragraph (b) of the definition of transitional GST year in section 4 .
6(2)
If the amount to which a State would be entitled under section 13 is less than the guaranteed minimum amount for that State for the GST year, the State is entitled to a grant equal to the shortfall.
Residual adjustment amounts for grants under clause 6
7(1)
The Treasurer must, in relation to each GST year to which clause 6 applies (including any such year that has ended before the commencement of this clause), determine whether there is a residual adjustment amount for a State for the GST year. A residual adjustment amount may be either an amount that is recoverable from, or an amount that is payable to, the State.
7(2)
A determination under subclause (1) must be made in a manner agreed by the Commonwealth and all of the States.
7(3)
If a residual adjustment amount for a State for a GST year is an amount that is recoverable from the State, the Treasurer must deduct an amount or amounts equal in total to the residual adjustment amount from an amount or amounts the State is entitled to receive by way of financial assistance under this Act for the GST year in which the determination of the amount is made or the next GST year.
7(4)
If a residual adjustment amount for a State for a GST year is an amount that is payable to the State, the Treasurer must add an amount or amounts equal in total to the residual adjustment amount to an amount or amounts the State is entitled to receive by way of financial assistance under this Act for the GST year in which the determination of the amount is made or the next GST year.
7(5)
The Treasurer may, by signed writing, delegate to an SES employee in the Department all or any of the Treasurer ' s functions under subclauses (1), (3) and (4). The delegate must perform a delegated function subject to any directions of the Treasurer.
HistoryCl 7 inserted by No 21 of 2004, s 3 and Sch 1 item 12, effective 23 March 2004.
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