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Tax Laws Amendment (2011 Measures No. 2) Bill 2011

Schedule 4 GST: payments of taxes, fees and charges

   

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

1  Subparagraph 13-20(2)(ba)(i)

Repeal the subparagraph, substitute:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of * consideration; and

Note:       Division 81 excludes certain taxes, fees and charges from the provision of consideration.

2  Division 81

Repeal the Division, substitute:

Division 81 Payments of taxes, fees and charges

81-1   What this Division is about

GST does not apply to payments of taxes, fees and charges that are excluded from the GST by this Division or by regulations.

GST applies to certain taxes, fees and charges prescribed by regulations.

81-5   Effect of payment of tax

Australian tax not consideration

             (1)  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 tax.

Regulations may provide for exceptions

             (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 tax 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 tax is payable, for a supply that the entity makes to you.

81-10   Effect of payment of certain fees and charges

Certain fees and charges not consideration

             (1)  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.

81-15   Other fees and charges that do not constitute consideration

                   The regulations may provide that the payment of a prescribed * Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of * consideration.

81-20   Division has effect despite section 9-15

                   This Division has effect despite section 9-15 (which is about consideration).

81-25   Date of effect of regulations

                   Despite subsection 12(2) of the Legislative Instruments Act 2003 , regulations made for the purposes of subsection 81-5(2), 81-10(2) or section 81-15 may be expressed to take effect from a date before the regulations are registered under that Act.

3  Subsection 82-10(3)

Repeal the subsection, substitute:

             (3)  If the other supply constitutes the payment of:

                     (a)  an * Australian tax prescribed by regulations made for the purposes of subsection 81-5(2); or

                            (b)  an * Australian fee or charge prescribed by regulations made for the purposes of subsection 81-10(2);

this section overrides those regulations in relation to the payment.

4  Subparagraph 117-5(1)(ba)(i)

Repeal the subparagraph, substitute:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of * consideration; and

Note:       Division 81 excludes certain taxes, fees and charges from the provision of consideration.

5  Section 195-1

Insert:

Australian fee or charge means a fee or charge (however described), other than an * Australian tax, imposed under an * Australian law and payable to an * Australian government agency.

6  Section 195-1

Insert:

Australian tax means a tax (however described) imposed under an * Australian law.

7  Section 195-1 (definition of Australian tax, fee or charge )

Repeal the definition.

8  Section 195-1 (note at the end of the definition of connected with Australia )

Omit “sections 81-10 and 96-5”, substitute “section 96-5”.

9  Section 195-1 (note at the end of the definition of consideration )

After “81-5,”, insert “81-10, 81-15,”.

10  Section 195-1 (note at the end of the definition of taxable supply )

Omit “81-10,”.

A New Tax System (Luxury Car Tax) Act 1999

11  Paragraph 5-20(1)(b)

Omit “ * Australian tax, fee or charge”, substitute “ * Australian tax or * Australian fee or charge”.

12  Paragraph 5-20(6)(b)

Omit “ * Australian tax, fee or charge”, substitute “ * Australian tax or * Australian fee or charge”.

13  Section 27-1

Insert:

Australian fee or charge has the meaning given by section 195-1 of the * GST Act.

14  Section 27-1

Insert:

Australian tax has the meaning given by section 195-1 of the * GST Act.

15  Section 27-1 (definition of Australian tax, fee or charge )

Repeal the definition.

16  Application provision

(1)       The amendments made by this Schedule 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 the commencement of this item.

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