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A New Tax System (Goods and Services Tax) Bill 1999
A New Tax System (Goods and Services Tax) Bill 1998

1998

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

A New Tax System (Goods and Services Tax) Bill 1998

 

No.      , 1998

 

(Treasury)

 

 

 

A Bill for an Act about a goods and services tax to implement A New Tax System, and for related purposes

   

   

   



Contents

Chapter 1—Introduction                                                                                        2

Part 1-1—Preliminary                                                                                                          2

Division 1—Preliminary                                                                                              2

1-1......... Short title............................................................................................. 2

1-2......... Commencement................................................................................... 2

1-3......... Commonwealth-State financial relations............................................. 2

Part 1-2—Using this Act                                                                                                     3

Division 2—Overview of the GST legislation                                                   3

2-1......... What this Act is about......................................................................... 3

2-5......... The basic rules (Chapter 2)................................................................. 3

2-10....... The exemptions (Chapter 3)................................................................ 4

2-15....... The special rules (Chapter 4)............................................................... 4

2-20....... Miscellaneous (Chapter 5).................................................................. 4

2-25....... Interpretative provisions (Chapter 6)................................................... 4

2-30....... Administration, collection and recovery provisions (Part VI of the Taxation Administration Act 1953 )  4

Division 3—Defined terms                                                                                          5

3-1......... When defined terms are identified....................................................... 5

3-5......... When terms are not identified.............................................................. 5

3-10....... Identifying the defined term in a definition.......................................... 6

Division 4—Status of Guides and other non-operative material           7

4-1......... Non-operative material........................................................................ 7

4-5......... Explanatory sections........................................................................... 7

4-10....... Other material...................................................................................... 7

Chapter 2—The basic rules                                                                                  8

Division 5—Introduction                                                                                             8

5-1......... What this Chapter is about.................................................................. 8

5-5......... The structure of this Chapter............................................................... 8

Part 2-1—The central provisions                                                                                 10

Division 7—The central provisions                                                                      10

7-1......... GST and input tax credits.................................................................. 10

7-5......... Net amounts...................................................................................... 10

7-10....... Tax periods....................................................................................... 10

7-15....... Payments and refunds....................................................................... 10

Part 2-2—Supplies and acquisitions                                                                          12

Division 9—Taxable supplies                                                                                   12

9-1......... What this Division is about............................................................... 12

Subdivision 9-A—What are taxable supplies?                                                   12

9-5......... Taxable supplies................................................................................ 12

9-10....... Meaning of supply ............................................................................ 13

9-15....... Consideration.................................................................................... 13

9-20....... Enterprises........................................................................................ 14

9-25....... Supplies connected with Australia.................................................... 15

9-30....... Supplies that are GST-free or input taxed......................................... 16

9-39....... Special rules relating to taxable supplies........................................... 17

Subdivision 9-B—Who is liable for GST on taxable supplies?                     18

9-40....... Liability for GST on taxable supplies................................................ 18

9-69....... Special rules relating to liability for GST on taxable supplies........... 18

Subdivision 9-C—How much GST is payable on taxable supplies?             19

9-70....... The amount of GST on taxable supplies........................................... 19

9-75....... The value of taxable supplies............................................................ 19

9-80....... The value of taxable supplies that are partly GST-free or input taxed 20

9-99....... Special rules relating to the amount of GST on taxable supplies....... 20

Division 11—Creditable acquisitions                                                                  21

11-1....... What this Division is about............................................................... 21

11-5....... What is a creditable acquisition?........................................................ 21

11-10..... Meaning of acquisition ..................................................................... 21

11-15..... Meaning of creditable purpose ......................................................... 22

11-20..... Who is entitled to input tax credits for creditable acquisitions?......... 22

11-25..... How much are the input tax credits for creditable acquisitions?........ 22

11-30..... Acquisitions that are partly creditable................................................ 23

11-99..... Special rules relating to acquisitions.................................................. 24

Part 2-3—Importations                                                                                                      25

Division 13—Taxable importations                                                                     25

13-1....... What this Division is about............................................................... 25

13-5....... What are taxable importations?.......................................................... 25

13-10..... Meaning of non-taxable importation ................................................ 25

13-15..... Who is liable for GST on taxable importations?................................ 26

13-20..... How much GST is payable on taxable importations?........................ 26

13-25..... The value of taxable importations that are partly non-taxable importations               26

13-99..... Special rules relating to taxable importations..................................... 27

Division 15—Creditable importations                                                                28

15-1....... What this Division is about............................................................... 28

15-5....... What are creditable importations?...................................................... 28

15-10..... Meaning of creditable purpose ......................................................... 28

15-15..... Who is entitled to input tax credits for creditable importations?........ 28

15-20..... How much are the input tax credits for creditable importations?....... 29

15-25..... Importations that are partly creditable................................................ 29

15-99..... Special rules relating to creditable importations................................. 30

Part 2-4—Net amounts and adjustments                                                                31

Division 17—Net amounts and adjustments                                                   31

17-1....... What this Division is about............................................................... 31

17-5....... Net amounts...................................................................................... 31

17-10..... Adjustments...................................................................................... 32

17-99..... Special rules relating to net amounts or adjustments......................... 32

Division 19—Adjustment events                                                                            34

19-1....... What this Division is about............................................................... 34

19-5....... Explanation of the effect of adjustment events.................................. 34

Subdivision 19-A—Adjustment events                                                                 35

19-10..... Adjustment events............................................................................. 35

Subdivision 19-B—Adjustments for supplies                                                     36

19-40..... Where adjustments for supplies arise................................................ 36

19-45..... Previously attributed GST amounts.................................................. 37

19-50..... Increasing adjustments for supplies.................................................. 37

19-55..... Decreasing adjustments for supplies................................................. 37

Subdivision 19-C—Adjustments for acquisitions                                              37

19-70..... Where adjustments for acquisitions arise.......................................... 37

19-75..... Previously attributed input tax credit amounts................................... 38

19-80..... Increasing adjustments for acquisitions............................................. 38

19-85..... Decreasing adjustments for acquisitions........................................... 39

Division 21—Bad debts                                                                                               40

21-1....... What this Division is about............................................................... 40

21-5....... Writing off bad debts (taxable supplies)............................................ 40

21-10..... Recovering amounts previously written off (taxable supplies).......... 40

21-15..... Bad debts written off (creditable acquisitions).................................. 41

21-20..... Recovering amounts previously written off (creditable acquisitions) 41

21-99..... Special rules relating to adjustments for bad debts............................ 42

Part 2-5—Registration                                                                                                       43

Division 23—Who is required to be registered and who may be registered        43

23-1....... Explanation of Division.................................................................... 43

23-5....... Who is required to be registered........................................................ 44

23-10..... Who may be registered...................................................................... 44

23-15..... The registration turnover threshold................................................... 44

23-99..... Special rules relating to who is required to be registered or who may be registered 44

Division 25—How you become registered, and how your registration can be cancelled             46

Subdivision 25-A—How you become registered                                               46

25-1....... When you must apply for registration............................................... 46

25-5....... When the Commissioner must register you....................................... 46

25-10..... The date of effect of your registration............................................... 47

25-15..... Effect of backdating your registration............................................... 48

25-49..... Special rules relating to registration................................................... 48

Subdivision 25-B—How your registration can be cancelled                          48

25-50..... When you must apply for cancellation of registration....................... 48

25-55..... When the Commissioner must cancel registration............................. 49

25-60..... The date of effect of your cancellation............................................... 49

25-65..... Effect of backdating your cancellation of registration........................ 50

25-99..... Special rules relating to cancellation of registration........................... 50

Part 2-6—Tax periods                                                                                                        51

Division 27—How to work out the tax periods that apply to you       51

27-1....... What this Division is about............................................................... 51

27-5....... General rule—3 month tax periods................................................... 51

27-10..... Election of one month tax periods..................................................... 51

27-15..... Determination of one month tax periods........................................... 52

27-20..... Withdrawing elections of one month tax periods.............................. 53

27-25..... Revoking determinations of one month tax periods.......................... 53

27-30..... Tax periods determined by the Commissioner.................................. 53

27-35..... Changing the days on which your tax periods end............................ 54

27-40..... An entity’s concluding tax period..................................................... 54

27-99..... Special rules relating to tax periods................................................... 55

Division 29—What is attributable to tax periods                                         56

29-1....... What this Division is about............................................................... 56

Subdivision 29-A—The attribution rules                                                            56

29-5....... Attributing the GST on your taxable supplies................................... 56

29-10..... Attributing the input tax credits for your creditable acquisitions....... 57

29-15..... Attributing the input tax credits for your creditable importations...... 58

29-20..... Attributing your adjustments............................................................. 58

29-25..... Commissioner may determine particular attribution rules.................. 59

29-39..... Special rules relating to attribution rules............................................ 60

Subdivision 29-B—Accounting on a cash basis                                                 61

29-40..... Choosing to account on a cash basis................................................. 61

29-45..... Permission to account on a cash basis............................................... 61

29-50..... Ceasing to account on a cash basis.................................................... 62

Subdivision 29-C—Tax invoices and adjustment notes                                   63

29-70..... Tax invoices...................................................................................... 63

29-75..... Adjustment notes.............................................................................. 64

29-80..... Tax invoices and adjustment notes not required for low value transactions              64

29-99..... Special rules relating to tax invoices and adjustment notes................ 65

Part 2-7—Returns, payments and refunds                                                           66

Division 31—GST returns                                                                                         66

31-1....... What this Division is about............................................................... 66

31-5....... Who must give GST returns............................................................. 66

31-10..... When GST returns must be given..................................................... 66

31-15..... The form and contents of GST returns.............................................. 67

31-20..... Additional GST returns..................................................................... 67

31-25..... Electronic lodgment of GST returns.................................................. 67

31-30..... Signing GST returns......................................................................... 68

31-99..... Special rules relating to GST returns................................................. 68

Division 33—Payments of GST                                                                              70

33-1....... What this Division is about............................................................... 70

33-5....... When payments of net amounts must be made.................................. 70

33-10..... How payments of net amounts are made........................................... 70

33-15..... Payments of amounts of GST on importations................................. 71

33-20..... Commissioner may extend time for payment.................................... 71

33-25..... Commissioner may bring forward payment date if you are about to leave Australia                71

33-30..... Net amounts etc. a debt due to the Commonwealth........................... 72

33-99..... Special rules relating to payments of GST........................................ 72

Division 35—Refunds                                                                                                  73

35-1....... What this Division is about............................................................... 73

35-5....... When refunds must be made............................................................. 73

35-10..... How refunds are made...................................................................... 73

35-99..... Special rules relating to refunds........................................................ 74

Part 2-8—Checklist of special rules                                                                           75

Division 37—Checklist of special rules                                                              75

37-1....... Checklist of special rules................................................................... 75

Chapter 3—The exemptions                                                                              77

Part 3-1—Supplies that are not taxable supplies                                               77

Division 38—GST-free supplies                                                                             77

38-1....... What this Division is about............................................................... 77

Subdivision 38-A—Health                                                                                       78

38-5....... Medical services................................................................................ 78

38-10..... Other health services......................................................................... 78

38-15..... Other government funded health services......................................... 80

38-20..... Hospital treatment............................................................................. 80

38-25..... Residential care etc............................................................................ 81

38-30..... Community care etc........................................................................... 82

38-35..... Flexible care...................................................................................... 82

38-40..... Specialist disability services.............................................................. 82

38-45..... Medical aids and appliances.............................................................. 83

38-50..... Drugs and medicinal preparations etc................................................ 83

38-55..... Private health insurance etc............................................................... 84

Subdivision 38-B—Education                                                                                84

38-85..... Education courses............................................................................. 84

38-90..... Excursions or field trips.................................................................... 84

38-95..... Course materials................................................................................ 85

38-100... Supplies that are not GST-free.......................................................... 85

38-105... Accommodation at boarding schools etc........................................... 85

38-110... Recognition of prior learning etc....................................................... 86

Subdivision 38-C—Child care                                                                                87

38-140... Child care—suppliers registered under the Childcare Rebate Act..... 87

38-145... Child care—eligible child care centres............................................... 87

38-150... Other child care................................................................................. 87

38-155... Supplies directly related to child care that is GST-free...................... 88

Subdivision 38-D—Exports and other supplies for consumption outside Australia       88

38-185... Exports of goods............................................................................... 88

38-190... Supplies of things, other than goods or real property, for consumption outside Australia       90

Subdivision 38-E—Religious services                                                                  92

38-220... Religious services............................................................................. 92

Subdivision 38-F—Non-commercial activities of charitable institutions etc. 92

38-250... Nominal consideration etc................................................................. 92

38-255... Second-hand goods........................................................................... 92

Subdivision 38-G—Water and sewerage                                                             93

38-285... Water................................................................................................. 93

38-290... Sewerage........................................................................................... 93

38-295... Emptying of septic tanks................................................................... 93

Subdivision 38-H—Supplies of going concerns                                                 93

38-325... Supply of a going concern................................................................ 93

Subdivision 38-I—Transport and related matters                                            94

38-355... Supplies of transport and related matters........................................... 94

Subdivision 38-J—Precious metals                                                                      95

38-385... Supplies of precious metals............................................................... 95

Subdivision 38-K—Supplies through inwards duty free shops                      96

38-415... Supplies through inwards duty free shops........................................ 96

Subdivision 38-L—Grants of freehold and similar interests by governments                96

38-445... Grants of freehold and similar interests by governments.................. 96

Subdivision 38-M—Subdivided farm land                                                         96

38-475... Subdivided farm land........................................................................ 96

Subdivision 38-N—Cars for use by disabled people                                         97

38-505... Disabled veterans.............................................................................. 97

38-510... Other disabled people........................................................................ 98

Division 40—Input taxed supplies                                                                       100

40-1....... What this Division is about............................................................. 100

Subdivision 40-A—Financial supplies                                                               100

40-5....... Financial supplies............................................................................ 100

Subdivision 40-B—Residential rent                                                                    103

40-35..... Residential rent................................................................................ 103

Subdivision 40-C—Residential premises                                                           104

40-65..... Sales of residential premises........................................................... 104

40-70..... Supplies of residential premises by way of long-term lease............ 104

Subdivision 40-D—Precious metals                                                                    104

40-100... Precious metals............................................................................... 104

Part 3-2—Non-taxable importations                                                                       105

Division 42—Non-taxable importations                                                          105

42-1....... What this Division is about............................................................. 105

42-5....... Non-taxable importations—Schedule 4 to the Customs Tariff Act 1995   105

42-10..... Ship and aircraft stores.................................................................... 105

42-15..... Goods imported or purchased by overseas travellers...................... 105

Chapter 4—The special rules                                                                          107

Division 45—Introduction                                                                                       107

45-1....... What this Chapter is about.............................................................. 107

45-5....... The effect of special rules................................................................ 107

Part 4-1—Special rules mainly about particular ways entities are organised        108

Division 48—GST groups                                                                                        108

48-1....... What this Division is about............................................................. 108

Subdivision 48-A—Approval of GST groups                                                   108

48-5....... Approval of GST groups................................................................ 108

48-10..... Membership requirements of a GST group..................................... 109

Subdivision 48-B—Consequences of approval of GST groups                   110

48-40..... Who is liable for GST..................................................................... 110

48-45..... Who is entitled to input tax credits.................................................. 110

48-50..... Adjustments.................................................................................... 111

48-55..... GST groups treated as single entities for certain purposes.............. 111

48-60..... GST returns.................................................................................... 112

Subdivision 48-C—Administrative matters                                                      112

48-70..... Changing the membership etc. of GST groups............................... 112

48-75..... Revoking the approval of GST groups........................................... 113

48-80..... Notification by representative members.......................................... 113

48-85..... Date of effect of approvals and revocations.................................... 114

48-90..... Notification by the Commissioner................................................... 114

Division 51—GST joint ventures                                                                         115

51-1....... What this Division is about............................................................. 115

Subdivision 51-A—Approval of GST joint ventures                                      115

51-5....... Approval of GST joint ventures...................................................... 115

51-10..... Participation requirements of a GST joint venture........................... 116

Subdivision 51-B—Consequences of approval of GST joint ventures       116

51-30..... Who is liable for GST..................................................................... 116

51-35..... Who is entitled to input tax credits.................................................. 117

51-40..... Adjustments.................................................................................... 117

51-45..... Additional net amounts relating to GST joint ventures.................... 118

51-50..... GST returns relating to GST joint ventures..................................... 118

51-55..... Payments of GST relating to GST joint ventures............................ 119

51-60..... Refunds relating to GST joint ventures........................................... 119

Subdivision 51-C—Administrative matters                                                      120

51-70..... Changing the participants etc. of GST joint ventures...................... 120

51-75..... Revoking the approval of GST joint ventures................................. 121

51-80..... Notification by joint venture operators............................................ 121

51-85..... Date of effect of approvals and revocations.................................... 122

51-90..... Notification by the Commissioner................................................... 122

Division 54—GST branches                                                                                   123

54-1....... What this Division is about............................................................. 123

Subdivision 54-A—Registration of GST branches                                         123

54-5....... Registration of GST branches......................................................... 123

54-10..... The date of effect of registration of a GST branch.......................... 124

54-15..... GST branch registration number..................................................... 124

Subdivision 54-B—Consequences of registration of GST branches          125

54-40..... Additional net amounts relating to GST branches........................... 125

54-45..... Net amounts of parent entities......................................................... 126

54-50..... Tax invoices and adjustment notes.................................................. 127

54-55..... GST returns relating to GST branches............................................ 127

54-60..... Payments of GST relating to GST branches................................... 127

54-65..... Refunds relating to GST branches.................................................. 128

Subdivision 54-C—Cancellation of registration of GST branches            128

54-70..... When an entity must apply for cancellation of registration of a GST branch            128

54-75..... When the Commissioner must cancel registration of a GST branch 129

54-80..... The date of effect of cancellation of registration of a GST branch... 129

54-85..... Application of Subdivision 25-B.................................................... 130

54-90..... Effect on GST branches of cancelling the entity’s registration........ 130

Division 57—Resident agents acting for non-residents                           131

57-1....... What this Division is about............................................................. 131

57-5....... Who is liable for GST..................................................................... 131

57-10..... Who is entitled to input tax credits.................................................. 131

57-15..... Adjustments.................................................................................... 132

57-20..... Resident agents are required to be registered................................... 132

57-25..... Cancellation of registration of a resident agent................................ 132

57-30..... Notice of cessation of agency.......................................................... 133

57-35..... Tax periods of resident agents......................................................... 133

57-40..... GST returns for non-residents........................................................ 133

57-45..... Resident agents giving GST returns................................................ 134

Division 60—Pre-establishment costs                                                               135

60-1....... What this Division is about............................................................. 135

60-5....... Input tax credit for acquisitions and importations before establishment 135

60-10..... Registration etc. not needed for input tax credits............................. 135

60-15..... Pre-establishment acquisitions and importations............................. 136

60-20..... Creditable purpose.......................................................................... 137

60-25..... Attributing the input tax credit for pre-establishment acquisitions... 137

60-30..... Attributing the input tax credit for pre-establishment importations.. 138

60-35..... Application of Division 129............................................................ 138

Part 4-2—Special rules mainly about supplies and acquisitions             140

Division 66—Second-hand goods                                                                        140

66-1....... What this Division is about............................................................. 140

66-5....... Creditable acquisitions of second-hand goods................................ 140

66-10..... Amounts of input tax credits for creditable acquisitions of second-hand goods       141

66-15..... Attributing input tax credits for creditable acquisitions of second-hand goods         141

66-20..... Returnable containers...................................................................... 142

Division 69—Non-deductible expenses                                                             143

69-1....... What this Division is about............................................................. 143

69-5....... Non-deductible expenses do not give rise to creditable acquisitions or creditable importations                143

69-10..... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           144

Division 72—Associates                                                                                           145

72-1....... What this Division is about............................................................. 145

Subdivision 72-A—Supplies without consideration                                        145

72-5....... Taxable supplies without consideration........................................... 145

72-10..... The value of taxable supplies without consideration....................... 145

72-15..... Attributing the GST to tax periods.................................................. 146

Subdivision 72-B—Acquisitions without consideration                                 146

72-40..... Creditable acquisitions without consideration................................. 146

72-45..... The amount of the input tax credit................................................... 146

72-50..... Attributing the input tax credit to tax periods.................................. 147

Subdivision 72-C—Supplies for inadequate consideration                          147

72-70..... The value of taxable supplies for inadequate consideration............. 147

Division 75—Sale of freehold interests etc.                                                   148

75-1....... What this Division is about............................................................. 148

75-5....... Choosing to apply the margin scheme............................................. 148

75-10..... The amount of GST on taxable supplies......................................... 148

75-15..... Subdivided land.............................................................................. 150

75-20..... Supplies under a margin scheme do not give rise to creditable acquisitions             150

75-25..... Adjustments relating to bad debts................................................... 150

Division 78—Insurance                                                                                            151

78-1....... What this Division is about............................................................. 151

78-5....... Creditable acquisitions relating to indemnity payments................... 151

78-10..... Excluded insurance transactions are not taxable supplies or creditable acquisitions 152

78-15..... The value of taxable supplies that are partly excluded insurance transactions           152

Division 81—Payments of taxes                                                                          153

81-1....... What this Division is about............................................................. 153

81-5....... Payments of taxes can constitute consideration............................... 153

81-10..... Supplies need not be connected with Australia if the consideration is the payment of tax        153

Division 84—Offshore supplies other than goods or real property 155

84-1....... What this Division is about............................................................. 155

84-5....... Intangible supplies from offshore may be taxable supplies............. 155

84-10..... “Reverse charge” on offshore intangible supplies........................... 156

84-15..... Transfers etc. between branches of the same entity......................... 156

Division 87—Long-term accommodation in commercial residential premises                 157

87-1....... What this Division is about............................................................. 157

87-5....... Commercial residential premises that are predominantly for long-term accommodation           157

87-10..... Commercial residential premises that are not predominantly for long-term accommodation     157

87-15..... Meaning of commercial accommodation ........................................ 158

87-20..... Meaning of long-term accommodation etc..................................... 158

Division 90—Company amalgamations                                                          160

90-1....... What this Division is about............................................................. 160

90-5....... Supplies not taxable—amalgamated company registered or required to be registered              160

90-10..... Value of taxable supplies—amalgamated company not registered or required to be registered                160

90-15..... Acquisitions not creditable—amalgamated company registered or required to be registered    161

90-20..... Liability after amalgamation for GST on amalgamating company’s supplies           161

90-25..... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions 161

90-30..... Adjustments.................................................................................... 162

90-35..... Amalgamating companies accounting on a cash basis..................... 162

Division 93—Returnable containers                                                                  164

93-1....... What this Division is about............................................................. 164

93-5....... Creditable acquisitions of returnable containers.............................. 164

93-10..... How much are the input tax credits for creditable acquisitions of returnable containers?         164

93-15..... Attributing creditable acquisitions of returnable containers............. 165

93-20..... Ownership of returnable containers................................................ 166

Division 96—Supplies partly connected with Australia                          167

96-1....... What this Division is about............................................................. 167

96-5....... Supplies that are only partly connected with Australia.................... 167

96-10..... The value of the taxable components of supplies that are only partly connected with Australia               168

Division 99—Deposits as security                                                                       169

99-1....... What this Division is about............................................................. 169

99-5....... Giving a deposit as security does not constitute consideration........ 169

99-10..... Attributing the GST relating to deposits that are forfeited etc.......... 169

Division 102—Cancelled lay-by sales                                                               170

102-1..... What this Division is about............................................................. 170

102-5..... Cancelled lay-by sales..................................................................... 170

102-10... Attributing GST and input tax credits............................................. 170

Division 105—Supplies in satisfaction of debts                                            172

105-1..... What this Division is about............................................................. 172

105-5..... Supplies by creditors in satisfaction of debts may be taxable supplies 172

105-10... Net amounts.................................................................................... 173

105-15... GST returns.................................................................................... 173

105-20... Payments of GST............................................................................ 174

Division 108—Valuation of taxable supplies of goods in bond            175

108-1..... What this Division is about............................................................. 175

108-5..... Taxable supplies of goods in bond etc............................................ 175

Part 4-3—Special rules mainly about importations                                        176

Division 114—Importations without entry for home consumption 176

114-1..... What this Division is about............................................................. 176

114-5..... Importations without entry for home consumption......................... 176

Division 117—Importations of goods that were exported for repair or renovation      180

117-1..... What this Division is about............................................................. 180

117-5..... Valuation of taxable importations of goods that were exported for repair or renovation          180

117-10... The value of repairs and renovations............................................... 181

Part 4-4—Special rules mainly about net amounts and adjustments 182

Division 123—Diesel fuel credits                                                                         182

Table of Subdivisions                                                                                             182

123-1..... What this Division is about............................................................. 182

Subdivision 123-A—General                                                                                182

123-5..... Effect of diesel fuel credits on net amounts..................................... 182

123-10... How diesel fuel credits arise........................................................... 183

123-15... Meaning of c reditable diesel fuel consumption ............................... 183

123-20... Attribution of diesel fuel credits...................................................... 183

Subdivision 123-B—Amounts of diesel fuel credits                                        184

123-40... Amounts of diesel fuel credits......................................................... 184

123-45... Reductions in amounts of diesel fuel credits—acquisitions............. 186

123-50... Reductions in amounts of diesel fuel credits—importations............ 187

123-55... Meaning of reduced credit land transport etc................................. 188

Subdivision 123-C—Adjustments relating to diesel fuel credits                  189

123-70... When adjustments arise................................................................... 189

123-75... Decreasing adjustments................................................................... 190

123-80... Increasing adjustments.................................................................... 190

Division 126—Gambling                                                                                          192

126-1..... What this Division is about............................................................. 192

126-5..... Global accounting system for gambling supplies............................ 192

126-10... Global GST amounts...................................................................... 193

126-15... Losses carried forward.................................................................... 193

126-20... Bad debts........................................................................................ 194

126-25... Application of Subdivision 9-C...................................................... 194

126-30... Gambling supplies do not give rise to creditable acquisitions......... 194

126-35... Meaning of gambling supply and gambling event ........................... 194

Division 129—Changes in the extent of creditable purpose                 196

129-1..... What this Division is about............................................................. 196

Subdivision 129-A—General                                                                                196

129-5..... Adjustments arising under this Division......................................... 196

Subdivision 129-B—Adjustment periods                                                           197

129-20... Adjustment periods......................................................................... 197

129-25... Effect on adjustment periods of things being disposed of etc.......... 198

Subdivision 129-C—When adjustments for acquisitions and importations arise           199

129-40... Working out whether you have an adjustment................................ 199

129-45... Gifts to gift-deductible entities........................................................ 200

129-50... Creditable purpose.......................................................................... 200

129-55... Meaning of apply ............................................................................ 201

Subdivision 129-D—Amounts of adjustments for acquisitions and importations           201

129-70... The amount of an increasing adjustment......................................... 201

129-75... The amount of a decreasing adjustment........................................... 202

129-80... Effect of adjustments under Division 19......................................... 202

Subdivision 129-E—Attributing adjustments under this Division              203

129-90... Attributing your adjustments for changes in extent of creditable purpose                203

Division 132—Supplies of things acquired or imported to make supplies            204

132-1..... What this Division is about............................................................. 204

132-5..... Adjustments for supplies of things used to make supplies.............. 204

132-10... Increasing adjustments.................................................................... 205

132-15... Decreasing adjustments................................................................... 206

132-20... Attribution of adjustments under this Division............................... 206

Division 135—Supplies of going concerns                                                      207

135-1..... What this Division is about............................................................. 207

135-5..... Initial adjustments for supplies of going concerns.......................... 207

135-10... Later adjustments for supplies of going concerns........................... 208

Division 138—Cessation of registration                                                          209

138-1..... What this Division is about............................................................. 209

138-5..... Adjustments for cessation of registration........................................ 209

138-10... Attributing adjustments for cessation of registration....................... 210

138-15... Ceasing to be registered—amounts not previously attributed.......... 210

138-20... Application of Division 129............................................................ 211

Part 4-5—Special rules mainly about registration                                          212

Division 144—Taxis                                                                                                   212

144-1..... What this Division is about............................................................. 212

144-5..... Requirement to register................................................................... 212

Division 147—Representatives of incapacitated entities                        213

147-1..... What this Division is about............................................................. 213

147-5..... Representatives are required to be registered................................... 213

147-10... Cancellation of registration of a representative................................ 213

147-15... Notice of cessation of representation............................................... 214

147-20... Adjustments.................................................................................... 214

Part 4-6—Special rules mainly about tax periods                                           215

Division 153—Agents                                                                                                215

153-1..... What this Division is about............................................................. 215

153-5..... Attributing the input tax credits for your creditable acquisitions..... 215

153-10... Attributing your adjustments........................................................... 216

153-15... Tax invoices.................................................................................... 216

153-20... Adjustment notes............................................................................ 217

Division 156—Supplies and acquisitions made on a progressive or periodic basis          218

156-1..... What this Division is about............................................................. 218

156-5..... Attributing the GST on progressive or periodic supplies................ 218

156-10... Attributing the input tax credits on progressive or periodic acquisitions  218

156-15... Progressive or periodic supplies partly connected with Australia... 219

156-20... Application of Division 129 to progressive or periodic acquisitions 219

156-25... Accounting on a cash basis............................................................. 219

Division 159—Changing your accounting basis                                          220

159-1..... What this Division is about............................................................. 220

159-5..... Ceasing to account on a cash basis—amounts not previously attributed  220

159-10... Ceasing to account on a cash basis—amounts partly attributed....... 221

159-15... Ceasing to account on a cash basis—bad debts............................... 222

159-20... Starting to account on a cash basis.................................................. 223

159-25... Starting to account on a cash basis—bad debts............................... 223

159-30... Entities ceasing to exist or coming into existence............................ 224

Part 4-7—Special rules mainly about returns, payments and refunds 225

Division 165—Anti-avoidance                                                                              225

165-1..... What this Division is about............................................................. 225

Subdivision 165-A—Application of this Division                                            226

165-5..... When does this Division operate?................................................... 226

165-10... When does an entity get a GST benefit from a scheme?.................. 227

165-15... Matters to be considered in determining purpose or effect.............. 228

Subdivision 165-B—Commissioner may negate effects of schemes for GST benefits 229

165-40... Commissioner may negate avoider’s GST benefits......................... 229

165-45... Commissioner may reduce an entity’s net amount or GST to compensate               230

165-50... GST or refund payable in accordance with declaration................... 231

165-55... Commissioner may disregard scheme in making declarations......... 232

165-60... One declaration may cover several tax periods and importations.... 232

165-65... Commissioner must give copy of declaration to entity affected....... 232

Subdivision 165-C—Penalties for getting GST benefits from schemes     233

165-80... Penalty............................................................................................ 233

Division 168—Tourist refund scheme                                                              234

168-1..... What this Division is about............................................................. 234

168-5..... Tourist refund scheme..................................................................... 234

Division 171—Customs security etc. given on taxable importations 235

171-1..... What this Division is about............................................................. 235

171-5..... Security or undertaking given under section 162 or 162A of the Customs Act        235

Chapter 5—Miscellaneous                                                                                 236

Part 5-1—Miscellaneous                                                                                                  236

Division 177—Miscellaneous                                                                                 236

177-1..... Commonwealth etc. not liable to pay GST...................................... 236

177-5..... Cancellation of exemptions from GST............................................ 237

177-10... Ministerial determinations............................................................... 237

177-15... Regulations..................................................................................... 238

Chapter 6—Interpreting this Act                                                                239

Part 6-1—Rules for interpreting this Act                                                             239

Division 182—Rules for interpreting this Act                                              239

182-1..... What forms part of this Act............................................................. 239

182-5..... What does not form part of this Act................................................ 239

182-10... Explanatory sections, and their role in interpreting this Act............ 240

Part 6-2—Meaning of some important concepts                                              241

Division 184—Meaning of entity                                                                         241

184-1..... Entities............................................................................................ 241

Division 186—Meaning of approved form                                                    243

186-1..... Approved forms.............................................................................. 243

Division 188—Meaning of annual turnover                                                  244

188-1..... What this Division is about............................................................. 244

188-5..... Explanation of the turnover thresholds............................................ 244

188-10... Whether your annual turnover meets, or does not exceed, a turnover threshold       245

188-15... Current annual turnover.................................................................. 245

188-20... Projected annual turnover................................................................ 246

188-25... Transfer of capital assets, and termination etc. of enterprise, to be disregarded        247

188-30... The value of non-taxable supplies................................................... 247

Division 190—90% owned groups of companies                                       249

190-1..... 90% owned groups......................................................................... 249

190-5..... When a company has at least a 90% stake in another company....... 249

Part 6-3—Dictionary                                                                                                         250

Division 195—Dictionary                                                                                        250

195-1..... Dictionary....................................................................................... 250

Schedule 1—Medical aids and appliances                                        277

 



A Bill for an Act about a goods and services tax to implement A New Tax System, and for related purposes

The Parliament of Australia enacts:

Chapter 1 Introduction



Schedule 1 Medical aids and appliances

Note:       GST-free supplies of medical aids and appliances are dealt with in section 38-45.

   

 

Medical aids and appliances

Item

Category

Medical aids or appliances

1

Cardiovascular

heart monitors

2

 

pacemakers

3

 

surgical stockings

4

Communication aids for people with disabilities

communication boards and voice output devices

5

 

communication cards

6

 

page turners

7

 

eye pointing frames

8

 

software programs specifically designed for people with disabilities

9

 

printers and scanners specifically designed for software and hardware used by people with disabilities

10

 

switches and switch interfaces

11

 

mouth/head sticks/pointers

12

 

alternative keyboards

13

 

electrolarynx replacements

14

 

speech amplification/clarification aids

15

Continence

urine/faecal drainage/collection devices

16

 

waterproof covers or mattress protectors

17

 

absorbent pads for beds and chairs

18

 

disposable/reusable continence pads, pants and nappies required for continence use (excluding nappies for babies, sanitary pads or tampons)

19

 

enuresis alarms

20

 

incontinence appliances

21

 

hospital/medical/continence deodorising products

22

 

waterproof protection for beds and chairs

23

 

sterile plastic bags

24

 

electric bag emptiers

25

 

enemas, suppositories and applicators

26

 

urinals and bedpans

27

 

penile clamps

28

Daily living for people with disabilities

customised eating equipment for people with disabilities

29

 

customised toothbrushes for people with disabilities

30

 

dentures and artificial teeth

31

 

environmental control units designed for the disability of a particular person

32

 

computer modifications required for people with disabilities

33

 

“medical alert” devices

34

Diabetes

finger prickers

35

 

alcohol skin wipes

36

 

test strips

37

 

needles and syringes

38

 

glucose monitors

39

Dialysis

home dialysis machines

40

Enteral nutrition

enteral nutrition and associated delivery equipment

41

Footwear for people with disabilities

surgical shoes, boots, braces and irons

42

 

orthotics

43

Hearing/speech

hearing aids

44

 

visual display units specifically designed for deaf people, or for people with a speech impairment, to communicate with others

45

 

telephone communication devices specifically designed to allow deaf people to send and receive messages by telephone

46

 

batteries specifically designed specifically for use with hearing aids

47

 

visual/tactile alerting devices

48

 

interactive and broadcast videotext systems

49

 

closed caption decoding devices

50

 

external processors for cochlear implants

51

Home modifications for people with disabilities

bidet/bidet toilet attachments

52

 

special door fittings relating to the disability of a particular person

53

Mobility of people with disabilities—motor vehicles

special purpose car seats

54

 

car seat harness specifically designed for people with disabilities

55

 

wheelchair and occupant restraint

56

 

wheelchair ramp

57

 

electric/hydraulic wheelchair lifting device

58

 

motor vehicle modifications

59

Mobility of people with disabilities—physical: bedding for people with disabilities

manually operated adjustable beds

60

 

electronically operated adjustable beds

61

 

hospital-type beds

62

 

customised bed rails for people with disabilities

63

 

bed cradles

64

 

bed restraints

65

 

bed poles and sticks

66

 

pressure management mattresses and overlays

67

 

backrests, leg rests and footboards for bed use

68

Mobility of people with disabilities—physical: orthoses

spinal orthoses

69

 

lower limb orthoses

70

 

upper limb orthoses

71

 

pressure management garments and lymphoedema pumps

72

 

callipers

73

 

corsets (surgical)

74

 

handsplints and cervical collars

75

 

mandibular advancement splints

76

Mobility of people with disabilities—physical: positioning aids

alternative positional seating corner chairs

77

 

alternative positional seating abduction cushions or long leg wedges

78

 

alternative positional seating modifications

79

 

standing frames

80

 

standing frames or tilt table modifications

81

 

side lying boards

82

 

night-time positioning equipment modifications

83

Mobility of people with disabilities—physical: prostheses

artificial limbs and associated supplements and aids

84

 

mammary

85

Mobility of people with disabilities—physical: seating aids

postural support seating trays

86

 

electrically operated therapeutic lounge/recliner chairs specifically designed for people with disabilities

87

 

cushions specifically designed for people with disabilities

88

Mobility of people with disabilities—physical: transfer aids

manual, electric, ceiling track or pool hoists specifically designed for people with disabilities

89

 

hoist slings

90

 

goosenecks

91

 

transfer boards

92

 

transfer sheets, mats or belts

93

 

stairlifts

94

 

portable stair climbers

95

 

monkey rings for people with disabilities

96

Mobility of people with disabilities—physical: walking aids

crutches

97

 

walking sticks—specialised

98

 

walking frames—standard adult

99

 

walking frames—standard child

100

 

walking frames—specialised

101

 

walking frame modifications

102

 

specialised ambulatory orthoses

103

 

specialised ambulatory orthosis modifications

104

 

quadrupod and tripod walking aids

105

Mobility of people with disabilities—physical: wheelchairs and accessories

wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities

106

 

accessories associated with wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities

107

 

battery chargers for wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities

108

 

stair-aid apparatuses designed for carrying people with disabilities in wheelchairs up or down stairs

109

Pain relief delivery systems

syringe drivers

110

 

patient control analgesia

111

Personal hygiene for people with disabilities

bathboards or toilet seats for people with disabilities

112

 

bath supports

113

 

shower chairs or stools

114

 

shower supports

115

 

shower trolleys

116

 

mobile shower chairs

117

 

commodes

118

 

commode cushions

119

 

commode pans

120

 

toilet frames

121

 

toilet supports

122

 

self-help poles

123

Respiratory appliances

ventilators

124

 

continuous positive airway pressure (CPAP) appliances

125

 

respiratory appliance mask assemblies—complete

126

 

respiratory appliance mask assemblies—components

127

 

respiratory appliance accessories

128

 

sleep apnoea machines

129

Respiratory appliances—other products for those with breathing difficulties:

peak flow meters

130

 

nebulisers

131

 

spacers

132

 

vaporisers

133

 

respirators

134

 

air pumps

135

 

bottled oxygen and associated hardware

136

 

oxygen concentrators

137

 

breathing monitors

138

 

ventilators

139

Safety helmets specifically designed for people with disabilities

safety helmets specifically designed for people with disabilities

140

Skin

jobst suits

141

 

transcutaneous nerve stimulator machines

142

Stoma

stoma products including all bags and related equipment for patients with colostomies and ileostomies

143

Vision

tactile or Braille books, magazines or newspapers

144

 

electronic reading aids

145

 

talking book machines (and parts) specifically designed for people with a vision impairment

146

 

enlarged text computer monitors for people with a visual impairment

147

 

Braille note takers

148

 

Braille printers and paper

149

 

Braille translators (hardware and software)

150

 

money identification equipment

151

 

auditory/tactile alerting devices

152

 

sonar canes

153

 

reading magnification devices (excluding magnifying glasses)

154

 

artificial eyes

155

 

lenses for prescription spectacles

156

 

prescription contact lenses

157

 

ultrasonic sensing devices specifically designed for use by people with a vision impairment

158

 

viewscan apparatus specifically designed for use by people with a vision impairment