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

 

 

 

 

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

 

No. 55, 1999



 

 

 

 

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

 

No. 55, 1999

 

 

 

 

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............................................ 3

Part 1-2—Using this Act                                                                                                       4

Division 2—Overview of the GST legislation                                                   4

2-1......... What this Act is about........................................................................ 4

2-5......... The basic rules (Chapter 2)................................................................ 4

2-10....... The exemptions (Chapter 3)............................................................... 5

2-15....... The special rules (Chapter 4)............................................................. 5

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

2-25....... Interpretative provisions (Chapter 6)................................................ 5

2-30....... Administration, collection and recovery provisions (Part VI of the Taxation Administration Act 1953 )                5

Division 3—Defined terms                                                                                         6

3-1......... When defined terms are identified...................................................... 6

3-5......... When terms are not identified............................................................. 6

3-10....... Identifying the defined term in a definition........................................ 7

Division 4—Status of Guides and other non-operative material            8

4-1......... Non-operative material....................................................................... 8

4-5......... Explanatory sections.......................................................................... 8

4-10....... Other material..................................................................................... 8

Chapter 2—The basic rules                                                                                  9

Division 5—Introduction                                                                                             9

5-1......... What this Chapter is about................................................................. 9

5-5......... The structure of this Chapter............................................................. 9

Part 2-1—The central provisions                                                                                  11

Division 7—The central provisions                                                                     11

7-1......... GST and input tax credits................................................................. 11

7-5......... Net amounts..................................................................................... 11

7-10....... Tax periods....................................................................................... 11

7-15....... Payments and refunds...................................................................... 11

Part 2-2—Supplies and acquisitions                                                                            13

Division 9—Taxable supplies                                                                                  13

9-1......... What this Division is about.............................................................. 13

Subdivision 9-A—What are taxable supplies?                                                      13

9-5......... Taxable supplies............................................................................... 13

9-10....... Meaning of supply ............................................................................ 14

9-15....... Consideration.................................................................................... 14

9-20....... Enterprises........................................................................................ 15

9-25....... Supplies connected with Australia................................................... 16

9-30....... Supplies that are GST-free or input taxed........................................ 17

9-39....... Special rules relating to taxable supplies.......................................... 18

Subdivision 9-B—Who is liable for GST on taxable supplies?                          19

9-40....... Liability for GST on taxable supplies.............................................. 19

9-69....... Special rules relating to liability for GST on taxable supplies.......... 19

Subdivision 9-C—How much GST is payable on taxable supplies?                   20

9-70....... The amount of GST on taxable supplies.......................................... 20

9-75....... The value of taxable supplies........................................................... 20

9-80....... The value of taxable supplies that are partly GST-free or input taxed 21

9-99....... Special rules relating to the amount of GST on taxable supplies..... 21

Division 11—Creditable acquisitions                                                                  22

11-1....... What this Division is about.............................................................. 22

11-5....... What is a creditable acquisition?....................................................... 22

11-10..... Meaning of acquisition ..................................................................... 22

11-15..... Meaning of creditable purpose ......................................................... 23

11-20..... Who is entitled to input tax credits for creditable acquisitions?....... 23

11-25..... How much are the input tax credits for creditable acquisitions?...... 24

11-30..... Acquisitions that are partly creditable............................................. 24

11-99..... Special rules relating to acquisitions................................................. 25

Part 2-3—Importations                                                                                                       27

Division 13—Taxable importations                                                                      27

13-1....... What this Division is about.............................................................. 27

13-5....... What are taxable importations?........................................................ 27

13-10..... Meaning of non-taxable importation ................................................ 27

13-15..... Who is liable for GST on taxable importations?............................... 28

13-20..... How much GST is payable on taxable importations?...................... 28

13-25..... The value of taxable importations that are partly non-taxable importations           28

13-99..... Special rules relating to taxable importations................................... 29

Division 15—Creditable importations                                                                30

15-1....... What this Division is about.............................................................. 30

15-5....... What are creditable importations?.................................................... 30

15-10..... Meaning of creditable purpose ......................................................... 30

15-15..... Who is entitled to input tax credits for creditable importations?..... 31

15-20..... How much are the input tax credits for creditable importations?.... 31

15-25..... Importations that are partly creditable............................................. 31

15-99..... Special rules relating to creditable importations............................... 32

Part 2-4—Net amounts and adjustments                                                                  33

Division 17—Net amounts and adjustments                                                   33

17-1....... What this Division is about.............................................................. 33

17-5....... Net amounts..................................................................................... 33

17-10..... Adjustments..................................................................................... 34

17-99..... Special rules relating to net amounts or adjustments........................ 34

Division 19—Adjustment events                                                                          36

19-1....... What this Division is about.............................................................. 36

19-5....... Explanation of the effect of adjustment events................................ 36

Subdivision 19-A—Adjustment events                                                                   37

19-10..... Adjustment events............................................................................ 37

Subdivision 19-B—Adjustments for supplies                                                       38

19-40..... Where adjustments for supplies arise............................................... 38

19-45..... Previously attributed GST amounts................................................. 39

19-50..... Increasing adjustments for supplies................................................. 39

19-55..... Decreasing adjustments for supplies................................................ 39

Subdivision 19-C—Adjustments for acquisitions                                                39

19-70..... Where adjustments for acquisitions arise......................................... 39

19-75..... Previously attributed input tax credit amounts................................ 40

19-80..... Increasing adjustments for acquisitions............................................ 40

19-85..... Decreasing adjustments for acquisitions........................................... 41

Division 21—Bad debts                                                                                              42

21-1....... What this Division is about.............................................................. 42

21-5....... Writing off bad debts (taxable supplies)........................................... 42

21-10..... Recovering amounts previously written off (taxable supplies)........ 42

21-15..... Bad debts written off (creditable acquisitions)................................. 43

21-20..... Recovering amounts previously written off (creditable acquisitions) 43

21-99..... Special rules relating to adjustments for bad debts........................... 44

Part 2-5—Registration                                                                                                        45

Division 23—Who is required to be registered and who may be registered       45

23-1....... Explanation of Division.................................................................... 45

23-5....... Who is required to be registered....................................................... 46

23-10..... Who may be registered..................................................................... 46

23-15..... The registration turnover threshold.................................................. 46

23-99..... Special rules relating to who is required to be registered or who may be registered                46

Division 25—How you become registered, and how your registration can be cancelled              48

Subdivision 25-A—How you become registered                                                   48

25-1....... When you must apply for registration............................................. 48

25-5....... When the Commissioner must register you...................................... 48

25-10..... The date of effect of your registration.............................................. 49

25-15..... Effect of backdating your registration.............................................. 50

25-49..... Special rules relating to registration.................................................. 50

Subdivision 25-B—How your registration can be cancelled                              50

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

25-55..... When the Commissioner must cancel registration............................ 51

25-60..... The date of effect of your cancellation............................................. 51

25-65..... Effect of backdating your cancellation of registration...................... 52

25-99..... Special rules relating to cancellation of registration.......................... 52

Part 2-6—Tax periods                                                                                                         53

Division 27—How to work out the tax periods that apply to you        53

27-1....... What this Division is about.............................................................. 53

27-5....... General rule—3 month tax periods................................................... 53

27-10..... Election of one month tax periods.................................................... 53

27-15..... Determination of one month tax periods.......................................... 54

27-20..... Withdrawing elections of one month tax periods............................. 55

27-25..... Revoking determinations of one month tax periods......................... 55

27-30..... Tax periods determined by the Commissioner to take account of changes in tax periods       56

27-35..... Changing the days on which your tax periods end........................... 56

27-37..... Special determination of tax periods on request............................... 57

27-38..... Revoking special determination of tax periods................................. 57

27-40..... An entity’s concluding tax period.................................................... 58

27-99..... Special rules relating to tax periods.................................................. 58

Division 29—What is attributable to tax periods                                          59

29-1....... What this Division is about.............................................................. 59

Subdivision 29-A—The attribution rules                                                              59

29-5....... Attributing the GST on your taxable supplies................................. 59

29-10..... Attributing the input tax credits for your creditable acquisitions.... 60

29-15..... Attributing the input tax credits for your creditable importations... 61

29-20..... Attributing your adjustments........................................................... 61

29-25..... Commissioner may determine particular attribution rules............... 62

29-39..... Special rules relating to attribution rules.......................................... 63

Subdivision 29-B—Accounting on a cash basis                                                   64

29-40..... Choosing to account on a cash basis................................................. 64

29-45..... Permission to account on a cash basis.............................................. 65

29-50..... Ceasing to account on a cash basis................................................... 65

Subdivision 29-C—Tax invoices and adjustment notes                                       66

29-70..... Tax invoices...................................................................................... 66

29-75..... Adjustment notes............................................................................. 67

29-80..... Tax invoices and adjustment notes not required for low value transactions            68

29-99..... Special rules relating to tax invoices and adjustment notes.............. 68

Part 2-7—Returns, payments and refunds                                                              69

Division 31—GST returns                                                                                         69

31-1....... What this Division is about.............................................................. 69

31-5....... Who must give GST returns............................................................. 69

31-10..... When GST returns must be given..................................................... 69

31-15..... The form and contents of GST returns............................................ 70

31-20..... Additional GST returns.................................................................... 70

31-25..... Electronic lodgment of GST returns................................................. 70

31-30..... Signing GST returns.......................................................................... 71

31-99..... Special rules relating to GST returns................................................ 71

Division 33—Payments of GST                                                                              73

33-1....... What this Division is about.............................................................. 73

33-5....... When payments of net amounts must be made................................ 73

33-10..... How payments of net amounts are made......................................... 73

33-15..... Payments of amounts of GST on importations............................... 74

33-20..... Commissioner may extend time for payment................................... 74

33-25..... Commissioner may bring forward payment date if you are about to leave Australia             74

33-30..... Net amounts etc. a debt due to the Commonwealth......................... 75

33-99..... Special rules relating to payments of GST....................................... 75

Division 35—Refunds                                                                                                  76

35-1....... What this Division is about.............................................................. 76

35-5....... When refunds must be made............................................................. 76

35-10..... How refunds are made...................................................................... 76

35-99..... Special rules relating to refunds........................................................ 77

Part 2-8—Checklist of special rules                                                                            78

Division 37—Checklist of special rules                                                             78

37-1....... Checklist of special rules.................................................................. 78

Chapter 3—The exemptions                                                                              80

Part 3-1—Supplies that are not taxable supplies                                                 80

Division 38—GST-free supplies                                                                            80

38-1....... What this Division is about.............................................................. 80

Subdivision 38-A—Food                                                                                            81

38-2....... Food.................................................................................................. 81

38-3....... Food that is not GST-free................................................................ 81

38-4....... Meaning of food ................................................................................ 82

38-5....... Premises used in supplying food...................................................... 82

38-6....... Packaging of food.............................................................................. 83

Subdivision 38-B—Health                                                                                        83

38-7....... Medical services............................................................................... 83

38-10..... Other health services........................................................................ 84

38-15..... Other government funded health services......................................... 86

38-20..... Hospital treatment............................................................................ 86

38-25..... Residential care etc........................................................................... 87

38-30..... Community care etc.......................................................................... 88

38-35..... Flexible care...................................................................................... 88

38-40..... Specialist disability services............................................................. 89

38-45..... Medical aids and appliances............................................................. 89

38-47..... Other GST-free health goods............................................................ 89

38-50..... Drugs and medicinal preparations etc............................................... 90

38-55..... Private health insurance etc.............................................................. 91

Subdivision 38-C—Education                                                                                   91

38-85..... Education courses............................................................................. 91

38-90..... Excursions or field trips.................................................................... 91

38-95..... Course materials............................................................................... 92

38-100... Supplies that are not GST-free......................................................... 92

38-105... Accommodation at boarding schools etc.......................................... 92

38-110... Recognition of prior learning etc....................................................... 93

Subdivision 38-D—Child care                                                                                 94

38-140... Child care—suppliers registered under the Childcare Rebate Act.... 94

38-145... Child care—eligible child care centres............................................... 94

38-150... Other child care................................................................................. 94

38-155... Supplies directly related to child care that is GST-free.................... 95

Subdivision 38-E—Exports and other supplies for consumption outside Australia             95

38-185... Exports of goods............................................................................... 95

38-190... Supplies of things, other than goods or real property, for consumption outside Australia    97

Subdivision 38-F—Religious services                                                                   99

38-220... Religious services.............................................................................. 99

Subdivision 38-G—Non-commercial activities of charitable institutions etc. 99

38-250... Nominal consideration etc................................................................ 99

38-255... Second-hand goods........................................................................... 99

Subdivision 38-H—Raffles and bingo conducted by charitable institutions etc.   100

38-270... Raffles and bingo conducted by charitable institutions etc............ 100

Subdivision 38-I—Water and sewerage                                                               100

38-285... Water.............................................................................................. 100

38-290... Sewerage......................................................................................... 101

38-295... Emptying of septic tanks............................................................... 101

Subdivision 38-J—Supplies of going concerns                                                  101

38-325... Supply of a going concern.............................................................. 101

Subdivision 38-K—Transport and related matters                                            102

38-355... Supplies of transport and related matters...................................... 102

Subdivision 38-L—Precious metals                                                                     103

38-385... Supplies of precious metals............................................................ 103

Subdivision 38-M—Supplies through inwards duty free shops                       103

38-415... Supplies through inwards duty free shops..................................... 103

Subdivision 38-N—Grants of freehold and similar interests by governments 104

38-445... Grants of freehold and similar interests by governments............... 104

Subdivision 38-O—Farm land                                                                                104

38-475... Subdivided farm land...................................................................... 104

38-480... Farm land supplied for farming...................................................... 105

Subdivision 38-P—Cars for use by disabled people                                           105

38-505... Disabled veterans............................................................................ 105

38-510... Other disabled people..................................................................... 106

Division 40—Input taxed supplies                                                                     108

40-1....... What this Division is about............................................................ 108

Subdivision 40-A—Financial supplies                                                                 108

40-5....... Financial supplies........................................................................... 108

Subdivision 40-B—Residential rent                                                                     111

40-35..... Residential rent............................................................................... 111

Subdivision 40-C—Residential premises                                                            112

40-65..... Sales of residential premises........................................................... 112

40-70..... Supplies of residential premises by way of long-term lease.......... 112

Subdivision 40-D—Precious metals                                                                     112

40-100... Precious metals............................................................................... 112

Subdivision 40-E—School tuckshops and canteens                                           113

40-130... School tuckshops and canteens...................................................... 113

Part 3-2—Non-taxable importations                                                                         114

Division 42—Non-taxable importations                                                           114

42-1....... What this Division is about............................................................ 114

42-5....... Non-taxable importations—Schedule 4 to the Customs Tariff Act 1995 114

42-10..... Ship and aircraft stores................................................................... 114

42-15..... Goods imported or purchased by overseas travellers.................... 114

Chapter 4—The special rules                                                                         116

Division 45—Introduction                                                                                       116

45-1....... What this Chapter is about............................................................. 116

45-5....... The effect of special rules............................................................... 116

Part 4-1—Special rules mainly about particular ways entities are organised            117

Division 48—GST groups                                                                                        117

48-1....... What this Division is about............................................................ 117

Subdivision 48-A—Approval of GST groups                                                       117

48-5....... Approval of GST groups............................................................... 117

48-10..... Membership requirements of a GST group.................................... 118

Subdivision 48-B—Consequences of approval of GST groups                         119

48-40..... Who is liable for GST..................................................................... 119

48-45..... Who is entitled to input tax credits................................................ 119

48-50..... Adjustments................................................................................... 120

48-55..... GST groups treated as single entities for certain purposes............ 121

48-60..... GST returns.................................................................................... 121

Subdivision 48-C—Administrative matters                                                        121

48-70..... Changing the membership etc. of GST groups............................... 121

48-75..... Revoking the approval of GST groups........................................... 122

48-80..... Notification by representative members........................................ 123

48-85..... Date of effect of approvals and revocations................................... 123

48-90..... Notification by the Commissioner................................................. 123

Division 51—GST joint ventures                                                                        125

51-1....... What this Division is about............................................................ 125

Subdivision 51-A—Approval of GST joint ventures                                           125

51-5....... Approval of GST joint ventures.................................................... 125

51-10..... Participation requirements of a GST joint venture......................... 126

Subdivision 51-B—Consequences of approval of GST joint ventures            126

51-30..... Who is liable for GST..................................................................... 126

51-35..... Who is entitled to input tax credits................................................ 127

51-40..... Adjustments................................................................................... 127

51-45..... Additional net amounts relating to GST joint ventures.................. 128

51-50..... GST returns relating to GST joint ventures................................... 128

51-55..... Payments of GST relating to GST joint ventures.......................... 129

51-60..... Refunds relating to GST joint ventures.......................................... 129

Subdivision 51-C—Administrative matters                                                        130

51-70..... Changing the participants etc. of GST joint ventures.................... 130

51-75..... Revoking the approval of GST joint ventures................................ 131

51-80..... Notification by joint venture operators.......................................... 131

51-85..... Date of effect of approvals and revocations................................... 132

51-90..... Notification by the Commissioner................................................. 132

Division 54—GST branches                                                                                   133

54-1....... What this Division is about............................................................ 133

Subdivision 54-A—Registration of GST branches                                            133

54-5....... Registration of GST branches......................................................... 133

54-10..... The date of effect of registration of a GST branch......................... 134

54-15..... GST branch registration number..................................................... 134

Subdivision 54-B—Consequences of registration of GST branches              135

54-40..... Additional net amounts relating to GST branches.......................... 135

54-45..... Net amounts of parent entities....................................................... 136

54-50..... Tax invoices and adjustment notes................................................. 137

54-55..... GST returns relating to GST branches........................................... 137

54-60..... Payments of GST relating to GST branches.................................. 137

54-65..... Refunds relating to GST branches.................................................. 138

Subdivision 54-C—Cancellation of registration of GST branches                 138

54-70..... When an entity must apply for cancellation of registration of a GST branch         138

54-75..... When the Commissioner must cancel registration of a GST branch 139

54-80..... The date of effect of cancellation of registration of a GST branch. 139

54-85..... Application of Subdivision 25-B.................................................... 140

54-90..... Effect on GST branches of cancelling the entity’s registration...... 140

Division 57—Resident agents acting for non-residents                         141

57-1....... What this Division is about............................................................ 141

57-5....... Who is liable for GST..................................................................... 141

57-10..... Who is entitled to input tax credits................................................ 141

57-15..... Adjustments................................................................................... 142

57-20..... Resident agents are required to be registered.................................. 142

57-25..... Cancellation of registration of a resident agent............................... 142

57-30..... Notice of cessation of agency......................................................... 143

57-35..... Tax periods of resident agents........................................................ 143

57-40..... GST returns for non-residents........................................................ 143

57-45..... Resident agents giving GST returns................................................ 144

57-50..... Non-residents that belong to GST groups...................................... 144

Division 60—Pre-establishment costs                                                             145

60-1....... What this Division is about............................................................ 145

60-5....... Input tax credit for acquisitions and importations before establishment 145

60-10..... Registration etc. not needed for input tax credits........................... 145

60-15..... Pre-establishment acquisitions and importations........................... 146

60-20..... Creditable purpose......................................................................... 147

60-25..... Attributing the input tax credit for pre-establishment acquisitions 147

60-30..... Attributing the input tax credit for pre-establishment importations 148

60-35..... Application of Division 129........................................................... 149

Part 4-2—Special rules mainly about supplies and acquisitions                150

Division 66—Second-hand goods                                                                        150

66-1....... What this Division is about............................................................ 150

66-5....... Creditable acquisitions of second-hand goods................................ 150

66-10..... Amounts of input tax credits for creditable acquisitions of second-hand goods     151

66-15..... Attributing input tax credits for creditable acquisitions of second-hand goods       151

66-20..... Returnable containers..................................................................... 152

Division 69—Non-deductible expenses                                                          153

69-1....... What this Division is about............................................................ 153

69-5....... Non-deductible expenses do not give rise to creditable acquisitions or creditable importations             153

69-10..... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars       154

Division 70—Financial supplies (reduced credit acquisitions)            155

70-1....... What this Division is about............................................................ 155

70-5....... Acquisitions that attract the reduced credit.................................... 155

70-10..... Extended meaning of creditable purpose ........................................ 155

70-15..... How much are the reduced input tax credits?................................. 156

70-20..... Extent of creditable purpose........................................................... 156

70-25..... Sale of reduced credit acquisitions (Division 132).......................... 157

Division 72—Associates                                                                                          159

72-1....... What this Division is about............................................................ 159

Subdivision 72-A—Supplies without consideration                                           159

72-5....... Taxable supplies without consideration......................................... 159

72-10..... The value of taxable supplies without consideration..................... 159

72-15..... Attributing the GST to tax periods................................................ 160

Subdivision 72-B—Acquisitions without consideration                                   160

72-40..... Creditable acquisitions without consideration................................ 160

72-45..... The amount of the input tax credit................................................. 160

72-50..... Attributing the input tax credit to tax periods................................ 161

Subdivision 72-C—Supplies for inadequate consideration                              161

72-70..... The value of taxable supplies for inadequate consideration........... 161

Division 75—Sale of freehold interests etc.                                                  162

75-1....... What this Division is about............................................................ 162

75-5....... Choosing to apply the margin scheme............................................ 162

75-10..... The amount of GST on taxable supplies........................................ 162

75-15..... Subdivided land............................................................................... 164

75-20..... Supplies under a margin scheme do not give rise to creditable acquisitions            164

75-25..... Adjustments relating to bad debts.................................................. 164

Division 78—Insurance                                                                                            166

78-1....... What this Division is about............................................................ 166

Subdivision 78-A—Insurers                                                                                  166

78-5....... Creditable acquisitions relating to settlements of insurance claims 166

78-10..... Amount of input tax credits relating to settlements of insurance claims 167

78-15..... Acquisitions of goods by insurers in the course of settling claims. 168

Subdivision 78-B—Insured entities                                                                      168

78-30..... Taxable supplies relating to settlements of insurance claims......... 168

78-35..... Payments of excess under insurance policies are not consideration for supplies    169

78-40..... Effect of payments of excess under insurance policies on amounts of GST           169

78-45..... Supplies of goods to insurers in the course of settling claims........ 169

78-50..... Settlements of claims relating to non-creditable insurance events.. 170

Subdivision 78-C—Third parties                                                                          170

78-65..... Payments etc. to third parties by insurers..................................... 170

78-70..... Payments etc. to third parties by insured entities.......................... 171

Subdivision 78-D—Insured entities that are not registered etc.                     171

78-80..... Net amounts................................................................................... 171

78-85..... GST returns.................................................................................... 172

78-90..... Payments of GST........................................................................... 172

Division 81—Payments of taxes                                                                          174

81-1....... What this Division is about............................................................ 174

81-5....... Payments of taxes can constitute consideration............................. 174

81-10..... Supplies need not be connected with Australia if the consideration is the payment of tax    174

Division 84—Offshore supplies other than goods or real property 176

84-1....... What this Division is about............................................................ 176

84-5....... Intangible supplies from offshore may be taxable supplies........... 176

84-10..... “Reverse charge” on offshore intangible supplies.......................... 177

84-15..... Transfers etc. between branches of the same entity....................... 177

Division 87—Long-term accommodation in commercial residential premises 178

87-1....... What this Division is about............................................................ 178

87-5....... Commercial residential premises that are predominantly for long-term accommodation        178

87-10..... Commercial residential premises that are not predominantly for long-term accommodation  178

87-15..... Meaning of commercial accommodation ........................................ 179

87-20..... Meaning of long-term accommodation etc..................................... 179

87-25..... Suppliers may choose not to apply this Division.......................... 180

Division 90—Company amalgamations                                                            181

90-1....... What this Division is about............................................................ 181

90-5....... Supplies not taxable—amalgamated company registered or required to be registered             181

90-10..... Value of taxable supplies—amalgamated company not registered or required to be registered               181

90-15..... Acquisitions not creditable—amalgamated company registered or required to be registered  182

90-20..... Liability after amalgamation for GST on amalgamating company’s supplies         182

90-25..... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions             182

90-30..... Adjustments................................................................................... 183

90-35..... Amalgamating companies accounting on a cash basis..................... 183

Division 93—Returnable containers                                                                 185

93-1....... What this Division is about............................................................ 185

93-5....... Creditable acquisitions of returnable containers............................. 185

93-10..... How much are the input tax credits for creditable acquisitions of returnable containers?       185

93-15..... Attributing creditable acquisitions of returnable containers........... 186

93-20..... Ownership of returnable containers............................................... 187

Division 96—Supplies partly connected with Australia                           188

96-1....... What this Division is about............................................................ 188

96-5....... Supplies that are only partly connected with Australia................. 188

96-10..... The value of the taxable components of supplies that are only partly connected with Australia          189

Division 99—Deposits as security                                                                      190

99-1....... What this Division is about............................................................ 190

99-5....... Giving a deposit as security does not constitute consideration..... 190

99-10..... Attributing the GST relating to deposits that are forfeited etc...... 190

Division 102—Cancelled lay-by sales                                                               191

102-1..... What this Division is about............................................................ 191

102-5..... Cancelled lay-by sales.................................................................... 191

102-10... Attributing GST and input tax credits............................................ 191

Division 105—Supplies in satisfaction of debts                                           193

105-1..... What this Division is about............................................................ 193

105-5..... Supplies by creditors in satisfaction of debts may be taxable supplies  193

105-10... Net amounts................................................................................... 194

105-15... GST returns.................................................................................... 194

105-20... Payments of GST........................................................................... 195

Division 108—Valuation of taxable supplies of goods in bond            196

108-1..... What this Division is about............................................................ 196

108-5..... Taxable supplies of goods in bond etc............................................ 196

Division 111—Reimbursement of employees etc.                                     197

111-1..... What this Division is about............................................................ 197

111-5..... Creditable acquisitions relating to reimbursements........................ 197

111-10... Amounts of input tax credits relating to reimbursements.............. 198

111-15... Tax invoices relating to reimbursements......................................... 199

Part 4-3—Special rules mainly about importations                                           200

Division 114—Importations without entry for home consumption   200

114-1..... What this Division is about............................................................ 200

114-5..... Importations without entry for home consumption...................... 200

Division 117—Importations of goods that were exported for repair or renovation         204

117-1..... What this Division is about............................................................ 204

117-5..... Valuation of taxable importations of goods that were exported for repair or renovation        204

117-10... The value of repairs and renovations.............................................. 205

Part 4-4—Special rules mainly about net amounts and adjustments      206

Division 126—Gambling                                                                                          206

126-1..... What this Division is about............................................................ 206

126-5..... Global accounting system for gambling supplies........................... 206

126-10... Global GST amounts...................................................................... 207

126-15... Losses carried forward.................................................................... 208

126-20... Bad debts........................................................................................ 208

126-25... Application of Subdivision 9-C...................................................... 209

126-30... Gambling supplies do not give rise to creditable acquisitions........ 209

126-32... Repayments of gambling losses are not consideration................... 209

126-33... Tax invoices not required for gambling supplies............................ 209

126-35... Meaning of gambling supply and gambling event .......................... 209

Division 129—Changes in the extent of creditable purpose                211

129-1..... What this Division is about............................................................ 211

Subdivision 129-A—General                                                                                 211

129-5..... Adjustments arising under this Division........................................ 211

129-10... Adjustments do not arise under this Division for acquisitions and importations below a certain value 212

Subdivision 129-B—Adjustment periods                                                             212

129-20... Adjustment periods........................................................................ 212

129-25... Effect on adjustment periods of things being disposed of etc........ 214

Subdivision 129-C—When adjustments for acquisitions and importations arise               215

129-40... Working out whether you have an adjustment............................... 215

129-45... Gifts to gift-deductible entities....................................................... 216

129-50... Creditable purpose......................................................................... 216

129-55... Meaning of apply ............................................................................ 217

Subdivision 129-D—Amounts of adjustments for acquisitions and importations                217

129-70... The amount of an increasing adjustment........................................ 217

129-75... The amount of a decreasing adjustment.......................................... 218

129-80... Effect of adjustments under Division 19........................................ 218

Subdivision 129-E—Attributing adjustments under this Division                 219

129-90... Attributing your adjustments for changes in extent of creditable purpose              219

Division 132—Supplies of things acquired, imported or applied to make financial supplies      220

132-1..... What this Division is about............................................................ 220

132-5..... Decreasing adjustments for supplies of things acquired, imported or applied to make financial supplies             220

132-10... Attribution of adjustments under this Division............................. 221

Division 135—Supplies of going concerns                                                     223

135-1..... What this Division is about............................................................ 223

135-5..... Initial adjustments for supplies of going concerns......................... 223

135-10... Later adjustments for supplies of going concerns.......................... 224

Division 138—Cessation of registration                                                         225

138-1..... What this Division is about............................................................ 225

138-5..... Adjustments for cessation of registration....................................... 225

138-10... Attributing adjustments for cessation of registration..................... 226

138-15... Ceasing to be registered—amounts not previously attributed....... 226

138-20... Application of Division 129........................................................... 227

Part 4-5—Special rules mainly about registration                                             228

Division 144—Taxis                                                                                                   228

144-1..... What this Division is about............................................................ 228

144-5..... Requirement to register................................................................... 228

Division 147—Representatives of incapacitated entities                      229

147-1..... What this Division is about............................................................ 229

147-5..... Representatives are required to be registered................................. 229

147-10... Cancellation of registration of a representative.............................. 229

147-15... Notice of cessation of representation............................................. 230

147-20... Adjustments................................................................................... 230

Part 4-6—Special rules mainly about tax periods                                              231

Division 153—Agents                                                                                               231

153-1..... What this Division is about............................................................ 231

153-5..... Attributing the input tax credits for your creditable acquisitions.. 231

153-10... Attributing your adjustments......................................................... 232

153-15... Tax invoices.................................................................................... 232

153-20... Adjustment notes........................................................................... 233

Division 156—Supplies and acquisitions made on a progressive or periodic basis         234

156-1..... What this Division is about............................................................ 234

156-5..... Attributing the GST on progressive or periodic supplies.............. 234

156-10... Attributing the input tax credits on progressive or periodic acquisitions                234

156-15... Progressive or periodic supplies partly connected with Australia. 235

156-20... Application of Division 129 to progressive or periodic acquisitions 235

156-25... Accounting on a cash basis............................................................. 235

Division 159—Changing your accounting basis                                          236

159-1..... What this Division is about............................................................ 236

159-5..... Ceasing to account on a cash basis—amounts not previously attributed                236

159-10... Ceasing to account on a cash basis—amounts partly attributed.... 237

159-15... Ceasing to account on a cash basis—bad debts.............................. 238

159-20... Starting to account on a cash basis................................................. 239

159-25... Starting to account on a cash basis—bad debts.............................. 239

159-30... Entities ceasing to exist or coming into existence........................... 240

Part 4-7—Special rules mainly about returns, payments and refunds   241

Division 165—Anti-avoidance                                                                              241

165-1..... What this Division is about............................................................ 241

Subdivision 165-A—Application of this Division                                               242

165-5..... When does this Division operate?.................................................. 242

165-10... When does an entity get a GST benefit from a scheme?................. 243

165-15... Matters to be considered in determining purpose or effect............ 244

Subdivision 165-B—Commissioner may negate effects of schemes for GST benefits       246

165-40... Commissioner may negate avoider’s GST benefits........................ 246

165-45... Commissioner may reduce an entity’s net amount or GST to compensate            246

165-50... GST or refund payable in accordance with declaration.................. 248

165-55... Commissioner may disregard scheme in making declarations......... 248

165-60... One declaration may cover several tax periods and importations.. 248

165-65... Commissioner must give copy of declaration to entity affected.... 249

Subdivision 165-C—Penalties for getting GST benefits from schemes        249

165-80... Penalty............................................................................................ 249

Division 168—Tourist refund scheme                                                              251

168-1..... What this Division is about............................................................ 251

168-5..... Tourist refund scheme.................................................................... 251

Division 171—Customs security etc. given on taxable importations 252

171-1..... What this Division is about............................................................ 252

171-5..... Security or undertaking given under section 162 or 162A of the Customs Act      252

Chapter 5—Miscellaneous                                                                                253

Part 5-1—Miscellaneous                                                                                                 253

Division 177—Miscellaneous                                                                               253

177-1..... Commonwealth etc. not liable to pay GST.................................... 253

177-3..... Acquisitions from State or Territory bodies where GST liability is notional         254

177-5..... Cancellation of exemptions from GST........................................... 254

177-10... Ministerial determinations.............................................................. 255

177-15... Regulations..................................................................................... 255

Chapter 6—Interpreting this Act                                                                257

Part 6-1—Rules for interpreting this Act                                                               257

Division 182—Rules for interpreting this Act                                             257

182-1..... What forms part of this Act........................................................... 257

182-5..... What does not form part of this Act.............................................. 257

182-10... Explanatory sections, and their role in interpreting this Act.......... 258

182-15... Schedules 1 and 2............................................................................ 259

Part 6-2—Meaning of some important concepts                                                260

Division 184—Meaning of entity                                                                         260

184-1..... Entities............................................................................................ 260

Division 186—Meaning of approved form                                                     262

186-1..... Approved forms............................................................................. 262

Division 188—Meaning of annual turnover                                                   263

188-1..... What this Division is about............................................................ 263

188-5..... Explanation of the turnover thresholds.......................................... 263

188-10... Whether your annual turnover meets, or does not exceed, a turnover threshold     264

188-15... Current annual turnover.................................................................. 264

188-20... Projected annual turnover............................................................... 265

188-25... Transfer of capital assets, and termination etc. of enterprise, to be disregarded     266

188-30... The value of non-taxable supplies.................................................. 266

Division 190—90% owned groups of companies                                       268

190-1..... 90% owned groups......................................................................... 268

190-5..... When a company has at least a 90% stake in another company.... 268

Part 6-3—Dictionary                                                                                                          269

Division 195—Dictionary                                                                                         269

195-1..... Dictionary....................................................................................... 269

Schedule 1—Food that is not GST-free                                                297

1............ Food that is not GST-free.............................................................. 297

2............ Prepared food, bakery products and biscuit goods........................ 298

3............ Prepared meals................................................................................ 299

4............ Candied peel................................................................................... 299

5............ Goods that are not biscuit goods.................................................... 299

Schedule 2—Beverages that are GST-free                                       300

1............ Beverages that are GST-free........................................................... 300

2............ Tea, coffee etc................................................................................. 301

3............ Fruit and vegetable juices................................................................ 301

Schedule 3—Medical aids and appliances                                        302

 



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

No. 55, 1999

 

 

 

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

[ Assented to 8 July 1999 ]

The Parliament of Australia enacts:

Chapter 1 Introduction



Schedule 1 Food that is not GST-free

Note 1:    See section 38-3.

Note 2:    The second column of the table is not operative (see section 182-15).

   

1   Food that is not GST-free

                   * Food specified in the third column of the table is not GST-free.

 

Food that is not GST-free

Item

Category

Food

1

Prepared food

quiches

2

 

sandwiches (using any type of bread or roll)

3

 

pizzas, pizza subs, pizza pockets and similar * food

4

 

* food marketed as a prepared meal, but not including soup

5

 

platters etc. of cheese, cold cuts, fruit or vegetables and other arrangements of * food

6

 

hamburgers, chicken burgers and similar * food

7

 

hot dogs

8

Confectionery

confectionery, * food marketed as confectionery, food marketed as ingredients for confectionery or food consisting principally of confectionery

9

 

popcorn

10

 

confectionery novelties

11

 

* food known as muesli bars or health food bars, and similar foodstuffs

12

 

crystallised fruit, glace fruit and drained fruit

13

 

crystallised ginger and preserved ginger

14

 

edible cake decorations

15

Savoury snacks

potato crisps, sticks or straws, corn crisps or chips, bacon or pork crackling or prawn chips

16

 

seeds or nuts that have been processed or treated by salting, spicing, smoking or roasting, or in any other similar way

17

 

caviar and similar fish roe

18

 

* food similar to that covered by item 15 or 16, whether or not it consists wholly or partly of any vegetable, herb, fruit, meat, seafood or dairy product or extract and whether or not it is artificially flavoured

19

 

* food consisting principally of food covered by items 15 to 18

20

Bakery products

cakes, slices, cheesecakes, pancakes, waffles, crepes, muffins and puddings

21

 

pavlova and meringues

22

 

pies (meat, vegetable or fruit), pasties and sausage rolls

23

 

tarts and pastries

24

 

doughnuts and croissants

25

 

pastizzi, calzoni and brioche

26

 

scones and scrolls

27

 

bread (including buns) with a sweet filling or coating

28

Ice-cream food

ice-cream, ice-cream cakes, ice-creams and ice-cream substitutes

29

 

frozen confectionery, frozen yoghurt and frozen fruit products (but not frozen whole fruit)

30

 

flavoured iceblocks (whether or not marketed in a frozen state)

31

 

any * food similar to food listed in items 28 to 30

32

Biscuit goods

* food that is, or consists principally of, biscuits, cookies, crackers, pretzels, cones or wafers

2   Prepared food, bakery products and biscuit goods

                   For the purpose of determining whether particular * food is covered by any of the items in the table relating to the category of prepared food, bakery products or biscuit goods, it does not matter whether it is supplied hot or cold, or requires cooking, heating, thawing or chilling prior to consumption.

3   Prepared meals

                   Item 4 in the table only applies to * food that requires refrigeration or freezing for its storage.

4   Candied peel

                   None of the items in the table relating to the category of confectionery include candied peel.

5   Goods that are not biscuit goods

                   None of the items in the table relating to the category of biscuit goods include:

                     (a)  breakfast * food consisting principally of compressed, rolled or flattened cereal; or

                     (b)  rusks for infants or invalids, or goods consisting principally of those rusks.



Schedule 2 Beverages that are GST-free

Note 1:    See section 38-3.

Note 2:    The second column of the table is not operative (see section 182-15).

   

1   Beverages that are GST-free

* Beverages specified in the third column of the table are GST-free.

Beverages that are GST-free

Item

Category

Beverages

1

Milk products

any of the following products:

(a) milk, skim milk or buttermilk (whether liquid, powdered, concentrated or condensed);

(b) casein;

(c) whey, whey powder or whey paste

2

 

* beverages consisting of products referred to in item 1 (or a combination of those products), to the extent of at least 95%, but not including flavoured beverages

3

 

lactose

4

Soy milk and rice milk

* beverages consisting principally of soy milk or rice milk, but not including flavoured beverages

5

Tea, coffee etc.

tea (including herbal tea, fruit tea, ginseng tea and other similar * beverage preparations), coffee and coffee essence, chicory and chicory essence, and malt

6

 

malt extract, if it is marketed principally for drinking purposes

7

 

preparations for drinking purposes that are marketed principally as tea preparations, coffee preparations, or preparations for malted * beverages

8

 

preparations marketed principally as substitutes for preparations covered by item 6 or 7

9

 

dry preparations marketed for the purpose of flavouring milk

10

Fruit and vegetable juices

concentrates for making non-alcoholic * beverages, if the concentrates consist of at least 90% by volume of juices of fruits

11

 

non-alcoholic carbonated * beverages, if they consist wholly of juices of fruits or vegetables

12

 

non-alcoholic non-carbonated * beverages, if they consist of at least 90% by volume of juices of fruits or vegetables

13

Beverages for infants or invalids

* beverages, and ingredients for beverages, of a kind marketed principally as * food for infants or invalids

14

Water

bottled natural water, non-carbonated and without any other additives

2  Tea, coffee etc.

                   None of the items in the table relating to the category of tea, coffee etc. include any * beverage that is marketed in a ready-to-drink form.

3   Fruit and vegetable juices

                   For the purposes of items 11 and 12 in the table, herbage is treated as vegetables.



Schedule 3 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

 

 

 

[ Minister’s second reading speech made in—

House of Representatives on 2 December 1998

Senate on 10 December 1998 ]

 

 

(217/98)