text:
1-1 Short title
1-2 Commencement
1-3 Commonwealth-State financial relations
1-4 States and Territories are bound by the GST law
2-1 What this Act is about
2-5 The basic rules (Chapter 2)
2-10 The exemptions (Chapter 3)
2-15 The special rules (Chapter 4)
2-20 Miscellaneous (Chapter 5)
2-25 Interpretative provisions (Chapter 6)
2-30 Administration, collection and recovery provisions in the Taxation Administration Act 1953
3-1 When defined terms are identified
3-5 When terms are not identified
3-10 Identifying the defined term in a definition
4-1 Non-operative material
4-5 Explanatory sections
4-10 Other material
5-1 What this Chapter is about
5-5 The structure of this Chapter
7-1 GST and input tax credits
7-5 Net amounts
7-10 Tax periods
7-15 Payments and refunds
9-1 What this Division is about
9-5 Taxable supplies
9-10 Meaning of supply
9-15 Consideration
9-17 Certain payments and other things not consideration
9-20 Enterprises
9-25 Supplies connected with the indirect tax zone
9-26 Supplies by non-residents that are not connected with the indirect tax zone
9-27 When enterprises are carried on in the indirect tax zone
9-30 Supplies that are GST-free or input taxed
9-39 Special rules relating to taxable supplies
9-40 Liability for GST on taxable supplies
9-69 Special rules relating to liability for GST on taxable supplies
9-70 The amount of GST on taxable supplies
9-75 The value of taxable supplies
9-80 The value of taxable supplies that are partly GST-free or input taxed
9-85 Value of taxable supplies to be expressed in Australian currency
9-90 Rounding of amounts of GST
9-99 Special rules relating to the amount of GST on taxable supplies
11-1 What this Division is about
11-5 What is a creditable acquisition?
11-10 Meaning of acquisition
11-15 Meaning of creditable purpose
11-20 Who is entitled to input tax credits for creditable acquisitions?
11-25 How much are the input tax credits for creditable acquisitions?
11-30 Acquisitions that are partly creditable
11-99 Special rules relating to acquisitions
13-5 What are taxable importations?
13-10 Meaning of non-taxable importation
13-15 Who is liable for GST on taxable importations?
13-20 How much GST is payable on taxable importations?
13-25 The value of taxable importations that are partly non-taxable importations
13-99 Special rules relating to taxable importations
15-5 What are creditable importations?
15-15 Who is entitled to input tax credits for creditable importations?
15-20 How much are the input tax credits for creditable importations?
15-25 Importations that are partly creditable
15-99 Special rules relating to creditable importations
17-5 Net amounts
17-10 Adjustments
17-15 Working out net amounts using approved forms
17-20 Determinations relating to how to work out net amounts
17-99 Special rules relating to net amounts or adjustments
19-5 Explanation of the effect of adjustment events
19-10 Adjustment events
19-40 Where adjustments for supplies arise
19-45 Previously attributed GST amounts
19-50 Increasing adjustments for supplies
19-55 Decreasing adjustments for supplies
19-70 Where adjustments for acquisitions arise
19-75 Previously attributed input tax credit amounts
19-80 Increasing adjustments for acquisitions
19-85 Decreasing adjustments for acquisitions
19-99 Special rules relating to adjustment events
21-5 Writing off bad debts (taxable supplies)
21-10 Recovering amounts previously written off (taxable supplies)
21-15 Bad debts written off (creditable acquisitions)
21-20 Recovering amounts previously written off (creditable acquisitions)
21-99 Special rules relating to adjustments for bad debts
23-1 Explanation of Division
23-5 Who is required to be registered
23-10 Who may be registered
23-15 The registration turnover threshold
23-20 Not registered for 4 years
23-99 Special rules relating to who is required to be registered or who may be registered
25-1 When you must apply for registration
25-5 When the Commissioner must register you
25-10 The date of effect of your registration
25-15 Effect of backdating your registration
25-49 Special rules relating to registration
25-50 When you must apply for cancellation of registration
25-55 When the Commissioner must cancel registration
25-57 When the Commissioner may cancel your registration
25-60 The date of effect of your cancellation
25-65 Effect of backdating your cancellation of registration
25-99 Special rules relating to cancellation of registration
27-5 General rule - 3 month tax periods
27-10 Election of one month tax periods
27-15 Determination of one month tax periods
27-20 Withdrawing elections of one month tax periods
27-22 Revoking elections of one month tax periods
27-25 Revoking determinations of one month tax periods
27-30 Tax periods determined by the Commissioner to take account of changes in tax periods
27-35 Changing the days on which your tax periods end
27-37 Special determination of tax periods on request
27-38 Revoking special determination of tax periods
27-39 Tax periods of incapacitated entities
27-40 An entity ' s concluding tax period
27-99 Special rules relating to tax periods
29-5 Attributing the GST on your taxable supplies
29-10 Attributing the input tax credits for your creditable acquisitions
29-15 Attributing the input tax credits for your creditable importations
29-20 Attributing your adjustments
29-25 Commissioner may determine particular attribution rules
29-39 Special rules relating to attribution rules
29-40 Choosing to account on a cash basis
29-45 Permission to account on a cash basis
29-50 Ceasing to account on a cash basis
29-69 Special rules relating to accounting on a cash basis
29-70 Tax invoices
29-75 Adjustment notes
29-80 Tax invoices and adjustment notes not required for low value transactions
29-99 Special rules relating to tax invoices and adjustment notes
31-5 Who must give GST returns
31-8 When GST returns must be given - quarterly tax periods
31-10 When GST returns must be given - other tax periods
31-15 The form and contents of GST returns
31-20 Additional GST returns
31-25 Electronic lodgment of GST returns
31-30 GST returns treated as being duly made
31-99 Special rules relating to GST returns
33-3 When payments of assessed net amounts must be made - quarterly tax periods
33-5 When payments of assessed net amounts must be made - other tax periods
33-10 How payment of assessed net amounts are made
33-15 Payments of assessed GST on importations
33-20 Commissioner may extend time for payment
33-25 Commissioner may bring forward payment date if you are about to leave Australia
33-30 Net amounts etc. a debt due to the Commonwealth
33-99 Special rules relating to payments of GST
35-5 Entitlement to refund
35-10 When entitlement arises
35-99 Special rules relating to refunds
37-1 Checklist of special rules
38-2 Food
38-3 Food that is not GST-free
38-4 Meaning of food
38-5 Premises used in supplying food
38-6 Packaging of food
38-7 Medical services
38-10 Other health services
38-15 Other government funded health services
38-20 Hospital treatment
38-25 Residential care etc.
38-30 Home care etc.
38-35 Flexible care
38-38 Disability support provided to NDIS participants
38-40 Specialist disability services
38-45 Medical aids and appliances
38-47 Other GST-free health goods
38-50 Drugs and medicinal preparations etc.
38-55 Private health insurance etc.
38-60 Third party procured GST-free health supplies
38-85 Education courses
38-90 Excursions or field trips
38-95 Course materials
38-97 Lease etc. of curriculum related goods
38-100 Supplies that are not GST-free
38-105 Accommodation at boarding schools etc.
38-110 Recognition of prior learning etc.
38-140 Child care - registered carers under the family assistance law
38-145 Child care - approved child care services under the family assistance law
38-150 Other child care
38-155 Supplies directly related to child care that is GST-free
38-185 Exports of goods
38-187 Lease etc. of goods for use outside the indirect tax zone
38-188 Tooling used by non-residents to manufacture goods for export
38-190 Supplies of things, other than goods or real property, for consumption outside the indirect tax zone
38-191 Supplies relating to the repair etc. of goods under warranty
38-220 Religious services
38-250 Nominal consideration etc.
38-255 Second-hand goods
38-260 Supplies of retirement village accommodation etc.
38-270 Raffles and bingo conducted by charities etc.
(Subdivision 38-H heading repealed by No 143 of 2004)
38-285 Water
38-290 Sewerage and sewerage-like services
38-295 Emptying of septic tanks
38-300 Drainage
38-325 Supply of a going concern
38-355 Supplies of transport and related matters
38-360 Travel agents arranging overseas supplies
38-385 Supplies of precious metals
38-415 Supplies through inwards duty free shops
38-445 Grants of freehold and similar interests by governments
38-450 Leases preceding grants of freehold and similar interests by governments
38-475 Subdivided farm land
38-480 Farm land supplied for farming
38-505 Disabled veterans
38-510 Other disabled people
38-540 International mail
38-570 Telecommunication supplies made under arrangements for global roaming in the indirect tax zone
38-590 Eligible emissions units
38-610 Inbound intangible consumer supplies
40-5 Financial supplies
40-35 Residential rent
40-65 Sales of residential premises
40-70 Supplies of residential premises by way of long-term lease
40-75 Meaning of new residential premises
40-100 Precious metals
40-130 School tuckshops and canteens
40-160 Fund-raising events conducted by charities etc.
40-165 Meaning of fund-raising event
42-5 Non-taxable importations - Schedule 4 to the Customs Tariff Act 1995
42-10 Goods returned to the indirect tax zone in an unaltered condition
42-15 Supplies of low value goods
45-1 What this Chapter is about
45-5 The effect of special rules
48-5 Formation of GST groups
48-7 Membership of GST groups
48-10 Membership requirements of a GST group
48-15 Relationship of companies and non-companies in a GST group
48-40 Who is liable for GST
48-45 Who is entitled to input tax credits
48-51 Consequences of being a member of a GST group for part of a tax period
48-52 Consequences for a representative member of membership change during a tax period
48-53 Consequences of changing a representative member during a tax period
48-55 GST groups treated as single entities for certain purposes
48-57 Tax invoices that are required to identify recipients
48-60 GST returns
48-70 Changing the membership etc. of GST groups
48-71 Approval of early day of effect of forming, changing etc. GST groups
48-72 Effect of representative member becoming an incapacitated entity
48-73 Tax periods of GST groups with incapacitated members
48-80 Notification by representative members
48-85 Date of effect of approvals and revocations
48-90 Notification by the Commissioner
48-110 Adjustments after you cease to be a member of a GST group
48-115 Changes in extent of creditable purpose after you cease to be a member of a GST group
49-5 Approval of GST religious groups
49-10 Membership requirements of a GST religious group
49-30 Supplies between members of GST religious groups
49-35 Acquisitions between members of GST religious groups
49-45 Changes in the extent of creditable purpose
49-50 GST religious groups treated as single entities for certain purposes
49-70 Changing the membership etc. of GST religious groups
49-75 Revoking the approval of GST religious groups
49-80 Notification by principal members
50-5 GST treatment of religious practitioners
51-5 Formation of GST joint ventures
51-7 Participants in GST joint ventures
51-10 Participation requirements of a GST joint venture
51-45 Additional net amounts relating to GST joint ventures
51-50 GST returns relating to GST joint ventures
51-52 Consolidation of GST returns relating to GST joint ventures
51-55 Payments of GST relating to GST joint ventures
51-60 Refunds relating to GST joint ventures
51-70 Changing the participants etc. of GST joint ventures
51-75 Approval of early day of effect of forming, changing etc. GST joint ventures
51-110 Adjustments after you cease to be a participant in a GST joint venture
51-115 Changes in extent of creditable purpose after you cease to be a member of a GST joint venture
54-5 Registration of GST branches
54-10 The date of effect of registration of a GST branch
54-15 GST branch registration number
54-40 Additional net amounts relating to GST branches
54-45 Net amounts of parent entities
54-50 Tax invoices and adjustment notes
54-55 GST returns relating to GST branches
54-60 Payments of GST relating to GST branches
54-65 Refunds relating to GST branches
54-70 When an entity must apply for cancellation of registration of a GST branch
54-75 When the Commissioner must cancel registration of a GST branch
54-80 The date of effect of cancellation of registration of a GST branch
54-85 Application of Subdivision 25-B
54-90 Effect on GST branches of cancelling the entity's registration
57-5 Who is liable for GST
57-7 Agreement to apply this Division to all supplies through a resident agent
57-20 Resident agents are required to be registered
57-25 Cancellation of registration of a resident agent
57-30 Notice of cessation of agency
57-35 Tax periods of resident agents
57-40 GST returns for non-residents
57-45 Resident agents giving GST returns
57-50 Non-residents that belong to GST groups
58-5 General principle for the relationship between incapacitated entities and their representatives
58-10 Circumstances in which representatives have GST-related liabilities and entitlements
58-15 Adjustments for bad debts
58-20 Representatives are required to be registered
58-25 Cancellation of registration of a representative
58-30 Notice of cessation of representation
58-35 Tax periods of representatives
58-40 Effect on attribution rules of not accounting on a cash basis
58-45 GST returns for representatives of incapacitated entities
58-50 Representatives to give GST returns for incapacitated entities
58-55 Incapacitated entities not required to give GST returns in some cases
58-60 Representative to notify Commissioner of certain liabilities etc.
58-65 Money available to meet representative ' s liabilities
58-70 Protection for actions of representative
58-95 Division does not apply to the extent that the representative is a creditor of the incapacitated entity
60-5 Input tax credit for acquisitions and importations before establishment
60-10 Registration etc. not needed for input tax credits
60-15 Pre-establishment acquisitions and importations
60-20 Creditable purpose
60-25 Attributing the input tax credit for pre-establishment acquisitions
60-30 Attributing the input tax credit for pre-establishment importations
60-35 Application of Division 129
63-5 Entities that may choose to apply this Division
63-10 Period for which a choice has effect
63-15 Consequences of choosing to apply this Division
63-20 Non-profit sub-entities may register
63-25 Registration turnover threshold for non-profit sub-entities
63-27 Application of particular provisions relating to charities etc.
63-30 When non-profit sub-entities must apply for cancellation of registration
63-35 When the Commissioner must cancel registration of non-profit sub-entities
63-40 Effect on adjustments of becoming a non-profit sub-entity
63-45 Effect on adjustments of ceasing to be a non-profit sub-entity
63-50 Membership requirements of GST groups
66-5 Creditable acquisitions of second-hand goods
66-10 Amounts of input tax credits for creditable acquisitions of second-hand goods
66-15 Attributing input tax credits for creditable acquisitions of second-hand goods
66-17 Records of creditable acquisitions of second-hand goods
66-20 Returnable containers
66-40 Acquisitions of second-hand goods that can be used to offset GST on future re-supplies
66-45 Future re-supplies that are not taxable supplies
66-50 Future re-supplies on which GST is reduced
66-55 Records of acquisitions of second-hand goods to which this Subdivision applied
66-60 Input tax credits for acquiring second-hand goods the supply of which is not fully taxable
66-65 Total Subdivision 66-B credit amounts and Subdivision 66-B GST amounts
66-70 Commissioner may determine rules for applying this Subdivision
69-5 Non-deductible expenses do not give rise to creditable acquisitions or creditable importations
69-10 Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars
69-15 What this Subdivision is about
69-20 Effect of elections on net amounts
69-25 Election to use the 50/50 split method for meal entertainment
69-30 Election to use the 12 week register method for meal entertainment
69-35 Election to use the 50/50 split method for entertainment facilities
69-40 When elections take effect
69-45 When elections cease to have effect
69-50 Adjustment events relating to elections
69-55 Adjustment notes not required
70-5 Acquisitions that attract the reduced credit
70-10 Extended meaning of creditable purpose
70-15 How much are the reduced input tax credits?
70-20 Extent of creditable purpose
70-25 Sale of reduced credit acquisitions (Division 132)
71-5 Acquisitions by input taxed suppliers to provide fringe benefits
71-10 Importations by input taxed suppliers to provide fringe benefits
72-5 Taxable supplies without consideration
72-10 The value of taxable supplies without consideration
72-15 Attributing the GST to tax periods
72-20 Supplies and acquisitions that would otherwise be sales etc.
72-25 Supplies that would otherwise be GST-free, input taxed or financial supplies
72-40 Creditable acquisitions without consideration
72-45 The amount of the input tax credit
72-50 Attributing the input tax credit to tax periods
72-70 The value of taxable supplies for inadequate consideration
72-90 GST branches
72-92 Non-profit sub-entities
72-95 Commonwealth government entities
72-100 State or Territory government entities
75-5 Applying the margin scheme
75-10 The amount of GST on taxable supplies
75-11 Margins for supplies of real property in particular circumstances
75-12 Working out margins to take into account failure to pay full consideration
75-13 Working out margins to take into account supplies to associates
75-14 Consideration for acquisition of real property not to include cost of improvements etc.
75-15 Subdivided real property
75-16 Margins for supplies of real property acquired through several acquisitions
75-20 Supplies under a margin scheme do not give rise to creditable acquisitions
75-22 Increasing adjustment relating to input tax credit entitlement
75-25 Adjustments relating to bad debts
75-27 Decreasing adjustment for later payment of consideration
75-30 Tax invoices not required for supplies of real property under the margin scheme
75-35 Approved valuations
78-5 GST on insurance premiums is exclusive of stamp duty
78-10 Decreasing adjustments for settlements of insurance claims
78-15 How to work out the decreasing adjustments
78-18 Increasing adjustments for payments of excess under insurance policies
78-20 Settlements of insurance claims do not give rise to creditable acquisitions
78-25 Supplies in settlement of claims are not taxable supplies
78-30 Acquisitions by insurers in the course of settling claims under non-taxable policies
78-35 Taxable supplies relating to rights of subrogation
78-40 Adjustment events relating to decreasing adjustments under this Division
78-42 Adjustment events relating to increasing adjustments under section 78-18
78-45 Settlements of insurance claims do not give rise to taxable supplies
78-50 Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed
78-55 Payments of excess under insurance policies are not consideration for supplies
78-60 Supplies of goods to insurers in the course of settling claims
78-65 Payments etc. to third parties by insurers
78-70 Payments etc. to third parties by insured entities
78-75 Creditable acquisitions relating to rights of subrogation
78-80 Net amounts
78-90 Payments of GST
78-95 GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty
78-100 Settlements of claims for compensation under statutory compensation schemes
78-105 Meaning of statutory compensation scheme
78-110 Effect of judgments and court orders
78-115 Exclusion of certain Commonwealth, State or Territory insurance schemes
78-118 Portfolio transfers
78-120 HIH rescue package
79-5 Application of sections 78-10 and 78-15 (about decreasing adjustments) where premium selection test is satisfied
79-10 Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied
79-15 Application of sections 78-10 and 78-15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement
79-20 Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery
79-25 Meaning of CTP hybrid payment or supply
79-30 Application of Division 78
79-35 Meaning of CTP compensation or ancillary payment or supply etc.
79-40 GST on CTP premiums is exclusive of stamp duty
79-45 Exclusion of certain compulsory third party schemes
79-50 Decreasing adjustments for CTP compensation or ancillary payments or supplies
79-55 Increasing adjustments for payments of excess etc. under compulsory third party schemes
79-60 Effect of settlements and payments under compulsory third party schemes
79-65 Taxable supplies relating to recovery by operators of compulsory third party schemes
79-70 Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes
79-80 Payments of excess under compulsory third party schemes are not consideration for supplies
79-85 Supplies of goods to operators in the course of settling claims
79-90 Effect of judgments and court orders
79-95 How to work out decreasing adjustments using the applicable average input tax credit fraction
79-100 Meaning of average input tax credit fraction
80-5 Meaning of insurance policy settlement sharing arrangement etc.
80-10 Effect of becoming parties to industry deeds or entering into settlement sharing arrangements
80-15 Effect of contributing operator ' s payment
80-20 Managing operator ' s payments or supplies
80-25 Contributing operator ' s payment
80-30 Managing operator ' s increasing adjustment where contributing operator ' s payment
80-35 Adjustment events relating to managing operator ' s payment or supply
80-40 Meaning of nominal defendant settlement sharing arrangement etc.
80-45 Nominal defendant settlement sharing arrangements to which this Subdivision applies
80-50 Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements
80-60 Managing operator ' s payment or supply
80-80 Meaning of hybrid settlement sharing arrangement etc.
80-85 Subdivision 80-A to apply to hybrid settlement sharing arrangement, subject to exceptions
80-90 Subdivision 80-B to apply to payments or supplies by managing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement
80-95 Subdivision 80-B to apply to payments or supplies by contributing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement
81-5 Effect of payment of tax
81-10 Effect of payment of certain fees and charges
81-15 Other fees and charges that do not constitute consideration
81-20 Division has effect despite sections 9-15 and 9-17
81-25 Retrospective application of regulations
82-5 Supplies of rights to develop land do not constitute consideration in certain cases
82-10 Supplies by Australian government agencies of rights to develop land are not for consideration
83-5 ' Reverse charge ' on supplies made by non-residents
83-10 Recipients who are members of GST groups
83-15 Recipients who are participants in GST joint ventures
83-20 The amount of GST on ``reverse charged'' supplies made by non-residents
83-25 When non-residents must apply for registration
83-30 When the Commissioner must register non-residents
83-35 Tax invoices not required for ``reverse charged'' supplies made by non-residents
84-1 What this Subdivision is about
84-5 Offshore supplies that are taxable supplies under this Subdivision
84-10 ' Reverse charge ' on offshore supplies
84-12 The amount of GST on offshore supplies that are ' reverse charged '
84-13 The amount of input tax credits relating to offshore supplies
84-14 Supplies relating to employee share ownership schemes
84-15 Transfers etc. between branches of the same entity
84-20 The price of taxable supplies of offshore intangibles without, or for inadequate, consideration
84-25 Tax periods for supplies from associates that are not connected with the indirect tax zone
84-30 Adjustments for acquisitions made solely for a creditable purpose
84-50 No tax invoices or adjustment notes for inbound intangible consumer supplies
84-55 Operator of electronic distribution platform treated as supplier
84-60 Extension of section 84-55 to certain other supplies through an electronic distribution platform
84-65 Meaning of inbound intangible consumer supply
84-70 Meaning of electronic distribution platform
84-75 Supplies of low value goods that are connected with the indirect tax zone
84-77 Meaning of offshore supply of low value goods
84-79 Meaning of supply of low value goods
84-81 Who makes an offshore supply of low value goods
84-83 Exception - when supplier reasonably believes there will be a taxable importation
84-85 Exception - when there is also a taxable importation
84-87 No tax invoices or adjustment notes for offshore supplies of low value goods
84-89 Notifying amounts of GST to recipients of offshore supplies of low value goods
84-91 The amount of GST on offshore supplies of low value goods made by redeliverers
84-93 Suppliers of offshore supplies of low value goods to ensure tax information is included in customs documents
84-100 When entities are treated as not being Australian consumers
84-105 When entities are treated as not being consumers
84-135 What this Subdivision is about
84-140 Limited registration entities
84-145 Limited registration entities cannot make creditable acquisitions
84-150 Entries in the Australian Business Register
84-155 Limited registration entities have only quarterly tax periods
85-5 When telecommunication supplies are connected with the indirect tax zone
85-10 Meaning of telecommunication supply
86-5 ' Reverse charge ' on supplies of goods consisting of valuable metal
86-10 The valuable metal threshold
86-25 The amount of GST on ' reverse charged ' supplies of goods consisting of valuable metal
87-5 Commercial residential premises that are predominantly for long-term accommodation
87-10 Commercial residential premises that are not predominantly for long-term accommodation
87-15 Meaning of commercial accommodation
87-20 Meaning of long-term accommodation etc.
87-25 Suppliers may choose not to apply this Division
90-5 Supplies not taxable - amalgamated company registered or required to be registered
90-10 Value of taxable supplies - amalgamated company not registered or required to be registered
90-15 Acquisitions not creditable - amalgamated company registered or required to be registered
90-20 Liability after amalgamation for GST on amalgamating company's supplies
90-25 Entitlement after amalgamation to input tax credits for amalgamating company's acquisitions
90-35 Amalgamating companies accounting on a cash basis
93-5 Time limit on entitlements to input tax credits
93-10 Exceptions to time limit on entitlements to input tax credits
93-15 GST no longer able to be taken into account
96-5 Supplies that are only partly connected with the indirect tax zone
96-10 The value of the taxable components of supplies that are only partly connected with the indirect tax zone
99-5 Giving a deposit as security does not constitute consideration
99-10 Attributing the GST relating to deposits that are forfeited etc.
100-1 What this Division is about
100-5 Supplies of vouchers with a stated monetary value
100-10 Redemption of vouchers
100-12 Consideration on redemption of vouchers
100-15 Increasing adjustments for unredeemed vouchers
100-18 Arrangement for supply of voucher
100-20 Vouchers supplied to non-residents and redeemed by others in the indirect tax zone
100-25 Meaning of voucher etc.
102-5 Cancelled lay-by sales
102-10 Attributing GST and input tax credits
105-5 Supplies by creditors in satisfaction of debts may be taxable supplies
105-10 Net amounts
105-15 GST returns
105-20 Payments of GST
108-5 Taxable supplies of goods in bond etc.
110-5 Transfers of tax losses and net capital losses
110-10 Transfers of excess foreign tax credits
110-15 Supplies under operation of consolidated group regime
110-20 Tax sharing agreements - entering into agreement etc.
110-25 Tax sharing agreements - leaving group clear of group liability
110-30 Tax funding agreements
110-60 Indirect tax sharing agreements - entering into agreement etc.
110-65 Indirect tax sharing agreements - leaving GST group or GST joint venture clear of liability
111-5 Creditable acquisitions relating to reimbursements
111-10 Amounts of input tax credits relating to reimbursements
111-15 Tax invoices relating to reimbursements
111-18 Application of Division to volunteers working for charities etc.
111-20 Application of Division to recipients of certain withholding payments
111-25 Employers paying expenses of employees etc.
111-30 Reimbursements etc. of former or future employees etc.
113-5 Supply of work or services not a taxable supply
114-5 Importations without entry for home consumption
114-10 Goods that have already been entered for home consumption etc.
114-15 Payments of amounts of assessed GST where security for payment of customs duty is forfeited
114-20 Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act
114-25 Warehoused goods entered for home consumption by an entity other than the importer
117-5 Valuation of taxable importations of goods that were exported for repair or renovation
117-10 Valuation of taxable importations of live animals that were exported
117-15 Refunds of assessed GST on certain reimportations of live animals
123-5 Commissioner may determine simplified accounting methods
123-7 Meaning of small enterprise entity
123-10 Choosing to apply a simplified accounting method
126-5 Global accounting system for gambling supplies
126-10 Global GST amounts
126-15 Losses carried forward
126-20 Bad debts
126-25 Application of Subdivision 9-C
126-27 When gambling supplies are connected with the indirect tax zone
126-30 Gambling supplies do not give rise to creditable acquisitions
126-32 Repayments of gambling losses are not consideration
126-33 Tax invoices not required for gambling supplies
126-35 Meaning of gambling supply and gambling event
129-5 Adjustments arising under this Division
129-10 Adjustments do not arise under this Division for acquisitions and importations below a certain value
129-15 Adjustments do not arise under this Division where there are adjustments under Division 130
129-20 Adjustment periods
129-25 Effect on adjustment periods of things being disposed of etc.
129-40 Working out whether you have an adjustment
129-45 Gifts to gift-deductible entities
129-50 Creditable purpose
129-55 Meaning of apply
129-70 The amount of an increasing adjustment
129-75 The amount of a decreasing adjustment
129-80 Effect of adjustment under certain Divisions
129-90 Attributing your adjustments for changes in extent of creditable purpose
130-5 Goods applied solely to private or domestic use
131-5 Eligibility to make an annual apportionment election
131-10 Making an annual apportionment election
131-15 Annual apportionment elections by representative members of GST groups
131-20 Duration of an annual apportionment election
131-40 Input tax credits for acquisitions that are partly creditable
131-45 Input tax credits for importations that are partly creditable
131-50 Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars
131-55 Increasing adjustments relating to annually apportioned acquisitions and importations
131-60 Attributing adjustments under section 131-55
132-5 Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable
132-10 Attribution of adjustments under this Division
133-5 Decreasing adjustments for additional consideration provided under gross-up clauses
133-10 Availability of adjustments under Division 19 for acquisitions
134-5 Decreasing adjustments for payments made to third parties
134-10 Increasing adjustments for payments received by third parties
134-15 Attribution of decreasing adjustments
134-20 Third party adjustment notes
134-25 Adjustment events do not arise
134-30 Application of sections 48-55 and 49-50
135-5 Initial adjustments for supplies of going concerns
135-10 Later adjustments for supplies of going concerns
136-5 Adjustments relating to partly taxable supplies
136-10 Adjustments in relation to partly creditable acquisitions
136-30 Writing off bad debts (taxable supplies)
136-35 Recovering amounts previously written off (taxable supplies)
136-40 Bad debts written off (creditable acquisitions)
136-45 Recovering amounts previously written off (creditable acquisitions)
136-50 Meanings of taxable at less than 1/11 of the price and creditable at less than 1/11 of the consideration
137-5 Adjustments for stock on hand on becoming registered etc.
138-5 Adjustments for cessation of registration
138-10 Attributing adjustments for cessation of registration
138-15 Ceasing to be registered - amounts not previously attributed
138-17 Situations to which this Division does not apply
138-20 Application of Division 129
139-5 Adjustments for distributions from deceased estates
139-10 Attributing adjustments for distributions from deceased estates
141-5 Adjustments for applying goods contrary to the Tradex Scheme
141-10 Meaning of tradex scheme goods etc.
142-5 When this Subdivision applies
142-10 Refunding the excess GST
142-15 When section 142-10 does not apply
142-16 No refund of excess GST relating to supplies treated as non-taxable importations
142-20 Refunding GST relating to cancelled supplies
142-25 Working out if GST has been passed on
144-5 Requirement to register
146-5 Limited registration entities
146-10 Limited registration entities cannot make creditable acquisitions
146-15 Limited registration entities cannot make creditable importations
146-20 Entries in the Australian Business Register
146-25 Limited registration entities have only quarterly tax periods
147-5 Representatives are required to be registered
147-10 Cancellation of registration of a representative
147-15 Notice of cessation of representation
147-20 Effect of representative failing to notify the Commissioner of certain adjustments
147-25 Tax periods of representatives
149-5 Government entities may register
149-10 Government entities are not required to be registered
149-15 GST law applies to registered government entities
149-20 Government entities not required to cancel their registration
149-25 Membership requirements of a government GST group
151-5 Eligibility to make an annual tax period election
151-10 Making an annual tax period election
151-15 Annual tax period elections by representative members of GST groups
151-20 When you must make your annual tax period election
151-25 Duration of an annual tax period election
151-40 Annual tax periods
151-45 When GST returns for annual tax periods must be given
151-50 When payments of assessed net amounts for annual tax periods must be made
151-55 An entity ' s concluding annual tax period
151-60 The effect of incapacitation or cessation
151-65 The effect of changing the membership of GST groups - end of the annual tax period
151-70 The effect of changing the membership of GST groups - tax periods for the remainder of a financial year
153-5 Attributing the input tax credits for your creditable acquisitions
153-10 Attributing your adjustments
153-15 Tax invoices
153-20 Adjustment notes
153-25 Insurance supplied through insurance brokers
153-50 Arrangements under which intermediaries are treated as suppliers or acquirers
153-55 The effect of these arrangements on supplies
153-60 The effect of these arrangements on acquisitions
153-65 Determinations that supplies or acquisitions are taken to be under these arrangements
156-5 Attributing the GST on progressive or periodic supplies
156-10 Attributing the input tax credits on progressive or periodic acquisitions
156-15 Progressive or periodic supplies partly connected with the indirect tax zone
156-17 Application of Division 58 to progressive or periodic supplies and acquisitions
156-20 Application of Division 129 to progressive or periodic acquisitions
156-22 Leases etc. treated as being on a progressive or periodic basis
156-23 Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis
156-25 Accounting on a cash basis
157-5 Charities etc. choosing to account on a cash basis
157-10 Charities etc. ceasing to account on a cash basis
158-5 Treat as not accounting on a cash basis
159-5 Ceasing to account on a cash basis - amounts not previously attributed
159-10 Ceasing to account on a cash basis - amounts partly attributed
159-15 Ceasing to account on a cash basis - bad debts
159-20 Starting to account on a cash basis
159-25 Starting to account on a cash basis - bad debts
159-30 Entities ceasing to exist or coming into existence
162-5 Eligibility to elect to pay GST by instalments
162-10 Your current GST lodgment record
162-15 Electing to pay GST by instalments
162-20 Elections by representative members of GST groups
162-25 When you must make your election
162-30 Duration of your election
162-50 GST instalment payers
162-55 Tax periods for GST instalment payers
162-60 When GST returns for GST instalment payers must be given
162-65 The form and contents of GST returns for GST instalment payers
162-70 Payment of GST instalments
162-75 Giving notices relating to GST instalments
162-80 Certain entities pay only 2 GST instalments for each year
162-85 A GST instalment payer ' s concluding tax period
162-95 The effect of changing the membership of GST groups
162-100 General interest charge on late payment
162-105 Net amounts for GST instalment payers
162-110 When payments of assessed net amounts must be made - GST instalment payers
162-130 What are your GST instalments
162-135 Notified instalment amounts
162-140 Varied instalment amounts
162-145 Your annual GST liability
162-170 What this Subdivision is about
162-175 GST payments are less than 85% of annual GST liability
162-180 Estimated annual GST amount is less than 85% of annual GST liability
162-185 Shortfall in GST instalments worked out on the basis of estimated annual GST amount
162-190 Periods for which penalty is payable
162-195 Reduction in penalties if notified instalment amount is less than 25% of annual GST liability
162-200 Reduction in penalties if GST instalment shortfall is made up in a later instalment
162-205 This Subdivision does not create a liability for general interest charge
165-5 When does this Division operate?
165-10 When does an entity get a GST benefit from a scheme?
165-15 Matters to be considered in determining purpose or effect
165-40 Commissioner may make declaration for purpose of negating avoider ' s GST benefits
165-45 Commissioner may reduce an entity ' s net amount or GST to compensate
165-50 Declaration has effect according to its terms
165-55 Commissioner may disregard scheme in making declarations
165-60 One declaration may cover several tax periods and importations
165-65 Commissioner must give copy of declaration to entity affected
165-80 Penalty
168-5 Tourist refund scheme
168-10 Supplies later found to be GST-free supplies
171-5 Security or undertaking given under section 162 or 162A of the Customs Act
176-1 Endorsement by Commissioner as charity
177-1 Commonwealth etc. not liable to pay GST
177-3 Acquisitions from State or Territory bodies where GST liability is notional
177-5 Cancellation of exemptions from GST
177-10 Ministerial determinations
177-11 Delegation by Aged Care Secretary
177-12 GST implications of references to price, value etc. in other Acts
177-15 Regulations
177-20 Review of provisions relating to offshore supplies of low value goods
182-1 What forms part of this Act
182-5 What does not form part of this Act
182-10 Explanatory sections, and their role in interpreting this Act
182-15 Schedules 1, 2 and 3
184-1 Entities
184-5 Supplies etc. by partnerships and other unincorporated bodies
186-1 Approved forms
188-5 Explanation of the turnover thresholds
188-10 Whether your GST turnover meets, or does not exceed, a turnover threshold
188-15 Current GST turnover
188-20 Projected GST turnover
188-22 Settlements of insurance claims to be disregarded
188-23 Supplies ' reverse charged ' under Division 83 or 86 not to be included in a recipient ' s GST turnover
188-24 Supplies to which Subdivision 153-B applies
188-25 Transfer of capital assets, and termination etc. of enterprise, to be disregarded
188-30 The value of non-taxable supplies
188-32 The value of gambling supplies
188-35 The value of loans
189-5 Exceeding the financial acquisitions threshold - current acquisitions
189-10 Exceeding the financial acquisitions threshold - future acquisitions
189-15 Meaning of financial acquisition
190-1 90% owned groups
190-5 When a company has at least a 90% stake in another company
195-1 Dictionary
1 Food that is not GST-free
2 Prepared food, bakery products and biscuit goods
3 Prepared meals
4 Candied peel
5 Goods that are not biscuit goods
1 Beverages that are GST-free
2 Tea, coffee etc.
3 Fruit and vegetable juices
Schedule 3 - Medical aids and appliances
Part 1-1 - Preliminary
Division 1 - Preliminary
This Act may be cited as the A New Tax System (Goods and Services Tax) Act 1999.
This Act commences on 1 July 2000.
(Repealed by No 154 of 1999)
S 1-2(2) repealed by No 154 of 1999, s 3 and Sch 1 item 1, effective 11 November 1999. S 1-2(2) formerly read:
However, if, before the day on which this Act would (but for this subsection) commence under subsection (1), there have not been appropriated, for the purposes of the programs referred to in the second column of an item in the table:
(a) in respect of the financial year starting on 1 July 2000 - the amount referred to in the third column of that item; and
(b) in respect of the financial year starting on 1 July 2001 - the amount referred to in the fourth column of that item; and
(c) in respect of the financial year starting on 1 July 2002 - the amount referred to in the fifth column of that item; and
(d) in respect of the financial year starting on 1 July 2003 - the amount referred to in the sixth column of that item;
this Act commences on, and tax is not payable under the *GST law until, the day on which the last of those amounts to be appropriated for those purposes has been appropriated under an Act.
Amounts to be appropriated
Program Financial years
($ million) ($ million) ($ million) ($ million)
1 Book industry assistance plan 60 60 60 60
2 Supported Accommodation Assistance Program 15 15 15 15
Total 75 75 75 75
The Parliament acknowledges that the Commonwealth:
(a) will introduce legislation to provide that the revenue from the GST will be granted to the States, the Australian Capital Territory and the Northern Territory; and
(b) will maintain the rate and base of the GST in accordance with the Agreement on Principles for the Reform of Commonwealth-State Financial Relations endorsed at the Special Premiers' Conference in Canberra on 13 November 1998.
The *GST law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.
S 1-4 inserted by No 176 of 1999, s 3 and Sch 1 item 1, effective 1 July 2000.
Part 1-2 - Using this Act
Division 2 - Overview of the GST legislation
This Act is about the GST.
It begins (in Chapter 2) with the basic rules about the GST, and then sets out in Chapter 3 the exemptions from the GST and in Chapter 4 the special rules that can apply in particular cases.
It concludes with definitions and other interpretative material.
The GST is imposed by 6 Acts, the most important of which are:
(a) the A New Tax System (Goods and Services Tax Imposition - General) Act 1999; and
(b) the A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999; and
(c) the A New Tax System (Goods and Services Tax Imposition - Excise) Act 1999.
S 2-1 amended by No 10 of 2005, s 3 and Sch 1 item 3, by substituting ``6 Acts, the most important of which are'' for ``3 Acts'', effective 1 July 2005.
Chapter 2 has the basic rules for the GST, including:
· when and how the GST arises, and who is liable to pay it;
· when and how input tax credits arise, and who is entitled to them;
· how to work out payments and refunds of GST;
· when and how the payments and refunds are to be made.
Chapter 3 sets out the supplies and importations that are GST-free or input taxed.
Chapter 4 has special rules which, in particular cases, have the effect of modifying the basic rules in Chapter 2.
There is a checklist of special rules at the end of Chapter 2 (in Part 2-8).
Chapter 5 deals with miscellaneous matters.
Chapter 6 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.
Schedule 1 to the Taxation Administration Act 1953 contains provisions relating to the administration of the GST, and to collection and recovery of amounts of GST.
S 2-30 amended by No 39 of 2012, s 3 and Sch 1 item 31, by substituting "Schedule 1 to the Taxation Administration Act 1953 contains" for "Parts 3-10, 4-15 and 5-5 in Schedule 1 to the Taxation Administration Act 1953 contain", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 2-30 amended by No 74 of 2010, s 3 and Sch 2 item 1, by substituting ", 4-15 and 5-5" for "and 4-15", effective 1 July 2010.
S 2-30 amended by No 73 of 2006, s 3 and Sch 5 item 66, by substituting "Parts 3-10 and 4-15 in Schedule 1 to the Taxation Administration Act 1953 contain" for "Part VI of the Taxation Administration Act 1953 contains", effective 1 July 2006.
Division 3 - Defined terms
Many of the terms used in the law relating to the GST are defined.
Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in "*enterprise". The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 195-1.
Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.
Terms are not asterisked in the non-operative material contained in this Act.
The non-operative material is described in Division 4.
The following basic terms used throughout the Act are not identified with an asterisk.
Common definitions that are not asterisked
Item This term:
2 amount
3 Commissioner
4 entity
5 goods
6 GST
8 indirect tax zone
9 individual
10 input tax credit
12 tax period
13 thing
14 you
S 3-5(3) amended by No 2 of 2015, s 3 and Sch 4 item 24, by substituting the table, applicable to a tax period that commences on or after 1 July 2015. The table formerly read:
8A individual
9 input tax credit
S 3-5(3) amended by No 176 of 1999, s 3 and Sch 1 item 2, by inserting table item 8A, effective 1 July 2000.
Within a definition, the defined term is identified by bold italics .
Division 4 - Status of Guides and other non-operative material
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.
This other material falls into 2 main categories.
One category is the explanatory section in many Divisions. Under the section heading ``What this Division is about'', a short explanation of the Division appears in boxed text.
Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 182-10.
The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.
Chapter 2 - The basic rules
Division 5 - Introduction
This Chapter sets out the basic rules for the GST. In particular, these rules will tell you:
· where liability for GST arises;
· where entitlements to input tax credits arise;
· how the amounts of GST and input tax credits are combined to work out the amount payable by you or to you;
· when and how that amount is to be paid.
The diagram on the next page shows how the basic rules in this Chapter relate to each other. It also shows their relationship with:
· the exemptions (Chapter 3) - these provisions exempt from the GST what would otherwise be taxable; and
· the special rules (Chapter 4) - these provisions modify the basic rules in particular situations, often in quite limited ways.
Part 2-1 - The central provisions
Division 7 - The central provisions
GST is payable on *taxable supplies and *taxable importations.
Entitlements to input tax credits arise on *creditable acquisitions and *creditable importations.
For taxable supplies and creditable acquisitions, see Part 2-2.
For taxable importations and creditable importations, see Part 2-3.
Amounts of GST and amounts of input tax credits are set off against each other to produce a *net amount for a tax period (which may be altered to take account of *adjustments).
For net amounts (including adjustments to net amounts), see Part 2-4.
Every entity that is *registered, or *required to be registered, has tax periods applying to it.
For registration, see Part 2-5.
For tax periods, see Part 2-6.
The amount *assessed as being the *net amount for a tax period is the amount that the entity must pay to the Commonwealth, or the Commonwealth must refund to the entity, in respect of the period.
For payments and refunds (and GST returns), see Part 2-7.
Note 1:
For assessment of net amounts, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.
Refunds may be set off against your other liabilities (if any) under laws administered by the Commissioner.
S 7-15 amended by No 39 of 2012, s 3 and Sch 1 items 32 to 34, by substituting "amount *assessed as being the *net amount" for "*net amount", inserting Note 1 and substituting "Note 2" for "Note", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Part 2-2 - Supplies and acquisitions
Division 9 - Taxable supplies
GST is payable on taxable supplies. This Division defines taxable supplies, states who is liable for the GST, and describes how to work out the GST on supplies.
Subdivision 9-A - What are taxable supplies?
You make a taxable supply if:
(a) you make the supply for *consideration; and
(b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and
(c) the supply is *connected with the indirect tax zone; and
(d) you are *registered, or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.
S 9-5 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (c), applicable to a tax period that commences on or after 1 July 2015.
A supply is any form of supply whatsoever.
Without limiting subsection (1), supply includes any of these:
(a) a supply of goods;
(b) a supply of services;
(c) a provision of advice or information;
(d) a grant, assignment or surrender of *real property;
(e) a creation, grant, transfer, assignment or surrender of any right;
(f) a *financial supply;
(g) an entry into, or release from, an obligation:
(i) to do anything; or
(ii) to refrain from an act; or
(iii) to tolerate an act or situation;
(h) any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).
S 9-10(2) amended by No 176 of 1999, s 3 and Sch 1 item 3, by omitting "However, it does not include a supply of *money unless the money is provided as *consideration for a supply that is a supply of money.", effective 1 July 2000.
It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply.
For the avoidance of doubt, the delivery of:
(a) livestock for slaughtering or processing into *food; or
(b) game for processing into *food;
under an arrangement under which the entity making the delivery only relinquishes title after food has been produced, is the supply of the livestock or game (regardless of when the entity relinquishes title). The supply does not take place on or after the subsequent relinquishment of title.
S 9-10(3A) inserted by No 92 of 2000, s 3 and Sch 11 item 3, effective 1 July 2000.
However, supply does not include:
(a) a supply of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b) a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
S 9-10(4) substituted by No 118 of 2017, s 3 and Sch 1 item 1, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 9-10(4) formerly read:
However, a supply does not include a supply of *money unless the money is provided as *consideration for a supply that is a supply of money.
S 9-10(4) inserted by No 176 of 1999, s 3 and Sch 1 item 4, effective 1 July 2000.
Consideration includes:
(a) any payment, or any act or forbearance, in connection with a supply of anything; and
(b) any payment, or any act or forbearance, in response to or for the inducement of a supply of anything.
It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply.
It does not matter:
(a) whether the payment, act or forbearance was in compliance with an order of a court, or of a tribunal or other body that has the power to make orders; or
(b) whether the payment, act or forbearance was in compliance with a settlement relating to proceedings before a court, or before a tribunal or other body that has the power to make orders.
S 9-15(2A) inserted by No 177 of 1999, s 3 and Sch 1 item 1, effective 1 July 2000.
For the avoidance of doubt, the fact that the supplier is an entity of which the *recipient of the supply is a member, or that the supplier is an entity that only makes supplies to its members, does not prevent the payment, act or forbearance from being consideration.
S 9-15(2B) amended by No 92 of 2000, s 3 and Sch 11 item 3A, by substituting "an entity" for "a body" (wherever occurring), effective 1 July 2000.
S 9-15(2B) inserted by No 177 of 1999, s 3 and Sch 1 item 1, effective 1 July 2000.
(Repealed by No 75 of 2012)
S 9-15(3) repealed by No 75 of 2012, s 3 and Sch 2 item 1, applicable, and taken to have applied, from 1 July 2012. S 9-15(3) formerly read:
However:
(a)if a right or option to acquire a thing is granted, then:
(i) the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or
(ii) if there is no such additional consideration - there is no consideration for the supply; and
(b) making a gift to a non-profit body is not the provision of consideration; and
(c) a payment made by a *government related entity to another government related entity is not the provision of consideration if the payment is specifically covered by an appropriation under an *Australian law.
S 9-15(3) amended by No 177 of 1999, s 3 and Sch 1 item 2, by substituting "a *government related entity to another government related entity" for "an *Australian government agency to another Australian government agency" in para (c), effective 1 July 2000.
S 9-15(3) amended by No 176 of 1999, s 3 and Sch 1 item 5, by substituting "making" for "a payment made as" in para (b), effective 1 July 2000.
If a right or option to acquire a thing is granted, then:
(a) the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or
(b) if there is no such additional consideration - there is no consideration for the supply.
Making a gift to a non-profit body is not the provision of consideration .
A payment is not the provision of consideration if:
(a) the payment is made by a *government related entity to another government related entity for making a supply; and
(b) the payment is:
(i) covered by an appropriation under an *Australian law; or
(ii) made under the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time; or
(iii) made under another agreement entered into to implement the National Health Reform Agreement; and
(c) the payment is calculated on the basis that the sum of:
(i) the payment (including the amounts of any other such payments) relating to the supply; and
(ii) anything (including any payment for any act or forbearance) that the other government related entity receives from another entity in connection with, or in response to, or for the inducement of, the supply, or for any other related supply;
does not exceed the supplier's anticipated or actual costs of making those supplies.
A payment is not the provision of consideration if the payment is made by a *government related entity to another government related entity and the payment is of a kind specified in regulations made for the purposes of this subsection.
This section applies despite section 9-15.
S 9-17 inserted by No 75 of 2012, s 3 and Sch 2 item 2, applicable, and taken to have applied, from 1 July 2012.
An enterprise is an activity, or series of activities, done:
(a) in the form of a *business; or
(b) in the form of an adventure or concern in the nature of trade; or
(c) on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or
(d) by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30-B of the *ITAA 1997 and to which deductible gifts can be made; or
(da) by a trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or
(e) by a charity; or
(f) (Repealed by No 169 of 2012)
(g) by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or
(h) by a trustee of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN.
S 9-20(1) amended by No 169 of 2012, s 3 and Sch 2 item 69, by substituting para (e) for paras (e) and (f), effective 3 December 2012. Paras (e) and (f) formerly read:
(e) by a charitable institution or by a trustee of a charitable fund; or
(f) by a religious institution; or
S 9-20(1) amended by No 12 of 2012, s 3 and Sch 6 item 68, by substituting "*ITAA 1997" for "Income Tax Assessment Act 1997" in para (d), effective 21 March 2012.
S 9-20(1) amended by No 80 of 2006, s 3 and Sch 10 item 3, by inserting para (h), applicable and taken to have applied, in relation to tax periods starting, or that started, on or after 1 July 2005.
S 9-20(1) amended by No 92 of 2000.
However, enterprise does not include an activity, or series of activities, done:
(a) by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or
Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services.
(b) as a private recreational pursuit or hobby; or
(c) by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or
(d) as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12-45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies).
S 9-20(2) amended by No 101 of 2006, s 3 and Sch 2 item 13, by substituting "paragraph 12-45(1)(e)" for "subsection 12-45(3)" in para (d), effective 14 September 2006.
S 9-20(2) amended by No 80 of 2006, s 3 and Sch 10 item 4, by inserting ", or of a fund covered by item 2 of the table in section 30-15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN" in para (c), applicable and taken to have applied, in relation to tax periods starting, or that started, on or after 1 July 2005.
S 9-20(2) amended by No 92 of 2000 and No 178 of 1999.
For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities:
(a) being in the form of a *business within the meaning of paragraph (1)(a); or
(b) being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b).
S 9-20(3) substituted by No 92 of 2000.
S 9-20(3) inserted by No 177 of 1999.
This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.
Withholding payments covered
Item Provision Subject matter
1 Section 12-35 Payment to employee
2 Section 12-40 Payment to company director
3 Section 12-45 Payment to office holder
4 Section 12-60 Payment under labour hire arrangement, or specified by regulations
9-25 Supplies connected with the indirect tax zone Supplies of goods wholly within the indirect tax zone
A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.
S 9-25(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, " the indirect tax zone " for " Australia " and "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
Supplies of goods from the indirect tax zone
A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone .
S 9-25(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "the indirect tax zone" for "Australia" and " the indirect tax zone " for " Australia ", applicable to a tax period that commences on or after 1 July 2015.
Supplies of goods to the indirect tax zone
A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.
S 9-25(3) amended by No 52 of 2016, s 3 and Sch 2 item 1, by substituting "imports the goods into the indirect tax zone." for all the words after "the supplier", applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. All the words after "the supplier" formerly read:
(a) imports the goods into the indirect tax zone; or
(b) installs or assembles the goods in the indirect tax zone.
S 9-25(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, "the indirect tax zone" for "Australia" (wherever occurring) and " the indirect tax zone " for " Australia ", applicable to a tax period that commences on or after 1 July 2015.
A supply of goods that is an *offshore supply of low value goods is connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84-C.
S 9-25(3A) inserted by No 77 of 2017, s 3 and Sch 1 item 1, effective 1 July 2017. For application provisions, see note under Div 146 heading.
Supplies of real property
A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.
S 9-25(4) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " and "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 9-25(4) amended by No 176 of 1999, s 3 and Sch 1 item 6, by inserting ", or the land to which the real property relates,", effective 1 July 2000.
Supplies of anything else
A supply of anything other than goods or *real property is connected with the indirect tax zone if:
(a) the thing is done in the indirect tax zone; or
(b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or
(c) all of the following apply:
(i) neither paragraph (a) nor (b) applies in respect of the thing;
(ii) the thing is a right or option to acquire another thing;
(iii) the supply of theother thing would be connected with the indirect tax zone; or
(d) the *recipient of the supply is an *Australian consumer.
A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).
A supply that is connected with the indirect tax zone under this subsection might be GST-free if it is consumed outside the indirect tax zone: see section 38-190. For more rules about supplies that are GST-free, see Division 38.
S 9-25(5) amended by No 52 of 2016, s 3 and Sch 1 items 1 and 2, by inserting para (d) and the note, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 9-25(5) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia ", "the indirect tax zone" for "Australia" (wherever occurring) in para (a), (b) and (c), and "for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c)." for "for Australia that is supplied overseas might be connected with Australia under paragraph (5)(c)." in the example, applicable to a tax period that commences on or after 1 July 2015.
S 9-25(5) amended by No 77 of 2005, s 3 and Sch 3 items 1 and 2, by omitting "either" after "with Australia if" and inserting para (c), applicable to supplies made on or after 1 October 2005.
Supplies of goods involving installation or assembly services
If a supply of goods (other than a *luxury car) (the actual supply ) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:
(a) the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;
(b) the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.
The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9-26 applies.
The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13.
For the price of the separate supplies, see subsection 9-75(4).
S 9-25(6) substituted by No 52 of 2016, s 3 and Sch 2 item 2, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26. S 9-25(6) formerly read:
When enterprises are carried on in the indirect tax zone
An *enterprise is carried on in the indirect tax zone if the enterprise is carried on through:
(a) a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936) in the indirect tax zone; or
(b) a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.
S 9-25(6) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in the heading, " the indirect tax zone " for " Australia " and "1936) in the indirect tax zone" for "1936)" in para (a), applicable to a tax period that commences on or after 1 July 2015.
Meaning of Australian consumer
An entity is an Australian consumer of a supply made to the entity if:
(a) the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of Australia in the *ITAA 1997 includes the external Territories); and
(b) the entity:
(i) is not *registered; or
(ii) if the entity is registered - the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.
Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84-100.
S 9-25(7) inserted by No 52 of 2016, s 3 and Sch 1 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
A supply is not connected with the indirect tax zone if:
(a) the supplier is a *non-resident; and
(b) the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and
(c) the supply is covered by an item in this table:
Offshore supplies that are not connected with the indirect tax zone
Item Topic These supplies are not connected with the indirect tax zone [mldr ]
1 Inbound intangible supply a supply of anything other than goods or *real property if:
(a) the thing is done in the indirect tax zone; and
(b) the *recipient is an *Australian-based business recipient of the supply.
2 Intangible supply between non-residents a supply of anything other than goods or *real property if:
(b) the *recipient is a *non-resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.
3 Supply between non-residents of leased goods a supply by way of transfer of ownership of leased goods if:
(a) the *recipient is a *non-resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(b) the lessee:
(i) made a *taxable importation of the goods before the supply was made; and
(ii) continues to lease the goods on substantially similar terms and conditions after the supply is made.
4 Supply by way of continued lease of goods from item 3 a supply made by way of lease if:
(a) the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and
(b) the lease is the lease referred to in subparagraph (ii) of that paragraph.
This subsection does not apply to supplies made by a non-resident through a resident agent if they have agreed it is not to apply: see section 57-7.
An entity is an Australian-based business recipient of a supply made to the entity if:
(a) the entity is *registered; and
(b) an *enterprise of the entity is *carried on in the indirect tax zone; and
(c) the entity's acquisition of the thing supplied is not solely of a private or domestic nature.
If a supply is not connected with the indirect tax zone, the Australian-based business recipient may be subject to a reverse charge: see Subdivision 84-A.
This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).
S 9-26 inserted by No 52 of 2016, s 3 and Sch 2 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. No 54 of 2016, s 3 and Sch 2 items 26 and 27 contain the following saving provisions:
26 Saving - previous interpretation preserved
The amendments of Division 72 of the A New Tax System (Goods and Services Tax) Act 1999 do not affect by implication the interpretation of that Act before the amendments. 27 Existing agreements: no opportunity to review
The amendments do not apply in relation to a supply if:
(a) a written agreement specifically identifies the supply and identifies the consideration in money, or a way of working out the consideration in money, for the supply; and
(b) the agreement was made before the commencement of this Schedule; and
(c) the supplier is registered or required to be registered.
Subitem (1) does not apply to a supply to the extent (if any) that it is made on or after the earlier of the following:
(a) if a review opportunity (within the meaning of section 13 of the A New Tax System (Goods and Services Tax Transition) Act 1999) arises on or after the commencement of this Schedule - when that opportunity arises;
(b) if the supplier and the recipient of the supply agree in writing that the amendments made by this Schedule should apply from a time - that time.
An *enterprise of an entity is carried on in the indirect tax zone if:
(a) the enterprise is *carried on by one or more individuals covered by subsection (3) who are in the indirect tax zone; and
(b) any of the following applies:
(i) the enterprise is carried on through a fixed place in the indirect tax zone;
(ii) the enterprise has been carried on through one or more places in the indirect tax zone for more than 183 days in a 12 month period;
(iii) the entity intends to carry on the enterprise through one or more places in the indirect tax zone for more than 183 days in a 12 month period.
It does not matter whether:
(a) the entity has exclusive use of a place; or
(b) the entity owns, leases or has any other claim or interest in relation to a place.
This subsection covers the following individuals:
(a) if the entity is an individual - that individual;
(b) an employee or *officer of the entity;
(c) an individual who is, or is employed by, an agent of the entity that:
(i) has, and habitually exercises, authority to conclude contracts on behalf of the entity; and
(ii) is not a broker, general commission agent or other agent of independent status that is acting in the ordinary course of the agent's business as such an agent.
S 9-27 inserted by No 52 of 2016, s 3 and Sch 2 item 3, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
9-30 Supplies that are GST-free or input taxed GST-free
A supply is GST-free if:
(a) it is GST-free under Division 38 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be GST-free under paragraph (a).
S 9-30(1) substituted by No 177 of 1999, s 3 and Sch 1 item 4, effective 1 July 2000. S 9-30(1) formerly read:
GST-free
A supply is GST-free if it is GST-free under Division 38.
Input taxed
A supplyis input taxed if:
(a) it is input taxed under Division 40 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11-15 and 15-10).
A supply is input taxed if it is input taxed under Division 40.
Supplies that would be both GST-free and input taxed
To the extent that a supply would, apart from this subsection, be both *GST-free and *input taxed:
(a) the supply is GST-free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or
(b) the supply is input taxed and not GST-free, if that provision requires the supplier to have so chosen.
Subdivisions 40-E (School tuckshops and canteens) and 40-F (Fund-raising events conducted by charities etc.) require such a choice.)
S 9-30(3) amended by No 169 of 2012, s 3 and Sch 2 item 70, by substituting "charities" for "charitable institutions" in the note, effective 3 December 2012.
S 9-30(3) substituted by No 92 of 2000, s 3 and Sch 1 item 1, effective 1 July 2000. S 9-30(3) formerly read:
GST-free overrides input taxed
If, apart from this subsection, a supply would be both wholly *GST-free and wholly *input taxed, then the supply is taken to be GST-free and not input taxed.
Supply of things used solely in connection with making supplies that are input taxed but not financial supplies
A supply is taken to be a supply that is *input taxed if it is a supply of anything (other than *new residential premises) that you have used solely in connection with your supplies that are input taxed but are not *financial supplies.
S 9-30(4) amended by No 92 of 2000, s 3 and Sch 11 item 4, by inserting "(other than *new residential premises)" after "anything", effective 1 July 2000.
Chapter 4 contains special rules relating to taxable supplies, as follows:
Checklist of special rules
Item For this case ... See:
1A Agents and insurance brokers Division 153
1 Associates Division 72
2 Cancelled lay-by sales Division 102
3 Company amalgamations Division 90
3A Compulsory third party schemes Division 79
4 Deposits as security Division 99
5 Gambling Division 126
5A GST religious groups Division 49
5B (Repealed by No 74 of 2010)
6 Insurance Division 78
7 Offshore supplies Division 84
8 Payments of taxes, fees and charges Division 81
8AA Resident agents acting for non-residents Division 57
8A Second-hand goods Division 66
8B Settlement sharing arrangements Division 80
9 Supplies and acquisitions made on a progressive or periodic basis Division 156
9A Supplies in return for rights to develop land Division 82
10 Supplies in satisfaction of debts Division 105
11 Supplies partly connected with the indirect tax zone Division 96
12 Supply under arrangement covered by PAYG voluntary agreement Division 113
12A Tax-related transactions Division 110
13 Telecommunication supplies Division 85
14 Vouchers Division 100
S 9-39 amended by No 77 of 2017, s 3 and Sch 1 item 2, by substituting table item 7, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 7 formerly read:
7 Offshore supplies other than goods or real property Division 84
S 9-39 amended by No 52 of 2016, s 3 and Sch 2 item 3A, by inserting table item 8AA, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
S 9-39 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 11, column headed "For this case [mldr ]", applicable to a tax period that commences on or after 1 July 2015.
S 9-39 amended by No 74 of 2010, s 3 and Sch 1 items 46 and 47, by repealing table item 5B and inserting table item 12A, applicable to tax periods starting on or after 1 July 2010. Table item 5B formerly read:
5B ... Income tax-related transactions ... Division 110
S 9-39 amended by No 67 of 2003, s 3 and Sch 11 items 1 and 2, by inserting table items 3A and 8B, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-39 amended by No 97 of 2002, s 3 and Sch 1 items 1 and 9, by inserting table items 9A and 5B, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-39 amended by No 92 of 2000, s 3, Sch 1 item 1A and Sch 4 item 1, by inserting table items 1A and 5A, effective 1 July 2000.
S 9-39 amended by No 178 of 1999, s 3 and Sch 1 item 53, by inserting table item 12, effective 22 December 1999.
S 9-39 amended by No 177 of 1999, s 3 and Sch 1 items 5 and 6, by inserting table items 8A, 13 and 14, effective 1 July 2000.
S 9-39 amended by No 176 of 1999, s 3 and Sch 1 item 7, by inserting ", fees and charges" in table item 8, effective 1 July 2000.
Subdivision 9-B - Who is liable for GST on taxable supplies?
You must pay the GST payable on any *taxable supply that you make.
Chapter 4 contains special rules relating to liability for GST on taxable supplies, as follows:
2 GST groups Division 48
3 GST joint ventures Division 51
4A Non-residents making supplies connected with the indirect tax zone Division 83
4B Representatives of incapacitated entities Division 58
5 Resident agents acting for non-residents Division 57
6 Valuable metals Division 86
S 9-69 amended by No 76 of 2017, s 3 and Sch 1 item 1, by inserting table item 6, effective 27 June 2017.
S 9-69 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 4A, column headed "For this case [mldr ]", applicable to a tax period that commences on or after 1 July 2015.
S 9-69 amended by No 118 of 2009, s 3 and Sch 1 item 1, by inserting table item 4B, effective 1 July 2000.
S 9-69 amended by No 92 of 2000, s 3 and Sch 3 item 1, by inserting table item 4A, effective 1 July 2000.
Subdivision 9-C - How much GST is payable on taxable supplies?
The amount of GST on a *taxable supply is 10% of the *value of the taxable supply.
The value of a *taxable supply is as follows:
Price × 10
is the sum of:
(a) so far as the *consideration for the supply is consideration expressed as an amount of *money - the amount (without any discount for the amount of GST (if any) payable on the supply); and
(b) so far as the consideration is not consideration expressed as an amount of money - the *GST inclusive market value of that consideration.
You make a taxable supply by selling a car for $22,000 in the course of carrying on an enterprise.
The value of the supply is:
$22,000 × 10
11 = $20,000
The GST on the supply is therefore $2,000 (i.e. 10% of $20,000).
However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:
Luxury car tax value × 10
luxury car tax value
has the meaning given by section 5-20 of the A New Tax System (Luxury Car Tax) Act 1999.
In working out under subsection (1) the value of a *taxable supply made in a *tax period, being a supply that is a *fringe benefit, the price is taken to be the sum of:
(a) to the extent that, apart from this subsection, paragraph (a) of the definition of price in subsection (1) would be applicable:
(i) if the fringe benefit is a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the *recipient's payment made in that period; or
(ii) if the fringe benefit is a benefit other than a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the *recipients contribution made in that period; and
(b) to the extent that, apart from this subsection, paragraph (b) of the definition of price in subsection (1) would be applicable:
(i) if the fringe benefit is a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the recipient's payment made in that period; or
(ii) if the fringe benefit is a benefit other than a car fringe benefit - so much of the amount that would be worked out under that paragraph as represented the recipients contribution made in that period.
S 9-75(3) inserted by No 52 of 2000, s 3 and Sch 2 item 1, effective 30 May 2000.
Despite subsection (1), if a supply of goods (the actual supply ) is to be treated as separate supplies because of subsection 9-25(6) or 84-79(2), then the price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.
S 9-75(4) amended by No 77 of 2017, s 3 and Sch 1 item 4, by inserting "or 84-79(2)", effective 1 July 2017. For application provisions, see note under Div 146 heading.
S 9-75(4) inserted by No 52 of 2016, s 3 and Sch 2 item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 October 2016. For saving provisions, see note under s 9-26.
If a supply (the actual supply ) is:
(a) partly a *taxable supply; and
(b) partly a supply that is *GST-free or *input taxed;
the value of the part of the actual supply that is a taxable supply is the proportion of the value of the actual supply that the taxable supply represents.
S 9-80(1) amended by No 92 of 2000, s 3 and Sch 11 item 4A, by omitting ``(worked out as if it were solely a taxable supply)'' after ``value of the actual supply'', effective 1 July 2000.
The value of the actual supply, for the purposes of subsection (1), is as follows:
*Price of the actual supply × 10
10 + Taxable proportion
taxable proportion
is the proportion of the value of the actual supply that represents the value of the *taxable supply (expressed as a number between 0 and 1).
S 9-80(2) inserted by No 92 of 2000, s 3 and Sch 11 item 4B, effective 1 July 2000.
For the purposes of this Act, the *value of a *taxable supply is to be expressed in Australian currency.
In working out the *value of a *taxable supply, any amount of the *consideration for the supply that is expressed in:
(a) a currency other than Australian currency; or
(b) *digital currency;
is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.
S 9-85(2) substituted by No 118 of 2017, s 3 and Sch 1 item 2, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. No 118 of 2017, s 3 and Sch 1 item 3 contains the following transitional provision:
3 Transitional - preserving existing determinations
An instrument made under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 that is in force immediately before the commencement of this Schedule continues in force (and may be dealt with) as if it had been made under that subsection as amended by this Schedule.
S 9-85(2) formerly read:
In working out the *value of a *taxable supply, any amount of the *consideration for the supply that is expressed in a currency other than Australian currency is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.
S 9-85 inserted by No 176 of 1999, s 3 and Sch 1 item 9, effective 1 July 2000.
One taxable supply recorded on an invoice
If the amount of GST on a *taxable supply that is the only taxable supply recorded on a particular *invoice would, apart from this section, be an amount that includes a fraction of a cent, the amount of GST is rounded to the nearest cent (rounding 0.5 cents upwards). Several taxable supplies recorded on an invoice
If 2 or more *taxable supplies are recorded on the same *invoice, the total amount of GST on the supplies is:
(a) what would be the amount of GST if it were worked out by:
(i) working out the GST on each of the supplies (without rounding the amounts to the nearest cent); and
(ii) adding the amounts together and, if the total is an amount that includes a fraction of a cent, rounding it to the nearest cent (rounding 0.5 cents upwards); or
(b) the amount worked out using the following method statement: Method statement
Work out, for each *taxable supply, what would, apart from this section, be the amount of GST on the supply.
If the amount for the supply has more decimal places than the number of decimal places allowed by the accounting system used to work out the amount, round the amount (up or down as appropriate) to that number of decimal places.
Note: Subsection (4) gives further details of this rounding.
Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.
If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).
Whether to use paragraph (2)(a) or paragraph (2)(b) to work out the total amount of GST on the supplies is a matter of choice for:
(a) the supplier if the amount is being worked out to ascertain the supplier's liability for GST; or
(b) the *recipient of the supplies if the amount is being worked out to ascertain the recipient's entitlement to input tax credits.
In applying step 2 of the method statement in subsection (2), if:
(a) the number of decimal places in the amount for the supply exceeds by one decimal place the number of decimal places allowed by the accounting system used to work out the amount; and
(b) the last digit of the amount (before rounding) is 5;
the amount is rounded upwards to that number of decimal places.
Taxable supplies divided into items
If one or more *taxable supplies recorded on the same *invoice are divided into 2 or more items:
(a) subsection (1) does not apply; and
(b) subsection (2) applies as if each such item represented a separate taxable supply. Taxable supplies recorded on documents other than invoices
If one or more *taxable supplies, none of which are recorded on an *invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.
S 9-90 inserted by No 92 of 2000, s 3 and Sch 6 item 1, effective 1 July 2000.
Chapter 4 contains special rules relating to the amount of GST on taxable supplies, as follows:
4 Long-term accommodation in commercial residential premises Division 87
4AA Non-residents making supplies connected with the indirect tax zone Division 83
4A Offshore supplies Division 84
5 Sale of freehold interests etc. Division 75
6 (Repealed by 176 of 1999)
7 Supplies partly connected with the indirect tax zone Division 96
8 Transactions relating to insurance policies Division 78
8A Valuable metals Division 86
9 Valuation of taxable supplies of goods in bond Division 108
10 Excess GST Division 142
There are other laws that may affect the amount of GST on taxable supplies. For example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule).
S 9-99 amended by No 77 of 2017, s 3 and Sch 1 item 5, by substituting table item 4A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4A formerly read:
4A Offshore supplies other than goods or real property Division 84
S 9-99 amended by No 76 of 2017, s 3 and Sch 1 item 2, by inserting table item 8A, effective 27 June 2017.
S 9-99 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table items 4AA and 7, column headed "For this case [mldr ]", applicable to a tax period that commences on or after 1 July 2015.
S 9-99 amended by No 34 of 2014, s 3 and Sch 2 item 1, by inserting table item 10, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 9-99 amended by No 74 of 2010, s 3 and Sch 2 item 2, by inserting the note at the end, effective 1 July 2010.
S 9-99 amended by No 67 of 2003, s 3 and Sch 11 item 3, by inserting table item 2A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 9-99 amended by No 92 of 2000, s 3, Sch 3 item 2 and Sch 4 item 2, by inserting table items 1A and 4AA, effective 1 July 2000.
S 9-99 amended by No 176 of 1999, s 3 and Sch 1 items 10 and 11, by inserting table item 4A and repealing table item 6, effective 1 July 2000. Item 6 formerly read: "6 Second-hand goods Division 66".
Division 11 - Creditable acquisitions
You are entitled to input tax credits for your creditable acquisitions. This Division defines creditable acquisitions, states who is entitled to the input tax credits and describes how to work out the input tax credits on acquisitions.
You make a creditable acquisition if:
(a) you acquire anything solely or partly for a *creditable purpose; and
(b) the supply of the thing to you is a *taxable supply; and
(c) you provide, or are liable to provide, *consideration for the supply; and
An acquisition is any form of acquisition whatsoever.
Without limiting subsection (1), acquisition includes any of these:
(a) an acquisition of goods;
(b) an acquisition of services;
(c) a receipt of advice or information;
(d) an acceptance of a grant, assignment or surrender of *real property;
(e) an acceptance of a grant, transfer, assignment or surrender of any right;
(f) an acquisition of something the supply of which is a *financial supply;
(g) an acquisition of a right to require another person:
S 11-10(2) amended by No 176 of 1999, s 3 and Sch 1 item 12, by omitting "However, it does not include an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money.", effective 1 July 2000.
However, acquisition does not include:
(a) an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b) an acquisition of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
S 11-10(3) substituted by No 118 of 2017, s 3 and Sch 1 item 4, effective 1 July 2017. For application provision, see note under the definition of "digital currency" in s 195-1. S 11-10(3) formerly read:
However, an acquisition does not include an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money.
S 11-10(3) inserted by No 176 of 1999, s 3 and Sch 1 item 13, effective 1 July 2000.
You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise.
However, you do not acquire the thing for a creditable purpose to the extent that:
(a) the acquisition relates to making supplies that would be *input taxed; or
(b) the acquisition is of a private or domestic nature.
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.
S 11-15(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
S 11-15(3) substituted by No 156 of 2000, s 3 and Sch 1 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. S 11-15(3) formerly read:
To the extent that an acquisition relates to making *financial supplies through an *enterprise, or a part of an enterprise, that you *carry on outside Australia, the acquisition is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:
(a) the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and
(b) you do not *exceed the financial acquisitions threshold.
S 11-15(4) amended by No 92 of 2000, s 3 and Sch 5 item 1, by substituting para (b), effective 1 July 2000. Para (b) formerly read:
(b) your *annual turnover of financial supplies does not exceed the lesser of:
(i) $50,000 or such other amount specified in the regulations; or
(ii) 5% of your *annual turnover (treating supplies that are input taxed as part of your annual turnover).
An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:
(a) the acquisition relates to making a *financial supply consisting of a borrowing (other than through a *deposit account you make available); and
(b) the borrowing relates to you making supplies that are not input taxed.
S 11-15(5) amended by No 12 of 2012, s 3 and Sch 3 item 4, by inserting "(other than through a *deposit account you make available)" after "borrowing" in para (a), applicable in relation to acquisitions made on or after 1 July 2012.
S 11-15(5) inserted by No 92 of 2000, s 3 and Sch 5 item 2, effective 1 July 2000.
You are entitled to the input tax credit for any *creditable acquisition that you make.
The amount of the input tax credit for a *creditable acquisition is an amount equal to the GST payable on the supply of the thing acquired. However, the amount of the input tax credit is reduced if the acquisition is only *partly creditable.
The basic rule for working out the GST payable on the supply is in Subdivision 9-C. However, the GST payable may be affected by other provisions in:
(a) this Act (for a list of provisions, see section 9-99); and
(b) other GST laws (for example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule)).
S 11-25 amended by No 74 of 2010, s 3 and Sch 2 item 3, by inserting the note at the end, effective 1 July 2010.
An acquisition that you make is partly creditable if it is a *creditable acquisition to which one or both of the following apply:
(a) you make the acquisition only partly for a *creditable purpose;
(b) you provide, or are liable to provide, only part of the *consideration for the acquisition.
S 11-30(2) repealed by No 176 of 1999, s 3 and Sch 1 item 15, effective 1 July 2000. S 11-30(2) formerly read:
However, the acquisition is not *partly creditable if:
(a) it was made for a *creditable purpose except to the extent (if any) that the acquisition relates to making *financial supplies; and
(b) your *annual turnover of financial supplies does not exceed either:
The amount of the input tax credit on an acquisition that you make that is *partly creditable is as follows:
Full input
tax credit × Extent of creditable
purpose × Extent of
extent of consideration
is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of creditable purpose
is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.
full input tax credit
is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.
For the purpose of working out the extent of the *consideration, so far as the consideration is not expressed as an amount of *money, take into account the *GST inclusive market value of the consideration.
The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which a *creditable acquisition is for a *creditable purpose.
S 11-30(5) inserted by No 177 of 1999, s 3 and Sch 1 item 7, effective 1 July 2000.
Chapter 4 contains special rules relating to acquisitions, as follows:
1B Annual apportionment of creditable purpose Division 131
3 Financial supplies (reduced credit acquisitions) Division 70
3A Fringe benefits provided by input taxed suppliers Division 71
7A Limited registration entities Division 146
8 Non-deductible expenses Division 69
9 Pre-establishment costs Division 60
10 Reimbursement of employees etc. Division 111
10A Representatives of incapacitated entities Division 58
11 Resident agents acting for non-residents Division 57
12 (Repealed by No 156 of 2000)
13 Sale of freehold interests etc. Division 75
14 Second-hand goods Division 66
15 Settlement sharing arrangements Division 80
16 Time limit on entitlements to input tax credits Division 93
S 11-99 amended by No 77 of 2017, s 3 and Sch 1 items 6 and 7, by inserting table item 7A and substituting table item 8A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 8A formerly read:
S 11-99 amended by No 20 of 2010, s 3 and Sch 1 item 1, by inserting table item 16, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the A New Tax System (Goods and Services Tax) Act 1999 after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision 105-A in Schedule 1 to the Taxation Administration Act 1953 after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 11-99 amended by No 118 of 2009, s 3 and Sch 1 item 2, by inserting table item 10A, effective 1 July 2000.
S 11-99 amended by No 134 of 2004, s 3 and Sch 2 item 1, by inserting table item 1B, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them - 1 October 2004; or
(b) for other entities - 1 November 2004.
S 11-99 amended by No 67 of 2003, s 3 and Sch 11 items 4 and 5, by inserting table items 2A and 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 11-99 amended by No 156 of 2000, s 3 and Sch 6 item 1, by repealing table item 12, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Table item 12 formerly read: "12 Returnable containers Division 93".
S 11-99 amended by No 156 of 2000, s 3 and Sch 3 item 1, by substituting table item 3A, applicable in relation to net amounts for tax periods ending on or after 12 October 2000. Table item 3A formerly read: "3A Financial supplies (acquisitions and importations to provide fringe benefits) Division 71".
S 11-99 amended by No 92 of 2000, s 3, Sch 1 item 1B, Sch 4 item 3 and Sch 5 item 2A, by inserting table items 1A, 3A and 6A, effective 1 July 2000.
S 11-99 amended by No 176 of 1999, s 3 and Sch 1 item 16, by inserting table item 8A, effective 1 July 2000.
Part 2-3 - Importations
Division 13 - Taxable importations
GST is payable on taxable importations. This Division defines taxable importations, states who is liable for the GST and describes how to work out the GST on importations.
This Division applies whether or not you are registered.
Things other than goods that are supplied overseas for use in the indirect tax zone (and are therefore in that sense "imported") are not taxable importations, but they can attract GST under Subdivision 84-A.
S 13-1 amended by No 52 of 2016, s 3 and Sch 1 item 10, by substituting "Subdivision 84-A" for "Division 84" in note 2, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 13-1 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in note 2, applicable to a tax period that commences on or after 1 July 2015.
You make a taxable importation if:
(a) goods are imported; and
(b) you enter the goods for home consumption (within the meaning of the Customs Act 1901).
However, the importation is not a taxable importation to the extent that it is a *non-taxable importation.
There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.
S 13-5(1) substituted by No 176 of 1999, s 3 and Sch 1 item 17, effective 1 July 2000. S 13-5(1) formerly read:
A taxable importation is an *importation of goods into Australia, but only to the extent that it is not a *non-taxable importation.
S 13-5(2) repealed by No 176 of 1999, s 3 and Sch 1 item 17, effective 1 July 2000. S 13-5(2) formerly read:
You make an importation of goods into Australia if:
(a) you enter the goods for home consumption (within the meaning of the Customs Act 1901); and
(b) at the time they are so entered for home consumption, you are the owner (within the meaning of that Act) of the goods.
However, an importation of *money is not an importation of goods into the indirect tax zone.
S 13-5(3) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia", applicable to a tax period that commences on or after 1 July 2015.
An importation is a non-taxable importation if:
(a) it is a non-taxable importation under Part 3-2; or
(b) it would have been a supply that was *GST-free or *input taxed if it had been a supply.
You must pay the GST payable on any *taxable importation that you make.
The amount of GST on the *taxable importation is 10% of the *value of the taxable importation.
The value of a *taxable importation is the sum of:
(a) the *customs value of the goods imported; and
(b) the amount paid or payable:
(i) for the *international transport of the goods to their *place of consignment in the indirect tax zone; and
(ii) to insure the goods for that transport;
to the extent that the amount is not already included under paragraph (a); and
(ba) the amount paid or payable for a supply to which item 5A in the table in subsection 38-355(1) applies, to the extent that the amount:
(i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and
Division 81 excludes certain taxes, fees and charges from the provision of consideration.
(ii) is not already included under paragraph (a) or (b); and
(c) any *customs duty payable in respect of the importation of the goods; and
(d) any *wine tax payable in respect of the *local entry of the goods.
S 13-20(2) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b)(i), applicable to a tax period that commences on or after 1 July 2015.
S 13-20(2) amended by No 41 of 2011, s 3 and Sch 4 item 1, by substituting para (ba)(i), applicable in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. For application provision, see note under Div 81 heading. Para (ba)(i) formerly read:
(i) is not a tax, fee or charge to which subsection 81-5(2) applies; and
S 13-20(2) amended by No 91 of 2010, s 3 and Sch 1 item 1, by inserting para (ba), effective 29 June 2010. No 91 of 2010, s 3 and Sch 1 item 16 contains the following application provision:
The amendments made apply to:
(a) supplies made on or after 1 July 2010; and
(b) taxable importations made on or after 1 July 2010.
Despite paragraph (1)(a), the amendments made do not apply to a supply of services to the extent that the supply relates to a taxable importation made before 1 July 2010.
S 13-20(2) amended by No 176 of 1999, s 3 and Sch 1 items 18 to 20, by substituting "*customs value" for "customs value (for the purposes of Division 2 of Part VIII of the Customs Act 1901)" in para (a), substituting subpara (b)(i), and inserting para (d), effective 1 July 2000. Subpara (b)(i) formerly read:
(i) to transport the goods to Australia; and
If an amount to be taken into account under paragraph (2)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.
S 13-20(2A) amended by No 91 of 2010, s 3 and Sch 1 item 2, by inserting "or (ba)" after "paragraph (2)(b)", effective 29 June 2010. For application provision, see history note under s 13-20(2).
S 13-20(2A) inserted by No 156 of 2000, s 3 and Sch 2 item 1, applicable to importations into Australia on or after 12 October 2000.
The Commissioner may, in writing:
(a) determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (2)(b); and
(b) determine the way in which the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is to be worked out for the purposes of that paragraph; and
(c) in relation to importations of a specified kind or importations to which specified circumstances apply - determine that:
(i) the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of paragraph (2)(b), to be zero; or
(ii) the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is taken, for the purposes of that paragraph, to be zero.
S 13-20(3) amended by No 91 of 2010, s 3 and Sch 1 item 3, by substituting paras (b) and (c) for para (b), effective 29 June 2010. For application provision, see history note under s 13-20(2). No 91 of 2010, s 3 and Sch 1 item 15 states that:
15 Existing determinations under paragraph 13-20(3)(b)
A determination under paragraph 13-20(3)(b) of the A New Tax System (Goods and Services Tax) Act 1999, that was in force immediately before 29 June 2010, continues in force after 29 June 2010 as if it were a determination under subparagraph 13-20(3)(c)(i) of that Act as inserted by this Act [No 91 of 2010].
Para (b) formerly read:
(b) in relation to importations of a specified kind or importations to which specified circumstances apply, determine that the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of that paragraph, to be zero.
For a *taxable importation that you make, you may choose to treat the amount under paragraph (2)(b), (or, if paragraph (2)(ba) applies, the sum of the amounts under paragraphs (2)(b) and (ba)), as an amount equal to:
(a) the percentage prescribed by the regulations of the *customs value of the goods imported; or
(b) if no percentage is prescribed - 10% of their customs value.
S 13-20(4) inserted by No 52 of 2016, s 3 and Sch 2 item 22, applicable in relation to taxable importations made on or after 1 October 2016. For saving provisions, see note under s 9-26.
However, subsection (4) does not apply if:
(a) you are not *registered; or
(b) the *local entry of the goods is a *taxable dealing in relation to *wine; or
(c) the importation of the goods is a *taxable importation of a luxury car.
If an importation (the actual importation ) is:
(a) partly a *taxable importation; and
(b) partly a *non-taxable importation;
the value of the part of the actual importation that is a taxable importation is the proportion of the value of the actual importation (worked out as if it were solely a taxable importation) that the taxable importation represents.
Chapter 4 contains special rules relating to taxable importations, as follows:
3 Importations without entry for home consumption Division 114
4 Representatives of incapacitated entities Division 58
6 Valuation of re-imported goods Division 117
There are other laws that may affect the amount of GST on taxable importations. For example, see subsection 357-60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5-5 in that Schedule).
S 13-99 amended by No 118 of 2009, s 3 and Sch 1 item 3, by inserting table item 4, effective 1 July 2000.
S 13-99 amended by No 156 of 2000, s 3 and Sch 2 item 2, by substituting "re-imported goods" for "taxable importations of goods that were exported for repair or renovation" in table item 6, applicable to importations into Australia on or after 12 October 2000.
S 13-99 amended by No 176 of 1999, s 3 and Sch 1 item 22, by repealing table item 4, effective 1 July 2000. Table item 4 formerly read: "4 Non-deductible expenses Division 69".
Division 15 - Creditable importations
You are entitled to input tax credits for your creditable importations. This Division defines creditable importations, states who is entitled to the input tax credits and describes how to work out the input tax credits on importations.
You make a creditable importation if:
(a) you import goods solely or partly for a *creditable purpose; and
(b) the importation is a *taxable importation; and
(c) you are *registered, or *required to be registered.
You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise.
However, you do not import the goods for a creditable purpose to the extent that:
(a) the importation relates to making supplies that would be *input taxed; or
(b) the importation is of a private or domestic nature.
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.
To the extent that an importation relates to making *financial supplies through an *enterprise, or a part of an enterprise, that you *carry on outside Australia, the importation is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be *input taxed.
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:
S 15-10(4) inserted by No 176 of 1999, s3 and Sch 1 item 23, effective 1 July 2000.
An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:
(a) the importation relates to making a *financial supply consisting of a borrowing; and
You are entitled to the input tax credit for any *creditable importation that you make.
The amount of input tax credit for a *creditable importation is an amount equal to the GST payable on the importation. However, the amount of the input tax credit is reduced if the importation is only *partly creditable.
The basic rule for working out the GST payable on the importation is in section 13-20. However, the GST payable may be affected by other provisions in:
(a) this Act (for a list of provisions, see section 13-99); and
An importation that you make is partly creditable if it is a *creditable importation that you make only partly for a *creditable purpose.
However, the importation is not *partly creditable if:
(a) it was made for a *creditable purpose except to the extent (if any) that the importation relates to making *financial supplies; and
(b) your *annual financial supplies turnover does not exceed either:
The amount of the input tax credit on an importation that you make that is *partly creditable is as follows:
Full input tax credit × Extent of creditable purpose
is the extent to which the importation is for a *creditable purpose, expressed as a percentage of the total purpose of the importation.
is what would have been the amount of the input tax credit for the importation if it had been made solely for a creditable purpose.
The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which an importation is for a *creditable purpose.
Chapter 4 contains special rules relating to creditable importations, as follows:
1AA Annual apportionment of creditable purpose Division 131
2AA Importations without entry for home consumption Division 114
2A Non-deductible expenses Division 69
3A Representatives of incapacitated entities Division 58
S 15-99 amended by No 118 of 2009, s 3 and Sch 1 item 4, by inserting table item 3A, effective 1 July 2000.
S 15-99 amended by No 134 of 2004, s 3 and Sch 2 item 2, by inserting table item 1AA, applicable in relation to net amounts for tax periods starting, or that started, on or after:
S 15-99 amended by No 92 of 2000, s 3, Sch 5 item 4A and Sch 11 item 4C, by inserting table items 1A and 2AA, effective 1 July 2000.
Part 2-4 - Net amounts and adjustments
Division 17 - Net amounts and adjustments
A net amount is worked out for each tax period that applies to you.
Adjustments can be made to the net amount. Increasing adjustments increase your net amount, and decreasing adjustments decrease your net amount.
GST on taxable importations is not included in the net amount. It is dealt with separately under section 33-15.
S 17-1 substituted by No 39 of 2012, s 3 and Sch 1 item 35, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 17-1 formerly read:
A net amount is worked out for each tax period that applies to you. This is the amount payable by you to the Commonwealth, or payable to you by the Commonwealth, for the tax period.
Net amounts payable to the Commonwealth are to be paid to the Commissioner on the Commonwealth's behalf (see Division 33).
The net amount for a tax period applying to you is worked out using the following formula:
GST - Input tax credits
is the sum of all of the GST for which you are liable on the *taxable supplies that are attributable to the tax period.
input tax credits
is the sum of all of the input tax credits to which you are entitled for the *creditable acquisitions and *creditable importations that are attributable to the tax period.
For the basic rules on what is attributable to a particular period, see Division 29.
For further rules if you have excess GST for the period, see Division 142.
S 17-5(1) amended by No 34 of 2014, s 3 and Sch 2 item 2, by substituting the note, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014. The note formerly read:
For the basic rules on what is attributable to a particular period, see Division 29
However, the *net amount for the tax period:
(a) may be increased or decreased if you have any *adjustments for the tax period; and
(b) may be increased or decreased under Subdivision 21-A of the *Wine Tax Act; and
(c) may be increased or decreased under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999.
Under Subdivision 21-A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount.
Under Subdivision 13-A of the A New Tax System (Luxury Car Tax) Act 1999, amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount.
S 17-5(2) substituted by No 39 of 2012, s 3 and Sch 3 item 1, effective 1 July 2012. S 17-5(2) formerly read:
However, the *net amount for the tax period may be increased or decreased if you have any *adjustments for the tax period.
If you have any *adjustments that are attributable to a tax period applying to you, alter your *net amount for the period as follows:
(a) add to the amount worked out under subsection 17-5(1) for the period the sum of all the *increasing adjustments (if any) that are attributable to the period;
(b) subtract from that amount the sum of all the *decreasing adjustments (if any) that are attributable to the period.
For the basic rules on what adjustments are attributable to a particular period, see Division 29.
S 17-15 repealed by No 21 of 2015, s 3 and Sch 7 item 1, applicable in relation to tax periods starting after 19 March 2015. S 17-15 formerly read:
You may choose to work out your *net amount for a tax period in the way specified in an *approved form if you use the form to notify the Commissioner of that net amount. The amount so worked out is treated as your net amount for the tax period.
Choosing to use section 17-5 to work out your net amount does not mean your GST return is not in the approved form: see subsection 31-15(3).
This section has effect despite section 17-5.
S 17-15 inserted by No 92 of 2000, s 3 and Sch 6 item 2, effective 1 July 2000.
The Commissioner may make a determination that, in the circumstances specified in the determination, a *net amount for a tax period may be worked out to take account of other matters in the way specified in the determination.
The matters must relate to correction of errors that were made in working out *net amounts for tax periods to which subsection (2A) applies.
S 17-20(2) substituted by No 39 of 2012, s 3 and Sch 1 item 242, effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 17-20(2) formerly read:
The matters must relate to correction of errors:
(a) that were made in working out *net amounts to which subsection (2A) applies; and
(b) that do not relate to amounts:
(i) that have ceased to be payable by you because of section 105-50 in Schedule 1 to the Taxation Administration Act 1953; or
(ii) to which, because of section 105-55 in that Schedule, you are not entitled.
Paragraph (2)(b) will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.
S 17-20(2) substituted by No 39 of 2012, s 3 and Sch 2 item 1, effective 1 July 2012. S 17-20(2) formerly read:
The matters must relate to correction of errors made in working out *net amounts for the immediately preceding tax period.
This subsection applies to a *net amount for a tax period (the earlier tax period ) if:
(a) the earlier tax period precedes the tax period mentioned in subsection (1); and
(b) the tax period mentioned in subsection (1) starts during the *period of review for the *assessment of the *net amount.
S 17-20(2A) amended by No 39 of 2012, s 3 and Sch 1 item 243, by omitting "if the earlier tax period started on or after 1 July 2012 -" before "the tax period" from para (b), effective 1 January 2017 and applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 17-20(2A) inserted by No 39 of 2012, s 3 and Sch 2 item 1, effective 1 July 2012.
If those circumstances apply in relation to a tax period applying to you, you may work out your *net amount for the tax period in that way.
S 17-20 inserted by No 73 of 2001, s 3 and Sch 1 item 67, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Chapter 4 contains special rules relating to net amounts or adjustments, as follows:
1A Annual apportionment of creditable purpose Division 131
1 Anti-avoidance Division 165
2 Cessation of registration Division 138
3 Changes in the extent of creditable purpose Division 129
4AA Compulsory third party schemes Division 79
4A Distributions from deceased estates Division 139
5A Goods applied solely to private or domestic use Division 130
6 GST branches Division 54
9AA Non-deductible expenses Division 69
9A Non-profit sub-entities Division 63
9B Payment of GST by instalments Division 162
9C Providing additional consideration under gross-up clauses Division 133
10 Representatives of incapacitated entities Division 58
11A Sale of freehold interests etc. Division 75
12AA Settlement sharing arrangements Division 80
12A Simplified accounting methods for retailers and small enterprise entities Division 123
12B Stock on hand on becoming registered etc. Division 137
14 Supplies of going concerns Division 135
15 Supplies of things acquired etc. without full input tax credits Division 132
15A Third party payments Division 134
16 Tradex scheme goods Division 141
S 17-99 amended by No 21 of 2010, s 3 and Sch 1 item 1, by inserting table item 15A, applicable in relation to payments made on or after 1 July 2010.
S 17-99 amended by No 20 of 2010, s 3 and Sch 1 item 2, by inserting table item 9C, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
S 17-99 amended by No 118 of 2009, s 3 and Sch 1 item 12, by substituting "Division 58" for "Divisions 58 and 147" in table item 10, effective 4 December 2009.
S 17-99 amended by No 118 of 2009, s 3 and Sch 1 item 5, by substituting "Divisions 58 and 147" for "Division 147" in table item 10, effective 1 July 2000.
S 17-99 amended by No 112 of 2007, s 3 and Sch 1 item 1, by inserting "and small enterprise entities" after "retailers" in table item 12A, applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 17-99 amended by No 78 of 2005, s 3 and Sch 6 item 1, by inserting table item 11A, applicable, and taken to have applied, in relation to supplies made on or after 17 March 2005.
S 17-99 amended by No 134 of 2004, s 3 and Sch 2 item 3, by inserting table item 1A, applicable in relation to net amounts for tax periods starting, or that started, on or after:
S 17-99 amended by No 67 of 2003, s 3 and Sch 11 items 6 and 7, by inserting table items 4AA and 12AA, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 17-99 amended by No 73 of 2001, s 3 and Sch 1 item 23, by inserting table item 9B, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
S 17-99 amended by No 156 of 2000, s 3 and Sch 4 item 1, by substituting "etc. without full input tax credits" for ", imported or applied to make financial supplies" in table item 15, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 17-99 amended by No 156 of 2000, s 3 and Sch 3 item 3, by inserting table item 9AA, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 17-99 amended by No 92 of 2000, s 3, Sch 1 item 1C and Sch 11 item 4D, by inserting table items 4A and 8A, effective 1 July 2000.
S 17-99 amended by No 177 of 1999, s 3 and Sch 1 items 9 to 12, by inserting table items 5A, 9A, 12B and 17, effective 1 July 2000.
S 17-99 amended by No 176 of 1999, s 3 and Sch 7 item 9, by inserting table item 16, effective 1 July 2000.
S 17-99 amended by No 176 of 1999, s 3 and Sch 1 item 26, by inserting table item 12A, effective 1 July 2000.
Division 19 - Adjustment events
Adjustments can arise because of adjustment events. They are events such as a cancellation of a supply or acquisition, or a change in the consideration for a supply or acquisition (for example, because of a volume discount).
Importations do not give rise to adjustment events.
The following diagram shows how an *adjustment event for a supply or acquisition can give rise to an *increasing adjustment or a *decreasing adjustment.
This section is an explanatory section.
S 19-5 amended by No 176 of 1999, s 3 and Sch 1 item 27, by inserting the Note, effective 1 July 2000.
Subdivision 19-A - Adjustment events
An adjustment event is any event which has the effect of:
(a) cancelling a supply or acquisition; or
(b) changing the *consideration for a supply or acquisition; or
(c) causing a supply or acquisition to become, or stop being, a *taxable supply or *creditable acquisition.
If goods that are supplied for export are not exported within the time provided in section 38-185, the supply is likely to become a taxable supply after originally being a supply that was GST-free.
Without limiting subsection (1), these are *adjustment events:
(a) the return to a supplier of a thing, or part of a thing, supplied (whether or not the return involves a change of ownership of the thing);
(b) a change to the previously agreed *consideration for a supply or acquisition, whether due to the offer of a discount or otherwise;
(c) a change in the extent to which an entity that makes an acquisition provides, or is liable to provide, consideration for the acquisition (unless the entity *accounts on a cash basis).
An *adjustment event:
(a) can arise in relation to a supply even if it is not a *taxable supply; and
(b) can arise in relation to an acquisition even if it is not a *creditable acquisition.
However, the return of a thing supplied, or part of a thing supplied, to its supplier is not an *adjustment event if the return is for the purpose of repair or maintenance.
Subdivision 19-B - Adjustments for supplies
You have an adjustment for a supply for which you are liable to pay GST (or would be liable to pay GST if it were a *taxable supply) if:
(a) in relation to the supply, one or more *adjustment events occur during a tax period; and
(b) GST on the supply was attributable to an earlier tax period (or, if the supply was not a taxable supply, would have been attributable to an earlier tax period had the supply been a taxable supply); and
(c) as a result of those adjustment events, the *previously attributed GST amount for the supply (if any) no longer correctly reflects the amount of GST (if any) on the supply (the corrected GST amount ), taking into account any change of circumstances that has given rise to an adjustment for the supply under this Subdivision or Division 21 or 134.
S 19-40 amended by No 21 of 2010, s 3 and Sch 1 item 2, by inserting "or 134" after "Division 21" in para (c), applicable in relation to payments made on or after 1 July 2010.
S 19-40 amended by No 177 of 1999, s 3 and Sch 1 item 13, by substituting para (c), effective 1 July 2000. Para (c) formerly read:
(c) as a result of those adjustment events, the *previously attributed GST amount for the supply no longer correctly reflects the amount of GST on the supply (the corrected GST amount ), taking into account any adjustments for the supply.
The previously attributed GST amount for a supply is:
(a) the amount of any GST that was attributable to a tax period in respect of the supply; plus
(b) the sum of any *increasing adjustments, under this Subdivision or Division 21, that were previously attributable to a tax period in respect of the supply; minus
(c) the sum of any *decreasing adjustments, under this Subdivision or Division 21 or 134, that were previously attributable to a tax period in respect of the supply.
S 19-45 amended by No 177 of 1999, s 3 and Sch 1 item 14, by inserting "or Division 21" into paras (b) and (c), effective 1 July 2000.
If the *corrected GST amount is greater than the *previously attributed GST amount, you have an increasing adjustment equal to the difference between the corrected GST amount and the previously attributed GST amount.
If the *corrected GST amount is less than the *previously attributed GST amount, you have a decreasing adjustment equal to the difference between the previously attributed GST amount and the corrected GST amount.
Subdivision 19-C - Adjustments for acquisitions
You have an adjustment for an acquisition for which you are entitled to an input tax credit (or would be entitled to an input tax credit if the acquisition were a *creditable acquisition) if:
(a) in relation to the acquisition, one or more *adjustment events occur during a tax period; and
(b) an input tax credit on the acquisition was attributable to an earlier tax period (or, if the acquisition was not a creditable acquisition, would have been attributable to an earlier tax period had the acquisition been a creditable acquisition); and
(c) as a result of those adjustment events, the *previously attributed input tax credit amount for the acquisition (if any) no longer correctly reflects the amount of the input tax credit (if any) on the acquisition (the corrected input tax credit amount ).
S 19-70(1) amended by No 134 of 2004, s 3 and Sch 2 item 4, by omitting the words "taking into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21 or 129" at the end of para (c), applicable in relation to net amounts for tax periods starting, or that started, on or after:
S 19-70 amended by No 177 of 1999, s 3 and Sch 1 item 15, by substituting "taking into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21 or 129" for "taking into account any adjustments for the acquisition" in para (c), effective 1 July 2000.
In working out the *corrected input tax credit amount for the acquisition:
(a) take into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21, 129, 133 or 134; and
(b) if an adjustment relating to the acquisition under Division 131 was attributable to an earlier tax period:
(i) do not take into account that adjustment; and
(ii) treat the acquisition as one in relation to which Division 131 had not applied.
S 19-70(2) amended by No 21 of 2010, s 3 and Sch 1 item 3, by substituting ", 133 or 134" for "or 133" in para (a), applicable in relation to payments made on or after 1 July 2010.
S 19-70(2) amended by No 20 of 2010, s 3 and Sch 1 item 3, by substituting ", 129 or 133" for "or 129" in para (a), applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
S 19-70(2) inserted by No 134 of 2004, s 3 and Sch 2 item 5, applicable in relation to net amounts for tax periods starting, or that started, on or after:
The previously attributed input tax credit amount for an acquisition is:
(a) the amount of any input tax credit that was attributable to a tax period in respect of the acquisition; minus
(b) the sum of any *increasing adjustments, under this Subdivision or Division 21, 129, 131 or 134, that were previously attributable to a tax period in respect of the acquisition; plus
(c) the sum of any *decreasing adjustments, under this Subdivision or Division 21, 129 or 133, that were previously attributable to a tax period in respect of the acquisition.
S 19-75 amended by No 21 of 2010, s 3 and Sch 1 item 4, by substituting ", 131 or 134" for "or 131" in para (b), applicable in relation to payments made on or after 1 July 2010.
S 19-75 amended by No 20 of 2010, s 3 and Sch 1 item 3, by substituting ", 129 or 133" for "or 129" in para (c), applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
S 19-75 amended by No 134 of 2004, s 3 and Sch 2 item 6, by substituting ", 129 or 131" for "or 129" in para (b), applicable in relation to net amounts for tax periods starting, or that started, on or after:
S 19-75 amended by No 177 of 1999, s 3 and Sch 1 item 16, by inserting "or Division 21 or 129" in paras (b) and (c), effective 1 July 2000.
S 19-75 amended by No 176 of 1999, s 3 and Sch 1 items 29 and 30, by substituting "minus" for "plus" in para (a) and "plus" for "minus" in para (b), effective 1 July 2000.
If the *previously attributed input tax credit amount is greater than the *corrected input tax credit amount, you have an increasing adjustment equal to the difference between the previously attributed input tax credit amount and the corrected input tax credit amount.
If the *previously attributed input tax credit amount is less than the *corrected input tax credit amount, you have a decreasing adjustment equal to the difference between the corrected input tax credit amount and the previously attributed input tax credit amount.
Chapter 4 contains special rules relating to *adjustment events in particular cases, as follows:
1AB Excess GST and cancelled supplies Division 142
2A Providing additional consideration under gross-up clauses Division 133
3 Settlement sharing arrangements Division 80
4 Third party payments Division 134
S 19-99 amended by No 34 of 2014, s 3 and Sch 2 item 3, by inserting table item 1AB, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 19-99 amended by No 21 of 2010, s 3 and Sch 1 item 5, by inserting table item 4, applicable in relation to payments made on or after 1 July 2010.
S 19-99 amended by No 20 of 2010, s 3 and Sch 1 item 4, by inserting table item 2A, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
S 19-99 amended by No 67 of 2003, s 3 and Sch 11 items 8 and 9, by inserting table items 1AA and 3, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 19-99 amended by No 156 of 2000, s 3 and Sch 3 item 4, by inserting table item 2, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 19-99 amended by No 92 of 2000, s 3 and Sch 1 item 1D, by inserting table item 1A, effective 1 July 2000.
S 19-99 inserted by No 177 of 1999, s 3 and Sch 1 item 17, effective 1 July 2000.
Division 21 - Bad debts
If debts are written off as bad or are outstanding after 12 months, adjustments (for the purpose of working out net amounts) are made. They can arise both for amounts written off or outstanding and for recovery of amounts previously written off or outstanding.
This Division does not apply to supplies and acquisitions that you account for on a cash basis (except in the limited circumstances referred to in Division 159).
You have a decreasing adjustment if:
(a) you made a *taxable supply; and
(b) the whole or part of the *consideration for the supply has not been received; and
(c) you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.
The amount of the decreasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.
S 21-5(1) amended by No 177 of 1999, s 3 and Sch 1 items 18 and 19, by substituting ``*overdue'' for ``due'' in para (c) and ``overdue'' for ``due'' (last occurring), effective 1 July 2000.
However, you cannot have an *adjustment under this section if you *account on a cash basis.
You have an increasing adjustment if:
(a) you made a *taxable supply in relation to which you had a *decreasing adjustment under section 21-5 for a debt; and
(b) you recover the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.
The amount of the increasing adjustment is 1/11 of the amount recovered.
S 21-10 amended by No 177 of 1999, s 3 and Sch 1 item 20, by substituting "*overdue" for "due" in para (b), effective 1 July 2000.
(a) you made a *creditable acquisition for *consideration; and
(b) the whole or part of the consideration is *overdue, but you have not provided the consideration overdue; and
(c) the supplier of the thing you acquired writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.
The amount of the increasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.
S 21-15(1) amended by No 177 of 1999, s 3 and Sch 1 items 21 to 24, by substituting ``*overdue'' for ``due'' (first occurring) and ``overdue'' for ``due'' (second occurring) in para (b), ``overdue'' for ``due'' in para (c) and ``overdue'' for ``due'' (last occurring), effective 1 July 2000.
(a) you made a *creditable acquisition in relation to which you had an *increasing adjustment under section 21-15 for a debt; and
(b) you pay to the supplier of the thing you acquired the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.
The amount of the decreasing adjustment is 1/11 of the amount recovered.
S 21-20 amended by No 177 of 1999, s 3 and Sch 1 item 25, by substituting ``*overdue'' for ``due'' in para (b), effective 1 July 2000.
Chapter 4 contains special rules relating to adjustments for bad debts, as follows:
1A Bad debts relating to transactions that are not taxable or creditable to the fullest extent Division 136
1 Changing your accounting basis Division 159
S 21-99 amended by No 156 of 2000, s 3 and Sch 4 item 2, by substituting "transactions that are not taxable or creditable to the fullest extent" for "partly taxable or creditable transactions" in table item 1A, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
Part 2-5 - Registration
Division 23 - Who is required to be registered and who may be registered
This diagram shows when you are required to be, and when you may, be registered.
S 23-1 amended by No 70 of 2015, s 3 and Sch 6 item 1, by substituting the diagram, effective 25 June 2015. The diagram formerly read:
S 23-1 amended by No 80 of 2007, s 3 and Sch 2 item 1, by substituting the diagram, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. The diagram formerly read:
You are required to be registered under this Act if:
(a) you are *carrying on an *enterprise; and
(b) your *GST turnover meets the *registration turnover threshold.
It is the entity that carries on the enterprise that is required to be registered (and not the enterprise).
S 23-5 amended by No 80 of 2007, s 3 and Sch 2 item 2, by substituting "*GST turnover" for "*annual turnover" in para (b), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
You may be *registered under this Act if you are carrying on an *enterprise (whether or not your *GST turnover is at, above or below the *registration turnover threshold).
You may be *registered under this Act if you intend to carry on an *enterprise from a particular date.
S 23-10 amended by No 80 of 2007, s 3 and Sch 2 item 3, by substituting "your *GST turnover" for "your turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Your registration turnover threshold (unless you are a non-profit body) is:
(a) $50,000; or
(b) such higher amount as the regulations specify.
Your registration turnover threshold if you are a non-profit body is:
(a) $100,000; or
CCH Note
The registration turnover threshold was increased from $50,000 ($100,000 for non-profit bodies) to $75,000 ($150,000 for non-profit bodies) with effect from 1 July 2007. For details, see reg 23-15.01 and 23-15.02 of the A New Tax System (Goods and Services Tax) Regulations 1999.
Despite section 23-5, you are treated as not having been *required to be registered under this Act on a day if your *registration could not take effect from that day because of subsection 25-10(1A).
Subsection 25-10(1A) provides that the date of effect of your registration must not be a day that occurred more than 4 years before the day of the Commissioner's decision to register you, unless the Commissioner is of the opinion there has been fraud or evasion.
S 23-20 inserted by No 39 of 2012, s 3 and Sch 1 item 36, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Chapter 4 contains special rules relating to who is *required to be registered, or who may be *registered, as follows:
1A Government entities Division 149
1B Non-profit sub-entities Division 63
3 Taxis Division 144
S 23-99 amended by No 118 of 2009, s 3 and Sch 1 item 13, by substituting "Division 58" for "Division 147" in table item 1, effective 4 December 2009.
S 23-99 amended by No 177 of 1999, s 3 and Sch 1 item 27, by inserting table items 1A and 1B, effective 1 July 2000.
Division 25 - How you become registered, and how your registration can be cancelled
Subdivision 25-A - How you become registered
You must apply, in the *approved form, to be *registered under this Act if:
(a) you are not registered under this Act; and
(b) you are *required to be registered.
You must make your application within 21 days after becoming required to be registered.
The Commissioner must *register you if:
(a) you have applied for registration in an *approved form; and
(b) the Commissioner is satisfied that you are *carrying on an *enterprise, or you intend to carry on an enterprise from a particular date specified in your application.
Refusing to register you under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-5(1) amended by No 73 of 2006, s 3 and Sch 5 item 67, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The Commissioner must *register you (even if you have not applied for registration) if the Commissioner is satisfied that you are *required to be registered.
Registering you under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to register you, the notice must specify the following:
(a) the date of effect of your registration;
(b) your registration number;
(c) the tax periods that apply to you.
The Commissioner must decide the date from which your *registration takes effect, or took effect. However:
(a) if you did not apply for registration and the Commissioner is satisfied that you are *required to be registered - the date of effect must not be a day before the day on which you became required to be registered; or
(b) if you applied for registration - the date of effect must not be a day before:
(i) the day specified in your application; or
(ii) if the Commissioner is satisfied that you became required to be registered on an earlier day - the day that the Commissioner is satisfied is that earlier day; or
(c) if you are being registered only because you intend to *carry on an *enterprise - the date of effect must not be a day before the day specified, in your application for registration, as the day from which you intend to carry on the enterprise.
Deciding the date of effect of your registration is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-10(1) amended by No 73 of 2006, s 3 and Sch 5 item 69, by substituting "Subdivision 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
The date of effect must not be a day that occurred more than 4 years before the day of the decision, unless the Commissioner is of the opinion there has been fraud or evasion.
S 25-10(1A) inserted by No 39 of 2012, s 3 and Sch 1 item 37, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
The *Australian Business Registrar must enter in the *Australian Business Register the date on which your *registration takes or took effect.
If the Commissioner decides under section 25-10, as the date of effect of your *registration ( your registration day ), a day before the day of the decision, then you are taken:
(a) for the purpose of determining whether a supply you made on or after your registration day was a *taxable supply; and
(b) for the purpose of determining whether an acquisition you made on or after that day was a *creditable acquisition; and
(c) for the purpose of determining whether an importation you made on or after that day was a *creditable importation;
to have been registered from and including your registration day.
This section ensures that backdating your registration enables your supplies and acquisitions made on or after the date of effect to be picked up by the GST system. Section 25-10 limits the extent to which your registration can be backdated.
Chapter 4 contains special rules relating to *registration in particular cases, as follows:
1AA Limited registration entities Division 146
2 Non-profit sub-entities Division 63
3 Non-residents making supplies connected with the indirect tax zone Division 83
4 (Repealed by No 77 of 2017)
S 25-49 amended by No 77 of 2017, s 3 and Sch 1 items 8 and 9, by inserting table item 1AA and repealing table item 4, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4 formerly read:
"4 Offshore supplies other than goods or real property Division 84"
S 25-49 amended by No 52 of 2016, s 3 and Sch 1 item 11, by inserting table item 4, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S25-49 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 3, column headed "For this case [mldr ]", applicable to a tax period that commences on or after 1 July 2015.
S 25-49 amended by No 92 of 2000, s 3 and Sch 3 item 3, by inserting table item 3, effective 1 July 2000.
S 25-49 amended by No 177 of 1999, s 3 and Sch 1 items 28 and 29, by inserting table items 1A and 2, effective 1 July 2000.
Subdivision 25-B - How your registration can be cancelled
If you are *registered and you are not *carrying on any *enterprise, you must apply to the Commissioner in the *approved form for cancellation of your *registration. You must lodge your application within 21 days after the day on which you ceased to be carrying on any *enterprise.
The Commissioner must cancel your *registration if:
(a) you have applied for cancellation of registration in the *approved form; and
(b) at the time you applied for cancellation of registration, you had been registered for at least 12 months; and
(c) the Commissioner is satisfied that you are not *required to be registered.
Refusing to cancel your registration under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The Commissioner must cancel your *registration (even if you have not applied for cancellation of your registration) if:
(a) the Commissioner is satisfied that you are not *carrying on an *enterprise; and
(b) the Commissioner believes on reasonable grounds that you are not likely to carry on an enterprise for at least 12 months.
Cancelling your registration under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The Commissioner must notify you of any decision he or she makes in relation to you under this section. If the Commissioner decides to cancel your registration, the notice must specify the date of effect of the cancellation.
The Commissioner may cancel your *registration if:
(a) less than 12 months after being registered, you apply for cancellation of registration in the *approved form; and
(b) the Commissioner is satisfied that you are not *required to be registered.
In considering your application, the Commissioner may have regard to:
(a) how long you have been *registered; and
(b) whether you have previously been registered; and
(c) any other relevant matters.
S 25-57 inserted by No 156 of 2000, s 3 and Sch 5 item 1, effective 21 December 2000.
The Commissioner must decide the date on which the cancellation of your *registration under subsection 25-55(1) or (2) or section 25-57 takes effect. That date may be any day occurring before, on or after the day on which the Commissioner makes the decision.
Deciding the date of effect of the cancellation of your registration is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 25-60(1) amended by No 156 of 2000, s 3 and Sch 5 item 2, by inserting ``or section 25-57'' after ``or (2)''. Under Sch 5 item 18, the Commissioner is authorised to decide as a date on which the cancellation of a registration under sec 25-57 takes effect, any day occurring on or after 1 July 2000.
The *Australian Business Registrar must enter in the *Australian Business Register the date on which the cancellation of your *registration takes effect.
If the Commissioner decides under section 25-60, as the date of effect of the cancellation of your *registration ( your cancellation day ), a day before the day of the decision, your registration is taken:
(a) for the purpose of determining whether a supply you made on or after your cancellation day was a *taxable supply; and
(c) for the purpose of determining whether an importation you made on or after that date was a *creditable importation;
to have been cancelled from and including your cancellation day.
Chapter 4 contains special rules relating to cancellation of *registration in particular cases, as follows:
1C (Repealed by No 77 of 2017)
View historynote
S 25-99 amended by No 77 of 2017, s 3 and Sch 1 items 10 and 11, by inserting table item 1AA and repealing table item 1C, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 1C formerly read:
1C Offshore supplies other than goods or real property Division 84
S 25-99 amended by No 52 of 2016, s 3 and Sch 1 item 12, by inserting table item 1C, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 25-99 amended by No 177 of 1999, s 3 and Sch 1 items 30 and 31, by inserting table items 1A and 1B, effective 1 July 2000.
Part 2-6 - Tax periods
Division 27 - How to work out the tax periods that apply to you
This Division tells you the tax periods that apply to you. You need to know this because your net amounts are worked out in respect of these tax periods.
S 27-1 amended by No 39 of 2012, s 3 and Sch 1 item 38, by omitting "(the amounts payable by you or to you)" before "are worked out", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
The tax periods that apply to you are each period of 3 months ending on 31 March, 30 June, 30 September or 31 December in any year, except to the extent that:
(a) an election is in force under section 27-10; or
(b) the Commissioner determines otherwise under this Division.
Several provisions in Chapter 4 provide for different tax periods. In particular, Division 151 provides for annual tax periods.
S 27-5 amended by No 134 of 2004, s 3 and Sch 1 item 1, by inserting the Note at the end, applicable in relation to net amounts for tax periods starting, or that started, on or after:
The tax periods that apply to you are each individual month if, by notifying the Commissioner in the *approved form, you elect to have as the tax periods that apply to you each individual month.
The election takes effect on the day specified in the notice. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
The Commissioner must determine that the tax periods that apply to you are each individual month if:
(a) the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold; or
(b) the Commissioner is satisfied that the period for which you will be *carrying on an *enterprise in the indirect tax zone is less than 3 months; or
(c) the Commissioner is satisfied that you have a history of failing to comply with your obligations under a *taxation law.
Determining under this section the tax periods applying to you is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-15(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 27-15(1) amended by No 80 of 2007, s 3 and Sch 2 item 4, by substituting "*GST turnover" for "*annual turnover" in para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 27-15(1) amended by No 73 of 2001, s 3 and Sch 1 items 63 and 64, by substituting "law." for "law; or" and by repealing para (d), applicable in relation to tax periods starting on or after 1 July 2001. Paragraph (d) formerly read:
(d) your *income year is not the same as the *financial year.
S 66(2) of No 73 of 2001 provided:
Any determination made under section 27-15 of the A New Tax System (Goods and Services Tax) Act 1999 that:
(a) is in force immediately before 1 July 2001; and
(b) could not have been made on any ground other than the ground referred to in paragraph 27-15(1)(d) of that Act;
is taken, on and after 1 July 2001, to have been revoked with effect from the start of that day.
The determination takes effect on the day specified in the determination. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Deciding the date of effect of the determination is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-15(2) amended by No 73 of 2006, s 3 and Sch 5 item 75, by substituting "Subdivison 110-F in Schedule 1 to" for "Division 7 of Part VI of" in the note, effective 1 July 2006.
S 27-15(2A) repealed by No 73 of 2001, s 3 and Sch 1 item 65, applicable in relation to tax periods starting on or after 1 July 2001. S 27-15(2A) formerly read:
Paragraph (1)(d) does not apply to an entity that meets the requirements of subsection 63-5(2) for choosing to apply Division 63 (whether or not the entity chooses to apply that Division).
The tax period turnover threshold is:
(a) $20 million; or
(b) such other amount as the regulations specify.
However, if the regulations change the tax period turnover threshold, the change does not apply to you until the start of the next tax period that starts after the regulation in question comes into operation.
You may, by notifying the Commissioner in the *approved form, withdraw an election under section 27-10, unless your *GST turnover meets the *tax period turnover threshold.
S 27-20(1) amended by No 80 of 2007, s 3 and Sch 2 item 5, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
The withdrawal takes effect on the day specified in the notice. However, the day specified:
(a) must be 1 January, 1 April, 1 July or 1 October, or any day occurring before the election takes effect; and
(b) must not be a day occurring earlier than 12 months after the election took effect.
The Commissioner may, if you so request in the *approved form, revoke your election under section 27-10, with effect from a day occurring earlier than 12 months after the election took effect, unless the Commissioner is satisfied that your *GST turnover meets the *tax period turnover threshold.
Refusing to revoke your election under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
In considering your request, the Commissioner may have regard to:
(a) for how long the tax periods applying to you have been each individual month; and
(b) whether you have previously been *registered, and whether such tax periods had applied to you; and
The revocation:
(a) takes effect on the day specified in the instrument of revocation; or
(b) is taken to have had effect from a past day specified in the instrument of revocation.
However, the day specified must be 1 January, 1 April, 1 July or 1 October.
Deciding the date of effect of the revocation is a reviewable decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The Commissioner must revoke a determination under section 27-15 relating to you if you so request, unless the Commissioner is satisfied that any of the grounds for making a determination under that section apply to you.
Refusing to revoke a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The revocation takes effect on the day specified in the instrument of revocation. However, the day specified:
(a) must be 1 January, 1 April, 1 July or 1 October; and
(b) must not be a day occurring earlier than 12 months after the determination took effect.
Deciding the date of effect of the revocation is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
For the purpose of ensuring the effective operation of this Division where:
(a) you become *registered or *required to be registered; or
(b) the tax periods applying to you have changed;
the Commissioner may, by written notice given to you, determine that a period specified in the notice is a tax period that applies to you.
Determining under this section a tax period applying to you is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 27-30(1) substituted by No 176 of 1999, s 3 and Sch 1 item 33, effective 1 July 2000. S 27-30(1) formerly read:
For the purpose of ensuring the effective operation of this Division where the tax periods have changed, the Commissioner may, by written notice given to you, determine that a period specified in the notice is a tax period that applies to you.
Determining under this section a tax period applying to you is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).
The period specified in the notice may start earlier than the day on which the notice is given to you.
However, the period specified in the notice:
(a) must be less than 3 months; and
(b) must not overlap with any part of any other tax period for which you have already given a *GST return to the Commissioner.
For the giving of GST returns to the Commissioner, see Division 31.
You may change the day in each year on which a tax period would otherwise end. However:
(a) the day must be no more than 7 days earlier or 7 days later than a day on which one of the tax periods that applies to you would otherwise end if the days were not changed; and
(b) the change must be consistent with the commercial accounting periods that apply to you.
If the day on which a tax period ends is changed, the next tax period starts on the day after that day.
The Commissioner may, in accordance with a request you make in the *approved form, determine the tax periods applying to you to be the tax periods specified in the request if the Commissioner is satisfied that:
(a) your *GST turnover meets the *tax period turnover threshold; and
(b) the tax periods specified in the request are consistent with the commercial accounting periods that apply to you; and
(c) the tax periods specified in the request would, if determined under this section, result in 12 complete tax periods in each year; and
(d) any other requirements specified in the regulations are complied with.
Refusing a request for a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
A determination under this section overrides any determination under section 27-15 or 27-30 relating to tax periods applying to you.
The Commissioner must revoke a determination under section 27-37 if the Commissioner is satisfied that any of the requirements of paragraphs 27-37(1)(a), (b), (c) and (d) are not complied with.
Revoking a determination under this section is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
The revocation takes effect on the day specified in the instrument of revocation. However, the day specified must be 1 January, 1 April, 1 July or 1 October.
A revocation under this section revives any election under section 27-10, or any determination under section 27-15 or 27-30, relating to tax periods applying to you.
If an entity becomes an *incapacitated entity, the entity's tax period at the time is taken to have ended at the end of the day before the entity became incapacitated.
If a tax period (the first tax period ) ends on a particular day because of subsection (1), the next tax period starts on the day after that day and ends when the first tax period would have ended but for that subsection.
S 27-39 inserted by No 118 of 2009, s 3 and Sch 1 item 15, effective 4 December 2009.
27-40 An entity's concluding tax period
If:
(a) an individual dies; or
(b) another entity for any reason ceases to exist;
the individual's or entity's tax period at the time is taken to have ceased at the end of the day before the death or cessation.
S 27-40(1) substituted by No 118 of 2009, s 3 and Sch 1 item 16, effective 4 December 2009. S 27-40(1) formerly read:
(a) an individual dies or becomes bankrupt; or
(b) any other entity goes into liquidation or receivership or for any reason ceases to exist;
the individual's or entity's tax period at the time is taken to have ceased at the end of the day before the death, bankruptcy, liquidation or receivership.
(a) an individual dies, becomes bankrupt or ceases to *carry on any *enterprise; or
(b) any other entity goes into liquidation or receivership, ceases to carry on any enterprise or for any reason ceases to exist;
the individual's or entity's tax period at the time is taken to have ceased at the end of the day before the death, bankruptcy, cessation, liquidation or receivership.
If an entity ceases to *carry on any *enterprise, the entity's tax period at the time is taken to have ceased at the end of the day on which the cessation occurred.
S 27-40(1A) inserted by No 176 of 1999, s 3 and Sch 1 item 34, effective 1 July 2000.
If an entity's *registration is cancelled, the entity's tax period at the date of effect of the cancellation (the cancellation day ) ceases at the end of the cancellation day.
Chapter 4 contains special rules relating to tax periods, as follows:
1AAA Annual tax periods Division 151
1AA GST groups Division 48
1AB Limited registration entities Division 146
1AC Payment of GST by instalments Division 162
S 27-99 amended by No 77 of 2017, s 3 and Sch 1 item 12, by substituting table item 1AB, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 7 formerly read:
"1AB Offshore supplies other than goods or real property Division 84"
S 27-99 amended by No 52 of 2016, s 3 and Sch 1 item 13, by substituting table items 1AB and 1AC for table item 1AB, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading. Table item 1AB formerly read:
1AB Payment of GST by instalments Division 162
S 27-99 amended by No 118 of 2009, s 3 and Sch 1 items 17 and 18, by substituting table items 1AA and 1AB for table item 1AA, and substituting "Division 58" for "Division 147" in table item 1A, effective 4 December 2009. Table item 1AA formerly read:
1AA ... Payment of GST by instalments ... Division 162
S 27-99 amended by No 134 of 2004, s 3 and Sch 1 item 2, by inserting table item 1AAA, applicable in relation to net amounts for tax periods starting, or that started, on or after:
S 27-99 amended by No 73 of 2001, s 3 and Sch 1 item 24, by inserting table item 1AA, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Division 29 - What is attributable to tax periods
This Division tells you the tax periods to which your taxable supplies, creditable acquisitions, creditable importations and adjustments are attributable. You need to know this to work out your net amounts under Part 2-4.
This Division does not deal with your taxable importations, because they are not attributed to tax periods. See section 33-15 for payment of assessed GST on taxable importations.
S 29-1 amended by No 39 of 2012, s 3 and Sch 1 item 39, by substituting "assessed GST" for "GST" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
Subdivision 29-A - The attribution rules
The GST payable by you on a *taxable supply is attributable to:
(a) the tax period in which any of the *consideration is received for the supply; or
(b) if, before any of the consideration is received, an *invoice is issued relating to the supply - the tax period in which the invoice is issued.
However, if you *account on a cash basis, then:
(a) if, in a tax period, all of the *consideration is received for a *taxable supply - GST on the supply is attributable to that tax period; or
(b) if, in a tax period, part of the consideration is received - GST on the supply is attributable to that tax period, but only to the extent that the consideration is received in that tax period; or
(c) if, in a tax period, none of the consideration is received - none of the GST on the supply is attributable to that tax period.
The input tax credit to which you are entitled for a *creditable acquisition is attributable to:
(a) the tax period in which you provide any of the *consideration for the acquisition; or
(b) if, before you provide any of the consideration, an *invoice is issued relating to the acquisition - the tax period in which the invoice is issued.
(a) if, in a tax period, you provide all of the *consideration for a *creditable acquisition - the input tax credit for the acquisition is attributable to that tax period; or
(b) if, in a tax period, you provide part of the consideration - the input tax credit for the acquisition is attributable to that tax period, but only to the extent that you provided the consideration in that tax period; or
(c) if, in a tax period, none of the consideration is provided - none of the input tax credit for the acquisition is attributable to that tax period.
If you do not hold a *tax invoice for a *creditable acquisition when you give to the Commissioner a *GST return for the tax period to which the input tax credit (or any part of the input tax credit) on the acquisition would otherwise be attributable:
(a) the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(b) the input tax credit (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that tax invoice.
However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for a tax invoice does not apply.
If the *GST return for a tax period does not take into account an input tax credit attributable to that tax period:
(a) the input tax credit is not attributable to that tax period; and
(b) the input tax credit is attributable to the first tax period for which you give the Commissioner a GST return that does take it into account.
Section 93-5 or 93-15 may provide a time limit on your entitlement to an input tax credit.
S 29-10(4) amended by No 39 of 2012, s 3 and Sch 1 items 40 and 41, by omitting "states a *net amount that" after "for a tax period" and inserting "or 93-15" after "Section 93-5" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities orentitlements that arose on or after 1 July 2012.
S 29-10(4) amended by No 21 of 2010, s 3 and Sch 2 items 1 and 2, by substituting "a tax period" for "the tax period referred to in paragraph (3)(b)" and inserting the note at the end, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
S 29-10(4) inserted by No 156 of 2000, s 3 and Sch 6 item 2, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
The input tax credit to which you are entitled for a *creditable importation is attributable to the tax period in which you pay the *assessed GST on the importation.
S 29-15(1) amended by No 39 of 2012, s 3 and Sch 1 item 42, by substituting "*assessed GST" for "GST", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
However, if paragraph 33-15(1)(b) applies to payment of the *assessed GST on the importation, the input tax credit is attributable to the tax period in which the liability for the GST arose.
S 29-15(2) amended by No 39 of 2012, s 3 and Sch 1 item 43, by substituting "*assessed GST" for "GST" (first occurring), applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 29-15(2) amended by No 41 of 2005, s 3 and Sch 10, item 1, by substituting "33-15(1)(b)" for "33-15(b)", applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
An *adjustment that you have is attributable to the tax period in which you become aware of the adjustment.
However, if you *account on a cash basis, and the *adjustment arises from an *adjustment event as a result of which you are liable to provide *consideration, then:
(a) if, in a tax period, all of the consideration is provided - the *adjustment is attributable to that tax period; or
(b) if, in a tax period, part of the consideration is provided - the adjustment is attributable to that tax period, but only to the extent that the consideration is provided in that tax period; or
(c) if, in a tax period, none of the consideration is provided - none of the adjustment is attributable to that tax period.
(a) you have a *decreasing adjustment arising from an *adjustment event; and
(b) you do not hold an *adjustment note for the adjustment when you give to the Commissioner a *GST return for the tax period to which the adjustment (or any part of the adjustment) would otherwise be attributable;
(c) the adjustment (including any part of the adjustment) is not attributable to that tax period; and
(d) the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that adjustment note.
However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner to be circumstances in which the requirement for an adjustment note does not apply.
The Commissioner may, in writing, determine the tax periods to which:
(a) GST on *taxable supplies of a specified kind; or
(b) input tax credits for *creditable acquisitions of a specified kind; or
(c) input tax credits for *creditable importations of a specified kind; or
(d) *adjustments of a specified kind;
are attributable.
However, the Commissioner must not make a determination under this section unless satisfied that it is necessary to prevent the provisions of this Division and Chapter 4 applying in a way that is inappropriate in circumstances involving:
(a) a supply or acquisition in which possession of goods passes, but title in the goods will, or may, pass at some time in the future; or
(b) a supply or acquisition for which payment is made or an *invoice is issued, but use, enjoyment or passing of title will, or may, occur at some time in the future; or
(c) a supply or acquisition occurring, but still being subject to a statutory cooling off period under an *Australian law; or
(d) a supply or acquisition occurring before the supplier or *recipient knows it has occurred; or
(e) a supply or acquisition occurring before the supplier or recipient knows the total *consideration; or
(f) a supply or acquisition made under a contract that is subject to preconditions; or
(g) a supply or acquisition made under a contract that provides for retention of some or all of the consideration until certain conditions are met; or
(h) a supply or acquisition for which the GST treatment will be unknown until a later supply is made.
S 29-25(2) amended by No 32 of 2006, s 3 and Sch 4 item 1, by inserting para (h), applicable in relation to supplies made on or after 6 April 2006.
Determinations under subsection (1) override the provisions of this Division (except this section) and Chapter 4, but only to the extent of any inconsistency.
Chapter 4 contains special rules relating to attribution rules, as follows:
1 Agents and insurance brokers Division 153
8AA Hire purchase agreements Division 158
8B Non-deductible expenses Division 69
11A Second-hand goods Division 66
12 Supplies and acquisitions made on a progressive or periodic basis Division 156
S 29-39 amended by No 12 of 2012, s 3 and Sch 3 item 7, by inserting table item 8AA, applicable in relation to hire purchase agreements entered into on or after 1 July 2012.
S 29-39 amended by No 156 of 2000, s 3 and Sch 3 item 5, by inserting table item 8B, applicable in relation to net amounts for tax periods starting on or after 12 October 2000.
S 29-39 amended by No 92 of 2000, s 3 and Sch 11 item 4E, by inserting table item 8A, effective 1 July 2000.
S 29-39 amended by No 177 of 1999, s 3 and Sch 1 items 32 and 33, by inserting "and insurance brokers" in table item 1, and inserting table item 11A, effective 1 July 2000.
S 29-39 amended by No 176 of 1999, s 3 and Sch 7 item 10, by inserting table item 14, effective 1 July 2000.
Subdivision 29-B - Accounting on a cash basis
You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if:
(a) you are a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for the *income year in which you make your choice; or
(ab) you do not carry on a *business and your *GST turnover does not exceed the *cash accounting turnover threshold; or
(b) for income tax purposes, you account for your income using the receipts method; or
(c) each of the *enterprises that you *carry on is an enterprise of a kind that the Commissioner determines, in writing, to be a kind of enterprise in respect of which a choice to *account on a cash basis may be made under this section.
S 29-40(1) amended by No 80 of 2007, s 3 and Sch 2 items 8 to 11, by substituting "You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if" for "If", substituting paras (a) and (ab) for para (a), substituting "this section." for "this section;" in para (c) and omitting "you may choose to account on a cash basis, with effect from the first day of the tax period that you choose." after para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
Act No 80 of 2007, s 3 and Sch 2 item 68, contained the following transitional provision:
68 Transitional - choice to account on a cash basis
This item applies to you if:
(a) before 1 July 2007, you chose to account on a cash basis under paragraph 29-40(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b) your choice was in effect immediately before 1 July 2007.
If you are carrying on a business on 1 July 2007, your choice continues to have effect as if it had been made under paragraph 29-40(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule.
If you are not carrying on a business on 1 July 2007, your choice continues to have effect as if it had been made under paragraph 29-40(1)(ab)of the A New Tax System (Goods and Services Tax) Act 1999, as inserted by Part 1 of this Schedule.
Para (a) formerly read:
(a) your *annual turnover does not exceed the *cash accounting turnover threshold; or
If your *annual turnover does not exceed the *cash accounting turnover threshold, you may choose to *account on a cash basis, with effect from the first day of the tax period that you choose.
S 29-40(2) repealed by No 80 of 2006, s 3 and Sch 12 item 1, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. No 80 of 2006, s 3 and Sch 12 item 2 contains the following saving provision:
Saving provision
(a) you made a choice under subsection 29-40(2) of the A New Tax System (Goods and Services Tax) Act 1999; and
(b) the choice was in force immediately before the start of the first tax period applying to you that is a tax period starting on or after 30 June 2006;
the choice continues in force after the start of that tax period as if it had been made under section 157-5 of that Act as amended.
However, this item does not apply, and the choice ceases to be in force from the start of that tax period, if the choice could not have been made after the start of that tax period because of subsection 157-5(3) of that Act as amended.
S 29-40(2) formerly read:
However, any charitable institution, any trustee of a charitable fund, any *gift-deductible entity or any *government school may choose to *account on a cash basis, with effect from the first day of the tax period that the institution, trustee or entity chooses, whether or not paragraph (1)(a), (b) or (c) applies.
S 29-40(2) amended by No 92 of 2000, s 3 and Sch 1 item 2A, by substituting ", any *gift-deductible entity or any *government school" for "or any *gift-deductible entity", effective 1 July 2000.
S 29-40(2) amended by No 176 of 1999, s 3 and Sch 1 item 38, by substituting "whether or not paragraph (1)(a), (b) or (c) applies" for "whether or not its *annual turnover exceeds the *cash accounting turnover threshold", effective 1 July 2000.
S 29-40(2A) repealed by No 80 of 2006, s 3 and Sch 12 item 1, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. S 29-40(2A) formerly read:
Subsection (2) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Subsection (2) does not apply in relation to an entity that is both a charitable institution and a gift-deductible entity unless the entity is an endorsed charitable institution.
S 29-40(2A) inserted by No 95 of 2004, s 3 and Sch 10 item 4, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
The cash accounting turnover threshold is:
(a) $2 million; or
S 29-40(3) amended by No 80 of 2007, s 3 and Sch 2 item 12, by substituting para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
(a) $1,000,000; or
S 29-40(3) amended by No 176 of 1999, s 3 and Sch 1 item 39, by substituting "$1,000,000" for "$500,000" in para (a), effective 1 July 2000.
The Commissioner may permit you to *account on a cash basis if:
(a) you apply to the Commissioner in the *approved form for permission to account on a cash basis; and
(b) the Commissioner is satisfied that, having regard to:
(i) the nature and size of the *enterprise that you *carry on; and
(ii) the nature of the accounting system that you use;
(iii) (Repealed by 176 of 1999)
it is appropriate to permit you to account on a cash basis.
Refusing to permit you to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-45(1) amended by No 176 of 1999, s 3 and Sch 1 items 40 and 41, by omitting ``and'' from subpara (b)(ii) and repealing subpara (b)(iii), effective 1 July 2000. Subpara (b)(iii) formerly read:
(iii) how you account for income tax purposes;
The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to permit you to *account on a cash basis, the notice must specify the date of effect of your permission.
Deciding the date of effect of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
You cease to *account on a cash basis if:
(a) in a case to which paragraph 29-40(1)(a) applied - you are not a *small business entity of the kind referred to in that paragraph for an *income year and you do not have permission to *account on a cash basis; or
(ab) in a case to which paragraph 29-40(1)(ab) applied - you do not satisfy the requirements of that paragraph and you do not have permission to account on a cash basis; or
(b) you notify the Commissioner, in the *approved form, that you are ceasing to *account on a cash basis.
S 29-50(1) amended by No 80 of 2007, s 3 and Sch 2 item 13, by substituting paras (a) and (ab) for para (a), applicable in relation to net amounts for tax periods starting on or after 1 July 2007. Para (a) formerly read:
(a) your *annual turnover meets the *cash accounting turnover threshold and you do not have permission to *account on a cash basis; or
The date of effect of your cessation is the first day of the next tax period to commence after:
(a) if paragraph (1)(a) applies - the start of the *income year referred to in that paragraph; or
(b) if paragraph (1)(ab) applies - you do not satisfy the requirements of paragraph 29-40(1)(ab); or
(c) if paragraph (1)(b) applies - you notify the Commissioner.
S 29-50(2) substituted by No 80 of 2007, s 3 and Sch 2 item 14, applicable in relation to net amounts for tax periods starting on or after 1 July 2007. S 29-50(2) formerly read:
The date of effect of your cessation is the first day of the next tax period to commence after your *annual turnover meets the *cash accounting turnover threshold, or you notify the Commissioner, as the case may be.
The Commissioner must revoke any permission for you to *account on a cash basis if the Commissioner is satisfied that:
(a) either:
(i) you carry on a *business but you are not a *small business entity (other than because of subsection 328-110(4) of the *ITAA 1997) for an *income year; or
(ii) you do not carry on a business and your *GST turnover meets the *cash accounting turnover threshold; and
(b) it is not appropriate to permit you to account on a cash basis.
Revoking your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
(a) your *annual turnover meets the *cash accounting turnover threshold; and
The Commissioner must notify you in writing of his or her decision under subsection (3). The notice must specify the date of effect of the revocation, which can be the first day of any tax period starting before, on or after the day on which the Commissioner makes the decision.
Deciding the date of effect of the revocation of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).
S 29-50(5) repealed by No 80 of 2006, s 3 and Sch 12 item 3, applicable in relation to net amounts for tax periods starting on or after 30 June 2006. S 29-50(5) formerly read:
Subject to subsection (6), paragraph (1)(a) and subsection (3) do not apply in relation to any charitable institution, any trustee of a charitable fund or any *gift-deductible entity.
S 29-50(5) amended by No 95 of 2004, s 3 and Sch 10 item 5, by substituting "Subject to subsection (6), paragraph (1)(a)" for "Paragraph (1)(a)", applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
S 29-50(6) inserted by No 95 of 2004, s 3 and Sch 10 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2005. For transitional provisions, see note under former wording of s 176-5.
29-69 29-69 Special rules relating to accounting on a cash basis
Chapter 4 contains special rules relating to accounting on a cash basis, as follows:
1 Accounting basis of charities etc. Division 157
2 Hire purchase agreements Division 158
S 29-69 amended by No 169 of 2012, s 3 and Sch 2 item 71, by substituting "charities" for "charitable institutions" in table item 1, effective 3 December 2012.
S 29-69 amended by No 12 of 2012, s 3 and Sch 3 item 8, by inserting table item 2, applicable in relation to hire purchase agreements entered into on or after 1 July 2012.
S 29-69 inserted by No 80 of 2006, s 3 and Sch 12 item 4, applicable in relation to net amounts for tax periods starting on or after 30 June 2006.
Subdivision 29-C - Tax invoices and adjustment notes
A tax invoice is a document that complies with the following requirements:
(a) it is issued by the supplier of the supply or supplies to which the document relates, unless it is a *recipient created tax invoice (in which case it is issued by the *recipient);
(b) it is in the *approved form;
(c) it contains enough information to enable the following to be clearly ascertained:
(i) the supplier's identity and the supplier's *ABN;
(ii) if the total *price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify, or if the document was issued by the recipient - the recipient's identity or the recipient's ABN;
(iii) what is supplied, including the quantity (if applicable) and the price of what is supplied;
(iv) the extent to which each supply to which the document relates is a *taxable supply;
(v) the date the document is issued;
(vi) the amount of GST (if any) payable in relation to each supply to which the document relates;
(vii) if the document was issued by the recipient and GST is payable in relation to any supply - that the GST is payable by the supplier;
(viii) such other matters as the regulations specify;
(d) it can be clearly ascertained from the document that the document was intended to be a tax invoice or, if it was issued by the recipient, a recipient created tax invoice.
If the recipient is a member of a GST group, section 48-57 may relax the requirements relating to the recipient's identity or the recipient's ABN.
S 29-70(1) substituted by No 74 of 2010, s 3 and Sch 3 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2010. S 29-70(1) formerly read:
A tax invoice for a *taxable supply:
(a) must be issued by the supplier, unless it is a *recipient created tax invoice (in which case it must be issued by the *recipient); and
(b) must set out the *ABN of the entity that issues it; and
(c) must set out the *price for the supply; and
(d) must contain such other information as the regulations specify; and
(e) must be in the *approved form.
However, the Commissioner may treat as a tax invoice a particular document that is not a tax invoice.
S 29-70(1) amended by No 176 of 1999, s 3 and Sch 1 item 42, by inserting "However, the Commissioner may treat as a tax invoice a particular document that is not a tax invoice.", effective 1 July 2000.
A document issued by an entity to another entity may be treated by the other entity as a *tax invoice for the purposes of this Act if:
(a) it would comply with the requirements for a tax invoice but for the fact that it does not contain certain information; and
(b) all of that information can be clearly ascertained from other documents given by the entity to the other entity.
The requirements for a tax invoices are primarily contained in subsection (1), but can be affected by sections 48-57 and 54-50.
S 29-70(1A) inserted by No 74 of 2010, s 3 and Sch 3 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
However, the Commissioner may treat as a *tax invoice a particular document that would not, apart from this subsection, be a tax invoice.
S 29-70(1B) amended by No 39 of 2012, s 3 and Sch 1 item 44, by repealing the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. The note formerly read:
A request to the Commissioner, to which the Commissioner agrees, to treat a document as a tax invoice is taken to be a notification of your entitlement to the relevant input tax credit: see subsection 105-55(2A) in Schedule 1 to the Taxation Administration Act 1953.
S 29-70(1B) inserted by No 74 of 2010, s 3 and Sch 3 item 1, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
The supplier of a *taxable supply must, within 28 days after the *recipient of the supply requests it, give to the recipient a *tax invoice for the supply, unless it is a *recipient created tax invoice.
A recipient created tax invoice is a *tax invoice belonging to a class of tax invoices that the Commissioner has determined in writing may be issued by the *recipient of a *taxable supply.
An adjustment note for an *adjustment that arises from an *adjustment event relating to a *taxable supply:
(a) must be issued by the supplier of the *taxable supply in the circumstances set out in subsection (2); and
(c) must contain such other information as the Commissioner determines in writing; and
(d) must be in the *approved form.
However, the Commissioner may treat as an adjustment note a particular document that is not an adjustment note.
S 29-75(1) amended by No 177 of 1999, s 3 and Sch 1 item 34, by substituting para (a), effective 1 July 2000. Para (a) formerly read:
(a) must be issued by the supplier of the *taxable supply, unless any *tax invoice relating to the supply would have been a *recipient created tax invoice (in which case it must be issued by the *recipient of the supply); and
S 29-75(1) amended by No 176 of 1999, s 3 and Sch 1 item 43, by inserting ``However, the Commissioner may treat as an adjustment note a particular document that is not an adjustment note.'', effective 1 July 2000.
The supplier of the *taxable supply must:
(a) within 28 days after the *recipient of the supply requests the supplier to give an *adjustment note for the *adjustment relating to the supply; or
(b) if the supplier has issued a *tax invoice in relation to the supply (or the recipient has requested one) and the supplier becomes aware of the adjustment before an adjustment note is requested - within 28 days after becoming aware of that fact;
give to the recipient an *adjustment note for the *adjustment, unless any *tax invoice relating to the supply would have been a *recipient created tax invoice (in which case it must be issued by the recipient).
S 29-75(2) amended by No 177 of 1999, s 3 and Sch 1 items 35 and 36, by substituting para (b) and inserting ``(in which case it must be issued by the recipient)'' at the end of the subsection, effective 1 July 2000. Para (b) formerly read:
(b) if, before receiving such a request, the supplier becomes aware of the adjustment - within 28 days after becoming aware of that fact;
However, in circumstances that the Commissioner determines in writing, paragraph (2)(b) has effect as if the number of days referred to in that paragraph is the number of days specified in the determination in relation to those circumstances.
S 29-75(3) inserted by No 92 of 2000, s 3 and Sch 11 item 5, effective 1 July 2000.
Those circumstances may, for example, include the kind of the *taxable supply.
Subsections 29-10(3) and 29-70(2) do not apply to a *creditable acquisition that relates to a *taxable supply the *value of which does not exceed $50, or such higher amount as the regulations specify.
Subsections 29-20(3) and 29-75(2) do not apply to a *decreasing adjustment of an amount that does not exceed $50, or such higher amount as the regulations specify.
S 29-80(2) amended by No 92 of 2000, s 3 and Sch 11 item 6, by substituting "of an amount that" for "that relates to a *taxable supply the *value of which", effective 1 July 2000.
For the purposes of s 29-80(1), with effect from 1 July 2007, the amount of $75 is specified. For the purposes of s 29-80(2), with effect from 1 July 2010, the amount of $75 is specified. For details, see reg 29-80.01 and 29-80.02 of the A New Tax System (Goods and Services Tax) Regulations 1999.
Chapter 4 contains special rules relating to tax invoices and adjustment notes, as follows:
3A GST groups Division 48
5 Sale of freehold interest etc. Division 75
S 29-99 amended by No 77 of 2017, s 3 and Sch 1 item 13, by substituting table item 4A, effective 1 July 2017. For application provisions, see note under Div 146 heading. Table item 4A formerly read:
S 29-99 amended by No 52 of 2016, s 3 and Sch 1 item 14, by inserting table item 4A, applicable in relation to working out net amounts for tax periods starting on or after 1 July 2017. See note under Subdiv 38-T heading.
S 29-99 amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting "the indirect tax zone" for "Australia" in table item 4, column headed "For this case [mldr ]", applicable to a tax period that commences on or after 1 July 2015.
S 29-99 amended by No 74 of 2010, s 3 and Sch 3 item 2, by inserting table item 3A, applicable in relation to net amounts for tax periods starting on or after 1 July 2010.
S 29-99 amended by No 156 of 2000, s 3 and Sch 6 item 4, by inserting table item 5, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
S 29-99 amended by No 177 of 1999, s 3 and Sch 1 item 37, by inserting "and insurance brokers" in table item 1, effective 1 July 2000.
Part 2-7 - Returns, payments and refunds
Division 31 - GST returns
This Division is about your obligation (if you are registered or required to be registered) to give to the Commissioner GST returns for each tax period.
For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.
If you are *registered or *required to be registered, you must give to the Commissioner a *GST return for each tax period.
You must give the return whether or not:
(a) your *net amount for the tax period is zero; or
(b) you are liable for the GST on any *taxable supplies that are attributable to the tax period.
If a tax period applying to you is a *quarterly tax period, you must give your *GST return for the tax period to the Commissioner:
(a) as provided in the following table; or
(b) within such further period as the Commissioner allows.
When quarterly GST returns must be given
Item If this day falls within the quarterly tax period ... Give the GST return to the Commissioner on or before this day:
1 1 September the following 28 October
2 1 December the following 28 February
3 1 March the following 28 April
4 1 June the following 28 July
A tax period is a quarterly tax period if:
(a) it is a period of 3 months; or
(b) it would be a period of 3 months but for the application of section 27-30 or 27-35.
Under section 27-30, a tax period can be determined to take account of changes in tax periods. Under section 27-35, the start or finish of a 3 month tax period can vary by up to 7 days from the start or finish of a normal quarter.
S 31-8 inserted by No 73 of 2001, s 3 and Sch 1 item 1, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
S 31-10 heading substituted by No 73 of 2001, s 3 and Sch 1 item 2, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 31-10 heading formerly read:
When GST returns must be given
You must give your *GST return for a tax period (other than a *quarterly tax period) to the Commissioner:
(a) on or before the 21st day of the month following the end of that tax period; or
S 31-10(1) amended by No 73 of 2001, s 3 Sch 1 item 3, by inserting ``(other than a *quarterly tax period)'' after ``a tax period'', applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
However, if the tax period ends during the first 7 days of a month, you must give the *GST return to the Commissioner:
(a) on or before the 21st day of that month; or
Your *GST return for a tax period must be in the *approved form.
S 31-15(1) substituted by No 73 of 2001, s 3 and Sch 1 item 4, applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001. S 31-15(1) formerly read:
Your *GST return for a tax period must:
(a) be in the *approved form; and
(b) state your *net amount for the tax period; and
(c) set out such other information as the approved form requires; and
(d) be signed in accordance with section 388-75 in Schedule 1 to the Taxation Administration Act 1953.
S 31-15(1) amended by No 92 of 2000, s 3 and Sch 9 item 1, by substituting "section 388-75 in Schedule 1 to the Taxation Administration Act 1953" for "section 31-30" in para (d), applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
However, if during the tax period:
(a) you are not liable for the GST on any *taxable supplies, and you did not make any supplies that would have been taxable supplies had they not been *GST-free or *input taxed; and
(b) you are not liable for the GST on any *taxable importations the GST on which is payable at the time when GST on taxable supplies is normally payable; and
(c) you are not entitled to the input tax credits on any *creditable acquisitions or *creditable importations;
you may give your *GST return for the period to the Commissioner in the manner the Commissioner requires.
S 31-15(3) repealed by No 21 of 2015, s 3 and Sch 7 item 2, applicable in relation to tax periods starting after 19 March 2015. S 31-15(3) formerly read:
The fact that, in your *GST return for the *tax period, your *net amount for the *tax period is worked out:
(a) in the way specified in section 17-5; and
(b) not in the way specified in the *approved form for a GST return;
does not prevent your GST return for the tax period being treated as being in the approved form.
You must, if required by the Commissioner, whether before or after the end of a tax period, give to the Commissioner, within the time required, a *GST return or a further or fuller GST return for the tax period or a specified period, whether or not you have given the Commissioner a GST return for the tax period under section 31-5.
S 31-20(1) substituted by No 39 of 2012, s 3 and Sch 1 item 45, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 31-20(1) formerly read:
In addition to the *GST returns required under section 31-5, you must give to the Commissioner such further or fuller GST returns as the Commissioner directs you to give (including any GST return in your capacity as agent or trustee).
The *approved form for a further or fuller *GST return may require information to be provided relating to:
(a) the tax period to which the return relates; or
(b) one or more preceding tax periods; or
(c) both the tax period to which the return relates, and one or more preceding tax periods.
The Commissioner may direct that a *GST return given under this section need not state your *net amount for a tax period for which a GST return has been given under section 31-15.
You may give your *GST returns to the Commissioner by *lodging them electronically.
Section 388-75 in Schedule 1 to the Taxation Administration Act 1953 deals with signing returns.
S 31-25(1) amended by No 92 of 2000, s 3 and Sch 9 item 2, by inserting the Note at the end, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must give your *GST returns to the Commissioner by *lodging them electronically, unless the Commissioner otherwise approves.
A penalty applies if you fail to lodge your GST return electronically as required - see section 288-10 in Schedule 1 to the Taxation Administration Act 1953.
If you lodge your GST return electronically, you must also electronically notify the Commissioner of other BAS amounts - see section 388-80 in that Schedule.
S 31-25(2) amended by No 80 of 2007, s 3 and Sch 2 item 16, by substituting "*GST turnover" for "*annual turnover", applicable in relation to net amounts for tax periods starting on or after 1 July 2007.
S 31-25(2) amended by No 92 of 2000, s 3 and Sch 9 items 3 and 4, by substituting ``unless the Commissioner otherwise approves'' for ``unless the Commissioner is satisfied that it is not practicable for you to lodge your returns electronically'', and by substituting ``388-80'' for ``288-5'', applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
S 31-25(2) amended by No 179 of 1999, s 3 and Sch 12 item 1, by inserting Notes 1 and 2, effective 1 July 2000.
S 31-25(2) amended by No 176 of 1999, s 3 and Sch 1 item 46, by inserting ``, unless the Commissioner is satisfied that it is not practicable for you to lodge your returns electronically'', effective 1 July 2000.
A *GST return is lodged electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner.
The electronic lodgment turnover threshold is:
(b)such higher amount as the regulations specify.
S 31-30 repealed by No 2 of 2015, s 3 and Sch 2 item 21, effective 1 July 2015. S 31-30 formerly read:
A *GST return purporting to be made or signed by or on behalf of an entity is treated as having been duly made by the entity or with the entity's authority until the contrary is proved.
Former s 31-30 repealed by No 92 of 2000, s 3 and Sch 9 item 5, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year. S 31-30 formerly read:
31-30 Signing GST returns
You must sign your *GST returns unless they are *lodged electronically.
Any *GST return of yours that is *lodged electronically:
(a) if you give it to the Commissioner - must contain your *electronic signature; or
(b) if a *registered tax agent gives it to the Commissioner on your behalf - must contain the registered tax agent's electronic signature.
Chapter 4 contains special rules relating to *GST returns, as follows:
1A Annual tax periods Division 151
4A Payment of GST by instalments Division 162
6 Supplies in satisfaction of debts Division 105
S 31-99 amended by No 118 of 2009, s 3 and Sch 1 item 19, by inserting table item 4B, effective 4 December 2009.
S 31-99 amended by No 73 of 2001, s 3 and Sch 1 item 25, by inserting table item 4A, applicable in relation to net amounts for tax periods starting, or that started, on or after 1 July 2000.
Division 33 - Payments of GST
This Division is about your obligation to pay to the Commonwealth amounts of GST that remain after off-setting your entitlements to input tax credits. The obligation to pay arises for any of your assessed net amounts that are greater than zero.
Note 1A:
For provisions about assessment (including self-assessment), see Division 155 in Schedule 1 to the Taxation Administration Act 1953.
For provisions about collection and recovery of GST, see Subdivision 105-C, and Part 4-15, in Schedule 1 to the Taxation Administration Act 1953.
Payments of GST on importations of goods are dealt with separately in section 33-15 of this Act.
For taxable supplies of new residential premises or potential residential land, section 14-250 in Schedule 1 to the Taxation Administration Act 1953 may require the recipient to pay to the Commissioner an amount representing the GST on the supply, and the supplier is then entitled to a credit for that payment under section 18-60 in that Schedule.
S 33-1 amended by No 23 of 2018, s 3 and Sch 5 item 5, by inserting note 4, effective 1 April 2018. No 23 of 2018, s 3 and Sch 5 Pt 3 contain the following application provisions:
Part 3 - Application of amendments
26 General rule
The amendments made by this Schedule apply in relation to supplies for which any of the consideration (other than consideration provided as a deposit) is first provided on or after 1 July 2018, whether a contract for the supply was entered into before, on or after the commencement of this Schedule. 27 Existing contracts
Despite item 26, if a contract for a supply was entered into before 1 July 2018, the amendments made by this Schedule do not apply in relation to the supply if consideration for the supply (other than consideration provided as a deposit) is first provided before 1 July 2020. 28 Existing property development arrangements
(a) an arrangement entered into before 1 July 2018 between:
(i) an entity (the supplier ) making a taxable supply that is, or includes, a supply to which subsection 14-250(2) in Schedule 1 to the Taxation Administration Act 1953 as amended by this Schedule applies; and
(ii) one or more entities (not including the entity to which the supply is made), at least one of whom is supplying (or is to supply) development services in relation to the real property to which the supply relates;
deals with the distribution, between the parties to the arrangement, of the consideration for the supply; and
(b) under the arrangement:
(i) an amount is to be distributed to the supplier for the payment of the supplier's liability to GST for the supply (less any relevant entitlements to input tax credits); or
(ii) distributions of the consideration, between the parties, are to be adjusted to take into account that liability; and
(c) were that amount to be distributed under the arrangement, or were the distributions to be so adjusted, the parties would not be in the same position as they would be if an amount were not payable, under section 14-250 in that Schedule as so amended, in relation to the supply; and
(d) a payment has been made under that section in relation to the supply;
the amount of the payment is taken, for the purposes of the arrangement, to have been received by the supplier in relation to the supply.
S 33-1 amended by No 39 of 2012, s 3 and Sch 1 items 47 and 48, by substituting "assessed net amounts" for "net amounts" and inserting Note 1A, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-1 amended by No 73 of 2006, s 3 and Sch 5 item 88, by substituting Notes 1, 2 and 3 for the notes, effective 1 July 2006. The notes formerly read:
For provisions about collection and recovery of GST, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 and Division 3 of Part VI of that Act.
Payments of GST on importations of goods are dealt with separately in section 33-15.
S 33-1 amended by No 179 of 1999, s 3 and Sch 2 item 5, by inserting "For provisions about collection and recovery of GST, see Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 and Division 3 of Part VI of that Act.", effective 22 December 1999.
(a) the *assessed net amount for a tax period applying to you is greater than zero; and
(b) the tax period is a *quarterly tax period;
you must pay the assessed net amount to the Commissioner as follows:
When quarterly GST payments must be made
Item If this day falls within the quarterly tax period ... Pay the assessed net amount to the Commissioner on or before this day:
S 33-3 amended by No 39 of 2012, s 3 and Sch 1 items 50 to 52, by substituting "*assessed net amount" for "*net amount" in para (a), "must pay the assessed net amount" for "must pay the net amount" and " assessed net amount " for " net amount " in the table, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
If the *assessed net amount for a tax period (other than a *quarterly tax period) applying to you is greater than zero, you must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of that tax period.
S 33-5(1) amended by No 39 of 2012, s 3 and Sch 1 items 54 and 55, by substituting "*assessed net amount for" for "*net amount for" and "assessed net amount to" for "net amount to", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-5(1) amended by No 73 of 2001, s 3 and Sch 1 item 8, by inserting "(other than a *quarterly tax period)" after "a tax period", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
However, if the tax period ends during the first 7 days of a month, you must pay the *assessed net amount to the Commissioner on or before the 21st day of that month.
S 33-5(2) amended by No 39 of 2012, s 3 and Sch 1 item 56, by substituting "*assessed net amount" for "*net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
You may pay by *electronic payment any *assessed net amounts payable by you. Any amounts of an assessed net amount that you do not pay by electronic payment must be paid in the manner determined in writing by the Commissioner.
S 33-10(1) amended by No 39 of 2012, s 3 and Sch 1 items 58 and 59, by substituting "any *assessed net amounts" for "any *net amounts" and "an assessed net amount" for "a net amount", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-10(1) amended by No 73 of 2001, s 3 and Sch 1 item 9, by omitting "under section 33-5" from after "payable by you", applicable in relation to GST returns, and net amounts, for tax periods ending on or after 22 February 2001.
However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must pay by *electronic payment any *assessed net amounts payable by you.
A penalty applies if you fail to pay electronically as required - see section 288-20 in Schedule 1 to the Taxation Administration Act 1953.
You must also pay other tax debts electronically - see section 8AAZMA in that Act.
S 33-10(2) amended by No 39 of 2012, s 3 and Sch 1 item 60, by substituting "*assessed net amounts" for "*net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
S 33-10(2) amended by No 92 of 2000, s 3 and Sch 9 item 6, by substituting "8AAZMA in that Act" for "288-15 in that Schedule" in Note 2, applicable to things done on or after 1 July 2000, but not applicable to a return, statement, notice or other document, or a statement made or scheme entered into, in relation to the year starting on or after 1 July 1999 or an earlier year.
S 33-10(2) amended by No 179 of 1999, s 3 and Sch 12 item 2, by substituting Notes 1 and 2 for the Note, effective 1 July 2000. The Note formerly read:
A penalty applies if you fail to make an electronic payment as required - see section 41 of the Taxation Administration Act 1953.
Amounts of *assessed GST on *taxable importations are to be paid by the importer to the Commonwealth:
(a) at the same time, at the same place, and in the same manner, as *customs duty is payable on the goods in question (or would be payable if the goods were subject to customs duty); or
(b) in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.
The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.
S 33-15(1) amended by No 39 of 2012, s 3 and Sch 1 items 62 and 63, by substituting "*assessed GST" for "GST" and "assessed net amounts" for "net amounts" in the note, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
An officer of Customs (within the meaning of subsection 4(1) of the Customs Act 1901) may refuse to deliver the goods concerned unless the *assessed GST has been paid.
S 33-20 repealed by No 179 of 1999, s 3 and Sch 2 item 6, effective 22 December 1999. S 33-20 formerly read:
The Commissioner may, in a particular case, extend the time for a payment of:
(a) a *net amount; or
(b) an amount of GST; or
(c) an amount of a penalty under Part VI of the Taxation Administration Act 1953;
or allow it to be paid by instalments on terms determined by the Commissioner.
If the Commissioner has reason to believe that you may leave Australia before a particular payment of:
would (apart from this section) become due, that amount becomes due for payment on the day the Commissioner fixes and notifies to you.
The Commissioner has power to issue departure prohibition orders under Part IVA of the Taxation Administration Act 1953.
When a *net amount, an amount of GST or an amount of a penalty under Part VI of the Taxation Administration Act 1953 becomes payable, it is a debt due to the Commonwealth.
Chapter 4 contains special rules relating to payments of GST, as follows:
2 Customs security etc. given on taxable importations Division 171
4A Importations without entry for home consumption Division 114
Division 35 - Refunds
This Division is about the Commissioner's obligation to pay to you your entitlements to input tax credits that remain after off-setting amounts of GST. The obligation to pay arises for any of your assessed net amounts that are less than zero.
S 35-1 amended by No 39 of 2012, s 3 and Sch 1 item 65, by substituting "assessed net amounts" for "net amounts", applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012.
If the *assessed net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you.
See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.
S 35-5(1) amended by No 34 of 2014, s 3 and Sch 2 item 4, by omitting ", and section 105-65 in Schedule 1 to," after "Part IIB of" in note 1, applicable in relation to working out your net amount for a tax period starting on or after 31 May 2014.
S 35-5(1) amended by No 20 of 2010, s 3 and Sch 5 item 1, by inserting "(1)" before "If", effective 24 March 2010.
S 35-5 amended by No 73 of 2006, s 3 and Sch 5 item 89, by substituting "of, and section 105-65 in Schedule 1 to," for "and section 39 of" in Note 1, effective 1 July 2006.
S 35-5 substituted by No 179 of 1999, s 3 and Sch 15 item 1, effective 1 July 2000. Section 35-5 formerly read:
35-5 When refunds must be made
If the *net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you within 14 days after you give to the Commissioner, under Division 31, your *GST return for that tax period.
Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commonwealth is late in making the payment.
However, if you have a liability to the Commonwealth arising under or because of an Act of which the Commissioner has the general administration, the Commissioner may:
(a) apply that *net amount against the liability; and
(b) pay to you any part of that net amount not so applied.
However, if:
(a) the Commissioner amends the *assessment of your *net amount; and
(b) your *assessed net amount before the amendment was less than zero; and
(c) the amount that, because of the assessment, was:
(i) paid; or
(ii) applied under the Taxation Administration Act 1953;
exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;
the amount of the excess is to be treated as if:
(d) the excess were an assessed net amount for the tax period; and
(e) that assessed net amount were an amount greater than zero and equal to the amount of the excess; and
(f) despite Division 33, that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.
Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105-80 in that Schedule.
S 35-5(2) substituted by No 39 of 2012, s 3 and Sch 1 item 67, applicable in relation to payments and refunds that relate to tax periods, and fuel tax return periods, starting on or after 1 July 2012; and also in relation to payments and refunds that: (a) do not relate to any tax periods or fuel tax return periods; and (b) relate to liabilities or entitlements that arose on or after 1 July 2012. S 35-5(2) formerly read:
However, if the amount paid, or applied under the Taxation Administration Act 1953, exceeds the amount to which you are properly entitled under subsection (1), the excess is to be treated as if it were GST that became payable, and due for payment, by you at the time when the amount was paid or applied.
The main effect of treating the amount as if it were GST is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105-80 in that Schedule.
S 35-5(2) inserted by No 20 of 2010, s 3 and Sch 5 item 2, applicable in relation to amounts payable under subsection 35-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 for tax periods starting on or after 24 March 2010.
Your entitlement to be paid an amount under section 35-5 arises when the Commissioner gives you notice of the *assessment of your *net amount for the tax period.
In certain circumstances, the Commissioner is treated as having given you notice of the assessment when you give to the Commissioner your GST return (see section 155-15 in Schedule 1 to the Taxation Administration Act 1953).