Australian Government

Federal Register of Legislation

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

In force

Administered by

Department of the Treasury

Superseded version

View latest version

C2011C00497

01 July 2011 - 20 March 2012

Table of contents

Chapter 1—Introduction
Part 1 1—Preliminary
- Division 1—Preliminary
- 1 1 Short title [see Note 1]
- 1 2 Commencement
- 1 3 Commonwealth State financial relations
- 1 4 States and Territories are bound by the GST law
Part 1 2—Using this Act
- Division 2—Overview of the GST legislation
- Division 3—Defined terms
- Division 4—Status of Guides and other non operative material
Chapter 2—The basic rules
- Division 5—Introduction
  - 5 1 What this Chapter is about
  - 5 5 The structure of this Chapter
Part 2 1—The central provisions
- Division 7—The central provisions
Part 2 2—Supplies and acquisitions
- Division 9—Taxable supplies
- Division 11—Creditable acquisitions
- 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
Part 2 3—Importations
- Division 13—Taxable importations
- Division 15—Creditable importations
Part 2 4—Net amounts and adjustments
- Division 17—Net amounts and adjustments
- Division 19—Adjustment events
- Division 21—Bad debts
Part 2 5—Registration
- Division 23—Who is required to be registered and who may be registered
- Division 25—How you become registered, and how your registration can be cancelled
  - Subdivision 25 A—How you become registered
  - Subdivision 25 B—How your registration can be cancelled
Part 2 6—Tax periods
- Division 27—How to work out the tax periods that apply to you
- Division 29—What is attributable to tax periods
Part 2 7—Returns, payments and refunds
- Division 31—GST returns
- Division 33—Payments of GST
- Division 35—Refunds
Part 2 8—Checklist of special rules
- Division 37—Checklist of special rules
  - 37 1 Checklist of special rules
Chapter 3—The exemptions
Part 3 1—Supplies that are not taxable supplies
- Division 38—GST free supplies
- Division 40—Input taxed supplies
Part 3 2—Non taxable importations
- Division 42—Non taxable importations
Chapter 4—The special rules
- Division 45—Introduction
  - 45 1 What this Chapter is about
  - 45 5 The effect of special rules
Part 4 1—Special rules mainly about particular ways entities are organised
- Division 48—GST groups
- Division 49—GST religious groups
- Division 50—GST treatment of religious practitioners
  - Guide to Division 50
    - 50 1 What this Division is about
    - 50 5 GST treatment of religious practitioners
- Division 51—GST joint ventures
- Division 54—GST branches
- Division 57—Resident agents acting for non residents
- Division 58—Representatives of incapacitated entities
- Division 60—Pre establishment costs
- Division 63—Non profit sub entities
Part 4 2—Special rules mainly about supplies and acquisitions
- Division 66—Second hand goods
  - 66 1 What this Division is about
  - Subdivision 66 A—Input tax credits for acquiring second hand goods
  - Subdivision 66 B—Acquisitions of second hand goods that are divided for re supply
- Division 69—Non deductible expenses
  - 69 1 What this Division is about
  - Subdivision 69 A—Non deductible expenses generally
    - 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
  - Subdivision 69 B—Elections for GST purposes relating to meal entertainment and entertainment facilities
- Division 70—Financial supplies (reduced credit acquisitions)
  - 70 1 What this Division is about
  - 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)
- Division 71—Fringe benefits provided by input taxed suppliers
  - 71 1 What this Division is about
  - 71 5 Acquisitions by input taxed suppliers to provide fringe benefits
  - 71 10 Importations by input taxed suppliers to provide fringe benefits
- Division 72—Associates
  - 72 1 What this Division is about
  - Subdivision 72 A—Supplies without consideration
  - Subdivision 72 B—Acquisitions without consideration
  - Subdivision 72 C—Supplies for inadequate consideration
    - 72 70 The value of taxable supplies for inadequate consideration
  - Subdivision 72 D—Application of this Division to certain sub entities
- Division 75—Sale of freehold interests etc.
  - 75 1 What this Division is about
  - 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 land
  - 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
- Division 78—Insurance
  - 78 1 What this Division is about
  - Subdivision 78 A—Insurers
  - Subdivision 78 B—Insured entities etc.
  - Subdivision 78 C—Third parties
  - Subdivision 78 D—Insured entities that are not registered etc.
  - Subdivision 78 E—Statutory compensation schemes
  - Subdivision 78 F—Miscellaneous
- Division 79—Compulsory third party schemes
  - 79 1 What this Division is about
  - Subdivision 79 A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies
  - Subdivision 79 B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies
    - 79 25 Meaning of CTP hybrid payment or supply
    - 79 30 Application of Division 78
  - Subdivision 79 C—Other payments and supplies under compulsory third party schemes
  - Subdivision 79 D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction
    - 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
- Division 80—Settlement sharing arrangements
  - 80 1 What this Division is about
  - Subdivision 80 A—Insurance policy settlement sharing arrangements
  - Subdivision 80 B—Nominal defendant settlement sharing arrangements
  - Subdivision 80 C—Hybrid settlement sharing arrangements
- Division 81—Payments of taxes, fees and charges
  - 81 1 What this Division is about
  - 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 section 9 15
  - 81 25 Date of effect of regulations
- Division 82—Supplies in return for rights to develop land
  - 82 1 What this Division is about
  - 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
- Division 83—Non residents making supplies connected with Australia
  - 83 1 What this Division is about
  - 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
- Division 84—Offshore supplies other than goods or real property
  - 84 1 What this Division is about
  - 84 5 Intangible supplies from offshore that are taxable supplies under this Division
  - 84 10 “Reverse charge” on offshore intangible supplies
  - 84 12 The amount of GST on offshore intangible supplies
  - 84 13 The amount of input tax credits relating to offshore intangible supplies
  - 84 14 Supplies relating to employee share ownership schemes
  - 84 15 Transfers etc. between branches of the same entity
- Division 85—Telecommunication supplies
  - 85 1 What this Division is about
  - 85 5 When telecommunication supplies are connected with Australia
  - 85 10 Meaning of telecommunication supply
- Division 87—Long term accommodation in commercial residential premises
  - 87 1 What this Division is about
  - 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
- Division 90—Company amalgamations
  - 90 1 What this Division is about
  - 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 30 Adjustments
  - 90 35 Amalgamating companies accounting on a cash basis
- Division 93—Time limit on entitlements to input tax credits
  - 93 1 What this Division is about
  - 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 ceasing to be payable on the related supply
- Division 96—Supplies partly connected with Australia
  - 96 1 What this Division is about
  - 96 5 Supplies that are only partly connected with Australia
  - 96 10 The value of the taxable components of supplies that are only partly connected with Australia
- Division 99—Deposits as security
  - 99 1 What this Division is about
  - 99 5 Giving a deposit as security does not constitute consideration
  - 99 10 Attributing the GST relating to deposits that are forfeited etc.
- Division 100—Vouchers
  - 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 Australia
  - 100 25 Meaning of voucher etc.
- Division 102—Cancelled lay by sales
  - 102 1 What this Division is about
  - 102 5 Cancelled lay by sales
  - 102 10 Attributing GST and input tax credits
- Division 105—Supplies in satisfaction of debts
  - 105 1 What this Division is about
  - 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
- Division 108—Valuation of taxable supplies of goods in bond
  - 108 1 What this Division is about
  - 108 5 Taxable supplies of goods in bond etc.
- Division 110—Tax related transactions
  - 110 1 What this Division is about
  - Subdivision 110 A—Income tax related transactions
  - Subdivision 110 B—Other tax related transactions
    - 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
- Division 111—Reimbursement of employees etc.
  - 111 1 What this Division is about
  - 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 charitable institutions 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.
- Division 113—PAYG voluntary agreements
  - 113 1 What this Division is about
  - 113 5 Supply of work or services not a taxable supply
Part 4 3—Special rules mainly about importations
- Division 114—Importations without entry for home consumption
- Division 117—Valuation of re imported goods
Part 4 4—Special rules mainly about net amounts and adjustments
- Division 123—Simplified accounting methods for retailers and small enterprise entities
- Division 126—Gambling
- Division 129—Changes in the extent of creditable purpose
- Division 130—Goods applied solely to private or domestic use
  - 130 1 What this Division is about
  - 130 5 Goods applied solely to private or domestic use
- Division 131—Annual apportionment of creditable purpose
- Division 132—Supplies of things acquired etc. without full input tax credits
- Division 133—Providing additional consideration under gross up clauses
- Division 134—Third party payments
- Division 135—Supplies of going concerns
- Division 136—Bad debts relating to transactions that are not taxable or creditable to the fullest extent
- Division 137—Stock on hand on becoming registered etc.
  - 137 1 What this Division is about
  - 137 5 Adjustments for stock on hand on becoming registered etc.
- Division 138—Cessation of registration
- Division 139—Distributions from deceased estates
- Division 141—Tradex scheme goods
Part 4 5—Special rules mainly about registration
- Division 144—Taxis
  - 144 1 What this Division is about
  - 144 5 Requirement to register
- Division 149—Government entities
Part 4 6—Special rules mainly about tax periods
- Division 151—Annual tax periods
- Division 153—Agents etc. and insurance brokers
- Division 156—Supplies and acquisitions made on a progressive or periodic basis
- Division 157—Accounting basis of charitable institutions etc.
- Division 159—Changing your accounting basis
Part 4 7—Special rules mainly about returns, payments and refunds
- Division 162—Payment of GST by instalments
- Division 165—Anti avoidance
- Division 168—Tourist refund scheme
- Division 171—Customs security etc. given on taxable importations
  - 171 1 What this Division is about
  - 171 5 Security or undertaking given under section 162 or 162A of the Customs Act
Chapter 5—Miscellaneous
Part 5 1—Miscellaneous
- Division 176—Endorsement of charitable institutions etc.
  - 176 1 Endorsement by Commissioner as charitable institution
  - 176 5 Endorsement by Commissioner as trustee of a charitable fund
- Division 177—Miscellaneous
Chapter 6—Interpreting this Act
Part 6 1—Rules for interpreting this Act
- Division 182—Rules for interpreting this Act
Part 6 2—Meaning of some important concepts
- Division 184—Meaning of entity
  - 184 1 Entities
  - 184 5 Supplies etc. by partnerships and other unincorporated bodies
- Division 188—Meaning of GST turnover
- Division 189—Exceeding the financial acquisitions threshold
- Division 190—90% owned groups of companies
  - 190 1 90% owned groups
  - 190 5 When a company has at least a 90% stake in another company
Part 6 3—Dictionary
- Division 195—Dictionary
  - 195 1 Dictionary
Schedule 1—Food that is not GST free
- 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
Schedule 2—Beverages that are GST free
- 1 Beverages that are GST free
- 2 Tea, coffee etc.
- 3 Fruit and vegetable juices
Schedule 3—Medical aids and appliances
- Notes to the STYLEREF ShortT \* MERGEFORMAT A New Tax System (Goods and Services Tax) Act 1999