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

Authoritative Version
  • - C2014C00008
  • In force - Superseded Version
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Act No. 55 of 1999 as amended, taking into account amendments up to Tax Laws Amendment (2013 Measures No. 2) Act 2013
An Act about a goods and services tax to implement A New Tax System, and for related purposes
Administered by: Treasury
Registered 02 Jan 2014
Start Date 01 Jan 2014
End Date 29 May 2014

Commonwealth Coat of Arms

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

No. 55, 1999 as amended

Compilation start date:                     1 January 2014

Includes amendments up to:            Act No. 124, 2013

 

About this compilation

This compilation

This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 as in force on 1 January 2014. It includes any commenced amendment affecting the compilation to that date.

This compilation was prepared on 1 January 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Chapter 1—Introduction                                                                                       1

Part 1‑1—Preliminary                                                                                                         1

Division 1—Preliminary                                                                                              1

1‑1......................... Short title............................................................................ 1

1‑2......................... Commencement.................................................................. 1

1‑3......................... Commonwealth‑State financial relations............................. 1

1‑4......................... States and Territories are bound by the GST law................ 1

Part 1‑2—Using this Act                                                                                                    2

Division 2—Overview of the GST legislation                                                  2

2‑1......................... What this Act is about......................................................... 2

2‑5......................... The basic rules (Chapter 2)................................................. 2

2‑10....................... The exemptions (Chapter 3)................................................ 2

2‑15....................... The special rules (Chapter 4).............................................. 3

2‑20....................... Miscellaneous (Chapter 5).................................................. 3

2‑25....................... Interpretative provisions (Chapter 6).................................. 3

2‑30....................... Administration, collection and recovery provisions in the Taxation Administration Act 1953 3

Division 3—Defined terms                                                                                         4

3‑1......................... When defined terms are identified....................................... 4

3‑5......................... When terms are not identified............................................. 4

3‑10....................... Identifying the defined term in a definition......................... 5

Division 4—Status of Guides and other non‑operative material           6

4‑1......................... Non‑operative material........................................................ 6

4‑5......................... Explanatory sections........................................................... 6

4‑10....................... Other material..................................................................... 6

Chapter 2—The basic rules                                                                                 7

Division 5—Introduction                                                                                            7

5‑1......................... What this Chapter is about.................................................. 7

5‑5......................... The structure of this Chapter............................................... 7

Part 2‑1—The central provisions                                                                                  9

Division 7—The central provisions                                                                       9

7‑1......................... GST and input tax credits................................................... 9

7‑5......................... Net amounts........................................................................ 9

7‑10....................... Tax periods......................................................................... 9

7‑15....................... Payments and refunds......................................................... 9

Part 2‑2—Supplies and acquisitions                                                                         11

Division 9—Taxable supplies                                                                                  11

9‑1......................... What this Division is about............................................... 11

Subdivision 9‑A—What are taxable supplies?                                                  11

9‑5......................... Taxable supplies............................................................... 11

9‑10....................... Meaning of supply............................................................ 11

9‑15....................... Consideration.................................................................... 12

9‑17....................... Certain payments and other things not consideration........ 13

9‑20....................... Enterprises........................................................................ 14

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

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

9‑39....................... Special rules relating to taxable supplies........................... 19

Subdivision 9‑B—Who is liable for GST on taxable supplies?                    20

9‑40....................... Liability for GST on taxable supplies............................... 20

9‑69....................... Special rules relating to liability for GST on taxable supplies  20

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

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

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

9‑80....................... The value of taxable supplies that are partly GST‑free or input taxed      22

9‑85....................... Value of taxable supplies to be expressed in Australian currency            23

9‑90....................... Rounding of amounts of GST.......................................... 23

9‑99....................... Special rules relating to the amount of GST on taxable supplies              25

Division 11—Creditable acquisitions                                                                 27

11‑1....................... What this Division is about............................................... 27

11‑5....................... What is a creditable acquisition?....................................... 27

11‑10..................... Meaning of acquisition..................................................... 27

11‑15..................... Meaning of creditable purpose......................................... 28

11‑20..................... Who is entitled to input tax credits for creditable acquisitions?                29

11‑25..................... How much are the input tax credits for creditable acquisitions?               29

11‑30..................... Acquisitions that are partly creditable............................... 29

11‑99..................... Special rules relating to acquisitions................................. 30

Part 2‑3—Importations                                                                                                     32

Division 13—Taxable importations                                                                    32

13‑1....................... What this Division is about............................................... 32

13‑5....................... What are taxable importations?......................................... 32

13‑10..................... Meaning of non‑taxable importation................................ 32

13‑15..................... Who is liable for GST on taxable importations?............... 33

13‑20..................... How much GST is payable on taxable importations?....... 33

13‑25..................... The value of taxable importations that are partly non‑taxable importations              34

13‑99..................... Special rules relating to taxable importations.................... 34

Division 15—Creditable importations                                                               36

15‑1....................... What this Division is about............................................... 36

15‑5....................... What are creditable importations?..................................... 36

15‑10..................... Meaning of creditable purpose......................................... 36

15‑15..................... Who is entitled to input tax credits for creditable importations?               37

15‑20..................... How much are the input tax credits for creditable importations?              37

15‑25..................... Importations that are partly creditable............................... 37

15‑99..................... Special rules relating to creditable importations................ 38

Part 2‑4—Net amounts and adjustments                                                               40

Division 17—Net amounts and adjustments                                                   40

17‑1....................... What this Division is about............................................... 40

17‑5....................... Net amounts...................................................................... 40

17‑10..................... Adjustments...................................................................... 41

17‑15..................... Working out net amounts using approved forms.............. 41

17‑20..................... Determinations relating to how to work out net amounts.. 41

17‑99..................... Special rules relating to net amounts or adjustments......... 42

Division 19—Adjustment events                                                                           45

19‑1....................... What this Division is about............................................... 45

19‑5....................... Explanation of the effect of adjustment events.................. 45

Subdivision 19‑A—Adjustment events                                                                46

19‑10..................... Adjustment events............................................................ 46

Subdivision 19‑B—Adjustments for supplies                                                    47

19‑40..................... Where adjustments for supplies arise................................ 47

19‑45..................... Previously attributed GST amounts.................................. 48

19‑50..................... Increasing adjustments for supplies.................................. 48

19‑55..................... Decreasing adjustments for supplies................................. 48

Subdivision 19‑C—Adjustments for acquisitions                                             48

19‑70..................... Where adjustments for acquisitions arise.......................... 48

19‑75..................... Previously attributed input tax credit amounts.................. 49

19‑80..................... Increasing adjustments for acquisitions............................ 50

19‑85..................... Decreasing adjustments for acquisitions........................... 50

19‑99..................... Special rules relating to adjustment events........................ 50

Division 21—Bad debts                                                                                              51

21‑1....................... What this Division is about............................................... 51

21‑5....................... Writing off bad debts (taxable supplies)........................... 51

21‑10..................... Recovering amounts previously written off (taxable supplies) 51

21‑15..................... Bad debts written off (creditable acquisitions).................. 52

21‑20..................... Recovering amounts previously written off (creditable acquisitions)       52

21‑99..................... Special rules relating to adjustments for bad debts............ 52

Part 2‑5—Registration                                                                                                      54

Division 23—Who is required to be registered and who may be registered       54

23‑1....................... Explanation of Division.................................................... 54

23‑5....................... Who is required to be registered....................................... 54

23‑10..................... Who may be registered..................................................... 55

23‑15..................... The registration turnover threshold................................... 55

23‑20..................... Not registered for 4 years................................................. 55

23‑99..................... Special rules relating to who is required to be registered or who may be registered 55

Division 25—How you become registered, and how your registration can be cancelled            57

Subdivision 25‑A—How you become registered                                              57

25‑1....................... When you must apply for registration............................... 57

25‑5....................... When the Commissioner must register you...................... 57

25‑10..................... The date of effect of your registration............................... 58

25‑15..................... Effect of backdating your registration............................... 59

25‑49..................... Special rules relating to registration.................................. 59

Subdivision 25‑B—How your registration can be cancelled                         59

25‑50..................... When you must apply for cancellation of registration....... 59

25‑55..................... When the Commissioner must cancel registration............. 60

25‑57..................... When the Commissioner may cancel your registration..... 60

25‑60..................... The date of effect of your cancellation.............................. 61

25‑65..................... Effect of backdating your cancellation of registration....... 61

25‑99..................... Special rules relating to cancellation of registration........... 62

Part 2‑6—Tax periods                                                                                                       63

Division 27—How to work out the tax periods that apply to you      63

27‑1....................... What this Division is about............................................... 63

27‑5....................... General rule—3 month tax periods................................... 63

27‑10..................... Election of one month tax periods..................................... 63

27‑15..................... Determination of one month tax periods........................... 63

27‑20..................... Withdrawing elections of one month tax periods.............. 64

27‑22..................... Revoking elections of one month tax periods................... 65

27‑25..................... Revoking determinations of one month tax periods.......... 65

27‑30..................... Tax periods determined by the Commissioner to take account of changes in tax periods         66

27‑35..................... Changing the days on which your tax periods end........... 66

27‑37..................... Special determination of tax periods on request................ 67

27‑38..................... Revoking special determination of tax periods.................. 67

27‑39..................... Tax periods of incapacitated entities.................................. 68

27‑40..................... An entity’s concluding tax period..................................... 68

27‑99..................... Special rules relating to tax periods................................... 69

Division 29—What is attributable to tax periods                                        70

29‑1....................... What this Division is about............................................... 70

Subdivision 29‑A—The attribution rules                                                           70

29‑5....................... Attributing the GST on your taxable supplies................... 70

29‑10..................... Attributing the input tax credits for your creditable acquisitions              71

29‑15..................... Attributing the input tax credits for your creditable importations             72

29‑20..................... Attributing your adjustments............................................ 72

29‑25..................... Commissioner may determine particular attribution rules. 73

29‑39..................... Special rules relating to attribution rules........................... 74

Subdivision 29‑B—Accounting on a cash basis                                                75

29‑40..................... Choosing to account on a cash basis................................. 75

29‑45..................... Permission to account on a cash basis.............................. 76

29‑50..................... Ceasing to account on a cash basis................................... 76

29‑69..................... Special rules relating to accounting on a cash basis.......... 78

Subdivision 29‑C—Tax invoices and adjustment notes                                  78

29‑70..................... Tax invoices...................................................................... 78

29‑75..................... Adjustment notes.............................................................. 79

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

29‑99..................... Special rules relating to tax invoices and adjustment notes 81

Part 2‑7—Returns, payments and refunds                                                          82

Division 31—GST returns                                                                                        82

31‑1....................... What this Division is about............................................... 82

31‑5....................... Who must give GST returns............................................. 82

31‑8....................... When GST returns must be given—quarterly tax periods 82

31‑10..................... When GST returns must be given—other tax periods...... 83

31‑15..................... The form and contents of GST returns............................. 83

31‑20..................... Additional GST returns.................................................... 84

31‑25..................... Electronic lodgment of GST returns................................. 85

31‑30..................... GST returns treated as being duly made........................... 85

31‑99..................... Special rules relating to GST returns................................ 85

Division 33—Payments of GST                                                                             87

33‑1....................... What this Division is about............................................... 87

33‑3....................... When payments of assessed net amounts must be made—quarterly tax periods      87

33‑5....................... When payments of assessed net amounts must be made—other tax periods            88

33‑10..................... How payment of assessed net amounts are made............. 88

33‑15..................... Payments of assessed GST on importations..................... 88

33‑99..................... Special rules relating to payments of GST........................ 89

Division 35—Refunds                                                                                                 90

35‑1....................... What this Division is about............................................... 90

35‑5....................... Entitlement to refund......................................................... 90

35‑10..................... When entitlement arises.................................................... 91

35‑99..................... Special rules relating to refunds........................................ 91

Part 2‑8—Checklist of special rules                                                                          92

Division 37—Checklist of special rules                                                             92

37‑1....................... Checklist of special rules.................................................. 92

Chapter 3—The exemptions                                                                             95

Part 3‑1—Supplies that are not taxable supplies                                              95

Division 38—GST‑free supplies                                                                            95

38‑1....................... What this Division is about............................................... 96

Subdivision 38‑A—Food                                                                                         96

38‑2....................... Food................................................................................. 96

38‑3....................... Food that is not GST‑free................................................. 96

38‑4....................... Meaning of food............................................................... 97

38‑5....................... Premises used in supplying food...................................... 97

38‑6....................... Packaging of food............................................................. 98

Subdivision 38‑B—Health                                                                                      98

38‑7....................... Medical services............................................................... 98

38‑10..................... Other health services......................................................... 99

38‑15..................... Other government funded health services....................... 100

38‑20..................... Hospital treatment........................................................... 101

38‑25..................... Residential care etc.......................................................... 101

38‑30..................... Home care etc................................................................. 103

38‑35..................... Flexible care.................................................................... 104

38‑38..................... Disability support provided to NDIS participants........... 104

38‑40..................... Specialist disability services............................................ 105

38‑45..................... Medical aids and appliances............................................ 105

38‑47..................... Other GST‑free health goods.......................................... 105

38‑50..................... Drugs and medicinal preparations etc............................. 105

38‑55..................... Private health insurance etc............................................. 107

38‑60..................... Third party procured GST‑free health supplies............... 107

Subdivision 38‑C—Education                                                                             109

38‑85..................... Education courses........................................................... 109

38‑90..................... Excursions or field trips.................................................. 109

38‑95..................... Course materials............................................................. 109

38‑97..................... Lease etc. of curriculum related goods............................ 109

38‑100................... Supplies that are not GST‑free........................................ 110

38‑105................... Accommodation at boarding schools etc......................... 110

38‑110................... Recognition of prior learning etc..................................... 111

Subdivision 38‑D—Child care                                                                             111

38‑140................... Child care—registered carers under the family assistance law 111

38‑145................... Child care—approved child care services under the family assistance law               112

38‑150................... Other child care............................................................... 112

38‑155................... Supplies directly related to child care that is GST‑free.... 112

Subdivision 38‑E—Exports and other supplies for consumption outside Australia      112

38‑185................... Exports of goods............................................................ 112

38‑187................... Lease etc. of goods for use outside Australia.................. 118

38‑188................... Tooling used by non‑residents to manufacture goods for export             118

38‑190................... Supplies of things, other than goods or real property, for consumption outside Australia       118

Subdivision 38‑F—Religious services                                                               121

38‑220................... Religious services........................................................... 121

Subdivision 38‑G—Activities of charities etc.                                                 121

38‑250................... Nominal consideration etc............................................... 121

38‑255................... Second‑hand goods........................................................ 122

38‑260................... Supplies of retirement village accommodation etc........... 123

38‑270................... Raffles and bingo conducted by charities etc.................. 123

Subdivision 38‑I—Water, sewerage and drainage                                        124

38‑285................... Water.............................................................................. 124

38‑290................... Sewerage and sewerage‑like services............................. 124

38‑295................... Emptying of septic tanks................................................. 125

38‑300................... Drainage......................................................................... 125

Subdivision 38‑J—Supplies of going concerns                                               125

38‑325................... Supply of a going concern.............................................. 125

Subdivision 38‑K—Transport and related matters                                       126

38‑355................... Supplies of transport and related matters........................ 126

38‑360................... Travel agents arranging overseas supplies...................... 128

Subdivision 38‑L—Precious metals                                                                   128

38‑385................... Supplies of precious metals............................................ 128

Subdivision 38‑M—Supplies through inwards duty free shops                  128

38‑415................... Supplies through inwards duty free shops...................... 128

Subdivision 38‑N—Grants of land by governments                                      129

38‑445................... Grants of freehold and similar interests by governments 129

38‑450................... Leases preceding grants of freehold and similar interests by governments              129

Subdivision 38‑O—Farm land                                                                            130

38‑475................... Subdivided farm land...................................................... 130

38‑480................... Farm land supplied for farming...................................... 131

Subdivision 38‑P—Cars for use by disabled people                                      131

38‑505................... Disabled veterans............................................................ 131

38‑510................... Other disabled people..................................................... 132

Subdivision 38‑Q—International mail                                                             133

38‑540................... International mail............................................................ 133

Subdivision 38‑R—Telecommunication supplies made under arrangements for global roaming in Australia    133

38‑570................... Telecommunication supplies made under arrangements for global roaming in Australia         133

Subdivision 38‑S—Eligible emissions units                                                     134

38‑590................... Eligible emissions units.................................................. 134

Division 40—Input taxed supplies                                                                      135

40‑1....................... What this Division is about............................................. 135

Subdivision 40‑A—Financial supplies                                                              135

40‑5....................... Financial supplies........................................................... 135

Subdivision 40‑B—Residential rent                                                                   136

40‑35..................... Residential rent............................................................... 136

Subdivision 40‑C—Residential premises                                                          137

40‑65..................... Sales of residential premises........................................... 137

40‑70..................... Supplies of residential premises by way of long‑term lease 137

40‑75..................... Meaning of new residential premises............................. 137

Subdivision 40‑D—Precious metals                                                                   140

40‑100................... Precious metals............................................................... 140

Subdivision 40‑E—School tuckshops and canteens                                       140

40‑130................... School tuckshops and canteens....................................... 140

Subdivision 40‑F—Fund‑raising events conducted by charities etc.         141

40‑160................... Fund‑raising events conducted by charities etc............... 141

40‑165................... Meaning of fund‑raising event........................................ 142

Part 3‑2—Non‑taxable importations                                                                      143

Division 42—Non‑taxable importations                                                         143

42‑1....................... What this Division is about............................................. 143

42‑5....................... Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995  143

42‑10..................... Goods returned to Australia in an unaltered condition.... 144

Chapter 4—The special rules                                                                         145

Division 45—Introduction                                                                                      145

45‑1....................... What this Chapter is about.............................................. 145

45‑5....................... The effect of special rules............................................... 145

Part 4‑1—Special rules mainly about particular ways entities are organised       146

Division 48—GST groups                                                                                       146

48‑1....................... What this Division is about............................................. 146

Subdivision 48‑A—Formation and membership of GST groups               146

48‑5....................... Formation of GST groups.............................................. 146

48‑7....................... Membership of GST groups........................................... 147

48‑10..................... Membership requirements of a GST group.................... 148

48‑15..................... Relationship of companies and non‑companies in a GST group              149

Subdivision 48‑B—Consequences of GST groups                                          151

48‑40..................... Who is liable for GST..................................................... 151

48‑45..................... Who is entitled to input tax credits.................................. 152

48‑50..................... Adjustments.................................................................... 153

48‑51..................... Consequences of being a member of a GST group for part of a tax period              153

48‑52..................... Consequences for a representative member of membership change during a tax period          154

48‑53..................... Consequences of changing a representative member during a tax period 154

48‑55..................... GST groups treated as single entities for certain purposes 155

48‑57..................... Tax invoices that are required to identify recipients........ 156

48‑60..................... GST returns.................................................................... 157

Subdivision 48‑C—Administrative matters                                                     157

48‑70..................... Changing the membership etc. of GST groups............... 157

48‑71..................... Approval of early day of effect of forming, changing etc. GST groups   159

48‑73..................... Tax periods of GST groups with incapacitated members 159

48‑75..................... Effect of representative member becoming an incapacitated entity           160

Subdivision 48‑D—Ceasing to be a member of a GST group                     161

48‑110................... Adjustments after you cease to be a member of a GST group  161

48‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST group        161

Division 49—GST religious groups                                                                   163

49‑1....................... What this Division is about............................................. 163

Subdivision 49‑A—Approval of GST religious groups                                163

49‑5....................... Approval of GST religious groups................................. 163

49‑10..................... Membership requirements of a GST religious group...... 163

Subdivision 49‑B—Consequences of approval of GST religious groups 164

49‑30..................... Supplies between members of GST religious groups..... 164

49‑35..................... Acquisitions between members of GST religious groups 164

49‑40..................... Adjustment events.......................................................... 164

49‑45..................... Changes in the extent of creditable purpose.................... 165

49‑50..................... GST religious groups treated as single entities for certain purposes        165

Subdivision 49‑C—Administrative matters                                                     165

49‑70..................... Changing the membership etc. of GST religious groups 165

49‑75..................... Revoking the approval of GST religious groups............ 166

49‑80..................... Notification by principal members.................................. 167

49‑85..................... Date of effect of approvals and revocations.................... 167

49‑90..................... Notification by the Commissioner.................................. 167

Division 50—GST treatment of religious practitioners                         168

Guide to Division 50                                                                                              168

50‑1....................... What this Division is about............................................. 168

50‑5....................... GST treatment of religious practitioners......................... 168

Division 51—GST joint ventures                                                                        169

51‑1....................... What this Division is about............................................. 169

Subdivision 51‑A—Formation of and participation in GST joint ventures 169

51‑5....................... Formation of GST joint ventures.................................... 169

51‑7....................... Participants in GST joint ventures.................................. 170

51‑10..................... Participation requirements of a GST joint venture.......... 171

Subdivision 51‑B—Consequences of GST joint ventures                             171

51‑30..................... Who is liable for GST..................................................... 171

51‑35..................... Who is entitled to input tax credits.................................. 172

51‑40..................... Adjustments.................................................................... 172

51‑45..................... Additional net amounts relating to GST joint ventures... 173

51‑50..................... GST returns relating to GST joint ventures.................... 174

51‑52..................... Consolidation of GST returns relating to GST joint ventures  174

51‑55..................... Payments of GST relating to GST joint ventures............ 175

51‑60..................... Refunds relating to GST joint ventures........................... 175

Subdivision 51‑C—Administrative matters                                                     176

51‑70..................... Changing the participants etc. of GST joint ventures...... 176

51‑75..................... Approval of early day of effect of forming, changing etc. GST joint ventures         177

Subdivision 51‑D—Ceasing to be a participant in, or an operator of, a GST joint venture        178

51‑110................... Adjustments after you cease to be a participant in a GST joint venture    178

51‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST joint venture             178

Division 54—GST branches                                                                                  180

54‑1....................... What this Division is about............................................. 180

Subdivision 54‑A—Registration of GST branches                                        180

54‑5....................... Registration of GST branches......................................... 180

54‑10..................... The date of effect of registration of a GST branch.......... 181

54‑15..................... GST branch registration number..................................... 181

Subdivision 54‑B—Consequences of registration of GST branches         181

54‑40..................... Additional net amounts relating to GST branches........... 181

54‑45..................... Net amounts of parent entities......................................... 182

54‑50..................... Tax invoices and adjustment notes.................................. 183

54‑55..................... GST returns relating to GST branches............................ 183

54‑60..................... Payments of GST relating to GST branches................... 184

54‑65..................... Refunds relating to GST branches.................................. 184

Subdivision 54‑C—Cancellation of registration of GST branches           184

54‑70..................... When an entity must apply for cancellation of registration of a GST branch            184

54‑75..................... When the Commissioner must cancel registration of a GST branch         185

54‑80..................... The date of effect of cancellation of registration of a GST branch            186

54‑85..................... Application of Subdivision 25‑B.................................... 186

54‑90..................... Effect on GST branches of cancelling the entity’s registration 186

Division 57—Resident agents acting for non‑residents                          187

57‑1....................... What this Division is about............................................. 187

57‑5....................... Who is liable for GST..................................................... 187

57‑10..................... Who is entitled to input tax credits.................................. 187

57‑15..................... Adjustments.................................................................... 187

57‑20..................... Resident agents are required to be registered.................. 188

57‑25..................... Cancellation of registration of a resident agent................ 188

57‑30..................... Notice of cessation of agency......................................... 188

57‑35..................... Tax periods of resident agents........................................ 188

57‑40..................... GST returns for non‑residents........................................ 189

57‑45..................... Resident agents giving GST returns............................... 189

57‑50..................... Non‑residents that belong to GST groups...................... 190

Division 58—Representatives of incapacitated entities                          191

58‑1....................... What this Division is about............................................. 191

58‑5....................... General principle for the relationship between incapacitated entities and their representatives 191

58‑10..................... Circumstances in which representatives have GST‑related liabilities and entitlements             192

58‑15..................... Adjustments for bad debts.............................................. 194

58‑20..................... Representatives are required to be registered.................. 195

58‑25..................... Cancellation of registration of a representative................ 195

58‑30..................... Notice of cessation of representation.............................. 195

58‑35..................... Tax periods of representatives........................................ 195

58‑40..................... Effect on attribution rules of not accounting on a cash basis 196

58‑45..................... GST returns for representatives of incapacitated entities. 196

58‑50..................... Representatives to give GST returns for incapacitated entities 196

58‑55..................... Incapacitated entities not required to give GST returns in some cases      198

58‑60..................... Representative to notify Commissioner of certain liabilities etc.               198

58‑65..................... Money available to meet representative’s liabilities......... 199

58‑70..................... Protection for actions of representative........................... 199

58‑95..................... Division does not apply to the extent that the representative is a creditor of the incapacitated entity        199

Division 60—Pre‑establishment costs                                                              201

60‑1....................... What this Division is about............................................. 201

60‑5....................... Input tax credit for acquisitions and importations before establishment   201

60‑10..................... Registration etc. not needed for input tax credits............. 201

60‑15..................... Pre‑establishment acquisitions and importations............. 202

60‑20..................... Creditable purpose.......................................................... 202

60‑25..................... Attributing the input tax credit for pre‑establishment acquisitions            203

60‑30..................... Attributing the input tax credit for pre‑establishment importations           204

60‑35..................... Application of Division 129........................................... 204

Division 63—Non‑profit sub‑entities                                                                205

63‑1....................... What this Division is about............................................. 205

63‑5....................... Entities that may choose to apply this Division............... 205

63‑10..................... Period for which a choice has effect............................... 205

63‑15..................... Consequences of choosing to apply this Division.......... 206

63‑20..................... Non‑profit sub‑entities may register............................... 206

63‑25..................... Registration turnover threshold for non‑profit sub‑entities 207

63‑27..................... Application of particular provisions relating to charities etc. 207

63‑30..................... When non‑profit sub‑entities must apply for cancellation of registration 208

63‑35..................... When the Commissioner must cancel registration of non‑profit sub‑entities            208

63‑40..................... Effect on adjustments of becoming a non‑profit sub‑entity 209

63‑45..................... Effect on adjustments of ceasing to be a non‑profit sub‑entity 209

63‑50..................... Membership requirements of GST groups..................... 210

Part 4‑2—Special rules mainly about supplies and acquisitions            211

Division 66—Second‑hand goods                                                                       211

66‑1....................... What this Division is about............................................. 211

Subdivision 66‑A—Input tax credits for acquiring second‑hand goods   211

66‑5....................... Creditable acquisitions of second‑hand goods................ 211

66‑10..................... Amounts of input tax credits for creditable acquisitions of second‑hand goods       212

66‑15..................... Attributing input tax credits for creditable acquisitions of second‑hand goods        212

66‑17..................... Records of creditable acquisitions of second‑hand goods 213

Subdivision 66‑B—Acquisitions of second‑hand goods that are divided for re‑supply                214

66‑40..................... Acquisitions of second‑hand goods that can be used to offset GST on future re‑supplies       214

66‑45..................... Future re‑supplies that are not taxable supplies............... 215

66‑50..................... Future re‑supplies on which GST is reduced.................. 216

66‑55..................... Records of acquisitions of second‑hand goods to which this Subdivision applied  216

66‑60..................... Input tax credits for acquiring second‑hand goods the supply of which is not fully taxable    217

66‑65..................... Total Subdivision 66‑B credit amounts and Subdivision 66‑B GST amounts         217

66‑70..................... Commissioner may determine rules for applying this Subdivision          218

Division 69—Non‑deductible expenses                                                            219

69‑1....................... What this Division is about............................................. 219

Subdivision 69‑A—Non‑deductible expenses generally                                219

69‑5....................... Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations               219

69‑10..................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           220

Subdivision 69‑B—Elections for GST purposes relating to meal entertainment and entertainment facilities      221

69‑15..................... What this Subdivision is about....................................... 221

69‑20..................... Effect of elections on net amounts.................................. 222

69‑25..................... Election to use the 50/50 split method for meal entertainment  222

69‑30..................... Election to use the 12 week register method for meal entertainment         222

69‑35..................... Election to use the 50/50 split method for entertainment facilities            223

69‑40..................... When elections take effect............................................... 223

69‑45..................... When elections cease to have effect................................ 223

69‑50..................... Adjustment events relating to elections........................... 224

69‑55..................... Adjustment notes not required........................................ 226

Division 70—Financial supplies (reduced credit acquisitions)            227

70‑1....................... What this Division is about............................................. 227

70‑5....................... Acquisitions that attract the reduced credit...................... 227

70‑10..................... Extended meaning of creditable purpose........................ 227

70‑15..................... How much are the reduced input tax credits?.................. 228

70‑20..................... Extent of creditable purpose............................................ 228

70‑25..................... Sale of reduced credit acquisitions (Division 132).......... 229

Division 71—Fringe benefits provided by input taxed suppliers       231

71‑1....................... What this Division is about............................................. 231

71‑5....................... Acquisitions by input taxed suppliers to provide fringe benefits              231

71‑10..................... Importations by input taxed suppliers to provide fringe benefits              232

Division 72—Associates                                                                                          233

72‑1....................... What this Division is about............................................. 233

Subdivision 72‑A—Supplies without consideration                                       233

72‑5....................... Taxable supplies without consideration.......................... 233

72‑10..................... The value of taxable supplies without consideration....... 234

72‑15..................... Attributing the GST to tax periods.................................. 234

72‑20..................... Supplies and acquisitions that would otherwise be sales etc. 234

72‑25..................... Supplies that would otherwise be GST‑free, input taxed or financial supplies         234

Subdivision 72‑B—Acquisitions without consideration                                235

72‑40..................... Creditable acquisitions without consideration................. 235

72‑45..................... The amount of the input tax credit................................... 235

72‑50..................... Attributing the input tax credit to tax periods.................. 236

Subdivision 72‑C—Supplies for inadequate consideration                         236

72‑70..................... The value of taxable supplies for inadequate consideration 236

Subdivision 72‑D—Application of this Division to certain sub‑entities    237

72‑90..................... GST branches................................................................. 237

72‑92..................... Non‑profit sub‑entities.................................................... 237

72‑95..................... Commonwealth government entities............................... 237

72‑100................... State or Territory government entities............................. 238

Division 75—Sale of freehold interests etc.                                                  239

75‑1....................... What this Division is about............................................. 239

75‑5....................... Applying the margin scheme.......................................... 239

75‑10..................... The amount of GST on taxable supplies......................... 241

75‑11..................... Margins for supplies of real property in particular circumstances            244

75‑12..................... Working out margins to take into account failure to pay full consideration              250

75‑13..................... Working out margins to take into account supplies to associates             250

75‑14..................... Consideration for acquisition of real property not to include cost of improvements etc.          251

75‑15..................... Subdivided real property................................................. 251

75‑16..................... Margins for supplies of real property acquired through several acquisitions           252

75‑20..................... Supplies under a margin scheme do not give rise to creditable acquisitions             252

75‑22..................... Increasing adjustment relating to input tax credit entitlement 253

75‑25..................... Adjustments relating to bad debts................................... 254

75‑27..................... Decreasing adjustment for later payment of consideration 255

75‑30..................... Tax invoices not required for supplies of real property under the margin scheme    255

75‑35..................... Approved valuations....................................................... 255

Division 78—Insurance                                                                                           256

78‑1....................... What this Division is about............................................. 256

Subdivision 78‑A—Insurers                                                                                 256

78‑5....................... GST on insurance premiums is exclusive of stamp duty 256

78‑10..................... Decreasing adjustments for settlements of insurance claims 256

78‑15..................... How to work out the decreasing adjustments................. 257

78‑18..................... Increasing adjustments for payments of excess under insurance policies 259

78‑20..................... Settlements of insurance claims do not give rise to creditable acquisitions               260

78‑25..................... Supplies in settlement of claims are not taxable supplies 260

78‑30..................... Acquisitions by insurers in the course of settling claims under non‑taxable policies               260

78‑35..................... Taxable supplies relating to rights of subrogation........... 261

78‑40..................... Adjustment events relating to decreasing adjustments under this Division              261

78‑42..................... Adjustment events relating to increasing adjustments under section 78‑18              262

Subdivision 78‑B—Insured entities etc.                                                            262

78‑45..................... Settlements of insurance claims do not give rise to taxable supplies        262

78‑50..................... Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed........................................................................................ 263

78‑55..................... Payments of excess under insurance policies are not consideration for supplies      264

78‑60..................... Supplies of goods to insurers in the course of settling claims  264

Subdivision 78‑C—Third parties                                                                       264

78‑65..................... Payments etc. to third parties by insurers........................ 264

78‑70..................... Payments etc. to third parties by insured entities............. 265

78‑75..................... Creditable acquisitions relating to rights of subrogation. 266

Subdivision 78‑D—Insured entities that are not registered etc.                  266

78‑80..................... Net amounts.................................................................... 266

78‑85..................... GST returns.................................................................... 266

78‑90..................... Payments of GST........................................................... 267

Subdivision 78‑E—Statutory compensation schemes                                   267

78‑95..................... GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty      267

78‑100................... Settlements of claims for compensation under statutory compensation schemes      268

78‑105................... Meaning of statutory compensation scheme................... 269

Subdivision 78‑F—Miscellaneous                                                                      269

78‑110................... Effect of judgments and court orders.............................. 269

78‑115................... Exclusion of certain Commonwealth, State or Territory insurance schemes            270

78‑118................... Portfolio transfers........................................................... 270

78‑120................... HIH rescue package........................................................ 271

Division 79—Compulsory third party schemes                                          273

79‑1....................... What this Division is about............................................. 273

Subdivision 79‑A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies                                         274

79‑5....................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where premium selection test is satisfied........................................................................... 274

79‑10..................... Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied............................... 275

79‑15..................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement................................. 276

79‑20..................... Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery........................................................................................ 278

Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies             279

79‑25..................... Meaning of CTP hybrid payment or supply................... 279

79‑30..................... Application of Division 78............................................. 280

Subdivision 79‑C—Other payments and supplies under compulsory third party schemes         280

79‑35..................... Meaning of CTP compensation or ancillary payment or supply etc.       280

79‑40..................... GST on CTP premiums is exclusive of stamp duty........ 281

79‑45..................... Exclusion of certain compulsory third party schemes..... 281

79‑50..................... Decreasing adjustments for CTP compensation or ancillary payments or supplies  282

79‑55..................... Increasing adjustments for payments of excess etc. under compulsory third party schemes    282

79‑60..................... Effect of settlements and payments under compulsory third party schemes             283

79‑65..................... Taxable supplies relating to recovery by operators of compulsory third party schemes           284

79‑70..................... Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes 284

79‑75..................... Adjustment events relating to increasing adjustments under section 79‑55              285

79‑80..................... Payments of excess under compulsory third party schemes are not consideration for supplies               285

79‑85..................... Supplies of goods to operators in the course of settling claims                286

79‑90..................... Effect of judgments and court orders.............................. 286

Subdivision 79‑D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction                                                          287

79‑95..................... How to work out decreasing adjustments using the applicable average input tax credit fraction              287

79‑100................... Meaning of average input tax credit fraction.................. 289

Division 80—Settlement sharing arrangements                                         292

80‑1....................... What this Division is about............................................. 292

Subdivision 80‑A—Insurance policy settlement sharing arrangements  292

80‑5....................... Meaning of insurance policy settlement sharing arrangement etc.          292

80‑10..................... Effect of becoming parties to industry deeds or entering into settlement sharing arrangements               293

80‑15..................... Effect of contributing operator’s payment....................... 293

80‑20..................... Managing operator’s payments or supplies.................... 294

80‑25..................... Contributing operator’s payment.................................... 294

80‑30..................... Managing operator’s increasing adjustment where contributing operator’s payment               295

80‑35..................... Adjustment events relating to managing operator’s payment or supply   296

Subdivision 80‑B—Nominal defendant settlement sharing arrangements 297

80‑40..................... Meaning of nominal defendant settlement sharing arrangement etc.      297

80‑45..................... Nominal defendant settlement sharing arrangements to which this Subdivision applies          298

80‑50..................... Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements................................................................... 298

80‑55..................... Effect of contributing operator’s payment....................... 298

80‑60..................... Managing operator’s payment or supply........................ 298

80‑65..................... Contributing operator’s payment.................................... 299

80‑70..................... Managing operator’s increasing adjustment where contributing operator’s payment               299

80‑75..................... Adjustment events relating to managing operator’s payment or supply   300

Subdivision 80‑C—Hybrid settlement sharing arrangements                    300

80‑80..................... Meaning of hybrid settlement sharing arrangement etc. 300

80‑85..................... Subdivision 80‑A to apply to hybrid settlement sharing arrangement, subject to exceptions   301

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        301

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        302

Division 81—Payments of taxes, fees and charges                                   303

81‑1....................... What this Division is about............................................. 303

81‑5....................... Effect of payment of tax.................................................. 303

81‑10..................... Effect of payment of certain fees and charges................. 303

81‑15..................... Other fees and charges that do not constitute consideration 304

81‑20..................... Division has effect despite sections 9‑15 and 9‑17......... 305

81‑25..................... Date of effect of regulations............................................ 305

Division 82—Supplies in return for rights to develop land                  306

82‑1....................... What this Division is about............................................. 306

82‑5....................... Supplies of rights to develop land do not constitute consideration in certain cases  306

82‑10..................... Supplies by Australian government agencies of rights to develop land are not for consideration            306

Division 83—Non‑residents making supplies connected with Australia                308

83‑1....................... What this Division is about............................................. 308

83‑5....................... “Reverse charge” on supplies made by non‑residents..... 308

83‑10..................... Recipients who are members of GST groups................. 309

83‑15..................... Recipients who are participants in GST joint ventures.... 309

83‑20..................... The amount of GST on “reverse charged” supplies made by non‑residents             309

83‑25..................... When non‑residents must apply for registration............. 309

83‑30..................... When the Commissioner must register non‑residents..... 310

83‑35..................... Tax invoices not required for “reverse charged” supplies made by non‑residents    310

Division 84—Offshore supplies other than goods or real property 311

84‑1....................... What this Division is about............................................. 311

84‑5....................... Intangible supplies from offshore that are taxable supplies under this Division       311

84‑10..................... “Reverse charge” on offshore intangible supplies........... 312

84‑12..................... The amount of GST on offshore intangible supplies...... 312

84‑13..................... The amount of input tax credits relating to offshore intangible supplies   312

84‑14..................... Supplies relating to employee share ownership schemes 313

84‑15..................... Transfers etc. between branches of the same entity......... 314

Division 85—Telecommunication supplies                                                    315

85‑1....................... What this Division is about............................................. 315

85‑5....................... When telecommunication supplies are connected with Australia              315

85‑10..................... Meaning of telecommunication supply........................... 315

Division 87—Long‑term accommodation in commercial residential premises  316

87‑1....................... What this Division is about............................................. 316

87‑5....................... Commercial residential premises that are predominantly for long‑term accommodation          316

87‑10..................... Commercial residential premises that are not predominantly for long‑term accommodation    316

87‑15..................... Meaning of commercial accommodation....................... 317

87‑20..................... Meaning of long‑term accommodation etc..................... 317

87‑25..................... Suppliers may choose not to apply this Division............ 318

Division 90—Company amalgamations                                                          319

90‑1....................... What this Division is about............................................. 319

90‑5....................... Supplies not taxable—amalgamated company registered or required to be registered              319

90‑10..................... Value of taxable supplies—amalgamated company not registered or required to be registered                319

90‑15..................... Acquisitions not creditable—amalgamated company registered or required to be registered    319

90‑20..................... Liability after amalgamation for GST on amalgamating company’s supplies           320

90‑25..................... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions                320

90‑30..................... Adjustments.................................................................... 320

90‑35..................... Amalgamating companies accounting on a cash basis.... 321

Division 93—Time limit on entitlements to input tax credits               323

93‑1....................... What this Division is about............................................. 323

93‑5....................... Time limit on entitlements to input tax credits................. 323

93‑10..................... Exceptions to time limit on entitlements to input tax credits 323

93‑15..................... GST ceasing to be payable on the related supply............ 326

Division 96—Supplies partly connected with Australia                         328

96‑1....................... What this Division is about............................................. 328

96‑5....................... Supplies that are only partly connected with Australia.... 328

96‑10..................... The value of the taxable components of supplies that are only partly connected with Australia               329

Division 99—Deposits as security                                                                      330

99‑1....................... What this Division is about............................................. 330

99‑5....................... Giving a deposit as security does not constitute consideration 330

99‑10..................... Attributing the GST relating to deposits that are forfeited etc.  330

Division 100—Vouchers                                                                                          331

100‑1..................... What this Division is about............................................. 331

100‑5..................... Supplies of vouchers with a stated monetary value......... 331

100‑10................... Redemption of vouchers................................................. 332

100‑12................... Consideration on redemption of vouchers...................... 332

100‑15................... Increasing adjustments for unredeemed vouchers........... 333

100‑18................... Arrangement for supply of voucher................................ 333

100‑20................... Vouchers supplied to non‑residents and redeemed by others in Australia               333

100‑25................... Meaning of voucher etc.................................................. 334

Division 102—Cancelled lay‑by sales                                                              335

102‑1..................... What this Division is about............................................. 335

102‑5..................... Cancelled lay‑by sales..................................................... 335

102‑10................... Attributing GST and input tax credits............................. 335

Division 105—Supplies in satisfaction of debts                                           336

105‑1..................... What this Division is about............................................. 336

105‑5..................... Supplies by creditors in satisfaction of debts may be taxable supplies     336

105‑10................... Net amounts.................................................................... 337

105‑15................... GST returns.................................................................... 337

105‑20................... Payments of GST........................................................... 337

Division 108—Valuation of taxable supplies of goods in bond           339

108‑1..................... What this Division is about............................................. 339

108‑5..................... Taxable supplies of goods in bond etc............................ 339

Division 110—Tax‑related transactions                                                         340

110‑1..................... What this Division is about............................................. 340

Subdivision 110‑A—Income tax‑related transactions                                  340

110‑5..................... Transfers of tax losses and net capital losses.................. 340

110‑15................... Supplies under operation of consolidated group regime. 340

110‑20................... Tax sharing agreements—entering into agreement etc.... 341

110‑25................... Tax sharing agreements—leaving group clear of group liability              341

110‑30................... Tax funding agreements.................................................. 341

Subdivision 110‑B—Other tax‑related transactions                                     342

110‑60................... Indirect tax sharing agreements—entering into agreement etc. 342

110‑65................... Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability   343

Division 111—Reimbursement of employees etc.                                      345

111‑1..................... What this Division is about............................................. 345

111‑5..................... Creditable acquisitions relating to reimbursements......... 345

111‑10................... Amounts of input tax credits relating to reimbursements 346

111‑15................... Tax invoices relating to reimbursements......................... 347

111‑18................... Application of Division to volunteers working for charities etc.              347

111‑20................... Application of Division to recipients of certain withholding payments    348

111‑25................... Employers paying expenses of employees etc................ 348

111‑30................... Reimbursements etc. of former or future employees etc. 349

Division 113—PAYG voluntary agreements                                               350

113‑1..................... What this Division is about............................................. 350

113‑5..................... Supply of work or services not a taxable supply............ 350

Part 4‑3—Special rules mainly about importations                                       352

Division 114—Importations without entry for home consumption  352

114‑1..................... What this Division is about............................................. 352

114‑5..................... Importations without entry for home consumption......... 352

114‑10................... Goods that have already been entered for home consumption etc.           354

114‑15................... Payments of amounts of assessed GST where security for payment of customs duty is forfeited           354

114‑20................... Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act......................................................... 355

114‑25................... Warehoused goods entered for home consumption by an entity other than the importer          355

Division 117—Valuation of re‑imported goods                                          357

117‑1..................... What this Division is about............................................. 357

117‑5..................... Valuation of taxable importations of goods that were exported for repair or renovation          357

117‑10................... Valuation of taxable importations of live animals that were exported       358

117‑15................... Refunds of assessed GST on certain reimportations of live animals        359

Part 4‑4—Special rules mainly about net amounts and adjustments 360

Division 123—Simplified accounting methods for retailers and small enterprise entities           360

123‑1..................... What this Division is about............................................. 360

123‑5..................... Commissioner may determine simplified accounting methods 360

123‑7..................... Meaning of small enterprise entity................................. 361

123‑10................... Choosing to apply a simplified accounting method......... 361

123‑15................... Net amounts.................................................................... 362

Division 126—Gambling                                                                                         364

126‑1..................... What this Division is about............................................. 364

126‑5..................... Global accounting system for gambling supplies............ 364

126‑10................... Global GST amounts...................................................... 365

126‑15................... Losses carried forward................................................... 366

126‑20................... Bad debts........................................................................ 366

126‑25................... Application of Subdivision 9‑C...................................... 366

126‑30................... Gambling supplies do not give rise to creditable acquisitions  367

126‑32................... Repayments of gambling losses are not consideration.... 367

126‑33................... Tax invoices not required for gambling supplies............ 367

126‑35................... Meaning of gambling supply and gambling event.......... 367

Division 129—Changes in the extent of creditable purpose                369

129‑1..................... What this Division is about............................................. 369

Subdivision 129‑A—General                                                                               369

129‑5..................... Adjustments arising under this Division......................... 369

129‑10................... Adjustments do not arise under this Division for acquisitions and importations below a certain value    370

129‑15................... Adjustments do not arise under this Division where there are adjustments under Division 130              370

Subdivision 129‑B—Adjustment periods                                                          370

129‑20................... Adjustment periods......................................................... 370

129‑25................... Effect on adjustment periods of things being disposed of etc.  372

Subdivision 129‑C—When adjustments for acquisitions and importations arise          373

129‑40................... Working out whether you have an adjustment................ 373

129‑45................... Gifts to gift‑deductible entities........................................ 374

129‑50................... Creditable purpose.......................................................... 375

129‑55................... Meaning of apply............................................................ 375

Subdivision 129‑D—Amounts of adjustments for acquisitions and importations          376

129‑70................... The amount of an increasing adjustment......................... 376

129‑75................... The amount of a decreasing adjustment.......................... 376

129‑80................... Effect of adjustment under certain Divisions.................. 377

Subdivision 129‑E—Attributing adjustments under this Division             377

129‑90................... Attributing your adjustments for changes in extent of creditable purpose                377

Division 130—Goods applied solely to private or domestic use        378

130‑1..................... What this Division is about............................................. 378

130‑5..................... Goods applied solely to private or domestic use............. 378

Division 131—Annual apportionment of creditable purpose              379

131‑1..................... What this Division is about............................................. 379

Subdivision 131‑A—Electing to have annual apportionment                     379

131‑5..................... Eligibility to make an annual apportionment election...... 379

131‑10................... Making an annual apportionment election....................... 380

131‑15................... Annual apportionment elections by representative members of GST groups           380

131‑20................... Duration of an annual apportionment election................. 380

Subdivision 131‑B—Consequences of electing to have annual apportionment              382

131‑40................... Input tax credits for acquisitions that are partly creditable 382

131‑45................... Input tax credits for importations that are partly creditable 383

131‑50................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           384

131‑55................... Increasing adjustments relating to annually apportioned acquisitions and importations           385

131‑60................... Attributing adjustments under section 131‑55................ 386

Division 132—Supplies of things acquired etc. without full input tax credits     388

132‑1..................... What this Division is about............................................. 388

132‑5..................... Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable......................................................................... 388

132‑10................... Attribution of adjustments under this Division............... 389

Division 133—Providing additional consideration under gross‑up clauses         391

133‑1..................... What this Division is about............................................. 391

133‑5..................... Decreasing adjustments for additional consideration provided under gross‑up clauses           391

133‑10................... Availability of adjustments under Division 19 for acquisitions                392

Division 134—Third party payments                                                               393

134‑1..................... What this Division is about............................................. 393

134‑5..................... Decreasing adjustments for payments made to third parties 393

134‑10................... Increasing adjustments for payments received by third parties 395

134‑15................... Attribution of decreasing adjustments............................. 397

134‑20................... Third party adjustment notes........................................... 397

134‑25................... Adjustment events do not arise....................................... 398

134‑30................... Application of sections 48‑55 and 49‑50........................ 399

Division 135—Supplies of going concerns                                                     400

135‑1..................... What this Division is about............................................. 400

135‑5..................... Initial adjustments for supplies of going concerns.......... 400

135‑10................... Later adjustments for supplies of going concerns........... 401

Division 136—Bad debts relating to transactions that are not taxable or creditable to the fullest extent                                                                                                                    402

136‑1..................... What this Division is about............................................. 402

Subdivision 136‑A—Bad debts relating to partly taxable or creditable transactions  402

136‑5..................... Adjustments relating to partly taxable supplies............... 402

136‑10................... Adjustments in relation to partly creditable acquisitions. 403

Subdivision 136‑B—Bad debts relating to transactions that are taxable or creditable at less than 1/11 of the price                                                                                                       404

136‑30................... Writing off bad debts (taxable supplies)......................... 404

136‑35................... Recovering amounts previously written off (taxable supplies) 405

136‑40................... Bad debts written off (creditable acquisitions)................ 406

136‑45................... Recovering amounts previously written off (creditable acquisitions)       408

136‑50................... Meanings of taxable at less than 1/11 of the price and creditable at less than 1/11 of the consideration   409

Division 137—Stock on hand on becoming registered etc.                   410

137‑1..................... What this Division is about............................................. 410

137‑5..................... Adjustments for stock on hand on becoming registered etc. 410

Division 138—Cessation of registration                                                         411

138‑1..................... What this Division is about............................................. 411

138‑5..................... Adjustments for cessation of registration........................ 411

138‑10................... Attributing adjustments for cessation of registration....... 412

138‑15................... Ceasing to be registered—amounts not previously attributed.. 412

138‑17................... Situations to which this Division does not apply............ 413

138‑20................... Application of Division 129........................................... 414

Division 139—Distributions from deceased estates                                  415

139‑1..................... What this Division is about............................................. 415

139‑5..................... Adjustments for distributions from deceased estates...... 415

139‑10................... Attributing adjustments for distributions from deceased estates               416

139‑15................... Application of Division 129........................................... 416

Division 141—Tradex scheme goods                                                               417

141‑1..................... What this Division is about............................................. 417

141‑5..................... Adjustments for applying goods contrary to the Tradex Scheme             417

141‑10................... Meaning of tradex scheme goods etc.............................. 418

141‑15................... Attribution of adjustments under this Division............... 418

141‑20................... Application of Division 129........................................... 418

Part 4‑5—Special rules mainly about registration                                         419

Division 144—Taxis                                                                                                  419

144‑1..................... What this Division is about............................................. 419

144‑5..................... Requirement to register................................................... 419

Division 149—Government entities                                                                  420

149‑1..................... What this Division is about............................................. 420

149‑5..................... Government entities may register.................................... 420

149‑10................... Government entities are not required to be registered..... 420

149‑15................... GST law applies to registered government entities......... 421

149‑20................... Government entities not required to cancel their registration 421

149‑25................... Membership requirements of a government GST group. 421

Part 4‑6—Special rules mainly about tax periods                                          422

Division 151—Annual tax periods                                                                     422

151‑1..................... What this Division is about............................................. 422

Subdivision 151‑A—Electing to have annual tax periods                            422

151‑5..................... Eligibility to make an annual tax period election............. 422

151‑10................... Making an annual tax period election.............................. 423

151‑15................... Annual tax period elections by representative members of GST groups  423

151‑20................... When you must make your annual tax period election.... 423

151‑25................... Duration of an annual tax period election........................ 424

Subdivision 151‑B—Consequences of electing to have annual tax periods 426

151‑40................... Annual tax periods.......................................................... 426

151‑45................... When GST returns for annual tax periods must be given 426

151‑50................... When payments of assessed net amounts for annual tax periods must be made       427

151‑55................... An entity’s concluding annual tax period........................ 427

151‑60................... The effect of incapacitation or cessation.......................... 427

Division 153—Agents etc. and insurance brokers                                    429

153‑1..................... What this Division is about............................................. 429

Subdivision 153‑A—General                                                                               429

153‑5..................... Attributing the input tax credits for your creditable acquisitions              429

153‑10................... Attributing your adjustments.......................................... 430

153‑15................... Tax invoices.................................................................... 430

153‑20................... Adjustment notes............................................................ 431

153‑25................... Insurance supplied through insurance brokers................ 431

Subdivision 153‑B—Principals and intermediaries as separate suppliers or acquirers              432

153‑50................... Arrangements under which intermediaries are treated as suppliers or acquirers       432

153‑55................... The effect of these arrangements on supplies.................. 433

153‑60................... The effect of these arrangements on acquisitions............ 434

153‑65................... Determinations that supplies or acquisitions are taken to be under these arrangements            435

Division 156—Supplies and acquisitions made on a progressive or periodic basis         436

156‑1..................... What this Division is about............................................. 436

156‑5..................... Attributing the GST on progressive or periodic supplies 436

156‑10................... Attributing the input tax credits on progressive or periodic acquisitions  436

156‑15................... Progressive or periodic supplies partly connected with Australia            437

156‑17................... Application of Division 58 to progressive or periodic supplies and acquisitions     437

156‑20................... Application of Division 129 to progressive or periodic acquisitions        438

156‑22................... Leases etc. treated as being on a progressive or periodic basis 438

156‑23................... Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis........................................................................................ 438

156‑25................... Accounting on a cash basis............................................. 438

Division 157—Accounting basis of charities etc.                                       439

157‑1..................... What this Division is about............................................. 439

157‑5..................... Charities etc. choosing to account on a cash basis.......... 439

157‑10................... Charities etc. ceasing to account on a cash basis............. 439

Division 158—Hire purchase agreements                                                     441

158‑1..................... What this Division is about............................................. 441

158‑5..................... Treat as not accounting on a cash basis........................... 441

Division 159—Changing your accounting basis                                         442

159‑1..................... What this Division is about............................................. 442

159‑5..................... Ceasing to account on a cash basis—amounts not previously attributed  442

159‑10................... Ceasing to account on a cash basis—amounts partly attributed                443

159‑15................... Ceasing to account on a cash basis—bad debts.............. 444

159‑20................... Starting to account on a cash basis.................................. 445

159‑25................... Starting to account on a cash basis—bad debts............... 445

159‑30................... Entities ceasing to exist or coming into existence............ 445

Part 4‑7—Special rules mainly about returns, payments and refunds 446

Division 162—Payment of GST by instalments                                          446

162‑1..................... What this Division is about............................................. 446

Subdivision 162‑A—Electing to pay GST by instalments                            446

162‑5..................... Eligibility to elect to pay GST by instalments................. 446

162‑10................... Your current GST lodgment record................................ 448

162‑15................... Electing to pay GST by instalments................................ 448

162‑20................... Elections by representative members of GST groups..... 449

162‑25................... When you must make your election................................ 449

162‑30................... Duration of your election................................................ 450

Subdivision 162‑B—Consequences of electing to pay GST by instalments 451

162‑50................... GST instalment payers.................................................... 451

162‑55................... Tax periods for GST instalment payers.......................... 452

162‑60................... When GST returns for GST instalment payers must be given 452

162‑65................... The form and contents of GST returns for GST instalment payers          453

162‑70................... Payment of GST instalments.......................................... 453

162‑75................... Giving notices relating to GST instalments..................... 454

162‑80................... Certain entities pay only 2 GST instalments for each year 454

162‑85................... A GST instalment payer’s concluding tax period........... 455

162‑90................... The effect of incapacitation or cessation.......................... 456

162‑95................... The effect of changing the membership of GST groups. 456

162‑100................. General interest charge on late payment.......................... 457

162‑105................. Net amounts for GST instalment payers......................... 457

162‑110................. When payments of assessed net amounts must be made—GST instalment payers  458

Subdivision 162‑C—GST instalments                                                               458

162‑130................. What are your GST instalments...................................... 458

162‑135................. Notified instalment amounts........................................... 459

162‑140................. Varied instalment amounts.............................................. 459

162‑145................. Your annual GST liability............................................... 460

Subdivision 162‑D—Penalty payable in certain cases if varied instalment amounts are too low             461

162‑170................. What this Subdivision is about....................................... 461

162‑175................. GST payments are less than 85% of annual GST liability 461

162‑180................. Estimated annual GST amount is less than 85% of annual GST liability 463

162‑185................. Shortfall in GST instalments worked out on the basis of estimated annual GST amount         465

162‑190................. Periods for which penalty is payable.............................. 466

162‑195................. Reduction in penalties if notified instalment amount is less than 25% of annual GST liability 466

162‑200................. Reduction in penalties if GST instalment shortfall is made up in a later instalment  468

162‑205................. This Subdivision does not create a liability for general interest charge     468

Division 165—Anti‑avoidance                                                                             469

165‑1..................... What this Division is about............................................. 469

Subdivision 165‑A—Application of this Division                                           470

165‑5..................... When does this Division operate?................................... 470

165‑10................... When does an entity get a GST benefit from a scheme?.. 471

165‑15................... Matters to be considered in determining purpose or effect 472

Subdivision 165‑B—Commissioner may negate effects of schemes for GST benefits 473

165‑40................... Commissioner may make declaration for purpose of negating avoider’s GST benefits           473

165‑45................... Commissioner may reduce an entity’s net amount or GST to compensate               474

165‑50................... Declaration has effect according to its terms................... 475

165‑55................... Commissioner may disregard scheme in making declarations  475

165‑60................... One declaration may cover several tax periods and importations             476

165‑65................... Commissioner must give copy of declaration to entity affected                476

Division 168—Tourist refund scheme                                                              477

168‑1..................... What this Division is about............................................. 477

168‑5..................... Tourist refund scheme.................................................... 477

168‑10................... Supplies later found to be GST‑free supplies................. 478

Division 171—Customs security etc. given on taxable importations 480

171‑1..................... What this Division is about............................................. 480

171‑5..................... Security or undertaking given under section 162 or 162A of the Customs Act       480

Chapter 5—Miscellaneous                                                                                482

Part 5‑1—Miscellaneous                                                                                                 482

Division 176—Endorsement of charities etc.                                               482

176‑1..................... Endorsement by Commissioner as charity...................... 482

Division 177—Miscellaneous                                                                                483

177‑1..................... Commonwealth etc. not liable to pay GST...................... 483

177‑3..................... Acquisitions from State or Territory bodies where GST liability is notional            484

177‑5..................... Cancellation of exemptions from GST............................ 484

177‑10................... Ministerial determinations............................................... 484

177‑11................... Delegation by Aged Care Secretary................................ 485

177‑12................... GST implications of references to price, value etc. in other Acts             486

177‑15................... Regulations..................................................................... 487

Chapter 6—Interpreting this Act                                                               488

Part 6‑1—Rules for interpreting this Act                                                            488

Division 182—Rules for interpreting this Act                                             488

182‑1..................... What forms part of this Act............................................ 488

182‑5..................... What does not form part of this Act................................ 488

182‑10................... Explanatory sections, and their role in interpreting this Act 488

182‑15................... Schedules 1, 2 and 3....................................................... 489

Part 6‑2—Meaning of some important concepts                                             490

Division 184—Meaning of entity                                                                        490

184‑1..................... Entities............................................................................ 490

184‑5..................... Supplies etc. by partnerships and other unincorporated bodies                491

Division 188—Meaning of GST turnover                                                      492

188‑1..................... What this Division is about............................................. 492

188‑5..................... Explanation of the turnover thresholds........................... 492

188‑10................... Whether your GST turnover meets, or does not exceed, a turnover threshold         493

188‑15................... Current GST turnover..................................................... 494

188‑20................... Projected GST turnover.................................................. 495

188‑22................... Settlements of insurance claims to be disregarded.......... 496

188‑23................... Supplies “reverse charged” under Division 83 not to be included in a recipient’s GST turnover             496

188‑24................... Supplies to which Subdivision 153‑B applies................ 496

188‑25................... Transfer of capital assets, and termination etc. of enterprise, to be disregarded        497

188‑30................... The value of non‑taxable supplies................................... 497

188‑32................... The value of gambling supplies...................................... 497

188‑35................... The value of loans........................................................... 498

188‑40................... Supplies of employee services by overseas entities to be disregarded for the registration turnover threshold........................................................................................ 498

Division 189—Exceeding the financial acquisitions threshold            499

189‑1..................... What this Division is about............................................. 499

189‑5..................... Exceeding the financial acquisitions threshold—current acquisitions       499

189‑10................... Exceeding the financial acquisitions threshold—future acquisitions        500

189‑15................... Meaning of financial acquisition.................................... 501

Division 190—90% owned groups of companies                                       502

190‑1..................... 90% owned groups......................................................... 502

190‑5..................... When a company has at least a 90% stake in another company                502

Part 6‑3—Dictionary                                                                                                        503

Division 195—Dictionary                                                                                       503

195‑1..................... Dictionary....................................................................... 503

Schedule 1—Food that is not GST‑free                                               545

1............................ Food that is not GST‑free............................................... 545

2............................ Prepared food, bakery products and biscuit goods......... 547

3............................ Prepared meals................................................................ 547

4............................ Candied peel................................................................... 547

5............................ Goods that are not biscuit goods..................................... 547

Schedule 2—Beverages that are GST‑free                                       548

1............................ Beverages that are GST‑free........................................... 548

2............................ Tea, coffee etc................................................................. 549

3............................ Fruit and vegetable juices................................................ 549

Schedule 3—Medical aids and appliances                                       550

Endnotes                                                                                                                                  557

Endnote 1—About the endnotes                                                                          557

Endnote 2—Abbreviation key                                                                              559

Endnote 3—Legislation history                                                                           560

Endnote 4—Amendment history                                                                         575

Endnote 5—Uncommenced amendments                                                       616

Indirect Tax Laws Amendment (Assessment) Act 2012 (No. 39, 2012)....... 616

Aged Care (Living Longer Living Better) Act 2013 (No. 76, 2013).............. 616

Endnote 6—Modifications [none]                                                                       617

Endnote 7—Misdescribed amendments [none]                                           617

Endnote 8—Miscellaneous [none]                                                                      617

 


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

Chapter 1Introduction

Part 1‑1Preliminary

Division 1Preliminary

1‑1  Short title

                   This Act may be cited as the A New Tax System (Goods and Services Tax) Act 1999.

1‑2  Commencement

             (1)  This Act commences on 1 July 2000.

1‑3  Commonwealth‑State financial relations

                   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.

1‑4  States and Territories are bound by the GST law

                   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.

Part 1‑2Using this Act

Division 2Overview of the GST legislation

2‑1  What this Act is about

                   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.

Note:          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.

2‑5  The basic rules (Chapter 2)

                   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.

2‑10  The exemptions (Chapter 3)

                   Chapter 3 sets out the supplies and importations that are GST‑free or input taxed.

2‑15  The special rules (Chapter 4)

                   Chapter 4 has special rules which, in particular cases, have the effect of modifying the basic rules in Chapter 2.

Note:          There is a checklist of special rules at the end of Chapter 2 (in Part 2‑8).

2‑20  Miscellaneous (Chapter 5)

                   Chapter 5 deals with miscellaneous matters.

2‑25  Interpretative provisions (Chapter 6)

                   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.

2‑30  Administration, collection and recovery provisions in the Taxation Administration Act 1953

                   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.

Division 3Defined terms

  

3‑1  When defined terms are identified

             (1)  Many of the terms used in the law relating to the GST are defined.

             (2)  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.

3‑5  When terms are not identified

             (1)  Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.

             (2)  Terms are not asterisked in the non‑operative material contained in this Act.

Note:          The non‑operative material is described in Division 4.

             (3)  The following basic terms used throughout the Act are not identified with an asterisk.

 

Common definitions that are not asterisked

Item

This term:

1

acquisition

2

amount

3

Australia

4

Commissioner

5

entity

6

goods

7

GST

8

import

8A

individual

9

input tax credit

10

tax period

11

thing

12

supply

13

you

3‑10  Identifying the defined term in a definition

                   Within a definition, the defined term is identified by bold italics.

Division 4Status of Guides and other non‑operative material

  

4‑1  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.

4‑5  Explanatory sections

                   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.

4‑10  Other material

                   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 2The basic rules

  

Division 5Introduction

5‑1  What this Chapter is about

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.

5‑5  The structure of this Chapter

                   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 2‑1The central provisions

Division 7The central provisions

7‑1  GST and input tax credits

             (1)  GST is payable on *taxable supplies and *taxable importations.

             (2)  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.

7‑5  Net amounts

                   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.

7‑10  Tax periods

                   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.

7‑15  Payments and refunds

                   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.

Note 2:       Refunds may be set off against your other liabilities (if any) under laws administered by the Commissioner.

Part 2‑2Supplies and acquisitions

Division 9Taxable supplies

Table of Subdivisions

9‑A       What are taxable supplies?

9‑B        Who is liable for GST on taxable supplies?

9‑C        How much GST is payable on taxable supplies?

9‑1  What this Division is about

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‑AWhat are taxable supplies?

9‑5  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 Australia; 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.

9‑10  Meaning of supply

             (1)  A supply is any form of supply whatsoever.

             (2)  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).

             (3)  It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply.

          (3A)  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.

             (4)  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.

9‑15  Consideration

             (1)  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.

             (2)  It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply.

          (2A)  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.

          (2B)  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.

9‑17  Certain payments and other things not consideration

             (1)  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.

             (2)  Making a gift to a non‑profit body is not the provision of consideration.

             (3)  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.

             (4)  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.

             (5)  This section applies despite section 9‑15.

9‑20  Enterprises

             (1)  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

                     (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.

             (2)  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

Note:           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).

             (3)  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).

             (4)  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 Australia

Supplies of goods wholly within Australia

             (1)  A supply of goods is connected with Australia if the goods are delivered, or made available, in Australia to the *recipient of the supply.

Supplies of goods from Australia

             (2)  A supply of goods that involves the goods being removed from Australia is connected with Australia.

Supplies of goods to Australia

             (3)  A supply of goods that involves the goods being brought to Australia is connected with Australia if the supplier either:

                     (a)  imports the goods into Australia; or

                     (b)  installs or assembles the goods in Australia.

Supplies of real property

             (4)  A supply of *real property is connected with Australia if the real property, or the land to which the real property relates, is in Australia.

Supplies of anything else

             (5)  A supply of anything other than goods or *real property is connected with Australia if:

                     (a)  the thing is done in Australia; or

                     (b)  the supplier makes the supply through an *enterprise that the supplier *carries on in Australia; 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 the other thing would be connected with Australia.

Example:    A holiday package for Australia that is supplied overseas might be connected with Australia under paragraph (5)(c).

When enterprises are carried on in Australia

             (6)  An *enterprise is carried on in Australia if the enterprise is carried on through:

                     (a)  a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936); or

                     (b)  a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.

9‑30  Supplies that are GST‑free or input taxed

GST‑free

             (1)  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).

Input taxed

             (2)  A supply is 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).

Note:          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).

Supplies that would be both GST‑free and input taxed

             (3)  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.

Note:          Subdivisions 40‑E (School tuckshops and canteens) and 40‑F (Fund‑raising events conducted by charities etc.) require such a choice.)

Supply of things used solely in connection with making supplies that are input taxed but not financial supplies

             (4)  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.

9‑39  Special rules relating to taxable supplies

                   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

6

Insurance

Division 78

7

Offshore supplies other than goods or real property

Division 84

8

Payments of taxes, fees and charges

Division 81

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 Australia

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

Subdivision 9‑BWho is liable for GST on taxable supplies?

9‑40  Liability for GST on taxable supplies

                   You must pay the GST payable on any *taxable supply that you make.

9‑69  Special rules relating to liability for GST on taxable supplies

                   Chapter 4 contains special rules relating to liability for GST on taxable supplies, as follows:

 

Checklist of special rules

 

Item

For this case ...

See:

1

Company amalgamations

Division 90

2

GST groups

Division 48

3

GST joint ventures

Division 51

4

Offshore supplies other than goods or real property

Division 84

4A

Non‑residents making supplies connected with Australia

Division 83

4B

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

Subdivision 9‑CHow much GST is payable on taxable supplies?

9‑70  The amount of GST on taxable supplies

                   The amount of GST on a *taxable supply is 10% of the *value of the taxable supply.

9‑75  The value of taxable supplies

             (1)  The value of a *taxable supply is as follows:

where:

price 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.

Example:    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:

                  

                   The GST on the supply is therefore $2,000 (i.e. 10% of $20,000).

             (2)  However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:

where:

luxury car tax value has the meaning given by section 5‑20 of the A New Tax System (Luxury Car Tax) Act 1999.

             (3)  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.

9‑80  The value of taxable supplies that are partly GST‑free or input taxed

             (1)  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.

             (2)  The value of the actual supply, for the purposes of subsection (1), is as follows:

where:

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).

9‑85  Value of taxable supplies to be expressed in Australian currency

             (1)  For the purposes of this Act, the *value of a *taxable supply is to be expressed in Australian currency.

             (2)  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.

9‑90  Rounding of amounts of GST

One taxable supply recorded on an invoice

             (1)  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

             (2)  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

Step 1.   Work out, for each *taxable supply, what would, apart from this section, be the amount of GST on the supply.

Step 2.   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.

Step 3.   Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.

Step 4.   If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).

             (3)  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.

             (4)  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

             (5)  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

             (6)  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.

9‑99  Special rules relating to the amount of GST on taxable supplies

                   Chapter 4 contains special rules relating to the amount of GST on 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

Company amalgamations

Division 90

2A

Compulsory third party schemes

Division 79

3

Gambling

Division 126

4

Long‑term accommodation in commercial residential premises

Division 87

4AA

Non‑residents making supplies connected with Australia

Division 83

4A

Offshore supplies other than goods or real property

Division 84

5

Sale of freehold interests etc.

Division 75

7

Supplies partly connected with Australia

Division 96

8

Transactions relating to insurance policies

Division 78

9

Valuation of taxable supplies of goods in bond

Division 108

Note:          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).

Division 11Creditable acquisitions

11‑1  What this Division is about

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.

11‑5  What is a creditable acquisition?

                   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

                     (d)  you are *registered, or *required to be registered.

11‑10  Meaning of acquisition

             (1)  An acquisition is any form of acquisition whatsoever.

             (2)  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:

                              (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).

             (3)  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.

11‑15  Meaning of creditable purpose

             (1)  You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise.

             (2)  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.

             (3)  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 Australia.

             (4)  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.

             (5)  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.

11‑20  Who is entitled to input tax credits for creditable acquisitions?

                   You are entitled to the input tax credit for any *creditable acquisition that you make.

11‑25  How much are the input tax credits for creditable acquisitions?

                   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.

Note:          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)).

11‑30  Acquisitions that are partly creditable

             (1)  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.

             (3)  The amount of the input tax credit on an acquisition that you make that is *partly creditable is as follows:

where:

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.

             (4)  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.

             (5)  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.

11‑99  Special rules relating to acquisitions

                   Chapter 4 contains special rules relating to acquisitions, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Agents and insurance brokers

Division 153

1B

Annual apportionment of creditable purpose

Division 131

1

Associates

Division 72

2

Company amalgamations

Division 90

2A

Compulsory third party schemes

Division 79

3

Financial supplies (reduced credit acquisitions)

Division 70

3A

Fringe benefits provided by input taxed suppliers

Division 71

4

Gambling

Division 126

5

GST groups

Division 48

6

GST joint ventures

Division 51

6A

GST religious groups

Division 49

7

Insurance

Division 78

8

Non‑deductible expenses

Division 69

8A

Offshore supplies other than goods or real property

Division 84

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

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

Part 2‑3Importations

Division 13Taxable importations

13‑1  What this Division is about

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.

Note 1:       This Division applies whether or not you are registered.

Note 2:       Things other than goods that are supplied overseas for use in Australia (and are therefore in that sense “imported”) are not taxable importations, but they can attract GST under Division 84.

13‑5  What are taxable importations?

             (1)  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.

Note:          There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.

             (3)  However, an importation of *money is not an importation of goods into Australia.

13‑10  Meaning of non‑taxable importation

                   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.

13‑15  Who is liable for GST on taxable importations?

                   You must pay the GST payable on any *taxable importation that you make.

13‑20  How much GST is payable on taxable importations?

             (1)  The amount of GST on the *taxable importation is 10% of the *value of the taxable importation.

             (2)  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 Australia; 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

Note:       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.

          (2A)  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.

             (3)  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.

13‑25  The value of taxable importations that are partly non‑taxable importations

                   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.

13‑99  Special rules relating to taxable importations

                   Chapter 4 contains special rules relating to taxable importations, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1

GST groups

Division 48

2

GST joint ventures

Division 51

3

Importations without entry for home consumption

Division 114

4

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

6

Valuation of re‑imported goods

Division 117

Note:          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).

Division 15Creditable importations

15‑1  What this Division is about

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.

15‑5  What are creditable 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.

15‑10  Meaning of creditable purpose

             (1)  You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise.

             (2)  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.

             (3)  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 Australia.

             (4)  An importation 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.

             (5)  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

                     (b)  the borrowing relates to you making supplies that are not input taxed.

15‑15  Who is entitled to input tax credits for creditable importations?

                   You are entitled to the input tax credit for any *creditable importation that you make.

15‑20  How much are the input tax credits for creditable importations?

                   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.

Note:          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

(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)).

15‑25  Importations that are partly creditable

             (1)  An importation that you make is partly creditable if it is a *creditable importation that you make only partly for a *creditable purpose.

             (3)  The amount of the input tax credit on an importation that you make that is *partly creditable is as follows:

where:

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.

full input tax credit 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.

             (4)  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.

15‑99  Special rules relating to creditable importations

                   Chapter 4 contains special rules relating to creditable importations, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1AA

Annual apportionment of creditable purpose

Division 131

1A

Fringe benefits provided by input taxed suppliers

Division 71

1

GST groups

Division 48

2

GST joint ventures

Division 51

2AA

Importations without entry for home consumption

Division 114

2A

Non‑deductible expenses

Division 69

3

Pre‑establishment costs

Division 60

3A

Representatives of incapacitated entities

Division 58

4

Resident agents acting for non‑residents

Division 57

Part 2‑4Net amounts and adjustments

Division 17Net amounts and adjustments

17‑1  What this Division is about

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.

Note:          GST on taxable importations is not included in the net amount. It is dealt with separately under section 33‑15.

17‑5  Net amounts

             (1)  The net amount for a tax period applying to you is worked out using the following formula:

where:

GST 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.

             (2)  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.

Note 1:       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.

Note 2:       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.

17‑10  Adjustments

                   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.

17‑15  Working out net amounts using approved forms

             (1)  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.

Note:          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).

             (2)  This section has effect despite section 17‑5.

17‑20  Determinations relating to how to work out net amounts

             (1)  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.

             (2)  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.

Note:          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.

          (2A)  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)  if the earlier tax period started on or after 1 July 2012—the tax period mentioned in subsection (1) starts during the *period of review for the *assessment of the *net amount.

             (3)  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.

17‑99  Special rules relating to net amounts or adjustments

                   Chapter 4 contains special rules relating to net amounts or adjustments, as follows:

 

Checklist of special rules

Item

For this case ...

See:

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

4

Company amalgamations

Division 90

4AA

Compulsory third party schemes

Division 79

4A

Distributions from deceased estates

Division 139

5

Gambling

Division 126

5A

Goods applied solely to private or domestic use

Division 130

6

GST branches

Division 54

7

GST groups

Division 48

8

GST joint ventures

Division 51

8A

GST religious groups

Division 49

9

Insurance

Division 78

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

11

Resident agents acting for non‑residents

Division 57

11A

Sale of freehold interests etc.

Division 75

12

Second‑hand goods

Division 66

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

13

Supplies in satisfaction of debts

Division 105

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

17

Vouchers

Division 100

Division 19Adjustment events

Table of Subdivisions

19‑A     Adjustment events

19‑B      Adjustments for supplies

19‑C      Adjustments for acquisitions

19‑1  What this Division is about

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).

Note:          Importations do not give rise to adjustment events.

19‑5  Explanation of the effect of 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.

 

 

Note:          This section is an explanatory section.

Subdivision 19‑AAdjustment events

19‑10  Adjustment events

             (1)  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.

Example:    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.

             (2)  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).

             (3)  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.

             (4)  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‑BAdjustments for supplies

19‑40  Where adjustments for supplies arise

                   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.

19‑45  Previously attributed GST amounts

                   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.

19‑50  Increasing adjustments for supplies

                   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.

19‑55  Decreasing adjustments for supplies

                   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‑CAdjustments for acquisitions

19‑70  Where adjustments for acquisitions arise

             (1)  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).

             (2)  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.

19‑75  Previously attributed input tax credit amounts

                   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.

19‑80  Increasing adjustments for acquisitions

                   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.

19‑85  Decreasing adjustments for acquisitions

                   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.

19‑99  Special rules relating to adjustment events

                   Chapter 4 contains special rules relating to *adjustment events in particular cases, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1AA

Compulsory third party schemes

Division 79

1A

GST religious groups

Division 49

1

Insurance

Division 78

2

Non‑deductible expenses

Division 69

2A

Providing additional consideration under gross‑up clauses

Division 133

3

Settlement sharing arrangements

Division 80

4

Third party payments

Division 134

Division 21Bad debts

21‑1  What this Division is about

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.

Note:          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).

21‑5  Writing off bad debts (taxable supplies)

             (1)  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.

             (2)  However, you cannot have an *adjustment under this section if you *account on a cash basis.

21‑10  Recovering amounts previously written off (taxable supplies)

                   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.

21‑15  Bad debts written off (creditable acquisitions)

             (1)  You have an increasing adjustment if:

                     (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.

             (2)  However, you cannot have an *adjustment under this section if you *account on a cash basis.

21‑20  Recovering amounts previously written off (creditable acquisitions)

                   You have a decreasing adjustment if:

                     (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.

21‑99  Special rules relating to adjustments for bad debts

                   Chapter 4 contains special rules relating to adjustments for bad debts, as follows:

 

Checklist of special rules

Item

For this case ...

See:

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

2

Gambling

Division 126

2A

Representatives of incapacitated entities

Division 58

3

Sale of freehold interests etc.

Division 75

Part 2‑5Registration

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

23‑1  Explanation of Division

                   This diagram shows when you are required to be, and when you may, be registered.

 

Note:          This section is an explanatory section.

23‑5  Who is required to be registered

                   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.

Note:          It is the entity that carries on the enterprise that is required to be registered (and not the enterprise).

23‑10  Who may be registered

             (1)  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).

             (2)  You may be *registered under this Act if you intend to carry on an *enterprise from a particular date.

23‑15  The registration turnover threshold

             (1)  Your registration turnover threshold (unless you are a non‑profit body) is:

                     (a)  $50,000; or

                     (b)  such higher amount as the regulations specify.

             (2)  Your registration turnover threshold if you are a non‑profit body is:

                     (a)  $100,000; or

                     (b)  such higher amount as the regulations specify.

23‑20  Not registered for 4 years

                   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).

Note:          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.

23‑99  Special rules relating to who is required to be registered or who may be registered

                   Chapter 4 contains special rules relating to who is *required to be registered, or who may be *registered, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Government entities   

Division 149

1B

Non‑profit sub‑entities

Division 63

1

Representatives of incapacitated entities

Division 58

2

Resident agents acting for non‑residents

Division 57

3

Taxis

Division 144

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

Table of Subdivisions

25‑A     How you become registered

25‑B      How your registration can be cancelled

Subdivision 25‑AHow you become registered

25‑1  When you must apply for registration

                   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.

25‑5  When the Commissioner must register you

             (1)  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.

Note:          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).

             (2)  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.

Note:          Registering you under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (3)  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.

25‑10  The date of effect of your registration

             (1)  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.

Note:          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).

          (1A)  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.

             (2)  The *Australian Business Registrar must enter in the *Australian Business Register the date on which your *registration takes or took effect.

25‑15  Effect of backdating your registration

                   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.

Note:          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.

25‑49  Special rules relating to registration

                   Chapter 4 contains special rules relating to *registration in particular cases, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Government entities

Division 149

1

GST branches

Division 54

2

Non‑profit sub‑entities

Division 63

3

Non‑residents making supplies connected with Australia

Division 83

Subdivision 25‑BHow your registration can be cancelled

25‑50  When you must apply for cancellation of registration

                   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.

25‑55  When the Commissioner must cancel registration

             (1)  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.

Note:          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).

             (2)  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.

Note:          Cancelling your registration under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (3)  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.

25‑57  When the Commissioner may cancel your registration

             (1)  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.

Note:          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).

             (2)  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.

             (3)  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.

25‑60  The date of effect of your cancellation

             (1)  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.

Note:          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).

             (2)  The *Australian Business Registrar must enter in the *Australian Business Register the date on which the cancellation of your *registration takes effect.

25‑65  Effect of backdating your cancellation of registration

                   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

                     (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 date was a *creditable importation;

to have been cancelled from and including your cancellation day.

25‑99  Special rules relating to cancellation of registration

                   Chapter 4 contains special rules relating to cancellation of *registration in particular cases, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Government entities

Division 149

1

GST branches

Division 54

1B

Non‑profit sub‑entities

Division 63

2

Representatives of incapacitated entities

Division 58

3

Resident agents acting for non‑residents

Division 57

Part 2‑6Tax periods

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

27‑1  What this Division is about

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.

27‑5  General rule—3 month tax periods

                   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.

Note:          Several provisions in Chapter 4 provide for different tax periods. In particular, Division 151 provides for annual tax periods.

27‑10  Election of one month tax periods

             (1)  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.

             (2)  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.

27‑15  Determination of one month tax periods

             (1)  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 Australia 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.

Note:          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).

             (2)  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.

Note:          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).

             (3)  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.

27‑20  Withdrawing elections of one month tax periods

             (1)  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.

             (2)  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.

27‑22  Revoking elections of one month tax periods

             (1)  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.

Note:          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).

             (2)  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

                     (c)  any other relevant matters.

             (3)  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.

Note:          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).

27‑25  Revoking determinations of one month tax periods

             (1)  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.

Note:          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).

             (2)  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.

Note:          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).

27‑30  Tax periods determined by the Commissioner to take account of changes in tax periods

             (1)  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.

Note:          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).

             (2)  The period specified in the notice may start earlier than the day on which the notice is given to you.

             (3)  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.

27‑35  Changing the days on which your tax periods end

             (1)  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.

             (2)  If the day on which a tax period ends is changed, the next tax period starts on the day after that day.

27‑37  Special determination of tax periods on request

             (1)  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.

Note:          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).

             (2)  A determination under this section overrides any determination under section 27‑15 or 27‑30 relating to tax periods applying to you.

27‑38  Revoking special determination of tax periods

             (1)  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.

Note:          Revoking a determination under this section is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (2)  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.

Note:          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).

             (3)  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.

27‑39  Tax periods of incapacitated entities

             (1)  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.

             (2)  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.

27‑40  An entity’s concluding tax period

             (1)  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.

          (1A)  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.

             (2)  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.

27‑99  Special rules relating to tax periods

                   Chapter 4 contains special rules relating to tax periods, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1AAA

Annual tax periods

Division 151

1

Changes in the extent of creditable purpose

Division 129

1AA

GST groups

Division 48

1AB

Payment of GST by instalments

Division 162

1A

Representatives of incapacitated entities

Division 58

2

Resident agents acting for non‑residents

Division 57

Division 29What is attributable to tax periods

Table of Subdivisions

29‑A     The attribution rules

29‑B      Accounting on a cash basis

29‑C      Tax invoices and adjustment notes

29‑1  What this Division is about

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.

Note:          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.

Subdivision 29‑AThe attribution rules

29‑5  Attributing the GST on your taxable supplies

             (1)  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.

             (2)  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.

29‑10  Attributing the input tax credits for your creditable acquisitions

             (1)  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.

             (2)  However, if you *account on a cash basis, then:

                     (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.

             (3)  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.

For the giving of GST returns to the Commissioner, see Division 31.

             (4)  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.

Note:          Section 93‑5 or 93‑15 may provide a time limit on your entitlement to an input tax credit.

29‑15  Attributing the input tax credits for your creditable importations

             (1)  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.

             (2)  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.

29‑20  Attributing your adjustments

             (1)  An *adjustment that you have is attributable to the tax period in which you become aware of the adjustment.

             (2)  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.

             (3)  If:

                     (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;

then:

                     (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.

For the giving of GST returns to the Commissioner, see Division 31.

29‑25  Commissioner may determine particular attribution rules

             (1)  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.

             (2)  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.

             (3)  Determinations under subsection (1) override the provisions of this Division (except this section) and Chapter 4, but only to the extent of any inconsistency.

29‑39  Special rules relating to attribution rules

                   Chapter 4 contains special rules relating to attribution rules, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1

Agents and insurance brokers

Division 153

2

Associates

Division 72

3

Cancelled lay‑by sales

Division 102

4

Cessation of registration

Division 138

5

Changes in the extent of creditable purpose

Division 129

6

Changing your accounting basis

Division 159

7

Company amalgamations

Division 90

8

Deposits as security

Division 99

8A

Distributions from deceased estates

Division 139

8AA

Hire purchase agreements

Division 158

8B

Non‑deductible expenses

Division 69

9

Pre‑establishment costs

Division 60

10

Reimbursement of employees etc.

Division 111

11

Representatives of incapacitated entities

Division 58

11A

Second‑hand goods

Division 66

12

Supplies and acquisitions made on a progressive or periodic basis

Division 156

13

Supplies of things acquired etc. without full input tax credits

Division 132

13A

Third party payments

Division 134

14

Tradex scheme goods

Division 141

Subdivision 29‑BAccounting on a cash basis

29‑40  Choosing to account on a cash basis

             (1)  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.

             (3)  The cash accounting turnover threshold is:

                     (a)  $2 million; or

                     (b)  such higher amount as the regulations specify.

29‑45  Permission to account on a cash basis

             (1)  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;

                            it is appropriate to permit you to account on a cash basis.

Note:          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).

             (2)  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.

Note:          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).

29‑50  Ceasing to account on a cash basis

             (1)  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.

             (2)  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.

             (3)  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.

Note:          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).

             (4)  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.

Note:          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).

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:

 

Checklist of special rules

Item

For this case ...

See:

1

Accounting basis of charities etc.

Division 157

2

Hire purchase agreements

Division 158

Subdivision 29‑CTax invoices and adjustment notes

29‑70  Tax invoices

             (1)  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.

Note:          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.

          (1A)  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.

Note:          The requirements for a tax invoices are primarily contained in subsection (1), but can be affected by sections 48‑57 and 54‑50.

          (1B)  However, the Commissioner may treat as a *tax invoice a particular document that would not, apart from this subsection, be a tax invoice.

             (2)  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.

             (3)  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.

29‑75  Adjustment notes

             (1)  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

                     (b)  must set out the *ABN of the entity that issues it; 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.

             (2)  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).

             (3)  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.

             (4)  Those circumstances may, for example, include the kind of the *taxable supply.

29‑80  Tax invoices and adjustment notes not required for low value transactions

             (1)  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.

             (2)  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.

29‑99  Special rules relating to tax invoices and adjustment notes

                   Chapter 4 contains special rules relating to tax invoices and adjustment notes, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1

Agents and insurance brokers

Division 153

1A

Annual apportionment of creditable purpose

Division 131

2

Gambling

Division 126

3

GST branches

Division 54

3A

GST groups

Division 48

4

Non‑residents making supplies connected with Australia

Division 83

5

Sale of freehold interests etc.

Division 75

Part 2‑7Returns, payments and refunds

Division 31GST returns

31‑1  What this Division is about

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.

31‑5  Who must give GST returns

             (1)  If you are *registered or *required to be registered, you must give to the Commissioner a *GST return for each tax period.

             (2)  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.

31‑8  When GST returns must be given—quarterly tax periods

             (1)  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

             (2)  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.

Note:          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.

31‑10  When GST returns must be given—other tax periods

             (1)  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

                     (b)  within such further period as the Commissioner allows.

             (2)  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

                     (b)  within such further period as the Commissioner allows.

31‑15  The form and contents of GST returns

             (1)  Your *GST return for a tax period must be in the *approved form.

             (2)  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.

             (3)  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.

31‑20  Additional GST returns

             (1)  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.

             (2)  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.

31‑25  Electronic lodgment of GST returns

             (1)  You may give your *GST returns to the Commissioner by *lodging them electronically.

Note:          Section 388‑75 in Schedule 1 to the Taxation Administration Act 1953 deals with signing returns.

             (2)  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.

Note 1:       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.

Note 2:       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.

             (3)  A *GST return is lodged electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner.

             (4)  The electronic lodgment turnover threshold is:

                     (a)  $20 million; or

                     (b)  such higher amount as the regulations specify.

31‑30  GST returns treated as being duly made

                   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.

31‑99  Special rules relating to GST returns

                   Chapter 4 contains special rules relating to *GST returns, as follows:

 

Checklist of special rules

Item

For this case …

See:

1A

Annual tax periods

Division 151

1

GST branches

Division 54

2

GST groups

Division 48

3

GST joint ventures

Division 51

4

Insurance

Division 78

4A

Payment of GST by instalments

Division 162

4B

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

6

Supplies in satisfaction of debts

Division 105

Division 33Payments of GST

33‑1  What this Division is about

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.

Note 1:       For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.

Note 2:       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.

Note 3:       Payments of GST on importations of goods are dealt with separately in section 33‑15 of this Act.

33‑3  When payments of assessed net amounts must be made—quarterly tax periods

                   If:

                     (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:

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

33‑5  When payments of assessed net amounts must be made—other tax periods

             (1)  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.

             (2)  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.

33‑10  How payment of assessed net amounts are made

             (1)  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.

             (2)  However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must pay by *electronic payment any *assessed net amounts payable by you.

Note 1:       A penalty applies if you fail to pay electronically as required—see section 288‑20 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:       You must also pay other tax debts electronically—see section 8AAZMA in that Act.

33‑15  Payments of assessed GST on importations

             (1)  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.

Note:           The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.

             (2)  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.

33‑99  Special rules relating to payments of GST

                   Chapter 4 contains special rules relating to payments of GST, as follows:

 

Checklist of special rules

Item

For this case …

See:

1A

Annual tax periods

Division 151

1

Anti‑avoidance

Division 165

2

Customs security etc. given on taxable importations

Division 171

3

GST branches

Division 54

4

GST joint ventures

Division 51

4A

Importations without entry for home consumption

Division 114

5

Insurance

Division 78

5A

Payment of GST by instalments

Division 162

6

Supplies in satisfaction of debts

Division 105

Division 35Refunds

35‑1  What this Division is about

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.

35‑5  Entitlement to refund

             (1)  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.

Note 1:       See Division 3A of Part IIB of, and section 105‑65 in Schedule 1 to, 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.

Note 2:       Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.

             (2)  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.

Note:          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.

35‑10  When entitlement arises

                   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.

Note:          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).

35‑99  Special rules relating to refunds

                   Chapter 4 contains special rules relating to refunds, as follows:

 

Checklist of special rules

Item

For this case …

See:

1

Anti‑avoidance

Division 165

2

GST branches

Division 54

3

GST joint ventures

Division 51

4

Tourist refund scheme

Division 168

Note:          Section 105‑65 in Schedule 1 to the Taxation Administration Act 1953 also relates to refunds of assessed net amounts.

Part 2‑8Checklist of special rules

Division 37Checklist of special rules

37‑1  Checklist of special rules

                   The provisions set out in the table contain special rules relating to the matters indicated.

 

Checklist of special rules

Item

For this case…

See:

1AA

Accounting basis of charities etc.

Division 157

1

Agents and insurance brokers

Division 153

1A

Annual apportionment of creditable purpose

Division 131

1B

Annual tax periods

Division 151

2

Anti‑avoidance

Division 165

3

Associates

Division 72

3A

Bad debts relating to transactions that are not taxable or creditable to the fullest extent

Division 136

4

Cancelled lay‑by sales

Division 102

5

Cessation of registration

Division 138

6

Changes in the extent of creditable purpose

Division 129

7

Changing your accounting basis

Division 159

8

Company amalgamations

Division 90

8A

Compulsory third party schemes

Division 79

9

Customs security etc. given for taxable importations

Division 171

10

Deposits as security

Division 99

10A

Distributions from deceased estates

Division 139

11

Financial supplies (reduced credit acquisitions)

Division 70

11A

Fringe benefits provided by input taxed suppliers

Division 71

12

Gambling

Division 126

12A

Goods applied solely to private or domestic use

Division 130

12B

Government entities

Division 149

13

GST branches

Division 54

14

GST groups

Division 48

15

GST joint ventures

Division 51

15A

GST religious groups

Division 49

17

Importations without entry for home consumption

Division 114

18

Insurance

Division 78

19

Long‑term accommodation in commercial residential premises

Division 87

20

Non‑deductible expenses

Division 69

20A

Non‑profit sub‑entities

Division 63

20B

Non‑residents making supplies connected with Australia

Division 83

21

Offshore supplies other than goods or real property

Division 84

21A

Payment of GST by instalments

Division 162

22

Payments of taxes

Division 81

23

Pre‑establishment costs

Division 60

23A

Providing additional consideration under gross‑up clauses

Division 133

24

Reimbursement of employees etc.

Division 111

25

Representatives of incapacitated entities

Division 58

26

Resident agents acting for non‑residents

Division 57

28

Sale of freehold interests etc.

Division 75

29

Second‑hand goods

Division 66

29AA

Settlement sharing arrangements

Division 80

29A

Simplified accounting methods for retailers and small enterprise entities

Division 123

29B

Stock on hand on becoming registered etc.

Division 137

30

Supplies and acquisitions made on a progressive or periodic basis

Division 156

30A

Supplies in return for rights to develop land

Division 82

31

Supplies in satisfaction of debts

Division 105

32

Supplies of going concerns

Division 135

33

Supplies of things acquired etc. without full input tax credits

Division 132

33A

Supply under arrangement covered by PAYG voluntary agreement

Division 113

34

Supplies partly connected with Australia

Division 96

35

Taxis

Division 144

35AA

Tax‑related transactions

Division 110

35A

Telecommunication supplies

Division 85

35B

Third party payments

Division 134

35C

Time limit on entitlements to input tax credits

Division 93

36

Tourist refund scheme

Division 168

36A

Tradex scheme goods

Division 141

36B

Valuation of re‑imported goods

Division 117

37

Valuation of taxable supplies of goods in bond

Division 108

38

Vouchers

Division 100


Chapter 3The exemptions

Part 3‑1Supplies that are not taxable supplies

Division 38GST‑free supplies

Table of Subdivisions

38‑A     Food

38‑B      Health

38‑C      Education

38‑D     Child care

38‑E      Exports and other supplies that are for consumption outside Australia

38‑F      Religious services

38‑G     Activities of charities etc.

38‑I       Water and sewerage

38‑J       Supplies of going concerns

38‑K     Transport and related matters

38‑L      Precious metals

38‑M     Supplies through inwards duty free shops

38‑N     Grants of land by governments

38‑O     Farm land

38‑P      Cars for use by disabled people

38‑Q     International Mail

38‑R      Telecommunication supplies made under arrangements for global roaming in Australia

38‑S      Eligible emissions units


38‑1  What this Division is about

This Division sets out the supplies that are GST‑free. If a supply is GST‑free, then:

     no GST is payable on the supply;

     an entitlement to an input tax credit for anything acquired or imported to make the supply is not affected.

For the basic rules about supplies that are GST‑free, see sections 9‑30 and 9‑80.

Subdivision 38‑AFood

38‑2  Food

                   A supply of *food is GST‑free.

38‑3  Food that is not GST‑free

             (1)  A supply is not GST‑free under section 38‑2 if it is a supply of:

                     (a)  *food for consumption on the *premises from which it is supplied; or

                     (b)  hot food for consumption away from those premises; or

                     (c)  food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one or more foods at least one of which is food of such a kind; or

                     (d)  a *beverage (or an ingredient for a beverage), other than a beverage (or ingredient) of a kind specified in the third column of the table in clause 1 of Schedule 2; or

                     (e)  food of a kind specified in regulations made for the purposes of this subsection.

             (2)  However, this section does not apply to a supply of *food of a kind specified in regulations made for the purposes of this subsection.

             (3)  The items in the table in clause 1 of Schedule 1 or 2 are to be interpreted subject to the other clauses of Schedule 1 or 2, as the case requires.

38‑4  Meaning of food

             (1)  Food means any of these, or any combination of any of these:

                     (a)  food for human consumption (whether or not requiring processing or treatment);

                     (b)  ingredients for food for human consumption;

                     (c)  *beverages for human consumption;

                     (d)  ingredients for beverages for human consumption;

                     (e)  goods to be mixed with or added to food for human consumption (including condiments, spices, seasonings, sweetening agents or flavourings);

                      (f)  fats and oils marketed for culinary purposes;

but does not include:

                     (g)  live animals (other than crustaceans or molluscs); or

                    (ga)  unprocessed cow’s milk; or

                     (h)  any grain, cereal or sugar cane that has not been subject to any process or treatment resulting in an alteration of its form, nature or condition; or

                      (i)  plants under cultivation that can be consumed (without being subject to further process or treatment) as food for human consumption.

             (2)  Beverage includes water.

38‑5  Premises used in supplying food

                   Premises, in relation to a supply of *food, includes:

                     (a)  the place where the supply takes place; or

                     (b)  the grounds surrounding a cafe or public house, or other outlet for the supply; or

                     (c)  the whole of any enclosed space such as a football ground, garden, showground, amusement park or similar area where there is a clear boundary or limit;

but does not include any part of a public thoroughfare unless it is an area designated for use in connection with supplies of food from an outlet for the supply of food.

38‑6  Packaging of food

             (1)  A supply of the packaging in which *food is supplied is GST‑free if the supply of the food is GST‑free.

             (2)  However, the supply of the packaging is GST‑free under this section only to the extent that the packaging:

                     (a)  is necessary for the supply of the food; and

                     (b)  is packaging of a kind in which food of that kind is normally supplied.

Subdivision 38‑BHealth

38‑7  Medical services

             (1)  A supply of a *medical service is GST‑free.

             (2)  However, a supply of a *medical service is not GST‑free under subsection (1) if:

                     (a)  it is a supply of a *professional service rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 (other than the prescribed circumstances set out in regulations 14(2)(ea), (f) and (g)); or

                     (b)  it is rendered for cosmetic reasons and is not a *professional service for which medicare benefit is payable under Part II of the Health Insurance Act 1973.

             (3)  A supply of goods is GST‑free if:

                     (a)  it is made to an individual in the course of supplying to him or her a *medical service the supply of which is GST‑free; and

                     (b)  it is made at the premises at which the medical service is supplied.

38‑10  Other health services

             (1)  A supply is GST‑free if:

                     (a)  it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and

                     (b)  the supplier is a *recognised professional in relation to the supply of services of that kind; and

                     (c)  the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the *recipient of the supply.

 

Health services

Item

Service

1

Aboriginal or Torres Strait Islander health

2

Acupuncture

3

Audiology, audiometry

4

Chiropody

5

Chiropractic

6

Dental

7

Dietary

8

Herbal medicine (including traditional Chinese herbal medicine)

9

Naturopathy

10

Nursing

11

Occupational therapy

12

Optometry

13

Osteopathy

14

Paramedical

15

Pharmacy

16

Psychology

17

Physiotherapy

18

Podiatry

19

Speech pathology

20

Speech therapy

21

Social work

             (2)  However, a supply of a pharmacy service is not GST‑free under subsection (1) unless it is:

                     (a)  a supply relating to a supply that is GST‑free because of section 38‑50; or

                     (b)  a service of conducting a medication review.

             (3)  A supply of goods is GST‑free if:

                     (a)  it is made to a person in the course of supplying to the person a service the supply of which is GST‑free under subsection (1) (other than a service referred to in item 8, 9, 12 or 15 of the table in subsection (1)); and

                     (b)  it is made at the premises at which the service is supplied.

             (4)  A supply of goods is GST‑free if:

                     (a)  it is made to a person in the course of supplying to the person a service referred to in item 8 or 9 of the table in subsection (1); and

                     (b)  it is supplied, and used or consumed, at the premises at which the service is supplied.

             (5)  A supply is GST‑free if it is provided by an ambulance service in the course of the treatment of the *recipient of the supply.

38‑15  Other government funded health services

                   A supply is GST‑free if:

                     (a)  it is a supply of a health service in connection with a supply that is GST‑free because of section 38‑7 or 38‑10; and

                     (b)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply of the health service; and

                     (c)  the supply of the health service is of a kind determined in writing by the *Health Minister.

38‑20  Hospital treatment

             (1)  A supply of *hospital treatment is GST‑free.

             (2)  However, a supply of *hospital treatment is not GST‑free to the extent that it relates to a supply of a *professional service that, because of subsection 38‑7(2), is not GST‑free.

             (3)  A supply of goods is GST‑free if it is a supply that is directly related to a supply of *hospital treatment that is:

                     (a)  GST‑free because of subsection (1); and

                     (b)  supplied by, or on behalf of, the supplier of the hospital treatment.

38‑25  Residential care etc.

             (1)  A supply of services is GST‑free if:

                     (a)  it is a supply of services covered by Schedule 1 to the *Quality of Care Principles; and

                     (b)  it is provided through a residential care service (within the meaning of the Aged Care Act 1997); and

                     (c)  the supplier is an approved provider (within the meaning of that Act).

             (2)  A supply of services is GST‑free if:

                     (a)  the services are provided to one or more aged or disabled people; and

                     (b)  the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

                     (c)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply.

             (3)  A supply of services is GST‑free if:

                     (a)  the services are provided to one or more aged or disabled people in a residential setting; and

                     (b)  the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

                     (c)  the services include, and are only provided to people who require, the services (care services) set out in:

                              (i)  item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or

                             (ii)  item 3.8 (nursing services) of Part 3 of that Schedule.

          (3A)  Services provided to a resident of a *retirement village are taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if, and only if:

                     (a)  he or she is a resident of a *serviced apartment in the retirement village; and

                     (b)  there is in force a written agreement under which the operator of the retirement village provides daily meals and heavy laundry services to all of the residents of the apartment.

          (3B)  However, services provided to a resident of a *serviced apartment in a *retirement village are not taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if:

                     (a)  the *Aged Care Minister has determined in writing:

                              (i)  the levels of care services that residents of serviced apartments in retirement villages must require in order for subsection (3) to apply; and

                             (ii)  the way in which the levels of care services required by residents are to be assessed; and

                     (b)  the *Aged Care Secretary has not, in accordance with the determination, assessed the person to whom the services are provided as requiring the levels of care services so determined.

          (3C)  A determination made for the purposes of paragraph (3B)(a) may be restricted to a specified class of residents of *serviced apartments in *retirement villages.

             (4)  A supply of accommodation is GST‑free if it is made to a person in the course of making a supply to that person that is GST‑free under subsection (1), (2) or (3).

          (4A)  A supply is GST‑free if:

                     (a)  it is made to a person who is a person of a kind referred to in paragraph (3)(c); and

                     (b)  it is:

                              (i)  a supply, by way of lease, hire or licence, of *residential premises consisting of a *serviced apartment in a *retirement village; or

                             (ii)  a sale of *real property that is residential premises consisting of a serviced apartment in a retirement village; or

                            (iii)  a supply of an excluded security (within the meaning of the Corporations Act 2001) in respect of which the right to participate in a retirement village scheme (within the meaning of that Act) entitles the person to use or occupy a serviced apartment in a retirement village; and

                     (c)  in a case where:

                              (i)  a determination made for the purposes of paragraph (3B)(a) is in force; and

                             (ii)  the determination is not restricted under subsection (3C) in such a way that the determination excludes the person;

                            the *Aged Care Secretary has, in accordance with the determination, assessed the person as requiring the levels of care services determined in the determination; and

                     (d)  it is made in connection with one or more supplies, or proposed supplies, to the person that are or will be GST‑free under subsection (3).

             (5)  However, a supply of services that is covered by an extra services fee within the meaning of Division 35 of the Aged Care Act 1997 is only GST‑free under this section to the extent that the services are covered by Schedule 1 to the *Quality of Care Principles.

38‑30  Home care etc.

             (1)  A supply of *home care is GST‑free if home care subsidy is payable under Part 3‑2 of the Aged Care Act 1997 to the supplier for the care.

             (2)  A supply of care is GST‑free if the supplier receives funding under the Home and Community Care Act 1985 in connection with the supply.

             (3)  A supply of *home care is GST‑free if the supply is of services:

                     (a)  that are provided to one or more aged or disabled people; and

                     (b)  that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles.

             (4)  A supply of care is GST‑free if:

                     (a)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply; and

                     (b)  the supply of the care is of a kind determined in writing by the *Aged Care Minister to be similar to a supply that is GST‑free because of subsection (2).

38‑35  Flexible care

                   A supply of flexible care (within the meaning of section 49‑3 of the Aged Care Act 1997) is GST‑free if flexible care subsidy is payable under Part 3.3 of that Act to the supplier for the care.

38‑38  Disability support provided to NDIS participants

                   A supply is GST‑free if the supply:

                     (a)  is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013) for whom a participant’s plan is in effect under section 37 of that Act; and

                     (b)  is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

                     (c)  is made under a written agreement, between the supplier and the participant or another person, that:

                              (i)  identifies the participant; and

                             (ii)  states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

                     (d)  is of a kind that the *Disability Services Minister has determined in writing.

38‑40  Specialist disability services

                   A supply of services is GST‑free if the supplier receives funding under the Disability Services Act 1986 or under a complementary *State law or *Territory law in respect of the services.

38‑45  Medical aids and appliances

             (1)  A supply is GST‑free if:

                     (a)  it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and

                     (b)  the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

             (2)  A supply is GST‑free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST‑free under subsection (1).

             (3)  However, a supply is not GST‑free under subsection (1) or (2) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

38‑47  Other GST‑free health goods

             (1)  A supply is GST‑free if it is a supply of goods of a kind that the *Health Minister, by determination in writing, declares to be goods the supply of which is GST‑free.

             (2)  However, a supply is not GST‑free under subsection (1) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

38‑50  Drugs and medicinal preparations etc.

             (1)  A supply of a drug or medicinal preparation is GST‑free if the supply is on prescription and:

                     (a)  under a *State law or a *Territory law in the State or Territory in which the supply takes place, supply of the drug or medicinal preparation is restricted, but may be supplied on prescription; or

                     (b)  the drug or medicinal preparation is a pharmaceutical benefit (within the meaning of Part VII of the National Health Act 1953).

             (2)  A supply of a drug or medicinal preparation is GST‑free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the supply of the drug or medicinal preparation to an individual for private or domestic use or consumption is restricted but may be made by:

                     (a)  a *medical practitioner, *dental practitioner or pharmacist; or

                     (b)  any other person permitted by or under that law to do so.

             (3)  Subsection (2) does not cover the supply of a drug or medicinal preparation of a kind specified in the regulations.

             (4)  A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

                     (a)  it is supplied as a pharmaceutical benefit (within the meaning of section 91 of the Veterans’ Entitlements Act 1986); and

                     (b)  it is supplied under an approved scheme (within the meaning of that section).

          (4A)  A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

                     (a)  it is supplied as a pharmaceutical benefit (within the meaning of section 5 of the Military Rehabilitation and Compensation Act 2004); and

                     (b)  it is supplied in accordance with a determination made under paragraph 286(1)(c) of that Act.

             (5)  A supply of a drug or medicinal preparation is GST‑free if:

                     (a)  the drug or medicinal preparation is an analgesic that has a single active ingredient the supply of which as a drug or medicinal preparation would be GST‑free under subsection (2) if it were supplied in a larger quantity; and

                     (b)  the drug or medicinal preparation is of a kind the supply of which is declared by the *Health Minister to be GST‑free, by determination in writing.

             (6)  A supply of a drug or medicinal preparation is GST‑free if:

                     (a)  the drug or medicinal preparation is the subject of an approval under paragraph 19(1)(a) of the Therapeutic Goods Act 1989, and any conditions to which the approval is subject have been complied with; or

                     (b)  the drug or medicinal preparation is supplied under an authority under subsection 19(5) of that Act, and the supply is in accordance with any regulations made for the purposes of subsection 19(7) of that Act; or

                     (c)  the drug or medicinal preparation is exempted from the operation of Part 3 of that Act under regulation 12A of the Therapeutic Goods Regulations.

             (7)  A supply of a drug or medicinal preparation covered by this section is GST‑free if, and only if:

                     (a)  the drug or medicinal preparation is for human use or consumption; and

                     (b)  the supply is to an individual for private or domestic use or consumption.

38‑55  Private health insurance etc.

             (1)  A supply of *private health insurance is GST‑free.

             (2)  A supply of insurance against liability to pay for services supplied by ambulance is GST‑free.

             (3)  However, a supply of re‑insurance is not GST‑free under this section.

38‑60  Third party procured GST‑free health supplies

Insurers

             (1)  If:

                     (a)  a supply is a supply of a service to an insurer; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is:

                              (i)  wholly or partly *GST‑free under this Subdivision; and

                             (ii)  for settling one or more claims under an *insurance policy of which the insurer is an insurer;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Note:          For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78‑118).

Compulsory third party scheme operators

             (2)  If:

                     (a)  a supply is a supply of a service to an *operator of a *compulsory third party scheme; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is:

                              (i)  wholly or partly *GST‑free under this Subdivision; and

                             (ii)  made under the compulsory third party scheme;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Government agencies

             (3)  If:

                     (a)  a supply is a supply of a service to an *Australian government agency; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is wholly or partly *GST‑free under this Subdivision;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Parties may agree for supply not to be GST‑free

             (4)  However, a supply is not GST‑free (to any extent) under this section if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

Subdivision 38‑CEducation

38‑85  Education courses

                   A supply is GST‑free if it is a supply of:

                     (a)  an *education course; or

                     (b)  administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.

38‑90  Excursions or field trips

             (1)  A supply is GST‑free if it is a supply of an excursion or field trip, but only if the excursion or field trip:

                     (a)  is directly related to the curriculum of an *education course; and

                     (b)  is not predominantly recreational.

             (2)  However:

                     (a)  if the course is a *tertiary course, a *tertiary residential college course or a *professional or trade course—any supply of accommodation as part of the excursion or field trip is not GST‑free; and

                     (b)  in any case—any supply of *food as part of the excursion or field trip is not GST‑free under this section.

38‑95  Course materials

                   A supply of *course materials for a subject undertaken in an *education course is GST‑free.

38‑97  Lease etc. of curriculum related goods

                   A supply by way of lease or hire of goods is GST‑free if:

                     (a)  the goods are for use directly or principally by a student in undertaking a *pre‑school course, *primary course or *secondary course in which the student is enrolled; and

                     (b)  the entity supplying the course leases or hires the goods; and

                     (c)  at all times while the lease or hiring has effect, the entity supplying the course has the right to decide who uses goods and the use to which the goods are put; and

                     (d)  the lease or hiring is not part of an arrangement that includes:

                              (i)  a transfer of ownership of the goods; or

                             (ii)  an agreement to transfer ownership of the goods; or

                            (iii)  imposing an obligation, or conferring a right, to transfer ownership of the goods.

38‑100  Supplies that are not GST‑free

                   To avoid doubt, the following supplies related to an *education course are not GST‑free:

                     (a)  a supply by way of sale, lease or hire of goods (other than *course materials covered by section 38‑95, or a supply by way of lease or hire that is covered by section 38‑97);

                     (b)  a supply of membership of a student organisation.

38‑105  Accommodation at boarding schools etc.

             (1)  A supply is GST‑free if:

                     (a)  it is a supply of *student accommodation to students undertaking a *primary course, a *secondary course or a *special education course; and

                     (b)  the supplier of the accommodation also supplies the course.

             (2)  A supply is GST‑free if:

                     (a)  it is a supply of *student accommodation to students who are undertaking a *primary course, a *secondary course or a *special education course; and

                     (b)  the accommodation is provided in a hostel whose primary purpose is to provide accommodation for students from rural or remote locations who are undertaking such courses.

             (3)  Student accommodation means the right to occupy the whole or part of the premises used to provide the accommodation, including, if it is provided as part of the right so to occupy, the supply of:

                     (a)  cleaning and maintenance; or

                     (b)  electricity, gas, air‑conditioning or heating; or

                     (c)  telephone, television, radio or any other similar thing.

             (4)  However, a supply is not GST‑free under subsection (1) or (2) to the extent that it consists of the supply of *food.

38‑110  Recognition of prior learning etc.

             (1)  A supply is GST‑free if the supply is the assessment or issue of qualifications for the purpose of:

                     (a)  access to education; or

                     (b)  membership of a professional or trade association; or

                     (c)  registration or licensing for a particular occupation; or

                     (d)  employment.

             (2)  However, a supply is not GST‑free under subsection (1) unless the supply is carried out by:

                     (a)  a professional or trade association; or

                     (b)  an *education institution; or

                     (c)  an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services; or

                     (d)  an authority of the Commonwealth or of a State or Territory; or

                     (e)  a local government body.

Subdivision 38‑DChild care

38‑140  Child care—registered carers under the family assistance law

                   A supply is GST‑free if it is a supply of child care by a registered carer (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999).

38‑145  Child care—approved child care services under the family assistance law

                   A supply is GST‑free if:

                     (a)  it is a supply of child care by an approved child care service (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999); or

                     (b)  it is a supply of an excursion that is directly related to a supply of child care covered by paragraph (a).

38‑150  Other child care

                   A supply is GST‑free if it is a supply of child care by a supplier that is eligible for funding (whether or not in respect of that particular supply) from the Commonwealth under guidelines made by the *Child Care Minister that relate to the funding of:

                     (a)  family day care; or

                     (b)  occasional care; or

                     (c)  outside school hours care; or

                     (d)  vacation care; or

                     (e)  any other type of care determined in writing by that Minister.

38‑155  Supplies directly related to child care that is GST‑free

                   A supply is GST‑free if it is a supply that is directly related to a supply of child care that is:

                     (a)  GST‑free because of section 38‑140, 38‑145 or 38‑150; and

                     (b)  supplied by, or on behalf of, the supplier of the child care.

Subdivision 38‑EExports and other supplies for consumption outside Australia

38‑185  Exports of goods

             (1)  The third column of this table sets out supplies that are GST‑free:

 

GST‑free exports of goods

Item

Topic

These supplies are GST‑free ...

1

Export of goods—general

a supply of goods, but only if the supplier exports them from Australia before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the *consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for the supply—the day on which the supplier gives the invoice.

2

Export of goods—supplies paid for by instalments

a supply of goods for which the *consideration is provided in instalments under a contract that requires the goods to be exported, but only if the supplier exports them from Australia before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the final instalment of the consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for that final instalment—the day on which the supplier gives the invoice.

2A

Export of goods—supplies to associates without consideration

a supply of goods without *consideration to an *associate of the supplier, but only if the supplier exports them from Australia.

3

Export of aircraft or ships

a supply of an aircraft or *ship, but only if the recipient of the aircraft or ship exports it from Australia under its own power within 60 days (or such further period as the Commissioner allows) after taking physical possession of it.

4

Export of aircraft or ships—paid for by instalments

a supply of an aircraft or *ship for which the *consideration is provided in instalments under a contract that requires the aircraft or ship to be exported, but only if the *recipient exports it from Australia before, or within 60 days (or such further period as the Commissioner allows) after, the earliest day on which one or more of the following occurs:

(a) the supplier receives any of the final instalment of the consideration for the supply;

(b) the supplier gives an *invoice for that final instalment;

(c) the supplier delivers the aircraft or ship to the recipient or (at the recipient’s request) to another person.

4A

Export of new recreational boats

a supply of a *ship, but only if:

(a) the ship is a *new recreational boat on the earliest day (the receipt day) on which one or more of the following occurs:

(i) the *recipient takes physical possession of the ship;

(ii) if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier receives any of the final instalment;

(iii) if consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier gives an *invoice for the final instalment; and

(b) the supplier or recipient exports the ship from Australia within 12 months (or such further period as the Commissioner allows) after the receipt day; and

(c) subsection (6) does not apply at any time during the period:

(i) starting on the receipt day; and

(ii) ending when the supplier or recipient exports the ship.

5

Export of goods that are to be consumed on international flights or voyages

a supply of:

(a) *aircraft’s stores, or spare parts, for use, consumption or sale on an aircraft on a flight that has a destination outside Australia; or

(b) *ship’s stores, or spare parts, for use, consumption or sale on a *ship on a voyage that has a destination outside Australia;

whether or not part of the flight or voyage involves a journey between places in Australia.

6

Export of goods used to repair etc. imported goods

a supply of goods in the course of repairing, renovating, modifying or treating other goods from outside Australia whose destination is outside Australia, but only if:

(a) the goods are attached to, or become part of, the other goods; or

(b) the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the other goods.

7

Goods exported by travellers as accompanied baggage

a supply of goods to a *relevant traveller, but only if:

(a) the supply is made in accordance with the rules specified in the regulations; and

(b) the goods are exported as accompanied baggage of the relevant traveller.

             (2)  However, a supply covered by any of items 1 to 6 in the table in subsection (1) is not GST‑free if the supplier reimports the goods into Australia.

             (3)  Without limiting items 1 and 2 in the table in subsection (1), a supplier of goods is treated, for the purposes of those items, as having exported the goods from Australia if:

                     (a)  before the goods are exported, the supplier supplies them to an entity that is not *registered or *required to be registered; and

                     (b)  that entity exports the goods from Australia; and

                     (c)  the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

                     (d)  since their supply to that entity, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

                     (e)  the supplier has sufficient documentary evidence to show that the goods were exported; and

                      (f)  if that entity is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by that entity stating that:

                              (i)  a payment has not been sought under section 168‑5 for the supply; and

                             (ii)  if the goods are wine (within the meaning of the *Wine Tax Act)—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into Australia, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note:          The entity will be covered by paragraph 168‑5(1A)(c) if the entity is an individual who resides in an external Territory.

             (4)  Without limiting item 2A in the table in subsection (1), a supplier of goods is treated, for the purposes of that item, as having exported the goods from Australia if:

                     (a)  before the goods are exported, the supplier supplies them to an entity that:

                              (i)  is an *associate of the supplier; and

                             (ii)  is not *registered or *required to be registered; and

                     (b)  the associate exports the goods from Australia within 60 days (or such further period as the Commissioner allows) after the earlier of the following:

                              (i)  the day the goods were delivered in Australia to the associate;

                             (ii)  the day the goods were made available in Australia to the associate; and

                     (c)  the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

                     (d)  since their supply to the associate, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

                     (e)  the supplier has sufficient documentary evidence to show that the goods were exported; and

                      (f)  if the associate is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by the associate stating that:

                              (i)  a payment has not been sought under section 168‑5 for the supply; and

                             (ii)  if the goods are wine (within the meaning of the *Wine Tax Act)—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into Australia, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note:          The associate will be covered by paragraph 168‑5(1A)(c) if the associate is an individual who resides in an external Territory.

Export of new recreational boats

             (5)  For the purposes of item 4A of the table in subsection (1), the *ship is a new recreational boat if the ship:

                     (a)  has not been substantially reconstructed; and

                     (b)  has not been sold, leased or used since the completion of its construction, except in connection with:

                              (i)  the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or

                             (ii)  the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and

                     (c)  was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and

                     (d)  is not a commercial ship.

             (6)  For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:

                     (a)  as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or

                     (b)  in *carrying on an *enterprise in Australia; or

                     (c)  in Australia in carrying on an enterprise outside Australia, not including use that involves the ship being used:

                              (i)  in a way that is private or domestic in nature; or

                             (ii)  in an activity, or series of activities, done as a private recreational pursuit or hobby; or

Example: Allowing an employee to live on the ship, or to take the ship on a fishing trip.

                     (d)  for *consideration, unless the consideration:

                              (i)  consists of the provision of services by an employee of an enterprise carried on by the *recipient outside Australia; or

                             (ii)  is in respect of the recipient competing in a race or other sporting event (e.g. a prize).

38‑187  Lease etc. of goods for use outside Australia

                   A supply of goods is GST‑free if:

                     (a)  the supply is by way of lease or hire; and

                     (b)  the goods are used outside Australia.

Note:          If goods are leased or hired and used partly in Australia and partly outside Australia, the supply could be taxable to the extent that the goods are used in Australia (see section 9‑5).

38‑188  Tooling used by non‑residents to manufacture goods for export

                   A supply of goods is GST‑free if:

                     (a)  the *recipient of the supply is a *non‑resident, and is not *registered or *required to be registered; and

                     (b)  the goods are jigs, patterns, templates, dies, punches and similar machine tools to be used in Australia solely to manufacture goods that will be for export from Australia.

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

             (1)  The third column of this table sets out supplies that are GST‑free (except to the extent that they are supplies of goods or *real property):

 

Supplies of things, other than goods or real property, for consumption outside Australia

Item

Topic

These supplies are GST‑free (except to the extent that they are supplies of goods or *real property)...

1

Supply connected with property outside Australia

a supply that is directly connected with goods or real property situated outside Australia.

2

Supply to *non‑resident outside Australia.

a supply that is made to a *non‑resident who is not in Australia when the thing supplied is done, and:

(a) the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with *real property situated in Australia; or

(b) the *non‑resident acquires the thing in *carrying on the non‑resident’s *enterprise, but is not *registered or *required to be registered.

3

Supplies used or enjoyed outside Australia

a supply:

(a) that is made to a *recipient who is not in Australia when the thing supplied is done; and

(b) the effective use or enjoyment of which takes place outside Australia;

other than a supply of work physically performed on goods situated in Australia when the thing supplied is done, or a supply directly connected with *real property situated in Australia.

4

Rights

a supply that is made in relation to rights if:

(a) the rights are for use outside Australia; or

(b) the supply is to an entity that is not an *Australian resident and is outside Australia when the thing supplied is done.

5

Export of services used to repair etc. imported goods

a supply that is constituted by the repair, renovation, modification or treatment of goods from outside Australia whose destination is outside Australia.

             (2)  However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST‑free if it is the supply of a right or option to acquire something the supply of which would be *connected with Australia and would not be *GST‑free.

          (2A)  A supply covered by any of items 2 to 4 in the table in subsection (1) is not *GST‑free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of *real property situated in Australia that would be, wholly or partly, *input taxed under Subdivision 40‑B or 40‑C.

Note:          Subdivision 40‑B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40‑C deals with the sale of residential premises and the supply of residential premises by way of long‑term lease.

             (3)  Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST‑free if:

                     (a)  it is a supply under an agreement entered into, whether directly or indirectly, with a *non‑resident; and

                     (b)  the supply is provided, or the agreement requires it to be provided, to another entity in Australia.

             (4)  A supply is taken, for the purposes of item 3 in that table, to be a supply made to a *recipient who is not in Australia if:

                     (a)  it is a supply under an agreement entered into, whether directly or indirectly, with an *Australian resident; and

                     (b)  the supply is provided, or the agreement requires it to be provided, to another entity outside Australia.

             (5)  Subsection (4) does not apply to any of the following supplies:

                     (a)  a transport of goods within Australia that is part of, or is connected with, the *international transport of the goods;

                     (b)  a loading or handling of goods within Australia that is part of, or is connected with, the international transport of the goods;

                     (c)  a service, done within Australia, in relation to the goods that facilitates the international transport of the goods;

Example: The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.

                     (d)  insuring transport covered by paragraph (a);

                     (e)  arranging transport covered by paragraph (a), or insurance covered by paragraph (d).

Note:          The supply might still be GST‑free under item 5, 5A, 6 or 7 in the table in subsection 38‑355(1).

Subdivision 38‑FReligious services

38‑220  Religious services

                   A supply is GST‑free if it is a supply of service that:

                     (a)  is supplied by a *ACNC‑registered religious institution; and

                     (b)  is integral to the practice of that religion.

Subdivision 38‑GActivities of charities etc.

38‑250  Nominal consideration etc.

             (1)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is for *consideration that:

                              (i)  if the supply is a supply of accommodation—is less than 75% of the *GST inclusive market value of the supply; or

                             (ii)  if the supply is not a supply of accommodation—is less than 50% of the GST inclusive market value of the supply.

             (2)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is for *consideration that:

                              (i)  if the supply is a supply of accommodation—is less than 75% of the cost to the supplier of providing the accommodation; or

                             (ii)  if the supply is not a supply of accommodation—is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.

             (4)  Subsections (1) and (2) do not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

38‑255  Second‑hand goods

             (1)  A supply of *second‑hand goods is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the goods were supplied to the endorsed charity, gift‑deductible entity or government school:

                              (i)  as a gift; or

                             (ii)  by way of a supply that was GST‑free because of a previous application of this section.

However, the supply is not GST‑free if the endorsed charity, gift‑deductible entity or government school has dealt with the goods in such a way that the goods no longer have their original character.

             (3)  Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

38‑260  Supplies of retirement village accommodation etc.

                   A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity that operates a *retirement village; and

                     (b)  the supply is made to a resident of the retirement village; and

                     (c)  the supply is:

                              (i)  a supply of accommodation in the retirement village, or a supply of a service related to the supply of the accommodation; or

                             (ii)  a supply of meals.

38‑270  Raffles and bingo conducted by charities etc.

             (1)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is:

                              (i)  a supply of a ticket in a raffle; or

                             (ii)  an acceptance of a person’s participation in a game of bingo; or

                            (iii)  a *gambling supply of a kind specified in the regulations; and

                     (c)  the supply does not contravene a *State law or a *Territory law.

             (3)  Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

Subdivision 38‑IWater, sewerage and drainage

38‑285  Water

             (1)  A supply of water is GST‑free.

             (2)  However, a supply of water is not GST‑free under this section if it is:

                     (a)  supplied in a container; or

                     (b)  transferred into a container;

that has a capacity of less than 100 litres or such other quantity as the regulations specify.

             (3)  It does not matter whether or not the amount of water supplied or transferred fills the container.

38‑290  Sewerage and sewerage‑like services

             (1)  A supply of sewerage services is GST‑free.

             (2)  A supply that consists of removing waste matter from *residential premises is GST‑free if:

                     (a)  the premises are not serviced by sewers; and

                     (b)  the waste matter is of a kind that would normally be removed using sewers if the premises were serviced by sewers.

             (3)  A supply that consists of servicing a domestic self‑contained sewage system is GST‑free.

38‑295  Emptying of septic tanks

                   A supply of a service that consists of the emptying of a septic tank is GST‑free.

38‑300  Drainage

                   A supply of a service that consists of draining storm water is GST‑free.

Subdivision 38‑JSupplies of going concerns

38‑325  Supply of a going concern

             (1)  The *supply of a going concern is GST‑free if:

                     (a)  the supply is for *consideration; and

                     (b)  the *recipient is *registered or *required to be registered; and

                     (c)  the supplier and the recipient have agreed in writing that the supply is of a going concern.

             (2)  A supply of a going concern is a supply under an arrangement under which:

                     (a)  the supplier supplies to the *recipient all of the things that are necessary for the continued operation of an *enterprise; and

                     (b)  the supplier carries on, or will carry on, the enterprise until the day of the supply (whether or not as a part of a larger enterprise carried on by the supplier).

Subdivision 38‑KTransport and related matters

38‑355  Supplies of transport and related matters

             (1)  The third column of this table sets out supplies that are GST‑free:

 

Supplies of transport and related matters

Item

Topic

These supplies are GST‑free ...

1

Transport of passengers to, from or outside Australia

the transport of a passenger:

(a) from the last place of departure in Australia to a destination outside Australia; or

(b) from a place outside Australia to the first place of arrival in Australia; or

(c) from a place outside Australia to the same or another place outside Australia.

2

Transport of passengers on domestic legs of international flights

the transport of a passenger within Australia by air, but only if:

(a) the transport is part of a wider arrangement, itinerary or contract for transport by air involving international travel; and

(b) at the time the arrangement, itinerary or contract was entered into, the transport within Australia formed part of a ticket for international travel, or was cross referenced to such a ticket, issued at that time.

3

Domestic air travel of non‑residents

the transport of a passenger within Australia by air, but only if:

(a) the passenger is a *non‑resident; and

(b) the supply was purchased while the passenger was outside Australia.

4

Transport of passengers on domestic legs of international sea voyages

the transport of a passenger within Australia by sea, but only if:

(a) the transport is part of a journey by sea from Australia to a destination outside Australia, or from a destination outside Australia to Australia; and

(b) the transport is provided by the supplier who transports the passenger to or from Australia.

5

Transport etc. of goods

subject to subsection (2), the *international transport of goods:

(a) from their *place of export in Australia to a destination outside Australia; or

(b) from a place outside Australia to their *place of consignment in Australia; or

(c) from a place outside Australia to the same or another place outside Australia.

5A

Loading or handling etc.

subject to subsection (2):

(a) loading or handling of goods, the *international transport of which is covered by item 5, during the course of the international transport; or

(b) supply of a service, during the course of the international transport of goods covered by item 5, that facilitates the international transport.

6

Insuring transport etc.

(a) insuring transport covered by item 1, 2, 3 or 4; or

(b) insuring the *international transport of goods from their *place of export in Australia to a destination outside Australia; or

(c) insuring:

(i) the transport of goods from a place outside Australia to their *place of consignment in Australia; and

(ii) the subsequent transport of those goods within Australia, if it is an integral part of the transport of goods from the place outside Australia to the place of consignment in Australia;

including loading and handling within Australia that is part of that transport; or

(d) insuring the transport of goods from a place outside Australia to the same or another place outside Australia.

7

Arranging transport etc.

(a) arranging transport covered by item 1, 2, 3 or 4; or

(b) arranging the *international transport of goods covered by item 5; or

(c) arranging insurance covered by item 6.

             (2)  Paragraphs (a) and (b) of item 5, and item 5A, in the table in subsection (1) do not apply to a supply to the extent that the thing supplied is done in Australia, unless:

                     (a)  the *recipient of the supply:

                              (i)  is a *non‑resident; and

                             (ii)  is not in Australia when the thing supplied is done in Australia; or

                     (b)  the supply is done by the supplier of the transport of the goods from or to Australia (whichever is relevant).

38‑360  Travel agents arranging overseas supplies

                   A supply is GST‑free if:

                     (a)  the supplier makes it in the course of *carrying on an *enterprise as a travel agent; and

                     (b)  it consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside Australia.

Subdivision 38‑LPrecious metals

38‑385  Supplies of precious metals

                   A supply of *precious metal is GST‑free if:

                     (a)  it is the first supply of that precious metal after its refining by, or on behalf of, the supplier; and

                     (b)  the entity that refined the precious metal is a *refiner of precious metal; and

                     (c)  the *recipient of the supply is a *dealer in precious metal.

Note:          Any other supply of precious metal is input taxed under section 40‑100.

Subdivision 38‑MSupplies through inwards duty free shops

38‑415  Supplies through inwards duty free shops

                   A supply is GST‑free if the supply is a sale of *airport shop goods through an *inwards duty free shop to a *relevant traveller.

Subdivision 38‑NGrants of land by governments

38‑445  Grants of freehold and similar interests by governments

             (1)  A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST‑free if:

                     (a)  the supply is of a freehold interest in the land; or

                     (b)  the supply is by way of *long‑term lease.

          (1A)  A supply by the Commonwealth, a State or a Territory of land is GST‑free if:

                     (a)  the supply is of a freehold interest in the land, or is by way of *long‑term lease; and

                     (b)  the Commonwealth, State or Territory had previously supplied the land, by way of lease, to the *recipient of the supply; and

                     (c)  at the time of that previous supply, there were no improvements on the land; and

                     (d)  because conditions to which that lease was subject had been satisfied, the recipient was entitled to the supply of the freehold interest or the supply by way of long‑term lease.

             (2)  However, the supply is not GST‑free if, since 1 July 2000, the land has already been the subject of a supply that is GST‑free under this section.

38‑450  Leases preceding grants of freehold and similar interests by governments

             (1)  A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST‑free if:

                     (a)  the supply is by way of lease (other than *long‑term lease); and

                     (b)  the lease is subject to conditions the satisfaction of which will entitle the *recipient of the supply to the grant of a freehold interest in the land or a long‑term lease of the land.

             (2)  A supply consisting of the surrender, to the Commonwealth, a State or Territory, of a lease over land is GST‑free if:

                     (a)  the supplier acquired the land under a supply that:

                              (i)  was GST‑free under subsection (1); or

                             (ii)  if the supply was made before 1 July 2000—would have been GST‑free under subsection (1) if it had been made on or after that day; and

                     (b)  solely or partly in return for the surrender of the lease, the Commonwealth, State or Territory makes a supply of the land to the supplier that is GST‑free under section 38‑445.

Subdivision 38‑OFarm land

38‑475  Subdivided farm land

             (1)  The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, *potential residential land is GST‑free if:

                     (a)  the land is subdivided from land on which a *farming business has been *carried on for at least 5 years; and

                     (b)  the supply is made to an *associate of the supplier of the land without *consideration or for consideration that is less than the *GST inclusive market value of the supply.

             (2)  An entity *carries on a farming business if it carries on a *business of:

                     (a)  cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or

                     (b)  maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or

                     (c)  manufacturing dairy produce from raw material that the entity produced; or

                     (d)  planting or tending trees in a plantation or forest that are intended to be felled.

38‑480  Farm land supplied for farming

                   The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, land is GST‑free if:

                     (a)  the land is land on which a *farming business has been *carried on for at least the period of 5 years preceding the supply; and

                     (b)  the *recipient of the supply intends that a farming business be carried on, on the land.

Subdivision 38‑PCars for use by disabled people

38‑505  Disabled veterans

             (1)  A supply is GST‑free if it is a supply of a *car to an individual who:

                     (a)  has served in the Defence Force or in any other armed force of Her Majesty; and

                     (b)  as a result of that service:

                              (i)  has lost a leg or both arms; or

                             (ii)  has had a leg, or both arms, rendered permanently and completely useless; or

                            (iii)  is a veteran to whom section 24 of the Veterans’ Entitlements Act 1986 applies and receives a pension under Part II of that Act; or

                            (iv)  is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004, or satisfies the eligibility criteria in section 199 of that Act; and

                     (c)  intends to use the car in his or her personal transportation during all of the *Subdivision 38‑P period.

             (2)  However, a supply covered by subsection (1) is not GST‑free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.

             (3)  In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:

                     (a)  adapting it for driving by the person; or

                     (b)  adapting it for transporting the person.

             (4)  A supply is GST‑free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a), (b) and (c) apply.

38‑510  Other disabled people

             (1)  A supply is GST‑free if it is a supply of a *car to an individual who:

                     (a)  has a current disability certificate issued by:

                              (i)  the person holding the position of Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997); or

                             (ii)  an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;

                            certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport; and

                     (b)  intends to use the car in his or her personal transportation to or from gainful employment during all of the *Subdivision 38‑P period.

             (2)  However, a supply covered by subsection (1) is not GST‑free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.

             (3)  In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:

                     (a)  adapting it for driving by the individual; or

                     (b)  adapting it for transporting the individual.

             (4)  A supply is GST‑free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a) and (b) applies.

Subdivision 38‑QInternational mail

38‑540  International mail

                   A supply is GST‑free if it is a supply of services to a foreign postal administration for:

                     (a)  the delivery in Australia; or

                     (b)  the transit through Australia;

of postal articles mailed outside Australia.

Subdivision 38‑RTelecommunication supplies made under arrangements for global roaming in Australia

38‑570  Telecommunication supplies made under arrangements for global roaming in Australia

             (1)  A *telecommunication supply is GST‑free if:

                     (a)  the supply is to enable the use in Australia of a portable device for sending and receiving signals, writing, images, sounds or information by an electromagnetic system while the device is linked to:

                              (i)  an international mobile subscriber identity; or

                             (ii)  an IP address; or

                            (iii)  another internationally recognised identifier;

                            containing a home network identity that indicates a subscription to a telecommunications network outside Australia; and

                     (b)  the supply is covered by subsection (2) or (3).

Supply by non‑resident telecommunications supplier

             (2)  This subsection covers the supply if:

                     (a)  the supply is made to the subscriber in connection with the subscription; and

                     (b)  the billing of the subscriber for the supply is to an address outside Australia; and

                     (c)  the supply is made by a *non‑resident that:

                              (i)  *carries on outside Australia an *enterprise of making *telecommunication supplies; and

                             (ii)  does not *carry on in Australia such an enterprise.

Supply by Australian resident telecommunications supplier

             (3)  This subsection covers the supply if:

                     (a)  the supply is made by an *Australian resident that is:

                              (i)  a carrier, or a carriage service provider, as defined in the Telecommunications Act 1997; or

                             (ii)  an internet service provider as defined in Schedule 5 to the Broadcasting Services Act 1992; and

                     (b)  the supply is provided to the user in Australia of the device; and

                     (c)  the supply is made to a *non‑resident that:

                              (i)  *carries on outside Australia an *enterprise of making *telecommunication supplies; and

                             (ii)  does not *carry on in Australia such an enterprise.

Subdivision 38‑SEligible emissions units

38‑590  Eligible emissions units

                   A supply of an *eligible emissions unit is GST‑free.

Division 40Input taxed supplies

Table of Subdivisions

40‑A     Financial supplies

40‑B      Residential rent

40‑C      Residential premises

40‑D     Precious metals

40‑E      School tuckshops and canteens

40‑F      Fund‑raising events conducted by charities etc.

40‑1  What this Division is about

This Division provides for the supplies that are input taxed. If a supply is input taxed, then:

•      no GST is payable on the supply;

•      there is no entitlement to an input tax credit for anything acquired or imported to make the supply (see sections 11‑15 and 15‑10).

For the basic rules about supplies that are input taxed, see sections 9‑30 and 9‑80.

Subdivision 40‑AFinancial supplies

40‑5  Financial supplies

             (1)  A *financial supply is input taxed.

             (2)  Financial supply has the meaning given by the regulations.

Subdivision 40‑BResidential rent

40‑35  Residential rent

             (1)  A supply of premises that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is input taxed if:

                     (a)  the supply is of *residential premises (other than a supply of *commercial residential premises or a supply of accommodation in commercial residential premises provided to an individual by the entity that owns or controls the commercial residential premises); or

                     (b)  the supply is of *commercial accommodation and Division 87 (which is about long‑term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87‑25.

          (1A)  A supply of a berth at a marina that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is input taxed if:

                     (a)  the berth is occupied, or is to be occupied, by a *ship used as a residence; and

                     (b)  the supply is of *commercial accommodation and Division 87 (which is about long‑term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87‑25.

             (2)  However:

                     (a)  the supply is input taxed only to the extent that the premises are to be used predominantly for residential accommodation (regardless of the term of occupation); and

                     (b)  the supply is not input taxed under this section if the lease, hire or licence, or the renewal or extension of a lease, hire or licence, is a *long‑term lease.

Subdivision 40‑CResidential premises

40‑65  Sales of residential premises

             (1)  A sale of *real property is input taxed, but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation).

             (2)  However, the sale is not input taxed to the extent that the *residential premises are:

                     (a)  *commercial residential premises; or

                     (b)  *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.

40‑70  Supplies of residential premises by way of long‑term lease

             (1)  A supply is input taxed if:

                     (a)  the supply is of *real property but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation); and

                     (b)  the supply is by way of *long‑term lease.

             (2)  However, the supply is not input taxed to the extent that the *residential premises are:

                     (a)  *commercial residential premises; or

                     (b)  *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.

40‑75  Meaning of new residential premises

When premises are new residential premises

             (1)  *Residential premises are new residential premises if they:

                     (a)  have not previously been sold as residential premises (other than *commercial residential premises) and have not previously been the subject of a *long‑term lease; or

                     (b)  have been created through *substantial renovations of a building; or

                     (c)  have been built, or contain a building that has been built, to replace demolished premises on the same land.

Paragraphs (b) and (c) have effect subject to paragraph (a).

Note 1:       For example, residential premises will be new residential premises if they are created as described in paragraph (b) or (c) to replace earlier premises that had ceased to be new residential premises because of paragraph (a).

Note 2:       However, premises that are new residential premises because of paragraph (b) or (c) will cease to be new residential premises once they are sold, or supplied by way of long‑term lease, as residential premises (see paragraph (a)).

Note 3:       Premises created because of the registration of, for example, a strata title plan, or a plan to subdivide land, may not become new residential premises (see subsection (2AA)).

             (2)  However, the *residential premises are not new residential premises if, for the period of at least 5 years since:

                     (a)  if paragraph (1)(a) applies (and neither paragraph (1)(b) nor paragraph (1)(c) applies)—the premises first became residential premises; or

                     (b)  if paragraph (1)(b) applies—the premises were last *substantially renovated; or

                     (c)  if paragraph (1)(c) applies—the premises were last built;

the premises have only been used for making supplies that are *input taxed because of paragraph 40‑35(1)(a).

Subdivisions etc. may not result in new residential premises

       (2AA)  Despite subsection (1), the *residential premises are not new residential premises if:

                     (a)  they are created from residential premises that became the subject of a *property subdivision plan; and

                     (b)  the residential premises referred to in paragraph (a) were not new residential premises immediately before they became the subject of that plan.

This subsection has effect subject to paragraphs (1)(b) and (c).

Disregard certain supplies of the premises

          (2A)  A supply of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a):

                     (a)  if it is a supply by a member of a *GST group to another member of the GST group; or

                     (b)  if:

                              (i)  it is a supply by the *joint venture operator of a *GST joint venture to another entity that is a *participant in the joint venture; and

                             (ii)  the other entity acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into.

          (2B)  A supply (the wholesale supply) of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if:

                     (a)  the premises from which the residential premises were created had earlier been supplied to the *recipient of the wholesale supply or one or more of its *associates; and

                     (b)  an arrangement (including an agreement) was made by:

                              (i)  the supplier of the earlier supply, or one or more associates of the supplier; and

                             (ii)  the recipient of the earlier supply, or one or more associates of the recipient; and

                     (c)  under the arrangement, the wholesale supply was conditional on:

                              (i)  specified building or renovation work being undertaken by the recipient of the earlier supply, or by one or more associates of the recipient; or

                             (ii)  circumstances existing as specified in regulations made for the purposes of this subparagraph.

Note 1:       The premises referred to in paragraph (a) could be vacant land.

Note 2:       For subparagraph (c)(ii), circumstances may be specified by class (see subsection 13(3) of the Legislative Instruments Act 2003).

Note 3:       This subsection does not apply to a supply if certain commercial commitments were in place before 27 January 2011 (see item 12 of Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012).

          (2C)  A supply of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if it is made because a *property subdivision plan relating to the premises was lodged for registration (however described) by the *recipient of the supply or the recipient’s *associate.

Note:          This subsection does not apply to a supply if the plan was lodged for registration before 27 January 2011 (see item 13 of Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012).

New residential premises include associated land

             (3)  To avoid doubt, if the *residential premises are new residential premises because of paragraph (1)(b) or (c), the new residential premises include land of which the new residential premises are a part.

Subdivision 40‑DPrecious metals

40‑100  Precious metals

                   A supply of *precious metal is input taxed.

Note:          If the supply is the first supply of precious metal after refinement, the supply is GST‑free under section 38‑385.

Subdivision 40‑ESchool tuckshops and canteens

40‑130  School tuckshops and canteens

             (1)  A supply of *food is input taxed if:

                     (a)  the supply is made by a non‑profit body through a shop operating on the grounds of a *school that supplies *primary courses or *secondary courses; and

                     (b)  the non‑profit body chooses to have all its supplies of food through the shop treated as input taxed.

             (2)  However, the non‑profit body:

                     (b)  cannot revoke the choice within 12 months after the day on which the non‑profit body made the choice; and

                     (c)  cannot make a further choice within 12 months after the day on which the non‑profit body revoked a previous choice.

             (3)  This section does not apply to a supply of *food by a *school to boarding students of the school as part of their board.

Subdivision 40‑FFund‑raising events conducted by charities etc.

40‑160  Fund‑raising events conducted by charities etc.

             (1)  A supply is input taxed if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is made in connection with a *fund‑raising event; and

                     (c)  the supplier chooses to have all supplies that it makes in connection with the event treated as input taxed; and

                     (d)  the event is referred to in the supplier’s records as an event that is treated as input taxed.

             (3)  Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies input taxed status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be input taxed under this section if they relate to the principal purpose of the fund, authority or institution.

40‑165  Meaning of fund‑raising event

             (1)  Any of these is a fund‑raising event if it is conducted for the purpose of fund‑raising and it does not form any part of a series or regular run of like or similar events:

                     (a)  a fete, ball, gala show, dinner, performance or similar event;

                     (b)  an event comprising sales of goods if:

                              (i)  each sale is for a *consideration that does not exceed $20 or such other amount as the regulations specify; and

                             (ii)  selling such goods is not a normal part of the supplier’s *business;

                     (c)  an event that the Commissioner decides, on an application by the supplier in writing, to be a fund‑raising event.

Note:          Refusing an application for a decision under this paragraph is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (2)  Paragraph (1)(b) does not apply to an event that involves the sale of alcoholic beverages or tobacco products.

             (3)  The Commissioner must not make a decision under paragraph (1)(c) unless satisfied that:

                     (a)  the supplier is not in the *business of conducting such events; and

                     (b)  the proceeds from conducting the event are for the direct benefit of the supplier’s charitable or non‑profit purposes.

             (4)  The Commissioner may determine, in writing, the frequency with which events may be held without forming any part of a series or regular run of like or similar events for the purposes of subsection (1).

Part 3‑2Non‑taxable importations

Division 42Non‑taxable importations

42‑1  What this Division is about

This Division sets out the importations that are non‑taxable. No GST is payable on an importation that is non‑taxable (see sections 7‑1 and 13‑5).

For the basic rules about non‑taxable importations, see sections 13‑10 and 13‑25.

42‑5  Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995

             (1)  An importation of goods is a non‑taxable importation if the goods are covered by item 4, 10, 11, 15, 18, 21, 21A, 23, 24, 25, 26 or 27 in Schedule 4 to the Customs Tariff Act 1995.

          (1A)  An importation of a container is a non‑taxable importation if:

                     (a)  goods covered by item 22 in Schedule 4 to the Customs Tariff Act 1995 are imported in or on the container; and

                     (b)  the container will be exported from Australia without being put to any other use.

          (1C)  An importation of goods is a non‑taxable importation if the goods are covered by:

                     (a)  item 1, 3, 7, 12, 13 or 29 in Schedule 4 to the Customs Tariff Act 1995; and

                     (b)  regulations made for the purposes of this subsection.

             (2)  To avoid doubt, a reference to goods that are covered by an item in Schedule 4 to the Customs Tariff Act 1995 includes a reference to goods to which that item would apply apart from the operation of subsection 18(1) of that Act.

42‑10  Goods returned to Australia in an unaltered condition

             (1)  An importation of goods is a non‑taxable importation if:

                     (a)  the goods were exported from Australia and are returned to Australia, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since their export; and

                     (b)  the importer was not entitled to, and did not claim, a payment under Division 168 (about the tourist refund scheme) related to the export of the goods; and

                     (c)  the importer:

                              (i)  is the manufacturer of the goods; or

                             (ii)  has previously acquired the goods, and the supply by means of which the importer acquired the goods was a *taxable supply (or would have been a taxable supply but for section 66‑45); or

                            (iii)  has previously imported the goods, and the previous importation was a *taxable importation in respect of which the GST was paid.

             (2)  An importation of goods is a non‑taxable importation if:

                     (a)  the importer had manufactured, acquired or imported the goods before 1 July 2000; and

                     (b)  the goods were exported from Australia before, on or after 1 July 2000; and

                     (c)  the goods are returned to Australia on or after 1 July 2000, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since their export; and

                     (d)  the importer was not entitled to, and did not claim, a payment under Division 168 (about the tourist refund scheme) related to the export of the goods; and

                     (e)  the ownership of the goods when they are returned to Australia is the same as their ownership on 1 July 2000.

Note:          An importation covered by this section may also be duty‑free under item 17 of Schedule 4 to the Customs Tariff Act 1995.

Chapter 4The special rules

  

Division 45Introduction

45‑1  What this Chapter is about

This Chapter sets out the special rules for the GST. The special rules apply only in particular circumstances, and are generally quite limited in their scope.

The special rules modify the application of the basic rules for the GST in Chapter 2.

Note 1:       The special rules that modify each group of basic rules in Chapter 2 are specifically identified in tables located at the end of the Divisions and Subdivisions in Chapter 2. In addition, a checklist of special rules is set out in Part 2‑8.

Note 2:       This section is an explanatory section.

45‑5  The effect of special rules

                   The provisions of this Chapter override the provisions of Chapter 2 (except section 29‑25), but only to the extent of any inconsistency.

Part 4‑1Special rules mainly about particular ways entities are organised

Note:       The special rules in this Part mainly modify the operation of Part 2‑2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2‑2 and the other Parts of Chapter 2.

Division 48GST groups

Table of Subdivisions

48‑A     Formation and membership of GST groups

48‑B      Consequences of GST groups

48‑C      Administrative matters

48‑D     Ceasing to be a member of a GST group

48‑1  What this Division is about

Companies within a 90% owned group, and in some cases other entities (such as non‑profit bodies), can form a GST group. One member of the group then deals with all the GST liabilities and entitlements (except for GST on most taxable importations) of the group, and (in most cases) intra‑group transactions are excluded from the GST.

Note:          Provisions for members of GST groups apply for the wine equalisation tax (see Subdivision 21‑B of the Wine Tax Act) and the luxury car tax (see Subdivision 16‑A of the A New Tax System (Luxury Car Tax) Act 1999).

Subdivision 48‑AFormation and membership of GST groups

48‑5  Formation of GST groups

             (1)  Two or more entities may form a *GST group if:

                     (a)  each of the entities *satisfies the membership requirements of the group; and

                     (b)  each of the entities agrees in writing to the formation of the group; and

                     (c)  one of those entities notifies the Commissioner, in the *approved form, of the formation of the group; and

                     (d)  that entity is nominated, in that notice, to be the *representative member of the group; and

                     (e)  that entity is an *Australian resident.

A group of entities that is so formed is a GST group.

             (2)  If 2 or more entities would *satisfy the membership requirements for the *GST group, the group need not include all those entities.

             (3)  The formation of the *GST group takes effect from the start of the day specified in the notice under paragraph (1)(c) (whether that day is before, on or after the day on which the entities decided to form the group).

             (4)  However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *representative member of the group is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the formation of the *GST group takes effect from the start of:

                     (a)  the day specified in the notice, if that day is approved by the Commissioner under section 48‑71; and

                     (b)  if paragraph (a) does not apply—such other day as the Commissioner approves under that section.

48‑7  Membership of GST groups

             (1)  A member of a *GST group is an entity that:

                     (a)  formed the group under section 48‑5, or was added to the group under section 48‑70; and

                     (b)  *satisfies the membership requirements of the group.

             (2)  However, the entity is not a member of the *GST group if the entity has, since the last time the entity became such a member:

                     (a)  left, or been removed from, the group under section 48‑70; or

                     (b)  ceased to *satisfy the membership requirements of the group.

             (3)  The *representative member of a *GST group must notify the Commissioner, in the *approved form, if a *member of the group no longer *satisfies the membership requirements for the GST group.

             (4)  The notice must be given within 21 days after the *member no longer *satisfies the membership requirements for the *GST group.

Note:          Section 286‑75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

48‑10  Membership requirements of a GST group

             (1)  An entity satisfies the membership requirements of a *GST group, or a proposed GST group, if the entity:

                     (a)  is:

                              (i)  a *company; or

                             (ii)  a *partnership, trust or individual that satisfies the requirements specified in the regulations; and

                     (b)  is, if the entity is a company, a company of the same *90% owned group as all the other members of the GST group or proposed GST group that are also companies; and

                     (c)  is *registered; and

                     (d)  has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and

                     (e)  accounts on the same basis as all the other members of the GST group or proposed GST group; and

                      (f)  is not a member of any other GST group; and

                     (g)  does not have any branch that is registered under Division 54.

             (2)  Paragraph (1)(b) does not apply if:

                     (a)  the entity is a non‑profit body; and

                     (b)  all the other members of the GST group or proposed GST group are non‑profit bodies; and

                     (c)  the entity and all those other members are members of the same *non‑profit association.

Note 1:       For the membership requirements of non‑profit sub‑entities, see section 63‑50.

Note 2:       For the membership requirements of a GST group of government related entities, see section 149‑25.

          (2A)  Paragraph (1)(d) does not apply in relation to a tax period that the Commissioner has determined under section 27‑30 if the tax period:

                     (a)  ends at the same time as a tax period (a corresponding tax period) of each of the other *members of the *GST group; and

                     (b)  is not longer than any corresponding tax period (other than a tax period that the Commissioner has determined under section 27‑30).

             (3)  A *company does not satisfy the membership requirements of a *GST group, or a proposed GST group, if:

                     (a)  one or more other members of the GST group or proposed GST group are not companies; and

                     (b)  none of the members of the GST group or proposed GST group that are companies satisfy section 48‑15.

48‑15  Relationship of companies and non‑companies in a GST group

             (1)  A *company that is a member of a *GST group, or a proposed GST group, satisfies this section if:

                     (a)  a *partnership, trust or individual that is a member of the GST group or proposed GST group would, if it were another company, have *at least a 90% stake in that company; or

                     (b)  the company has only one member, and that member:

                              (i)  is a partner in a partnership that is a member of the GST group or proposed GST group; or

                             (ii)  is an individual that is a member of the GST group or proposed GST group; or

                            (iii)  is a *family member of that partner or individual; or

                     (c)  the company has more than one member, each of whom is:

                              (i)  a partner in the same partnership that is a member of the GST group or proposed GST group; or

                             (ii)  a family member of any such partner;

                            and one of the following applies:

                            (iii)  at least 2 of the partners are members of the company;

                            (iv)  one of the partners is a member of the company, and at least one other member of the company is a family member of a different partner;

                             (v)  none of the partners is a member of the company, and the members of the company are not all family members of the same partner and no other partner; or

                     (d)  the company has more than one member, each of whom is:

                              (i)  an individual who is a member of the GST group or proposed GST group; or

                             (ii)  a family member of that individual; or

                     (e)  a trust is a member of the GST group or proposed GST group, and distributions of income or capital of the trust are not made except to an entity that is:

                              (i)  the company; or

                             (ii)  any other company that is a member of the GST group or proposed GST group; or

                           (iia)  a member of, or a family member of a member of, any company referred to in subparagraph (i) or (ii) that is a company to which subsection (1A) applies; or

                            (iii)  an *endorsed charity or a *gift‑deductible entity.

          (1A)  This subsection applies to a company if:

                     (a)  the company has only one member; or

                     (b)  the company has more than one member, and:

                              (i)  at least 2 of the members are beneficiaries of the trust in question (either directly, or indirectly through one or more interposed trusts); or

                             (ii)  one of the members is such a beneficiary, and at least one other such beneficiary is a *family member of a different member of the company; or

                            (iii)  none of the members is such a beneficiary, and those family members (of the members of the company) who are such beneficiaries are not all family members of the same member of the company and no other member.

             (2)  A person is a family member of an individual if the individual’s family, within the meaning of section 272‑95 of Schedule 2F to the *ITAA 1936, includes that person. There are no family members of an entity that is not an individual.

Subdivision 48‑BConsequences of GST groups

48‑40  Who is liable for GST

             (1)  GST that is payable on any *taxable supply an entity makes and that is attributable to a tax period during which the entity is a *member of a *GST group:

                     (a)  is payable by the *representative member; and

                     (b)  is not payable by the entity that made it (unless the entity is the representative member).

Note:          However, each member may be jointly and severally liable to pay the GST that is payable by the representative member (see section 444‑90 in Schedule 1 to the Taxation Administration Act 1953).

          (1A)  GST that is payable on any *taxable importation an entity makes while the entity is a *member of a *GST group:

                     (a)  is payable by the *representative member; and

                     (b)  is not payable by the member that made it (unless the member is the representative member).

Note:          However, each member may be jointly and severally liable to pay the GST that is payable by the representative member (see section 444‑90 in Schedule 1 to the Taxation Administration Act 1953).

             (2)  However:

                     (a)  a supply that an entity makes to another *member of the same *GST group is treated as if it were not a *taxable supply, unless:

                              (i)  it is a taxable supply because of Division 84 (which is about offshore supplies other than goods or real property); or

                             (ii)  the entity is a participant in a *GST joint venture and acquired the thing supplied from the *joint venture operator for the joint venture; and

                     (b)  this section only applies to GST payable on a *taxable importation made, by a member of the GST group other than the *representative member, if the GST on the importation is payable at a time when GST on *taxable supplies is normally payable by the representative member.

             (3)  This section has effect despite sections 9‑40 and 13‑15 (which are about liability for GST).

48‑45  Who is entitled to input tax credits

             (1)  If an entity makes a *creditable acquisition or *creditable importation the input tax credit for which is attributable to a tax period during which the entity is a *member of a *GST group:

                     (a)  the *representative member is entitled to the input tax credit on the acquisition or importation; and

                     (b)  the entity making the acquisition or importation is not entitled to the input tax credit on the acquisition or importation (unless the entity is the representative member).

             (2)  In deciding, for the purposes of subsection (1), whether an acquisition or importation by an entity is a *creditable acquisition or *creditable importation, the acquisition or importation is treated as being solely or partly for a *creditable purpose if, and only if, it would be so treated if:

                     (a)  the GST group were treated as a single entity; and

                     (b)  the GST group were not treated as a number of entities corresponding to the members of the GST group.

             (3)  However, an acquisition that an entity makes from another *member of the same *GST group is not a *creditable acquisition unless the supply of the thing acquired by the entity was a *taxable supply because of Division 84 (which is about offshore supplies other than goods or real property).

             (4)  This section has effect despite sections 11‑5 and 15‑5 (which are about what are creditable acquisitions and creditable importations), and sections 11‑20 and 15‑15 (which are about who is entitled to input tax credits).

48‑50  Adjustments

             (1)  Any *adjustment that an entity has and that is attributable to a tax period during which the entity is a *member of a *GST group is to be treated as if:

                     (a)  the entity did not have the adjustment (unless the entity is the *representative member); and

                     (b)  the representative member had the adjustment.

             (2)  This section has effect despite section 17‑10 (which is about the effect of adjustments on net amounts).

48‑51  Consequences of being a member of a GST group for part of a tax period

             (1)  If you are a *member of a *GST group only for one or more parts of a tax period:

                     (a)  section 48‑40 does not apply to the GST payable on a *taxable supply that you make, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and

                     (b)  section 48‑40 does not apply to the GST payable on a *taxable importation that you make during a period to which subsection (2) applies; and

                     (c)  section 48‑45 does not apply to the input tax credit for a *creditable acquisition or *creditable importation that you make, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and

                     (d)  section 48‑50 does not apply to an *adjustment that you have that would be attributable to a period to which subsection (2) applies if it were a tax period applying to you.

             (2)  This section applies to any period, during the tax period, during which you were not a *member of that *GST group or any other GST group.

48‑52  Consequences for a representative member of membership change during a tax period

             (1)  If an entity is a *member of a *GST group, of which you are the *representative member, only for one or more parts of a tax period:

                     (a)  section 48‑40 only applies to the GST payable on a *taxable supply that the entity makes, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity; and

                     (b)  section 48‑40 only applies to the GST payable on a *taxable importation that the entity makes during a period to which subsection (2) applies; and

                     (c)  section 48‑45 only applies to the input tax credit for a *creditable acquisition or *creditable importation that the entity makes, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity; and

                     (d)  section 48‑50 only applies to an *adjustment that the entity has that would be attributable to a period to which subsection (2) applies if it were a tax period applying to the entity.

             (2)  This section applies to any period, during the tax period, during which the entity was a *member of the *GST group of which you are the *representative member.

             (3)  However, if you are the *representative member of the *GST group only for one or more parts of the tax period, this section has effect subject to section 48‑53.

             (4)  If an entity is a *member of different *GST groups during the same tax period, subsections (1) and (2) apply separately in relation to each of those groups.

48‑53  Consequences of changing a representative member during a tax period

             (1)  If you are the *representative member of a *GST group only for one or more parts of a tax period, then, in relation to your capacity as the representative member:

                     (a)  section 48‑40 only applies to the GST payable on a *taxable supply that an entity makes, to the extent that the GST would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and

                     (b)  section 48‑40 only applies to the GST payable on a *taxable importation that an entity makes during a period to which subsection (2) applies; and

                     (c)  section 48‑45 only applies to the input tax credit for a *creditable acquisition or *creditable importation that an entity makes, to the extent that the input tax credit would be attributable to a period to which subsection (2) applies if it were a tax period applying to you; and

                     (d)  section 48‑50 only applies to an *adjustment that an entity has that would be attributable to a period to which subsection (2) applies if it were a tax period applying to you.

             (2)  This section applies to any period, during the tax period, during which you were the *representative member of the *GST group.

48‑55  GST groups treated as single entities for certain purposes

             (1)  Despite sections 48‑45 and 48‑50, a *GST group is treated as a single entity, and not as a number of entities corresponding to the *members of the GST group, for the purposes of working out:

                     (a)  the amounts of any input tax credits to which the *representative member is entitled; and

                     (b)  whether the representative member has any *adjustments; and

                     (c)  the amounts of any such adjustments.

          (1A)  If:

                     (a)  while you were not a *member of any *GST group, you acquired or imported a thing; and

                     (b)  you become a member of a GST group at a time when you still hold the thing;

then, when the *representative member of the GST group applies section 129‑40 for the first time after you became a member of the GST group, the *intended or former application of the thing is the extent of *creditable purpose last used to work out:

                     (c)  the amount of the input tax credit to which you were entitled for the acquisition or importation; or

                     (d)  the amount of any *adjustment you had under Division 129 in relation to the thing;

as the case requires.

             (2)  This section has effect despite section 11‑25 (which is about the amount of input tax credits) and section 17‑10 (which is about the effect of adjustments on net amounts).

48‑57  Tax invoices that are required to identify recipients

             (1)  A document issued for a supply is taken to be a tax invoice if:

                     (a)  it would not, but for this section, be a tax invoice because it does not contain enough information to enable the identity, or the *ABN, of the *recipient of the supply to be clearly ascertained; and

                     (b)  there is no other reason why it would not be a tax invoice; and

                     (c)  the *representative member of a *GST group is entitled under section 48‑45 to an input tax credit for the *creditable acquisition relating to the supply; and

                     (d)  the document contains enough information to enable the identity of at least one of the following to be clearly ascertained:

                              (i)  the GST group;

                             (ii)  the representative member;

                            (iii)  another entity that is or was a *member of the GST group, if the representative member would still have been entitled under section 48‑45 to that input tax credit if that other entity had been the recipient of the supply.

Note:       Subparagraph (d)(iii) ensures that a member of the GST group identified in the document was a member of the group at the relevant time for the supply in question.

             (2)  However, any obligation that the supplier of a *taxable supply has under subsection 29‑70(2) is an obligation to give to the *recipient of the supply a document that would be a *tax invoice for the supply even if subsection (1) of this section had not been enacted.

Note:          This subsection ensures that a recipient’s entitlement to a tax invoice, including (if subparagraph 29‑70(1)(c)(ii) requires it) an entitlement to a tax invoice that enables the recipient’s identity or the recipient’s ABN to be clearly ascertained, is unaffected by this section.

             (3)  This section has effect despite section 29‑70 (which is about tax invoices).

48‑60  GST returns

             (1)  If you are a *member of a *GST group during the whole of a tax period, you are not required to give to the Commissioner a *GST return for that tax period, unless you are the *representative member of the group during that period.

Note:          If you were not a member of a GST group during the whole of a tax period, you are still obliged to give a GST return for the tax period, and (because of section 48‑51) your net amount for the tax period will take into account your liabilities and entitlements relating to the one or more parts of the tax period during which you were not a member.

             (2)  This section has effect despite section 31‑5 (which is about who must give GST returns).

Subdivision 48‑CAdministrative matters

48‑70  Changing the membership etc. of GST groups

             (1)  The following actions may be taken, in accordance with subsection (2), in relation to a *GST group:

                     (a)  the *representative member of the group may, with the written agreement of an entity that *satisfies the membership requirements of the GST group, add the entity to the group;

                     (b)  the representative member may leave the group; or

                     (c)  another *member of the group, nominated by the members, who is an *Australian resident may become the new representative member; or

                     (d)  the representative member may remove from the group any other member of the group; or

                     (e)  if a member of the group is an *incapacitated entity—the entity’s *representative may remove the entity from the group; or

                      (f)  the representative member may dissolve the group.

             (2)  The action is to be taken by notice given to the Commissioner, in the *approved form, by:

                     (a)  if paragraph (1)(a), (d) or (f) applies—the *representative member; or

                     (b)  if paragraph (1)(b) or (c) applies—the new representative member of the group; or

                     (c)  if paragraph (1)(e) applies—the *representative of the *incapacitated entity.

             (3)  The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).

             (4)  However, if the notice was given to the Commissioner after the day by which the *representative member of the group, or the entity nominated to be the new representative member of the group, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:

                     (a)  the day specified in the notice, if that day is approved by the Commissioner under section 48‑71; and

                     (b)  if paragraph (a) does not apply—such other day as the Commissioner approves under that section.

             (5)  Despite subsections (3) and (4), action taken under paragraph (1)(e) cannot take effect earlier than the day on which the *member of the group became an *incapacitated entity.

             (6)  A *GST group is taken to be dissolved if:

                     (a)  a *member of the group ceases to be the *representative member of the group; and

                     (b)  no other member of the group becomes the representative member of the group, with effect from the day after the previous representative member ceased to be the representative member of the group.

             (7)  A notice that another *member of the *GST group has become the *representative member of the group must be given to the Commissioner within 21 days after the other member became the representative member.

Note:          Section 286‑75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

48‑71  Approval of early day of effect of forming, changing etc. GST groups

             (1)  If an entity that gives a notice to the Commissioner under paragraph 48‑5(1)(c) or subsection 48‑70(2) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:

                     (a)  approve, for the purposes of subsection 48‑5(4) or 48‑70(4), the day specified in the notice; or

                     (b)  approve another day for those purposes.

Note:          Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (2)  The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.

Note:          Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (3)  The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.

48‑73  Tax periods of GST groups with incapacitated members

             (1)  If a *member of a *GST group becomes an *incapacitated entity, the *representative member of that group may, by notifying the Commissioner in the *approved form, elect for the tax period that applies at the time to the members of the group to end at the same time as the incapacitated entity’s tax period ends under subsection 27‑39(1).

Note 1:       Section 31‑10 provides for when a GST return must be given to the Commissioner for a tax period other than a quarterly tax period.

Note 2:       If the representative member does not make an election under this section when a member of the group becomes an incapacitated entity, the member’s membership of the group may cease if, because of section 27‑39, the tax periods applying to it are not the same as those applying to the other members of the group.

          (1A)  If an entity ceases to be the *representative member of a *GST group as a result of becoming an *incapacitated entity, the entity may make an election under subsection (1), in relation to becoming an incapacitated entity, as if the entity were still the representative member of the group.

          (1B)  A notice under subsection (1) must be given to the Commissioner within 21 days after the *member becomes an *incapacitated entity.

             (2)  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.

             (3)  This section has effect despite Division 27 (which is about how to work out the tax periods that apply).

48‑75  Effect of representative member becoming an incapacitated entity

             (1)  If:

                     (a)  the *representative member of a *GST group becomes an *incapacitated entity; and

                     (b)  the representative member does not cease to be a *member of the group;

the representative member ceases to be the representative member of the group unless all the other *members of the group are incapacitated entities.

             (2)  Subsection (1) does not apply for the purposes of the representative member making an election under subsection 48‑73(1) relating to the representative member.

             (3)  The *representative member of a *GST group ceases to be the representative member of the group if:

                     (a)  all the *members of the group are *incapacitated entities; and

                     (b)  a member of the group who is not the representative member ceases to be an incapacitated entity.

Subdivision 48‑DCeasing to be a member of a GST group

48‑110  Adjustments after you cease to be a member of a GST group

             (1)  If you cease to be a member of a GST group (the first GST group), any *adjustment that arises afterwards in relation to a supply, acquisition or importation that you made while a *member of the first GST group (other than a supply to, or an acquisition from, another member of that group):

                     (a)  is an adjustment that you have; and

                     (b)  is not an adjustment of the entity that is or was the *representative member of the first GST group (unless you were that representative member).

             (2)  In relation to the first GST group, this section has effect despite section 48‑50 (which is about who has adjustments for a GST group).

48‑115  Changes in extent of creditable purpose after you cease to be a member of a GST group

             (1)  If:

                     (a)  either:

                              (i)  while you were a *member of a *GST group (the first GST group), you acquired a thing (other than from another member of that group) or imported a thing; or

                             (ii)  you acquired or imported a thing while you were not a member of any GST group, and you subsequently became a member of a GST group (the first GST group) while you still held the thing; and

                     (b)  you cease to be a member of the first GST group;

then, when applying section 129‑40 for the first time after that cessation, the *intended or former application of the thing is the extent of *creditable purpose last used to work out:

                     (c)  the amount of the input tax credit to which you or the *representative member was entitled for the acquisition or importation; or

                     (d)  the amount of any *adjustment you or the representative member had under Division 129 in relation to the thing.

             (2)  If:

                     (a)  while you were a *member of a *GST group (the first GST group), you acquired a thing (other than from another member of that group) or imported a thing; and

                     (b)  you have ceased to be a member of the first GST group; and

                     (c)  you have an *adjustment under Division 129 in relation to the thing, or the *representative member of another GST group of which you are a *member has that adjustment;

then, for the purposes of working out the full input tax credit in section 129‑70 or 129‑75, you are taken not to have been a member of a GST group when you acquired or imported the thing.

Division 49GST religious groups

Table of Subdivisions

49‑A     Approval of GST religious groups

49‑B      Consequences of approval of GST religious groups

49‑C      Administrative matters

49‑1  What this Division is about

Some registered charitable bodies can be approved as a GST religious group. Transactions between members of the group are then excluded from the GST.

Subdivision 49‑AApproval of GST religious groups

49‑5  Approval of GST religious groups

                   The Commissioner must approve 2 or more entities as a *GST religious group if:

                     (a)  the entities jointly apply, in the *approved form, for approval as a GST religious group; and

                     (b)  each of the entities *satisfies the membership requirements for that GST religious group; and

                     (c)  the application nominates one of the entities to be the *principal member for the group; and

                     (d)  the entity so nominated is an *Australian resident.

A group of entities that is so approved is a GST religious group.

Note:          Refusing an application for approval under this section is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

49‑10  Membership requirements of a GST religious group

                   An entity satisfies the membership requirements of a *GST religious group, or a proposed GST religious group, if:

                     (a)  the entity is *registered; and

                     (b)  the entity is endorsed as exempt from income tax under Subdivision 50‑B of the *ITAA 1997; and

                     (c)  all the other members of the GST religious group or proposed GST religious group are so endorsed; and

                     (d)  the entity and all those other members are part of the same religious organisation; and

                     (e)  the entity is not a member of any other GST religious group.

Subdivision 49‑BConsequences of approval of GST religious groups

49‑30  Supplies between members of GST religious groups

             (1)  A supply that a *member of a *GST religious group makes to another member of the same GST religious group is treated as if it were not a *taxable supply.

             (2)  This section has effect despite section 9‑5 (which is about what are taxable supplies).

49‑35  Acquisitions between members of GST religious groups

             (1)  An acquisition that a *member of a *GST religious group makes from another member of the same GST religious group is treated as if it were not a *creditable acquisition.

             (2)  This section has effect despite section 11‑5 (which is about what are creditable acquisitions).

49‑40  Adjustment events

             (1)  An *adjustment event cannot arise in relation to:

                     (a)  a supply that a *member of a *GST religious group makes to another member of the same GST religious group; or

                     (b)  an acquisition that a member of a GST religious group makes from another member of the same GST religious group.

             (2)  This section has effect despite section 19‑10 (which is about what are adjustment events).

49‑45  Changes in the extent of creditable purpose

             (1)  An *adjustment cannot arise under Division 129 in relation to an acquisition that a *member of a *GST religious group makes from another member of the same GST religious group.

             (2)  This section has effect despite section 129‑5 (which is about when adjustments can arise under Division 129).

49‑50  GST religious groups treated as single entities for certain purposes

             (1)  Despite sections 49‑35, 49‑40 and 49‑45, a *GST religious group is treated as a single entity, and not as a number of entities corresponding to the *members of the GST religious group, for the purposes of working out:

                     (a)  whether acquisitions or importations by a member are for a *creditable purpose; and

                     (b)  the amounts of any input tax credits to which the member is entitled; and

                     (c)  whether the member has any *adjustments; and

                     (d)  the amounts of any such adjustments.

             (2)  This section has effect despite section 11‑25 (which is about the amount of input tax credits) and section 17‑10 (which is about the effect of adjustments on net amounts).

Subdivision 49‑CAdministrative matters

49‑70  Changing the membership etc. of GST religious groups

Changes made on application

             (1)  The Commissioner must, if the *principal member of a *GST religious group applies to the Commissioner in the *approved form, do one or more of these (as requested in the application):

                     (a)  approve, as an additional *member of the GST religious group, another entity that *satisfies the membership requirements for the GST religious group;

                     (b)  revoke the approval of one of the members of the GST religious group as a member of the group;

                     (c)  approve another member of the GST religious group to replace the applicant as the principal member of the group.

Note:          Refusing an application for approval or revocation under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

Changes made without application

             (2)  The Commissioner must revoke the approval of one of the *members of a *GST religious group if satisfied that the member does not *satisfy the membership requirements for the GST religious group.

Note:          Revoking under this subsection an approval under this Division is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

49‑75  Revoking the approval of GST religious groups

Revoking on application

             (1)  The Commissioner must, if the principal member of a *GST religious group applies to the Commissioner in the *approved form, revoke the approval of the group as a GST religious group.

Note:          Refusing an application for revocation under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

Revoking without application

             (2)  The Commissioner must revoke the approval of the *GST religious group if satisfied that none of its members, or only one of its members, *satisfies the membership requirements for that GST religious group.

Note:          Revoking under this subsection the approval of a GST group is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

49‑80  Notification by principal members

                   The principal member of a *GST religious group must notify the Commissioner of any circumstances under which the Commissioner must:

                     (a)  revoke the approval of one of the *members of the group under subsection 49‑70(2); or

                     (b)  revoke the approval of the group under subsection 49‑75(2).

The notification may (in appropriate cases) be in the form of an application under subsection 49‑70(1) or 49‑75(1). The notification, or application, must be given to the Commissioner within 21 days after the circumstances occurred.

49‑85  Date of effect of approvals and revocations

             (1)  The Commissioner must decide the date of effect of any approval, or any revocation of an approval, under this Division.

             (2)  The date of effect may be the day of the decision, or a day before or after that day. However, it must be a day on which, for all the *members of the *GST religious group in question, a tax period begins.

Note:          Deciding under this section the date of effect of any approval, or any revocation of an approval, under this Division is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

49‑90  Notification by the Commissioner

                   The Commissioner must give notice of any decision that he or she makes under this Division:

                     (a)  if the decision relates to the approval of 2 or more entities as a *GST religious group—to the entity nominated in the application for approval to be the *principal member of the group; or

                     (b)  otherwise—to the principal member of the *GST religious group to which the decision relates.

Division 50GST treatment of religious practitioners

Guide to Division 50

50‑1  What this Division is about

Activities of a religious practitioner done in pursuit of his or her vocation as a religious practitioner and as a member of a religious institution will be treated as activities done by the religious institution, unless the religious practitioner is acting as an employee or agent.

Table of sections

50‑5          GST treatment of religious practitioners

50‑5  GST treatment of religious practitioners

                   If a *religious practitioner:

                     (a)  does an activity, or a series of activities:

                              (i)  in pursuit of his or her vocation as a religious practitioner; and

                             (ii)  as a member of a religious institution; and

                     (b)  does not do the activity, or series of activities, as an employee or agent of the religious institution or another entity;

the *GST law applies as if the activity, or series of activities, had been done by the religious institution and not by the religious practitioner.

Note:          This will mean that such an activity will be an enterprise of the religious institution under subsection 9‑20(1) and not an enterprise of the religious practitioner.

Division 51GST joint ventures

Table of Subdivisions

51‑A     Formation of and participation in GST joint ventures

51‑B      Consequences of GST joint ventures

51‑C      Administrative matters

51‑D     Ceasing to be a participant in, or an operator of, a GST joint venture

51‑1  What this Division is about

Entities engaged in a joint venture can form a GST joint venture. The joint venture operator then deals with the GST liabilities and entitlements arising from the joint venture operator’s dealings on behalf of the participants in the joint venture.

Note:          Provisions for participants in GST joint ventures apply for the wine equalisation tax (see Subdivision 21‑C of the Wine Tax Act) and the luxury car tax (see Subdivision 16‑B of the A New Tax System (Luxury Car Tax) Act 1999).

Subdivision 51‑AFormation of and participation in GST joint ventures

51‑5  Formation of GST joint ventures

             (1)  Two or more entities may become the *participants in a *GST joint venture if:

                     (a)  the joint venture is a joint venture for the exploration or exploitation of *mineral deposits, or for a purpose specified in the regulations; and

                     (b)  the joint venture is not a *partnership; and

                     (d)  each of those entities *satisfies the participation requirements for that GST joint venture; and

                     (e)  each of those entities agrees in writing to the *formation of the joint venture as a GST joint venture; and

                    (ea)  one of those entities, or another entity, is nominated, in that agreement, to be the *joint venture operator of the joint venture; and

                   (eb)  the nominated joint venture operator notifies the Commissioner, in the *approved form, of the formation of the joint venture as a GST joint venture; and

                      (f)  if the nominated joint venture operator is not a party to the joint venture agreement—the nominated joint venture operator satisfies the requirements of paragraphs 51‑10(c) and (f).

Such a joint venture is a GST joint venture.

             (2)  Not all of the entities that are engaged in, or intend to engage in, the joint venture need to become *participants in the *GST joint venture.

             (3)  The *formation of the *GST joint venture takes effect from the start of the day specified in the notice under paragraph (1)(eb) (whether that day is before, on or after the day on which the entities decided to form the joint venture).

             (4)  However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *joint venture operator of the *GST joint venture is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the *formation of the GST joint venture takes effect from the start of:

                     (a)  the day specified in the notice, if that day is approved by the Commissioner under section 51‑75; and

                     (b)  if paragraph (a) does not apply—such other day as the Commissioner approves under that section.

51‑7  Participants in GST joint ventures

             (1)  A participant in a *GST joint venture is an entity that:

                     (a)  became a participant in the joint venture under section 51‑5 or was added to the joint venture under section 51‑70; and

                     (b)  *satisfies the participation requirements for the joint venture.

             (2)  However, the entity is not a participant in the *GST joint venture if the entity has, since the last time the entity became such a participant:

                     (a)  left, or been removed from, the joint venture under section 51‑70; or

                     (b)  ceased to *satisfy the participation requirements for the joint venture.

             (3)  The *joint venture operator of a *GST joint venture must notify the Commissioner, in the *approved form, if a *participant in the joint venture no longer *satisfies the participation requirements for the GST joint venture.

             (4)  The notice must be given within 21 days after the *participant no longer *satisfies the participation requirements for the *GST joint venture.

Note:          Section 286‑75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

51‑10  Participation requirements of a GST joint venture

                   An entity satisfies the participation requirements for a *GST joint venture, or a proposed GST joint venture, if the entity:

                     (a)  participates in, or intends to participate in, the joint venture; and

                     (b)  is a party to a joint venture agreement with all the other entities participating in, or intending to participate in, the joint venture; and

                     (c)  is *registered; and

                      (f)  accounts on the same basis as all those other participants.

Subdivision 51‑BConsequences of GST joint ventures

51‑30  Who is liable for GST

             (1)  GST payable on any *taxable supply or *taxable importation that the *joint venture operator of a *GST joint venture makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into:

                     (a)  is payable by the joint venture operator; and

                     (b)  is not payable by the participant.

Note:          However, each participant may be jointly and severally liable to pay the GST that is payable by the joint venture operator (see section 444‑80 in Schedule 1 to the Taxation Administration Act 1953).

             (2)  However, a supply that the *joint venture operator of a *GST joint venture makes is treated as if it were not a *taxable supply if:

                     (a)  it is made to another entity that is a *participant in the joint venture; and

                     (b)  the participant acquired the thing supplied for consumption, use or supply in the course of activities for which the joint venture was entered into.

             (3)  This section has effect despite sections 9‑40 and 13‑15 (which are about liability for GST).

51‑35  Who is entitled to input tax credits

             (1)  If the *joint venture operator of a *GST joint venture makes a *creditable acquisition or *creditable importation, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into:

                     (a)  the *joint venture operator is entitled to the input tax credit for the acquisition or importation; and

                     (b)  the participant is not entitled to the input tax credit on the acquisition or importation.

             (2)  This section has effect despite sections 11‑20 and 15‑15 (which are about who is entitled to input tax credits).

51‑40  Adjustments

             (1)  Any *adjustment relating to any supply, acquisition or importation that the *joint venture operator of a *GST joint venture makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into is to be treated as if:

                     (a)  the participant did not have the adjustment; and

                     (b)  the entity that is the joint venture operator at the time the adjustment arises had the adjustment.

             (2)  This section has effect despite section 17‑10 (which is about the effect of adjustments on net amounts).

51‑45  Additional net amounts relating to GST joint ventures

             (1)  Division 17 applies to the *joint venture operator of a *GST joint venture as if the joint venture operator had an additional *net amount, relating to the joint venture, for each tax period.

             (2)  The additional *net amount relating to the joint venture is worked out as if the joint venture operator:

                     (a)  is only liable for the GST on *taxable supplies that the joint venture operator makes, on behalf of another entity that is a *participant in the joint venture, in the course of activities for which the joint venture was entered into; and

                     (b)  is only entitled to the input tax credits for *creditable acquisitions or *creditable importations that the joint venture operator makes on behalf of another entity that is a participant in the joint venture, in the course of activities for which the joint venture was entered into; and

                     (c)  only has adjustments relating to supplies, acquisitions or importations that the joint venture operator makes, on behalf of another entity that is a participant in the joint venture, in the course of activities for which the joint venture was entered into.

          (2A)  However, while an election made by the *joint venture operator under section 51‑52 has effect:

                     (a)  Division 17 applies to the joint venture operator as if the joint venture operator had an additional *net amount, relating to all the *GST joint ventures for which the joint venture operator is the joint venture operator, for each tax period; and

                     (b)  that additional net amount is worked out by aggregating what would be the additional *net amounts relating to each GST joint venture under subsection (2) if that subsection applied.

             (3)  This section has effect despite sections 17‑5 and 17‑10 (which are about net amounts and adjustments).

51‑50  GST returns relating to GST joint ventures

             (1)  The *joint venture operator of a *GST joint venture must, in relation to each *GST joint venture of the joint venture operator, give to the Commissioner a *GST return for each tax period applying to the joint venture operator.

             (2)  However, while an election made by the *joint venture operator under section 51‑52 has effect, the joint venture operator must, in relation to all the *GST joint ventures for which the joint venture operator is the joint venture operator, give to the Commissioner a single *GST return for each tax period applying to the joint venture operator.

             (3)  This section has effect despite section 31‑5 (which is about who must give GST returns).

51‑52  Consolidation of GST returns relating to GST joint ventures

Electing to consolidate GST returns

             (1)  The *joint venture operator of 2 or more *GST joint ventures may, by notifying the Commissioner in the *approved form, elect to give to the Commissioner consolidated *GST returns relating to all the GST joint ventures of the joint venture operator.

             (2)  The election takes effect on the day specified in the notice. However, the day specified must be the first day of a tax period applying to the *joint venture operator that has not already ceased when the notice is given.

Withdrawal of elections

             (3)  The *joint venture operator may, by notifying the Commissioner in the *approved form, withdraw the election.

             (4)  The withdrawal takes effect on the day specified in the notice. However, the day specified:

                     (a)  must be the first day of a tax period applying to the *joint venture operator that has not already ceased when the notice is given; and

                     (b)  must not be a day occurring earlier than 12 months after the election took effect.

Disallowance of elections

             (5)  The Commissioner may disallow the election if the Commissioner is satisfied that the *joint venture operator has a history of failing to comply with the joint venture operator’s obligations (either as a joint venture operator or in any other capacity) under a *taxation law.

Note:          Disallowing an election is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (6)  The disallowance is taken to have had effect from the start of the tax period in which the disallowance occurs.

51‑55  Payments of GST relating to GST joint ventures

             (1)  If the *assessed net amount relating to one or more *GST joint ventures for a tax period is greater than zero:

                     (a)  the *joint venture operator of that GST joint venture or those GST joint ventures must pay that assessed net amount to the Commissioner; and

                     (b)  Division 33 applies to payment of that amount as if it were a payment the joint venture operator was obliged to make under section 33‑3 or 33‑5 (as the case requires).

             (2)  This section has effect despite Division 33 (which is about payments of GST).

51‑60  Refunds relating to GST joint ventures

                   If the *assessed net amount relating to one or more *GST joint ventures for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that assessed net amount (expressed as a positive amount) to the *joint venture operator of that GST joint venture or those GST joint ventures.

Note 1:       See Division 3A of Part IIB of, and section 105‑65 in Schedule 1 to, the Taxation Administration Act 1953 for the rules about how the Commissioner must pay the operator. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that the operator owes to the Commonwealth.

Note 2:       Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.

Subdivision 51‑CAdministrative matters

51‑70  Changing the participants etc. of GST joint ventures

             (1)  The following actions may be taken in relation to a *GST joint venture:

                     (a)  the *joint venture operator of the joint venture may, with the written agreement of an entity that *satisfies the participation requirements of the GST joint venture, add the entity to the joint venture;

                     (b)  the joint venture operator may:

                              (i)  if the joint venture operator is a *participant in the joint venture—leave the joint venture; or

                             (ii)  remove from the joint venture a participant in the joint venture;

                     (c)  another entity, nominated by the participants in the joint venture, that satisfies the requirements of paragraphs 51‑10(c) and (f) may become the joint venture operator;

                     (d)  the joint venture operator may dissolve the joint venture;

by notice given to the Commissioner, in the *approved form, by the joint venture operator, or (if subparagraph (b)(i) or paragraph (c) applies) by the new joint venture operator of the joint venture.

             (2)  The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).

             (3)  However, if the notice was given to the Commissioner after the day by which the *joint venture operator of the joint venture, or the entity nominated to be the new joint venture operator of the joint venture, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:

                     (a)  the day specified in the notice, if that day is approved by the Commissioner under section 51‑75; and

                     (b)  if paragraph (a) does not apply—such other day as the Commissioner approves under that section.

             (4)  A *GST joint venture is taken to be dissolved if:

                     (a)  an entity ceases to be the *joint venture operator of the joint venture, and no other entity becomes the joint venture operator of the joint venture with effect from the day after the previous joint venture operator ceased to be the joint venture operator; or

                     (b)  there are no longer 2 or more *participants in the joint venture.

             (5)  A notice that another entity has become the *joint venture operator of the *GST joint venture must be given to the Commissioner within 21 days after the other entity became the joint venture operator.

Note:          Section 286‑75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

51‑75  Approval of early day of effect of forming, changing etc. GST joint ventures

             (1)  If an entity that gives a notice to the Commissioner under paragraph 51‑5(1)(eb) or subsection 51‑70(1) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:

                     (a)  approve, for the purposes of subsection 51‑5(4) or 51‑70(3), the day specified in the notice; or

                     (b)  approve another day for those purposes.

Note:          Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (2)  The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.

Note:          Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

             (3)  The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.

Subdivision 51‑DCeasing to be a participant in, or an operator of, a GST joint venture