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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  • In force - Superseded Version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
Table of contents.

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.