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

Authoritative Version
  • - C2017C00204
  • In force - Superseded Version
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Act No. 55 of 1999 as amended, taking into account amendments up to Treasury Laws Amendment (GST Integrity) Act 2017
An Act about a goods and services tax to implement A New Tax System, and for related purposes
Administered by: Treasury
Registered 04 Jul 2017
Start Date 27 Jun 2017
End Date 30 Jun 2017

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

No. 55, 1999

Compilation No. 73

Compilation date:                              27 June 2017

Includes amendments up to:            Act No. 77, 2017

Registered:                                         4 July 2017

This compilation is in 2 volumes

Volume 1:       sections 1‑1 to 113‑5

Volume 2:       sections 114‑1 to 195‑1

                        Schedules

                        Endnotes

Each volume has its own contents

 

 

 

 

 

 

This compilation includes commenced amendments made by Act No. 76, 2017. Amendments made by Act No. 77, 2017 have not commenced but are noted in the endnotes.

About this compilation

This compilation

This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 27 June 2017 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed 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................ 2

Part 1‑2—Using this Act                                                                                                    3

Division 2—Overview of the GST legislation                                                  3

2‑1......................... What this Act is about......................................................... 3

2‑5......................... The basic rules (Chapter 2)................................................. 3

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

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

2‑20....................... Miscellaneous (Chapter 5).................................................. 4

2‑25....................... Interpretative provisions (Chapter 6).................................. 4

2‑30....................... Administration, collection and recovery provisions in the Taxation Administration Act 1953 4

Division 3—Defined terms                                                                                         5

3‑1......................... When defined terms are identified....................................... 5

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

3‑10....................... Identifying the defined term in a definition......................... 6

Division 4—Status of Guides and other non‑operative material           7

4‑1......................... Non‑operative material........................................................ 7

4‑5......................... Explanatory sections........................................................... 7

4‑10....................... Other material..................................................................... 7

Chapter 2—The basic rules                                                                                 8

Division 5—Introduction                                                                                            8

5‑1......................... What this Chapter is about.................................................. 8

5‑5......................... The structure of this Chapter............................................... 8

Part 2‑1—The central provisions                                                                                10

Division 7—The central provisions                                                                     10

7‑1......................... GST and input tax credits................................................. 10

7‑5......................... Net amounts...................................................................... 10

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

7‑15....................... Payments and refunds....................................................... 10

Part 2‑2—Supplies and acquisitions                                                                         12

Division 9—Taxable supplies                                                                                  12

9‑1......................... What this Division is about............................................... 12

Subdivision 9‑A—What are taxable supplies?                                                  12

9‑5......................... Taxable supplies............................................................... 12

9‑10....................... Meaning of supply............................................................ 12

9‑15....................... Consideration.................................................................... 13

9‑17....................... Certain payments and other things not consideration........ 14

9‑20....................... Enterprises........................................................................ 15

9‑25....................... Supplies connected with the indirect tax zone................... 17

9‑26....................... Supplies by non‑residents that are not connected with the indirect tax zone             20

9‑27....................... When enterprises are carried on in the indirect tax zone.. 22

9‑30....................... Supplies that are GST‑free or input taxed......................... 23

9‑39....................... Special rules relating to taxable supplies........................... 24

Subdivision 9‑B—Who is liable for GST on taxable supplies?                    25

9‑40....................... Liability for GST on taxable supplies............................... 25

9‑69....................... Special rules relating to liability for GST on taxable supplies  25

Subdivision 9‑C—How much GST is payable on taxable supplies?            26

9‑70....................... The amount of GST on taxable supplies........................... 26

9‑75....................... The value of taxable supplies............................................ 26

9‑80....................... The value of taxable supplies that are partly GST‑free or input taxed      28

9‑85....................... Value of taxable supplies to be expressed in Australian currency            29

9‑90....................... Rounding of amounts of GST.......................................... 29

9‑99....................... Special rules relating to the amount of GST on taxable supplies              31

Division 11—Creditable acquisitions                                                                 33

11‑1....................... What this Division is about............................................... 33

11‑5....................... What is a creditable acquisition?....................................... 33

11‑10..................... Meaning of acquisition..................................................... 33

11‑15..................... Meaning of creditable purpose......................................... 34

11‑20..................... Who is entitled to input tax credits for creditable acquisitions?                35

11‑25..................... How much are the input tax credits for creditable acquisitions?               35

11‑30..................... Acquisitions that are partly creditable............................... 35

11‑99..................... Special rules relating to acquisitions................................. 36

Part 2‑3—Importations                                                                                                     38

Division 13—Taxable importations                                                                    38

13‑1....................... What this Division is about............................................... 38

13‑5....................... What are taxable importations?......................................... 38

13‑10..................... Meaning of non‑taxable importation................................ 38

13‑15..................... Who is liable for GST on taxable importations?............... 39

13‑20..................... How much GST is payable on taxable importations?....... 39

13‑25..................... The value of taxable importations that are partly non‑taxable importations              41

13‑99..................... Special rules relating to taxable importations.................... 41

Division 15—Creditable importations                                                               42

15‑1....................... What this Division is about............................................... 42

15‑5....................... What are creditable importations?..................................... 42

15‑10..................... Meaning of creditable purpose......................................... 42

15‑15..................... Who is entitled to input tax credits for creditable importations?               43

15‑20..................... How much are the input tax credits for creditable importations?              43

15‑25..................... Importations that are partly creditable............................... 44

15‑99..................... Special rules relating to creditable importations................ 44

Part 2‑4—Net amounts and adjustments                                                               46

Division 17—Net amounts and adjustments                                                   46

17‑1....................... What this Division is about............................................... 46

17‑5....................... Net amounts...................................................................... 46

17‑10..................... Adjustments...................................................................... 47

17‑20..................... Determinations relating to how to work out net amounts.. 47

17‑99..................... Special rules relating to net amounts or adjustments......... 48

Division 19—Adjustment events                                                                           50

19‑1....................... What this Division is about............................................... 50

19‑5....................... Explanation of the effect of adjustment events.................. 50

Subdivision 19‑A—Adjustment events                                                                51

19‑10..................... Adjustment events............................................................ 51

Subdivision 19‑B—Adjustments for supplies                                                    52

19‑40..................... Where adjustments for supplies arise................................ 52

19‑45..................... Previously attributed GST amounts.................................. 53

19‑50..................... Increasing adjustments for supplies.................................. 53

19‑55..................... Decreasing adjustments for supplies................................. 53

Subdivision 19‑C—Adjustments for acquisitions                                             54

19‑70..................... Where adjustments for acquisitions arise.......................... 54

19‑75..................... Previously attributed input tax credit amounts.................. 54

19‑80..................... Increasing adjustments for acquisitions............................ 55

19‑85..................... Decreasing adjustments for acquisitions........................... 55

19‑99..................... Special rules relating to adjustment events........................ 55

Division 21—Bad debts                                                                                              57

21‑1....................... What this Division is about............................................... 57

21‑5....................... Writing off bad debts (taxable supplies)........................... 57

21‑10..................... Recovering amounts previously written off (taxable supplies) 57

21‑15..................... Bad debts written off (creditable acquisitions).................. 58

21‑20..................... Recovering amounts previously written off (creditable acquisitions)       58

21‑99..................... Special rules relating to adjustments for bad debts............ 59

Part 2‑5—Registration                                                                                                      60

Division 23—Who is required to be registered and who may be registered       60

23‑1....................... Explanation of Division.................................................... 60

23‑5....................... Who is required to be registered....................................... 60

23‑10..................... Who may be registered..................................................... 61

23‑15..................... The registration turnover threshold................................... 61

23‑20..................... Not registered for 4 years................................................. 61

23‑99..................... Special rules relating to who is required to be registered or who may be registered 62

Division 25—How you become registered, and how your registration can be cancelled            63

Subdivision 25‑A—How you become registered                                              63

25‑1....................... When you must apply for registration............................... 63

25‑5....................... When the Commissioner must register you...................... 63

25‑10..................... The date of effect of your registration............................... 64

25‑15..................... Effect of backdating your registration............................... 65

25‑49..................... Special rules relating to registration.................................. 65

Subdivision 25‑B—How your registration can be cancelled                         66

25‑50..................... When you must apply for cancellation of registration....... 66

25‑55..................... When the Commissioner must cancel registration............. 66

25‑57..................... When the Commissioner may cancel your registration..... 67

25‑60..................... The date of effect of your cancellation.............................. 68

25‑65..................... Effect of backdating your cancellation of registration....... 68

25‑99..................... Special rules relating to cancellation of registration........... 68

Part 2‑6—Tax periods                                                                                                       70

Division 27—How to work out the tax periods that apply to you      70

27‑1....................... What this Division is about............................................... 70

27‑5....................... General rule—3 month tax periods................................... 70

27‑10..................... Election of one month tax periods..................................... 70

27‑15..................... Determination of one month tax periods........................... 71

27‑20..................... Withdrawing elections of one month tax periods.............. 71

27‑22..................... Revoking elections of one month tax periods................... 72

27‑25..................... Revoking determinations of one month tax periods.......... 73

27‑30..................... Tax periods determined by the Commissioner to take account of changes in tax periods         73

27‑35..................... Changing the days on which your tax periods end........... 74

27‑37..................... Special determination of tax periods on request................ 74

27‑38..................... Revoking special determination of tax periods.................. 75

27‑39..................... Tax periods of incapacitated entities.................................. 75

27‑40..................... An entity’s concluding tax period..................................... 76

27‑99..................... Special rules relating to tax periods................................... 76

Division 29—What is attributable to tax periods                                        77

29‑1....................... What this Division is about............................................... 77

Subdivision 29‑A—The attribution rules                                                           77

29‑5....................... Attributing the GST on your taxable supplies................... 77

29‑10..................... Attributing the input tax credits for your creditable acquisitions              78

29‑15..................... Attributing the input tax credits for your creditable importations             79

29‑20..................... Attributing your adjustments............................................ 79

29‑25..................... Commissioner may determine particular attribution rules. 80

29‑39..................... Special rules relating to attribution rules........................... 82

Subdivision 29‑B—Accounting on a cash basis                                                83

29‑40..................... Choosing to account on a cash basis................................. 83

29‑45..................... Permission to account on a cash basis.............................. 83

29‑50..................... Ceasing to account on a cash basis................................... 84

29‑69..................... Special rules relating to accounting on a cash basis.......... 85

Subdivision 29‑C—Tax invoices and adjustment notes                                  85

29‑70..................... Tax invoices...................................................................... 85

29‑75..................... Adjustment notes.............................................................. 87

29‑80..................... Tax invoices and adjustment notes not required for low value transactions             88

29‑99..................... Special rules relating to tax invoices and adjustment notes 88

Part 2‑7—Returns, payments and refunds                                                          90

Division 31—GST returns                                                                                        90

31‑1....................... What this Division is about............................................... 90

31‑5....................... Who must give GST returns............................................. 90

31‑8....................... When GST returns must be given—quarterly tax periods 90

31‑10..................... When GST returns must be given—other tax periods...... 91

31‑15..................... The form and contents of GST returns............................. 91

31‑20..................... Additional GST returns.................................................... 92

31‑25..................... Electronic lodgment of GST returns................................. 92

31‑99..................... Special rules relating to GST returns................................ 93

Division 33—Payments of GST                                                                             95

33‑1....................... What this Division is about............................................... 95

33‑3....................... When payments of assessed net amounts must be made—quarterly tax periods      95

33‑5....................... When payments of assessed net amounts must be made—other tax periods            96

33‑10..................... How payment of assessed net amounts are made............. 96

33‑15..................... Payments of assessed GST on importations..................... 97

33‑99..................... Special rules relating to payments of GST........................ 97

Division 35—Refunds                                                                                                 99

35‑1....................... What this Division is about............................................... 99

35‑5....................... Entitlement to refund......................................................... 99

35‑10..................... When entitlement arises.................................................. 100

35‑99..................... Special rules relating to refunds...................................... 100

Part 2‑8—Checklist of special rules                                                                        102

Division 37—Checklist of special rules                                                           102

37‑1....................... Checklist of special rules................................................ 102

Chapter 3—The exemptions                                                                           105

Part 3‑1—Supplies that are not taxable supplies                                            105

Division 38—GST‑free supplies                                                                          105

38‑1....................... What this Division is about............................................. 106

Subdivision 38‑A—Food                                                                                       106

38‑2....................... Food............................................................................... 106

38‑3....................... Food that is not GST‑free............................................... 106

38‑4....................... Meaning of food............................................................. 107

38‑5....................... Premises used in supplying food.................................... 107

38‑6....................... Packaging of food........................................................... 108

Subdivision 38‑B—Health                                                                                    108

38‑7....................... Medical services............................................................. 108

38‑10..................... Other health services....................................................... 109

38‑15..................... Other government funded health services....................... 111

38‑20..................... Hospital treatment........................................................... 111

38‑25..................... Residential care etc.......................................................... 111

38‑30..................... Home care etc................................................................. 114

38‑35..................... Flexible care.................................................................... 115

38‑38..................... Disability support provided to NDIS participants........... 115

38‑40..................... Specialist disability services............................................ 115

38‑45..................... Medical aids and appliances............................................ 115

38‑47..................... Other GST‑free health goods.......................................... 116

38‑50..................... Drugs and medicinal preparations etc............................. 116

38‑55..................... Private health insurance etc............................................. 118

38‑60..................... Third party procured GST‑free health supplies............... 118

Subdivision 38‑C—Education                                                                             120

38‑85..................... Education courses........................................................... 120

38‑90..................... Excursions or field trips.................................................. 120

38‑95..................... Course materials............................................................. 120

38‑97..................... Lease etc. of curriculum related goods............................ 121

38‑100................... Supplies that are not GST‑free........................................ 121

38‑105................... Accommodation at boarding schools etc......................... 121

38‑110................... Recognition of prior learning etc..................................... 122

Subdivision 38‑D—Child care                                                                             123

38‑140................... Child care—registered carers under the family assistance law 123

38‑145................... Child care—approved child care services under the family assistance law               123

38‑150................... Other child care............................................................... 123

38‑155................... Supplies directly related to child care that is GST‑free.... 123

Subdivision 38‑E—Exports and other cross‑border supplies                     124

38‑185................... Exports of goods............................................................ 124

38‑187................... Lease etc. of goods for use outside the indirect tax zone. 129

38‑188................... Tooling used by non‑residents to manufacture goods for export             129

38‑190................... Supplies of things, other than goods or real property, for consumption outside the indirect tax zone      130

38‑191................... Supplies relating to the repair etc. of goods under warranty 133

Subdivision 38‑F—Religious services                                                               134

38‑220................... Religious services........................................................... 134

Subdivision 38‑G—Activities of charities etc.                                                 134

38‑250................... Nominal consideration etc............................................... 134

38‑255................... Second‑hand goods........................................................ 135

38‑260................... Supplies of retirement village accommodation etc........... 136

38‑270................... Raffles and bingo conducted by charities etc.................. 136

Subdivision 38‑I—Water, sewerage and drainage                                        137

38‑285................... Water.............................................................................. 137

38‑290................... Sewerage and sewerage‑like services............................. 138

38‑295................... Emptying of septic tanks................................................. 138

38‑300................... Drainage......................................................................... 138

Subdivision 38‑J—Supplies of going concerns                                               138

38‑325................... Supply of a going concern.............................................. 138

Subdivision 38‑K—Transport and related matters                                       139

38‑355................... Supplies of transport and related matters........................ 139

38‑360................... Travel agents arranging overseas supplies...................... 142

Subdivision 38‑L—Precious metals                                                                   142

38‑385................... Supplies of precious metals............................................ 142

Subdivision 38‑M—Supplies through inwards duty free shops                  142

38‑415................... Supplies through inwards duty free shops...................... 142

Subdivision 38‑N—Grants of land by governments                                      142

38‑445................... Grants of freehold and similar interests by governments 142

38‑450................... Leases preceding grants of freehold and similar interests by governments              143

Subdivision 38‑O—Farm land                                                                            144

38‑475................... Subdivided farm land...................................................... 144

38‑480................... Farm land supplied for farming...................................... 144

Subdivision 38‑P—Cars for use by disabled people                                      145

38‑505................... Disabled veterans............................................................ 145

38‑510................... Other disabled people..................................................... 146

Subdivision 38‑Q—International mail                                                             146

38‑540................... International mail............................................................ 146

Subdivision 38‑R—Telecommunication supplies made under arrangements for global roaming in the indirect tax zone                                                                                              147

38‑570................... Telecommunication supplies made under arrangements for global roaming in the indirect tax zone        147

Subdivision 38‑S—Eligible emissions units                                                     148

38‑590................... Eligible emissions units.................................................. 148

Subdivision 38‑T—Inbound intangible consumer supplies                         148

38‑610................... Inbound intangible consumer supplies............................ 148

Division 40—Input taxed supplies                                                                      150

40‑1....................... What this Division is about............................................. 150

Subdivision 40‑A—Financial supplies                                                              150

40‑5....................... Financial supplies........................................................... 150

Subdivision 40‑B—Residential rent                                                                   151

40‑35..................... Residential rent............................................................... 151

Subdivision 40‑C—Residential premises                                                          152

40‑65..................... Sales of residential premises........................................... 152

40‑70..................... Supplies of residential premises by way of long‑term lease 152

40‑75..................... Meaning of new residential premises............................. 152

Subdivision 40‑D—Precious metals                                                                   155

40‑100................... Precious metals............................................................... 155

Subdivision 40‑E—School tuckshops and canteens                                       156

40‑130................... School tuckshops and canteens....................................... 156

Subdivision 40‑F—Fund‑raising events conducted by charities etc.         156

40‑160................... Fund‑raising events conducted by charities etc............... 156

40‑165................... Meaning of fund‑raising event........................................ 157

Subdivision 40‑G—Inbound intangible consumer supplies                         158

40‑180................... Inbound intangible consumer supplies............................ 158

Part 3‑2—Non‑taxable importations                                                                      159

Division 42—Non‑taxable importations                                                         159

42‑1....................... What this Division is about............................................. 159

42‑5....................... Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995  159

42‑10..................... Goods returned to the indirect tax zone in an unaltered condition            160

Chapter 4—The special rules                                                                         162

Division 45—Introduction                                                                                      162

45‑1....................... What this Chapter is about.............................................. 162

45‑5....................... The effect of special rules............................................... 162

Part 4‑1—Special rules mainly about particular ways entities are organised       163

Division 48—GST groups                                                                                       163

48‑1....................... What this Division is about............................................. 163

Subdivision 48‑A—Formation and membership of GST groups               163

48‑5....................... Formation of GST groups.............................................. 163

48‑7....................... Membership of GST groups........................................... 164

48‑10..................... Membership requirements of a GST group.................... 165

48‑15..................... Relationship of companies and non‑companies in a GST group              166

Subdivision 48‑B—Consequences of GST groups                                          168

48‑40..................... Who is liable for GST..................................................... 168

48‑45..................... Who is entitled to input tax credits.................................. 169

48‑50..................... Adjustments.................................................................... 170

48‑51..................... Consequences of being a member of a GST group for part of a tax period              170

48‑52..................... Consequences for a representative member of membership change during a tax period          171

48‑53..................... Consequences of changing a representative member during a tax period 172

48‑55..................... GST groups treated as single entities for certain purposes 173

48‑57..................... Tax invoices that are required to identify recipients........ 173

48‑60..................... GST returns.................................................................... 174

Subdivision 48‑C—Administrative matters                                                     175

48‑70..................... Changing the membership etc. of GST groups............... 175

48‑71..................... Approval of early day of effect of forming, changing etc. GST groups   177

48‑73..................... Tax periods of GST groups with incapacitated members 177

48‑75..................... Effect of representative member becoming an incapacitated entity           178

Subdivision 48‑D—Ceasing to be a member of a GST group                     179

48‑110................... Adjustments after you cease to be a member of a GST group  179

48‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST group        179

Division 49—GST religious groups                                                                   181

49‑1....................... What this Division is about............................................. 181

Subdivision 49‑A—Approval of GST religious groups                                181

49‑5....................... Approval of GST religious groups................................. 181

49‑10..................... Membership requirements of a GST religious group...... 182

Subdivision 49‑B—Consequences of approval of GST religious groups 182

49‑30..................... Supplies between members of GST religious groups..... 182

49‑35..................... Acquisitions between members of GST religious groups 182

49‑40..................... Adjustment events.......................................................... 182

49‑45..................... Changes in the extent of creditable purpose.................... 183

49‑50..................... GST religious groups treated as single entities for certain purposes        183

Subdivision 49‑C—Administrative matters                                                     184

49‑70..................... Changing the membership etc. of GST religious groups 184

49‑75..................... Revoking the approval of GST religious groups............ 184

49‑80..................... Notification by principal members.................................. 185

49‑85..................... Date of effect of approvals and revocations.................... 185

49‑90..................... Notification by the Commissioner.................................. 186

Division 50—GST treatment of religious practitioners                         187

Guide to Division 50                                                                                              187

50‑1....................... What this Division is about............................................. 187

50‑5....................... GST treatment of religious practitioners......................... 187

Division 51—GST joint ventures                                                                        188

51‑1....................... What this Division is about............................................. 188

Subdivision 51‑A—Formation of and participation in GST joint ventures 188

51‑5....................... Formation of GST joint ventures.................................... 188

51‑7....................... Participants in GST joint ventures.................................. 189

51‑10..................... Participation requirements of a GST joint venture.......... 190

Subdivision 51‑B—Consequences of GST joint ventures                             191

51‑30..................... Who is liable for GST..................................................... 191

51‑35..................... Who is entitled to input tax credits.................................. 191

51‑40..................... Adjustments.................................................................... 192

51‑45..................... Additional net amounts relating to GST joint ventures... 192

51‑50..................... GST returns relating to GST joint ventures.................... 193

51‑52..................... Consolidation of GST returns relating to GST joint ventures  194

51‑55..................... Payments of GST relating to GST joint ventures............ 195

51‑60..................... Refunds relating to GST joint ventures........................... 195

Subdivision 51‑C—Administrative matters                                                     196

51‑70..................... Changing the participants etc. of GST joint ventures...... 196

51‑75..................... Approval of early day of effect of forming, changing etc. GST joint ventures         197

Subdivision 51‑D—Ceasing to be a participant in, or an operator of, a GST joint venture        198

51‑110................... Adjustments after you cease to be a participant in a GST joint venture    198

51‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST joint venture             198

Division 54—GST branches                                                                                  200

54‑1....................... What this Division is about............................................. 200

Subdivision 54‑A—Registration of GST branches                                        200

54‑5....................... Registration of GST branches......................................... 200

54‑10..................... The date of effect of registration of a GST branch.......... 201

54‑15..................... GST branch registration number..................................... 201

Subdivision 54‑B—Consequences of registration of GST branches         202

54‑40..................... Additional net amounts relating to GST branches........... 202

54‑45..................... Net amounts of parent entities......................................... 202

54‑50..................... Tax invoices and adjustment notes.................................. 203

54‑55..................... GST returns relating to GST branches............................ 204

54‑60..................... Payments of GST relating to GST branches................... 204

54‑65..................... Refunds relating to GST branches.................................. 204

Subdivision 54‑C—Cancellation of registration of GST branches           205

54‑70..................... When an entity must apply for cancellation of registration of a GST branch            205

54‑75..................... When the Commissioner must cancel registration of a GST branch         205

54‑80..................... The date of effect of cancellation of registration of a GST branch            206

54‑85..................... Application of Subdivision 25‑B.................................... 206

54‑90..................... Effect on GST branches of cancelling the entity’s registration 207

Division 57—Resident agents acting for non‑residents                          208

57‑1....................... What this Division is about............................................. 208

57‑5....................... Who is liable for GST..................................................... 208

57‑7....................... Agreement to apply this Division to all supplies through a resident agent               208

57‑10..................... Who is entitled to input tax credits.................................. 209

57‑15..................... Adjustments.................................................................... 210

57‑20..................... Resident agents are required to be registered.................. 210

57‑25..................... Cancellation of registration of a resident agent................ 210

57‑30..................... Notice of cessation of agency......................................... 211

57‑35..................... Tax periods of resident agents........................................ 211

57‑40..................... GST returns for non‑residents........................................ 211

57‑45..................... Resident agents giving GST returns............................... 212

57‑50..................... Non‑residents that belong to GST groups...................... 212

Division 58—Representatives of incapacitated entities                          213

58‑1....................... What this Division is about............................................. 213

58‑5....................... General principle for the relationship between incapacitated entities and their representatives 213

58‑10..................... Circumstances in which representatives have GST‑related liabilities and entitlements             214

58‑15..................... Adjustments for bad debts.............................................. 217

58‑20..................... Representatives are required to be registered.................. 217

58‑25..................... Cancellation of registration of a representative................ 217

58‑30..................... Notice of cessation of representation.............................. 218

58‑35..................... Tax periods of representatives........................................ 218

58‑40..................... Effect on attribution rules of not accounting on a cash basis 218

58‑45..................... GST returns for representatives of incapacitated entities. 219

58‑50..................... Representatives to give GST returns for incapacitated entities 219

58‑55..................... Incapacitated entities not required to give GST returns in some cases      220

58‑60..................... Representative to notify Commissioner of certain liabilities etc.               221

58‑65..................... Money available to meet representative’s liabilities......... 222

58‑70..................... Protection for actions of representative........................... 222

58‑95..................... Division does not apply to the extent that the representative is a creditor of the incapacitated entity        222

Division 60—Pre‑establishment costs                                                              223

60‑1....................... What this Division is about............................................. 223

60‑5....................... Input tax credit for acquisitions and importations before establishment   223

60‑10..................... Registration etc. not needed for input tax credits............. 223

60‑15..................... Pre‑establishment acquisitions and importations............. 224

60‑20..................... Creditable purpose.......................................................... 224

60‑25..................... Attributing the input tax credit for pre‑establishment acquisitions            225

60‑30..................... Attributing the input tax credit for pre‑establishment importations           226

60‑35..................... Application of Division 129........................................... 226

Division 63—Non‑profit sub‑entities                                                                227

63‑1....................... What this Division is about............................................. 227

63‑5....................... Entities that may choose to apply this Division............... 227

63‑10..................... Period for which a choice has effect............................... 227

63‑15..................... Consequences of choosing to apply this Division.......... 228

63‑20..................... Non‑profit sub‑entities may register............................... 229

63‑25..................... Registration turnover threshold for non‑profit sub‑entities 229

63‑27..................... Application of particular provisions relating to charities etc. 229

63‑30..................... When non‑profit sub‑entities must apply for cancellation of registration 230

63‑35..................... When the Commissioner must cancel registration of non‑profit sub‑entities            231

63‑40..................... Effect on adjustments of becoming a non‑profit sub‑entity 231

63‑45..................... Effect on adjustments of ceasing to be a non‑profit sub‑entity 232

63‑50..................... Membership requirements of GST groups..................... 232

Part 4‑2—Special rules mainly about supplies and acquisitions            234

Division 66—Second‑hand goods                                                                       234

66‑1....................... What this Division is about............................................. 234

Subdivision 66‑A—Input tax credits for acquiring second‑hand goods   234

66‑5....................... Creditable acquisitions of second‑hand goods................ 234

66‑10..................... Amounts of input tax credits for creditable acquisitions of second‑hand goods       235

66‑15..................... Attributing input tax credits for creditable acquisitions of second‑hand goods        235

66‑17..................... Records of creditable acquisitions of second‑hand goods 236

Subdivision 66‑B—Acquisitions of second‑hand goods that are divided for re‑supply                238

66‑40..................... Acquisitions of second‑hand goods that can be used to offset GST on future re‑supplies       238

66‑45..................... Future re‑supplies that are not taxable supplies............... 239

66‑50..................... Future re‑supplies on which GST is reduced.................. 239

66‑55..................... Records of acquisitions of second‑hand goods to which this Subdivision applied  240

66‑60..................... Input tax credits for acquiring second‑hand goods the supply of which is not fully taxable    240

66‑65..................... Total Subdivision 66‑B credit amounts and Subdivision 66‑B GST amounts         241

66‑70..................... Commissioner may determine rules for applying this Subdivision          241

Division 69—Non‑deductible expenses                                                            242

69‑1....................... What this Division is about............................................. 242

Subdivision 69‑A—Non‑deductible expenses generally                                242

69‑5....................... Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations               242

69‑10..................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           243

Subdivision 69‑B—Elections for GST purposes relating to meal entertainment and entertainment facilities      245

69‑15..................... What this Subdivision is about....................................... 245

69‑20..................... Effect of elections on net amounts.................................. 245

69‑25..................... Election to use the 50/50 split method for meal entertainment  245

69‑30..................... Election to use the 12 week register method for meal entertainment         246

69‑35..................... Election to use the 50/50 split method for entertainment facilities            246

69‑40..................... When elections take effect............................................... 247

69‑45..................... When elections cease to have effect................................ 247

69‑50..................... Adjustment events relating to elections........................... 248

69‑55..................... Adjustment notes not required........................................ 249

Division 70—Financial supplies (reduced credit acquisitions)            250

70‑1....................... What this Division is about............................................. 250

70‑5....................... Acquisitions that attract the reduced credit...................... 250

70‑10..................... Extended meaning of creditable purpose........................ 250

70‑15..................... How much are the reduced input tax credits?.................. 251

70‑20..................... Extent of creditable purpose............................................ 251

70‑25..................... Sale of reduced credit acquisitions (Division 132).......... 252

Division 71—Fringe benefits provided by input taxed suppliers       254

71‑1....................... What this Division is about............................................. 254

71‑5....................... Acquisitions by input taxed suppliers to provide fringe benefits              254

71‑10..................... Importations by input taxed suppliers to provide fringe benefits              255

Division 72—Associates                                                                                          256

72‑1....................... What this Division is about............................................. 256

Subdivision 72‑A—Supplies without consideration                                       256

72‑5....................... Taxable supplies without consideration.......................... 256

72‑10..................... The value of taxable supplies without consideration....... 257

72‑15..................... Attributing the GST to tax periods.................................. 257

72‑20..................... Supplies and acquisitions that would otherwise be sales etc. 257

72‑25..................... Supplies that would otherwise be GST‑free, input taxed or financial supplies         258

Subdivision 72‑B—Acquisitions without consideration                                258

72‑40..................... Creditable acquisitions without consideration................. 258

72‑45..................... The amount of the input tax credit................................... 258

72‑50..................... Attributing the input tax credit to tax periods.................. 259

Subdivision 72‑C—Supplies for inadequate consideration                         259

72‑70..................... The value of taxable supplies for inadequate consideration 259

Subdivision 72‑D—Application of this Division to certain sub‑entities    260

72‑90..................... GST branches................................................................. 260

72‑92..................... Non‑profit sub‑entities.................................................... 260

72‑95..................... Commonwealth government entities............................... 260

72‑100................... State or Territory government entities............................. 261

Division 75—Sale of freehold interests etc.                                                  262

75‑1....................... What this Division is about............................................. 262

75‑5....................... Applying the margin scheme.......................................... 262

75‑10..................... The amount of GST on taxable supplies......................... 265

75‑11..................... Margins for supplies of real property in particular circumstances            267

75‑12..................... Working out margins to take into account failure to pay full consideration              273

75‑13..................... Working out margins to take into account supplies to associates             274

75‑14..................... Consideration for acquisition of real property not to include cost of improvements etc.          274

75‑15..................... Subdivided real property................................................. 275

75‑16..................... Margins for supplies of real property acquired through several acquisitions           275

75‑20..................... Supplies under a margin scheme do not give rise to creditable acquisitions             276

75‑22..................... Increasing adjustment relating to input tax credit entitlement 276

75‑25..................... Adjustments relating to bad debts................................... 278

75‑27..................... Decreasing adjustment for later payment of consideration 279

75‑30..................... Tax invoices not required for supplies of real property under the margin scheme    279

75‑35..................... Approved valuations....................................................... 279

Division 78—Insurance                                                                                           280

78‑1....................... What this Division is about............................................. 280

Subdivision 78‑A—Insurers                                                                                 280

78‑5....................... GST on insurance premiums is exclusive of stamp duty 280

78‑10..................... Decreasing adjustments for settlements of insurance claims 281

78‑15..................... How to work out the decreasing adjustments................. 282

78‑18..................... Increasing adjustments for payments of excess under insurance policies 283

78‑20..................... Settlements of insurance claims do not give rise to creditable acquisitions               284

78‑25..................... Supplies in settlement of claims are not taxable supplies 285

78‑30..................... Acquisitions by insurers in the course of settling claims under non‑taxable policies               285

78‑35..................... Taxable supplies relating to rights of subrogation........... 285

78‑40..................... Adjustment events relating to decreasing adjustments under this Division              286

78‑42..................... Adjustment events relating to increasing adjustments under section 78‑18              286

Subdivision 78‑B—Insured entities etc.                                                            287

78‑45..................... Settlements of insurance claims do not give rise to taxable supplies        287

78‑50..................... Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed........................................................................................ 287

78‑55..................... Payments of excess under insurance policies are not consideration for supplies      288

78‑60..................... Supplies of goods to insurers in the course of settling claims  289

Subdivision 78‑C—Third parties                                                                       289

78‑65..................... Payments etc. to third parties by insurers........................ 289

78‑70..................... Payments etc. to third parties by insured entities............. 290

78‑75..................... Creditable acquisitions relating to rights of subrogation. 290

Subdivision 78‑D—Insured entities that are not registered etc.                  291

78‑80..................... Net amounts.................................................................... 291

78‑85..................... GST returns.................................................................... 291

78‑90..................... Payments of GST........................................................... 292

Subdivision 78‑E—Statutory compensation schemes                                   292

78‑95..................... GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty      292

78‑100................... Settlements of claims for compensation under statutory compensation schemes      293

78‑105................... Meaning of statutory compensation scheme................... 294

Subdivision 78‑F—Miscellaneous                                                                      294

78‑110................... Effect of judgments and court orders.............................. 294

78‑115................... Exclusion of certain Commonwealth, State or Territory insurance schemes            295

78‑118................... Portfolio transfers........................................................... 295

78‑120................... HIH rescue package........................................................ 296

Division 79—Compulsory third party schemes                                          298

79‑1....................... What this Division is about............................................. 298

Subdivision 79‑A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies                                         299

79‑5....................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where premium selection test is satisfied........................................................................... 299

79‑10..................... Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied............................... 300

79‑15..................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement................................. 302

79‑20..................... Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery........................................................................................ 303

Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies             304

79‑25..................... Meaning of CTP hybrid payment or supply................... 304

79‑30..................... Application of Division 78............................................. 305

Subdivision 79‑C—Other payments and supplies under compulsory third party schemes         305

79‑35..................... Meaning of CTP compensation or ancillary payment or supply etc.       305

79‑40..................... GST on CTP premiums is exclusive of stamp duty........ 306

79‑45..................... Exclusion of certain compulsory third party schemes..... 307

79‑50..................... Decreasing adjustments for CTP compensation or ancillary payments or supplies  307

79‑55..................... Increasing adjustments for payments of excess etc. under compulsory third party schemes    307

79‑60..................... Effect of settlements and payments under compulsory third party schemes             308

79‑65..................... Taxable supplies relating to recovery by operators of compulsory third party schemes           309

79‑70..................... Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes 310

79‑75..................... Adjustment events relating to increasing adjustments under section 79‑55              311

79‑80..................... Payments of excess under compulsory third party schemes are not consideration for supplies               311

79‑85..................... Supplies of goods to operators in the course of settling claims                311

79‑90..................... Effect of judgments and court orders.............................. 312

Subdivision 79‑D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction                                                          313

79‑95..................... How to work out decreasing adjustments using the applicable average input tax credit fraction              313

79‑100................... Meaning of average input tax credit fraction.................. 315

Division 80—Settlement sharing arrangements                                         318

80‑1....................... What this Division is about............................................. 318

Subdivision 80‑A—Insurance policy settlement sharing arrangements  318

80‑5....................... Meaning of insurance policy settlement sharing arrangement etc.          318

80‑10..................... Effect of becoming parties to industry deeds or entering into settlement sharing arrangements               319

80‑15..................... Effect of contributing operator’s payment....................... 320

80‑20..................... Managing operator’s payments or supplies.................... 320

80‑25..................... Contributing operator’s payment.................................... 321

80‑30..................... Managing operator’s increasing adjustment where contributing operator’s payment               321

80‑35..................... Adjustment events relating to managing operator’s payment or supply   323

Subdivision 80‑B—Nominal defendant settlement sharing arrangements 323

80‑40..................... Meaning of nominal defendant settlement sharing arrangement etc.      323

80‑45..................... Nominal defendant settlement sharing arrangements to which this Subdivision applies          324

80‑50..................... Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements................................................................... 324

80‑55..................... Effect of contributing operator’s payment....................... 325

80‑60..................... Managing operator’s payment or supply........................ 325

80‑65..................... Contributing operator’s payment.................................... 325

80‑70..................... Managing operator’s increasing adjustment where contributing operator’s payment               325

80‑75..................... Adjustment events relating to managing operator’s payment or supply   326

Subdivision 80‑C—Hybrid settlement sharing arrangements                    327

80‑80..................... Meaning of hybrid settlement sharing arrangement etc. 327

80‑85..................... Subdivision 80‑A to apply to hybrid settlement sharing arrangement, subject to exceptions   328

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        328

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        329

Division 81—Payments of taxes, fees and charges                                   330

81‑1....................... What this Division is about............................................. 330

81‑5....................... Effect of payment of tax.................................................. 330

81‑10..................... Effect of payment of certain fees and charges................. 330

81‑15..................... Other fees and charges that do not constitute consideration 332

81‑20..................... Division has effect despite sections 9‑15 and 9‑17......... 332

81‑25..................... Retrospective application of regulations.......................... 332

Division 82—Supplies in return for rights to develop land                  333

82‑1....................... What this Division is about............................................. 333

82‑5....................... Supplies of rights to develop land do not constitute consideration in certain cases  333

82‑10..................... Supplies by Australian government agencies of rights to develop land are not for consideration            333

Division 83—Non‑residents making supplies connected with the indirect tax zone        335

83‑1....................... What this Division is about............................................. 335

83‑5....................... “Reverse charge” on supplies made by non‑residents..... 335

83‑10..................... Recipients who are members of GST groups................. 336

83‑15..................... Recipients who are participants in GST joint ventures.... 336

83‑20..................... The amount of GST on “reverse charged” supplies made by non‑residents             336

83‑25..................... When non‑residents must apply for registration............. 336

83‑30..................... When the Commissioner must register non‑residents..... 337

83‑35..................... Tax invoices not required for “reverse charged” supplies made by non‑residents    337

Division 84—Offshore supplies other than goods or real property 338

Subdivision 84‑A—Intangible supplies from offshore that are taxable supplies under this Subdivision                338

84‑1....................... What this Subdivision is about....................................... 338

84‑5....................... Intangible supplies from offshore that are taxable supplies under this Subdivision 338

84‑10..................... “Reverse charge” on offshore intangible supplies........... 339

84‑12..................... The amount of GST on offshore intangible supplies...... 340

84‑13..................... The amount of input tax credits relating to offshore intangible supplies   340

84‑14..................... Supplies relating to employee share ownership schemes 341

84‑15..................... Transfers etc. between branches of the same entity......... 342

84‑20..................... The price of taxable supplies of offshore intangibles without, or for inadequate, consideration               342

84‑25..................... Tax periods for supplies from associates that are not connected with the indirect tax zone      343

84‑30..................... Adjustments for acquisitions made solely for a creditable purpose          343

Subdivision 84‑B—Inbound intangible consumer supplies                         344

84‑45..................... What this Subdivision is about....................................... 344

84‑50..................... No tax invoices or adjustment notes for inbound intangible consumer supplies      344

84‑55..................... Operator of electronic distribution platform treated as supplier                345

84‑60..................... Extension of section 84‑55 to certain other supplies through an electronic distribution platform             346

84‑65..................... Meaning of inbound intangible consumer supply........... 347

84‑70..................... Meaning of electronic distribution platform................... 347

Subdivision 84‑C—Australian consumers                                                       348

84‑95..................... What this Subdivision is about....................................... 348

84‑100................... When entities are treated as not being Australian consumers 348

Subdivision 84‑D—Limited registration entities                                            349

84‑135................... What this Subdivision is about....................................... 349

84‑140................... Limited registration entities............................................. 349

84‑145................... Limited registration entities cannot make creditable acquisitions              350

84‑150................... Entries in the Australian Business Register.................... 351

84‑155................... Limited registration entities have only quarterly tax periods 351

Division 85—Telecommunication supplies                                                    353

85‑1....................... What this Division is about............................................. 353

85‑5....................... When telecommunication supplies are connected with the indirect tax zone             353

85‑10..................... Meaning of telecommunication supply........................... 353

Division 86—Valuable metals                                                                              355

86‑1....................... What this Division is about............................................. 355

86‑5....................... “Reverse charge” on supplies of goods consisting of valuable metal       355

86‑10..................... The valuable metal threshold........................................... 356

86‑15..................... Recipients who are members of GST groups................. 357

86‑20..................... Recipients who are participants in GST joint ventures.... 358

86‑25..................... The amount of GST on “reverse charged” supplies of goods consisting of valuable metal      358

Division 87—Long‑term accommodation in commercial residential premises  359

87‑1....................... What this Division is about............................................. 359

87‑5....................... Commercial residential premises that are predominantly for long‑term accommodation          359

87‑10..................... Commercial residential premises that are not predominantly for long‑term accommodation    359

87‑15..................... Meaning of commercial accommodation....................... 360

87‑20..................... Meaning of long‑term accommodation etc..................... 360

87‑25..................... Suppliers may choose not to apply this Division............ 361

Division 90—Company amalgamations                                                          362

90‑1....................... What this Division is about............................................. 362

90‑5....................... Supplies not taxable—amalgamated company registered or required to be registered              362

90‑10..................... Value of taxable supplies—amalgamated company not registered or required to be registered                362

90‑15..................... Acquisitions not creditable—amalgamated company registered or required to be registered    363

90‑20..................... Liability after amalgamation for GST on amalgamating company’s supplies           363

90‑25..................... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions                363

90‑30..................... Adjustments.................................................................... 364

90‑35..................... Amalgamating companies accounting on a cash basis.... 364

Division 93—Time limit on entitlements to input tax credits               366

93‑1....................... What this Division is about............................................. 366

93‑5....................... Time limit on entitlements to input tax credits................. 366

93‑10..................... Exceptions to time limit on entitlements to input tax credits 366

93‑15..................... GST no longer able to be taken into account................... 368

Division 96—Supplies partly connected with the indirect tax zone 369

96‑1....................... What this Division is about............................................. 369

96‑5....................... Supplies that are only partly connected with the indirect tax zone            369

96‑10..................... The value of the taxable components of supplies that are only partly connected with the indirect tax zone........................................................................................ 370

Division 99—Deposits as security                                                                      371

99‑1....................... What this Division is about............................................. 371

99‑5....................... Giving a deposit as security does not constitute consideration 371

99‑10..................... Attributing the GST relating to deposits that are forfeited etc.  371

Division 100—Vouchers                                                                                          372

100‑1..................... What this Division is about............................................. 372

100‑5..................... Supplies of vouchers with a stated monetary value......... 372

100‑10................... Redemption of vouchers................................................. 373

100‑12................... Consideration on redemption of vouchers...................... 373

100‑15................... Increasing adjustments for unredeemed vouchers........... 374

100‑18................... Arrangement for supply of voucher................................ 374

100‑20................... Vouchers supplied to non‑residents and redeemed by others in the indirect tax zone              375

100‑25................... Meaning of voucher etc.................................................. 375

Division 102—Cancelled lay‑by sales                                                              376

102‑1..................... What this Division is about............................................. 376

102‑5..................... Cancelled lay‑by sales..................................................... 376

102‑10................... Attributing GST and input tax credits............................. 376

Division 105—Supplies in satisfaction of debts                                           377

105‑1..................... What this Division is about............................................. 377

105‑5..................... Supplies by creditors in satisfaction of debts may be taxable supplies     377

105‑10................... Net amounts.................................................................... 378

105‑15................... GST returns.................................................................... 378

105‑20................... Payments of GST........................................................... 378

Division 108—Valuation of taxable supplies of goods in bond           380

108‑1..................... What this Division is about............................................. 380

108‑5..................... Taxable supplies of goods in bond etc............................ 380

Division 110—Tax‑related transactions                                                         381

110‑1..................... What this Division is about............................................. 381

Subdivision 110‑A—Income tax‑related transactions                                  381

110‑5..................... Transfers of tax losses and net capital losses.................. 381

110‑15................... Supplies under operation of consolidated group regime. 381

110‑20................... Tax sharing agreements—entering into agreement etc.... 382

110‑25................... Tax sharing agreements—leaving group clear of group liability              382

110‑30................... Tax funding agreements.................................................. 383

Subdivision 110‑B—Other tax‑related transactions                                     384

110‑60................... Indirect tax sharing agreements—entering into agreement etc. 384

110‑65................... Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability   384

Division 111—Reimbursement of employees etc.                                      386

111‑1..................... What this Division is about............................................. 386

111‑5..................... Creditable acquisitions relating to reimbursements......... 386

111‑10................... Amounts of input tax credits relating to reimbursements 387

111‑15................... Tax invoices relating to reimbursements......................... 388

111‑18................... Application of Division to volunteers working for charities etc.              388

111‑20................... Application of Division to recipients of certain withholding payments    389

111‑25................... Employers paying expenses of employees etc................ 390

111‑30................... Reimbursements etc. of former or future employees etc. 390

Division 113—PAYG voluntary agreements                                               392

113‑1..................... What this Division is about............................................. 392

113‑5..................... Supply of work or services not a taxable supply............ 392


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

Commissioner

4

entity

5

goods

6

GST

7

import

8

indirect tax zone

9

individual

10

input tax credit

11

supply

12

tax period

13

thing

14

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 the indirect tax zone; and

                     (d)  you are *registered, or *required to be registered.

However, the supply is not a *taxable supply to the extent that it is *GST‑free or *input taxed.

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 the indirect tax zone

Supplies of goods wholly within the indirect tax zone

             (1)  A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.

Supplies of goods from the indirect tax zone

             (2)  A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone.

Supplies of goods to the indirect tax zone

             (3)  A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.

Supplies of real property

             (4)  A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.

Supplies of anything else

             (5)  A supply of anything other than goods or *real property is connected with the indirect tax zone if:

                     (a)  the thing is done in the indirect tax zone; or

                     (b)  the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or

                     (c)  all of the following apply:

                              (i)  neither paragraph (a) nor (b) applies in respect of the thing;

                             (ii)  the thing is a right or option to acquire another thing;

                            (iii)  the supply of the other thing would be connected with the indirect tax zone; or

                     (d)  the *recipient of the supply is an *Australian consumer.

Example:    A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).

Note:          A supply that is connected with the indirect tax zone under this subsection might be GST‑free if it is consumed outside the indirect tax zone: see section 38‑190. For more rules about supplies that are GST‑free, see Division 38.

Supplies of goods involving installation or assembly services

             (6)  If a supply of goods (other than a *luxury car) (the actual supply) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:

                     (a)  the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;

                     (b)  the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.

Note 1:       The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9‑26 applies.

Note 2:       The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13.

Note 3:       For the price of the separate supplies, see subsection 9‑75(4).

Meaning of Australian consumer

             (7)  An entity is an Australian consumer of a supply made to the entity if:

                     (a)  the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of Australia in the *ITAA 1997 includes the external Territories); and

                     (b)  the entity:

                              (i)  is not *registered; or

                             (ii)  if the entity is registered—the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.

Note:          Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84‑100.

9‑26  Supplies by non‑residents that are not connected with the indirect tax zone

             (1)  A supply is not connected with the indirect tax zone if:

                     (a)  the supplier is a *non‑resident; and

                     (b)  the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and

                     (c)  the supply is covered by an item in this table:

 

Offshore supplies that are not connected with the indirect tax zone

Item

Topic

These supplies are not connected with the indirect tax zone …

1

Inbound intangible supply

a supply of anything other than goods or *real property if:

(a) the thing is done in the indirect tax zone; and

(b) the *recipient is an *Australian‑based business recipient of the supply.

2

Intangible supply between non‑residents

a supply of anything other than goods or *real property if:

(a) the thing is done in the indirect tax zone; and

(b) the *recipient is a *non‑resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.

3

Supply between non‑residents of leased goods

a supply by way of transfer of ownership of leased goods if:

(a) the *recipient is a *non‑resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and

(b) the lessee:

(i) made a *taxable importation of the goods before the supply was made; and

(ii) continues to lease the goods on substantially similar terms and conditions after the supply is made.

4

Supply by way of continued lease of goods from item 3

a supply made by way of lease if:

(a) the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and

(b) the lease is the lease referred to in subparagraph (ii) of that paragraph.

Note:          This subsection does not apply to supplies made by a non‑resident through a resident agent if they have agreed it is not to apply: see section 57‑7.

             (2)  An entity is an Australian‑based business recipient of a supply made to the entity if:

                     (a)  the entity is *registered; and

                     (b)  an *enterprise of the entity is *carried on in the indirect tax zone; and

                     (c)  the entity’s acquisition of the thing supplied is not solely of a private or domestic nature.

Note:          If a supply is not connected with the indirect tax zone, the Australian‑based business recipient may be subject to a reverse charge: see Subdivision 84‑A.

             (3)  This section applies despite sections 9‑25 (which is about when supplies are connected with the indirect tax zone) and 85‑5 (which is about telecommunication supplies).

9‑27  When enterprises are carried on in the indirect tax zone

             (1)  An *enterprise of an entity is carried on in the indirect tax zone if:

                     (a)  the enterprise is *carried on by one or more individuals covered by subsection (3) who are in the indirect tax zone; and

                     (b)  any of the following applies:

                              (i)  the enterprise is carried on through a fixed place in the indirect tax zone;

                             (ii)  the enterprise has been carried on through one or more places in the indirect tax zone for more than 183 days in a 12 month period;

                            (iii)  the entity intends to carry on the enterprise through one or more places in the indirect tax zone for more than 183 days in a 12 month period.

             (2)  It does not matter whether:

                     (a)  the entity has exclusive use of a place; or

                     (b)  the entity owns, leases or has any other claim or interest in relation to a place.

             (3)  This subsection covers the following individuals:

                     (a)  if the entity is an individual—that individual;

                     (b)  an employee or *officer of the entity;

                     (c)  an individual who is, or is employed by, an agent of the entity that:

                              (i)  has, and habitually exercises, authority to conclude contracts on behalf of the entity; and

                             (ii)  is not a broker, general commission agent or other agent of independent status that is acting in the ordinary course of the agent’s business as such an agent.

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

8AA

Resident agents acting for non‑residents

Division 57

8A

Second‑hand goods

Division 66

8B

Settlement sharing arrangements

Division 80

9

Supplies and acquisitions made on a progressive or periodic basis

Division 156

9A

Supplies in return for rights to develop land

Division 82

10

Supplies in satisfaction of debts

Division 105

11

Supplies partly connected with the indirect tax zone

Division 96

12

Supply under arrangement covered by PAYG voluntary agreement

Division 113

12A

Tax‑related transactions

Division 110

13

Telecommunication supplies

Division 85

14

Vouchers

Division 100

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 the indirect tax zone

Division 83

4B

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

6

Valuable metals

Division 86

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.

             (4)  Despite subsection (1), if a supply of goods (the actual supply) is to be treated as separate supplies because of subsection 9‑25(6), then the price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.

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 the indirect tax zone

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 the indirect tax zone

Division 96

8

Transactions relating to insurance policies

Division 78

8A

Valuable metals

Division 86

9

Valuation of taxable supplies of goods in bond

Division 108

10

Excess GST

Division 142

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 the indirect tax zone.

             (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 the indirect tax zone (and are therefore in that sense “imported”) are not taxable importations, but they can attract GST under Subdivision 84‑A.

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 the indirect tax zone.

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 the indirect tax zone; and

                             (ii)  to insure the goods for that transport;

                            to the extent that the amount is not already included under paragraph (a); and

                   (ba)  the amount paid or payable for a supply to which item 5A in the table in subsection 38‑355(1) applies, to the extent that the amount:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

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.

             (4)  For a *taxable importation that you make, you may choose to treat the amount under paragraph (2)(b), (or, if paragraph (2)(ba) applies, the sum of the amounts under paragraphs (2)(b) and (ba)), as an amount equal to:

                     (a)  the percentage prescribed by the regulations of the *customs value of the goods imported; or

                     (b)  if no percentage is prescribed—10% of their customs value.

             (5)  However, subsection (4) does not apply if:

                     (a)  you are not *registered; or

                     (b)  the *local entry of the goods is a *taxable dealing in relation to *wine; or

                     (c)  the importation of the goods is a *taxable importation of a luxury car.

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 the indirect tax zone.

             (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.

Note 1:       For the basic rules on what is attributable to a particular period, see Division 29.

Note 2:       For further rules if you have excess GST for the period, see Division 142.

             (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.

17‑20  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 that were made in working out *net amounts for tax periods to which subsection (2A) applies.

          (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)  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

1AB

Excess GST and cancelled supplies

Division 142

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 the indirect tax zone

Division 83

4

Offshore supplies other than goods or real property

Division 84

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

1C

Offshore supplies other than goods or real property

Division 84

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 the indirect tax zone is less than 3 months; or

                     (c)  the Commissioner is satisfied that you have a history of failing to comply with your obligations under a *taxation law.

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

Offshore supplies other than goods or real property

Division 84

1AC

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 the indirect tax zone

Division 83

4A

Offshore supplies other than goods or real property

Division 84

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.

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.

31‑99  Special rules relating to GST returns

                   Chapter 4 contains special rules relating to *GST returns, as follows:

 

Checklist of special rules

Item

For this case …

See:

1A

Annual tax periods

Division 151

1

GST branches

Division 54

2

GST groups

Division 48

3

GST joint ventures

Division 51

4

Insurance

Division 78

4A

Payment of GST by instalments

Division 162

4B

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

6

Supplies in satisfaction of debts

Division 105

Division 33Payments of GST

33‑1  What this Division is about

This Division is about your obligation to pay to the Commonwealth amounts of GST that remain after off‑setting your entitlements to input tax credits. The obligation to pay arises for any of your assessed net amounts that are greater than zero.

Note 1A:    For provisions about assessment (including self‑assessment), see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

Note 1:       For the penalties for failing to comply with these obligations, see the Taxation Administration Act 1953.

Note 2:       For provisions about collection and recovery of GST, see Subdivision 105‑C, and Part 4‑15, in Schedule 1 to the Taxation Administration Act 1953.

Note 3:       Payments of GST on importations of goods are dealt with separately in section 33‑15 of this Act.

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

                   If:

                     (a)  the *assessed net amount for a tax period applying to you is greater than zero; and

                     (b)  the tax period is a *quarterly tax period;

you must pay the assessed net amount to the Commissioner as follows:

 

When quarterly GST payments must be made

Item

If this day falls within the quarterly tax period …

Pay the assessed net amount to the Commissioner on or before this day:

1

1 September

the following 28 October

2

1 December

the following 28 February

3

1 March

the following 28 April

4

1 June

the following 28 July

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

             (1)  If the *assessed net amount for a tax period (other than a *quarterly tax period) applying to you is greater than zero, you must pay the assessed net amount to the Commissioner on or before the 21st day of the month following the end of that tax period.

             (2)  However, if the tax period ends during the first 7 days of a month, you must pay the *assessed net amount to the Commissioner on or before the 21st day of that month.

33‑10  How payment of assessed net amounts are made

             (1)  You may pay by *electronic payment any *assessed net amounts payable by you. Any amounts of an assessed net amount that you do not pay by electronic payment must be paid in the manner determined in writing by the Commissioner.

             (2)  However, if your *GST turnover meets the *electronic lodgment turnover threshold, you must pay by *electronic payment any *assessed net amounts payable by you.

Note 1:       A penalty applies if you fail to pay electronically as required—see section 288‑20 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:       You must also pay other tax debts electronically—see section 8AAZMA in that Act.

33‑15  Payments of assessed GST on importations

             (1)  Amounts of *assessed GST on *taxable importations are to be paid by the importer to the Commonwealth:

                     (a)  at the same time, at the same place, and in the same manner, as *customs duty is payable on the goods in question (or would be payable if the goods were subject to customs duty); or

                     (b)  in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.

Note:       The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.

             (2)  An officer of Customs (within the meaning of subsection 4(1) of the Customs Act 1901) may refuse to deliver the goods concerned unless the *assessed GST has been paid.

33‑99  Special rules relating to payments of GST

                   Chapter 4 contains special rules relating to payments of GST, as follows:

 

Checklist of special rules

Item

For this case …

See:

1A

Annual tax periods

Division 151

1

Anti‑avoidance

Division 165

2

Customs security etc. given on taxable importations

Division 171

3

GST branches

Division 54

4

GST joint ventures

Division 51

4A

Importations without entry for home consumption

Division 114

5

Insurance

Division 78

5A

Payment of GST by instalments

Division 162

6

Supplies in satisfaction of debts

Division 105

Division 35Refunds

35‑1  What this Division is about

This Division is about the Commissioner’s obligation to pay to you your entitlements to input tax credits that remain after off‑setting amounts of GST. The obligation to pay arises for any of your assessed net amounts that are less than zero.

35‑5  Entitlement to refund

             (1)  If the *assessed net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you.

Note 1:       See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.

Note 2:       Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.

             (2)  However, if:

                     (a)  the Commissioner amends the *assessment of your *net amount; and

                     (b)  your *assessed net amount before the amendment was less than zero; and

                     (c)  the amount that, because of the assessment, was:

                              (i)  paid; or

                             (ii)  applied under the Taxation Administration Act 1953;

                            exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;

the amount of the excess is to be treated as if:

                     (d)  the excess were an assessed net amount for the tax period; and

                     (e)  that assessed net amount were an amount greater than zero and equal to the amount of the excess; and

                      (f)  despite Division 33, that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.

Note:          Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3‑10 in Schedule 1 to the Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105‑80 in that Schedule.

35‑10  When entitlement arises

                   Your entitlement to be paid an amount under section 35‑5 arises when the Commissioner gives you notice of the *assessment of your *net amount for the tax period.

Note:          In certain circumstances, the Commissioner is treated as having given you notice of the assessment when you give to the Commissioner your GST return (see section 155‑15 in Schedule 1 to the Taxation Administration Act 1953).

35‑99  Special rules relating to refunds

                   Chapter 4 contains special rules relating to refunds, as follows:

 

Checklist of special rules

Item

For this case …

See:

1

Anti‑avoidance

Division 165

1A

Excess GST

Division 142

2

GST branches

Division 54

3

GST joint ventures

Division 51

4

Tourist refund scheme

Division 168

Part 2‑8Checklist of special rules

Division 37Checklist of special rules

37‑1  Checklist of special rules

                   The provisions set out in the table contain special rules relating to the matters indicated.

 

Checklist of special rules

Item

For this case…

See:

1AA

Accounting basis of charities etc.

Division 157

1

Agents and insurance brokers

Division 153

1A

Annual apportionment of creditable purpose

Division 131

1B

Annual tax periods

Division 151

2

Anti‑avoidance

Division 165

3

Associates

Division 72

3A

Bad debts relating to transactions that are not taxable or creditable to the fullest extent

Division 136

4

Cancelled lay‑by sales

Division 102

5

Cessation of registration

Division 138

6

Changes in the extent of creditable purpose

Division 129

7

Changing your accounting basis

Division 159

8

Company amalgamations

Division 90

8A

Compulsory third party schemes

Division 79

9

Customs security etc. given for taxable importations

Division 171

10

Deposits as security

Division 99

10A

Distributions from deceased estates

Division 139

10B

Excess GST

Division 142

11

Financial supplies (reduced credit acquisitions)

Division 70

11A

Fringe benefits provided by input taxed suppliers

Division 71

12

Gambling

Division 126

12A

Goods applied solely to private or domestic use

Division 130

12B

Government entities

Division 149

13

GST branches

Division 54

14

GST groups

Division 48

15

GST joint ventures

Division 51

15A

GST religious groups

Division 49

17

Importations without entry for home consumption

Division 114

18

Insurance

Division 78

19

Long‑term accommodation in commercial residential premises

Division 87

20

Non‑deductible expenses

Division 69

20A

Non‑profit sub‑entities

Division 63

20B

Non‑residents making supplies connected with the indirect tax zone

Division 83

21

Offshore supplies other than goods or real property

Division 84

21A

Payment of GST by instalments

Division 162

22

Payments of taxes

Division 81

23

Pre‑establishment costs

Division 60

23A

Providing additional consideration under gross‑up clauses

Division 133

24

Reimbursement of employees etc.

Division 111

25

Representatives of incapacitated entities

Division 58

26

Resident agents acting for non‑residents

Division 57

28

Sale of freehold interests etc.

Division 75

29

Second‑hand goods

Division 66

29AA

Settlement sharing arrangements

Division 80

29A

Simplified accounting methods for retailers and small enterprise entities

Division 123

29B

Stock on hand on becoming registered etc.

Division 137

30

Supplies and acquisitions made on a progressive or periodic basis

Division 156

30A

Supplies in return for rights to develop land

Division 82

31

Supplies in satisfaction of debts

Division 105

32

Supplies of going concerns

Division 135

33

Supplies of things acquired etc. without full input tax credits

Division 132

33A

Supply under arrangement covered by PAYG voluntary agreement

Division 113

34

Supplies partly connected with the indirect tax zone

Division 96

35

Taxis

Division 144

35AA

Tax‑related transactions

Division 110

35A

Telecommunication supplies

Division 85

35B

Third party payments

Division 134

35C

Time limit on entitlements to input tax credits

Division 93

36

Tourist refund scheme

Division 168

36A

Tradex scheme goods

Division 141

36AA

Valuable metals

Division 86

36B

Valuation of re‑imported goods

Division 117

37

Valuation of taxable supplies of goods in bond

Division 108

38

Vouchers

Division 100


Chapter 3The exemptions

Part 3‑1Supplies that are not taxable supplies

Division 38GST‑free supplies

Table of Subdivisions

38‑A     Food

38‑B      Health

38‑C      Education

38‑D     Child care

38‑E      Exports and other cross‑border supplies

38‑F      Religious services

38‑G     Activities of charities etc.

38‑I       Water and sewerage

38‑J       Supplies of going concerns

38‑K     Transport and related matters

38‑L      Precious metals

38‑M     Supplies through inwards duty free shops

38‑N     Grants of land by governments

38‑O     Farm land

38‑P      Cars for use by disabled people

38‑Q     International Mail

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

38‑S      Eligible emissions units

38‑T      Inbound intangible consumer supplies


38‑1  What this Division is about

This Division sets out the supplies that are GST‑free. If a supply is GST‑free, then:

     no GST is payable on the supply;

     an entitlement to an input tax credit for anything acquired or imported to make the supply is not affected.

For the basic rules about supplies that are GST‑free, see sections 9‑30 and 9‑80.

Subdivision 38‑AFood

38‑2  Food

                   A supply of *food is GST‑free.

38‑3  Food that is not GST‑free

             (1)  A supply is not GST‑free under section 38‑2 if it is a supply of:

                     (a)  *food for consumption on the *premises from which it is supplied; or

                     (b)  hot food for consumption away from those premises; or

                     (c)  food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one or more foods at least one of which is food of such a kind; or

                     (d)  a *beverage (or an ingredient for a beverage), other than a beverage (or ingredient) of a kind specified in the third column of the table in clause 1 of Schedule 2; or

                     (e)  food of a kind specified in regulations made for the purposes of this subsection.

             (2)  However, this section does not apply to a supply of *food of a kind specified in regulations made for the purposes of this subsection.

             (3)  The items in the table in clause 1 of Schedule 1 or 2 are to be interpreted subject to the other clauses of Schedule 1 or 2, as the case requires.

38‑4  Meaning of food

             (1)  Food means any of these, or any combination of any of these:

                     (a)  food for human consumption (whether or not requiring processing or treatment);

                     (b)  ingredients for food for human consumption;

                     (c)  *beverages for human consumption;

                     (d)  ingredients for beverages for human consumption;

                     (e)  goods to be mixed with or added to food for human consumption (including condiments, spices, seasonings, sweetening agents or flavourings);

                      (f)  fats and oils marketed for culinary purposes;

but does not include:

                     (g)  live animals (other than crustaceans or molluscs); or

                    (ga)  unprocessed cow’s milk; or

                     (h)  any grain, cereal or sugar cane that has not been subject to any process or treatment resulting in an alteration of its form, nature or condition; or

                      (i)  plants under cultivation that can be consumed (without being subject to further process or treatment) as food for human consumption.

             (2)  Beverage includes water.

38‑5  Premises used in supplying food

                   Premises, in relation to a supply of *food, includes:

                     (a)  the place where the supply takes place; or

                     (b)  the grounds surrounding a cafe or public house, or other outlet for the supply; or

                     (c)  the whole of any enclosed space such as a football ground, garden, showground, amusement park or similar area where there is a clear boundary or limit;

but does not include any part of a public thoroughfare unless it is an area designated for use in connection with supplies of food from an outlet for the supply of food.

38‑6  Packaging of food

             (1)  A supply of the packaging in which *food is supplied is GST‑free if the supply of the food is GST‑free.

             (2)  However, the supply of the packaging is GST‑free under this section only to the extent that the packaging:

                     (a)  is necessary for the supply of the food; and

                     (b)  is packaging of a kind in which food of that kind is normally supplied.

Subdivision 38‑BHealth

38‑7  Medical services

             (1)  A supply of a *medical service is GST‑free.

             (2)  However, a supply of a *medical service is not GST‑free under subsection (1) if:

                     (a)  it is a supply of a *professional service rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 (other than the prescribed circumstances set out in regulations 14(2)(ea), (f) and (g)); or

                     (b)  it is rendered for cosmetic reasons and is not a *professional service for which medicare benefit is payable under Part II of the Health Insurance Act 1973.

             (3)  A supply of goods is GST‑free if:

                     (a)  it is made to an individual in the course of supplying to him or her a *medical service the supply of which is GST‑free; and

                     (b)  it is made at the premises at which the medical service is supplied.

38‑10  Other health services

             (1)  A supply is GST‑free if:

                     (a)  it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and

                     (b)  the supplier is a *recognised professional in relation to the supply of services of that kind; and

                     (c)  the supply would generally be accepted, in the profession associated with supplying services of that kind, as being necessary for the appropriate treatment of the *recipient of the supply.

 

Health services

Item

Service

1

Aboriginal or Torres Strait Islander health

2

Acupuncture

3

Audiology, audiometry

4

Chiropody

5

Chiropractic

6

Dental

7

Dietary

8

Herbal medicine (including traditional Chinese herbal medicine)

9

Naturopathy

10

Nursing

11

Occupational therapy

12

Optometry

13

Osteopathy

14

Paramedical

15

Pharmacy

16

Psychology

17

Physiotherapy

18

Podiatry

19

Speech pathology

20

Speech therapy

21

Social work

             (2)  However, a supply of a pharmacy service is not GST‑free under subsection (1) unless it is:

                     (a)  a supply relating to a supply that is GST‑free because of section 38‑50; or

                     (b)  a service of conducting a medication review.

             (3)  A supply of goods is GST‑free if:

                     (a)  it is made to a person in the course of supplying to the person a service the supply of which is GST‑free under subsection (1) (other than a service referred to in item 8, 9, 12 or 15 of the table in subsection (1)); and

                     (b)  it is made at the premises at which the service is supplied.

             (4)  A supply of goods is GST‑free if:

                     (a)  it is made to a person in the course of supplying to the person a service referred to in item 8 or 9 of the table in subsection (1); and

                     (b)  it is supplied, and used or consumed, at the premises at which the service is supplied.

             (5)  A supply is GST‑free if it is provided by an ambulance service in the course of the treatment of the *recipient of the supply.

38‑15  Other government funded health services

                   A supply is GST‑free if:

                     (a)  it is a supply of a health service in connection with a supply that is GST‑free because of section 38‑7 or 38‑10; and

                     (b)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply of the health service; and

                     (c)  the supply of the health service is of a kind determined in writing by the *Health Minister.

38‑20  Hospital treatment

             (1)  A supply of *hospital treatment is GST‑free.

             (2)  However, a supply of *hospital treatment is not GST‑free to the extent that it relates to a supply of a *professional service that, because of subsection 38‑7(2), is not GST‑free.

             (3)  A supply of goods is GST‑free if it is a supply that is directly related to a supply of *hospital treatment that is:

                     (a)  GST‑free because of subsection (1); and

                     (b)  supplied by, or on behalf of, the supplier of the hospital treatment.

38‑25  Residential care etc.

             (1)  A supply of services is GST‑free if:

                     (a)  it is a supply of services covered by Schedule 1 to the *Quality of Care Principles; and

                     (b)  it is provided through a residential care service (within the meaning of the Aged Care Act 1997); and

                     (c)  the supplier is an approved provider (within the meaning of that Act).

             (2)  A supply of services is GST‑free if:

                     (a)  the services are provided to one or more aged or disabled people; and

                     (b)  the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

                     (c)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply.

             (3)  A supply of services is GST‑free if:

                     (a)  the services are provided to one or more aged or disabled people in a residential setting; and

                     (b)  the *Aged Care Minister has determined in writing that the services are of a kind covered by Schedule 1 to the *Quality of Care Principles; and

                     (c)  the services include, and are only provided to people who require, the services (care services) set out in:

                              (i)  item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or

                             (ii)  item 3.8 (nursing services) of Part 3 of that Schedule.

          (3A)  Services provided to a resident of a *retirement village are taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if, and only if:

                     (a)  he or she is a resident of a *serviced apartment in the retirement village; and

                     (b)  there is in force a written agreement under which the operator of the retirement village provides daily meals and heavy laundry services to all of the residents of the apartment.

          (3B)  However, services provided to a resident of a *serviced apartment in a *retirement village are not taken, for the purposes of paragraph (3)(a), to be provided in a residential setting if:

                     (a)  the *Aged Care Minister has determined in writing:

                              (i)  the levels of care services that residents of serviced apartments in retirement villages must require in order for subsection (3) to apply; and

                             (ii)  the way in which the levels of care services required by residents are to be assessed; and

                     (b)  the *Aged Care Secretary has not, in accordance with the determination, assessed the person to whom the services are provided as requiring the levels of care services so determined.

          (3C)  A determination made for the purposes of paragraph (3B)(a) may be restricted to a specified class of residents of *serviced apartments in *retirement villages.

             (4)  A supply of accommodation is GST‑free if it is made to a person in the course of making a supply to that person that is GST‑free under subsection (1), (2) or (3).

          (4A)  A supply is GST‑free if:

                     (a)  it is made to a person who is a person of a kind referred to in paragraph (3)(c); and

                     (b)  it is:

                              (i)  a supply, by way of lease, hire or licence, of *residential premises consisting of a *serviced apartment in a *retirement village; or

                             (ii)  a sale of *real property that is residential premises consisting of a serviced apartment in a retirement village; or

                            (iii)  a supply of an excluded security (within the meaning of the Corporations Act 2001) in respect of which the right to participate in a retirement village scheme (within the meaning of that Act) entitles the person to use or occupy a serviced apartment in a retirement village; and

                     (c)  in a case where:

                              (i)  a determination made for the purposes of paragraph (3B)(a) is in force; and

                             (ii)  the determination is not restricted under subsection (3C) in such a way that the determination excludes the person;

                            the *Aged Care Secretary has, in accordance with the determination, assessed the person as requiring the levels of care services determined in the determination; and

                     (d)  it is made in connection with one or more supplies, or proposed supplies, to the person that are or will be GST‑free under subsection (3).

             (5)  However, a supply of services that is covered by an extra services fee within the meaning of Division 35 of the Aged Care Act 1997 is only GST‑free under this section to the extent that the services are covered by Schedule 1 to the *Quality of Care Principles.

38‑30  Home care etc.

             (1)  A supply of *home care is GST‑free if home care subsidy is payable under Part 3.2 of the Aged Care Act 1997 or Part 3.2 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.

             (2)  A supply of care is GST‑free if the supplier receives funding under the Home and Community Care Act 1985 in connection with the supply.

             (3)  A supply of *home care is GST‑free if the supply is of services:

                     (a)  that are provided to one or more aged or disabled people; and

                     (b)  that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles.

             (4)  A supply of care is GST‑free if:

                     (a)  the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply; and

                     (b)  the supply of the care is of a kind determined in writing by the *Aged Care Minister to be similar to a supply that is GST‑free because of subsection (2).

38‑35  Flexible care

                   A supply of flexible care (within the meaning of section 49‑3 of the Aged Care Act 1997) is GST‑free if flexible care subsidy is payable under Part 3.3 of that Act or Part 3.3 of the Aged Care (Transitional Provisions) Act 1997 to the supplier for the care.

38‑38  Disability support provided to NDIS participants

                   A supply is GST‑free if the supply:

                     (a)  is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013) for whom a participant’s plan is in effect under section 37 of that Act; and

                     (b)  is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

                     (c)  is made under a written agreement, between the supplier and the participant or another person, that:

                              (i)  identifies the participant; and

                             (ii)  states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

                     (d)  is of a kind that the *Disability Services Minister has determined in writing.

38‑40  Specialist disability services

                   A supply of services is GST‑free if the supplier receives funding under the Disability Services Act 1986 or under a complementary *State law or *Territory law in respect of the services.

38‑45  Medical aids and appliances

             (1)  A supply is GST‑free if:

                     (a)  it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and

                     (b)  the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

             (2)  A supply is GST‑free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST‑free under subsection (1).

             (3)  However, a supply is not GST‑free under subsection (1) or (2) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

38‑47  Other GST‑free health goods

             (1)  A supply is GST‑free if it is a supply of goods of a kind that the *Health Minister, by determination in writing, declares to be goods the supply of which is GST‑free.

             (2)  However, a supply is not GST‑free under subsection (1) if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

38‑50  Drugs and medicinal preparations etc.

             (1)  A supply of a drug or medicinal preparation is GST‑free if the supply is on prescription and:

                     (a)  under a *State law or a *Territory law in the State or Territory in which the supply takes place, supply of the drug or medicinal preparation is restricted, but may be supplied on prescription; or

                     (b)  the drug or medicinal preparation is a pharmaceutical benefit (within the meaning of Part VII of the National Health Act 1953).

             (2)  A supply of a drug or medicinal preparation is GST‑free if, under a *State law or a *Territory law in the State or Territory in which it is supplied, the supply of the drug or medicinal preparation to an individual for private or domestic use or consumption is restricted but may be made by:

                     (a)  a *medical practitioner, *dental practitioner or pharmacist; or

                     (b)  any other person permitted by or under that law to do so.

             (3)  Subsection (2) does not cover the supply of a drug or medicinal preparation of a kind specified in the regulations.

             (4)  A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

                     (a)  it is supplied as a pharmaceutical benefit (within the meaning of section 91 of the Veterans’ Entitlements Act 1986); and

                     (b)  it is supplied under an approved scheme (within the meaning of that section).

          (4A)  A supply of a drug, medicine or other pharmaceutical item is GST‑free if the supply is on prescription and:

                     (a)  it is supplied as a pharmaceutical benefit (within the meaning of section 5 of the Military Rehabilitation and Compensation Act 2004); and

                     (b)  it is supplied in accordance with a determination made under paragraph 286(1)(c) of that Act.

             (5)  A supply of a drug or medicinal preparation is GST‑free if:

                     (a)  the drug or medicinal preparation is an analgesic that has a single active ingredient the supply of which as a drug or medicinal preparation would be GST‑free under subsection (2) if it were supplied in a larger quantity; and

                     (b)  the drug or medicinal preparation is of a kind the supply of which is declared by the *Health Minister to be GST‑free, by determination in writing.

             (6)  A supply of a drug or medicinal preparation is GST‑free if:

                     (a)  the drug or medicinal preparation is the subject of an approval under paragraph 19(1)(a) of the Therapeutic Goods Act 1989, and any conditions to which the approval is subject have been complied with; or

                     (b)  the drug or medicinal preparation is supplied under an authority under subsection 19(5) of that Act, and the supply is in accordance with any regulations made for the purposes of subsection 19(7) of that Act; or

                   (ba)  the supply of the drug or medicinal preparation is authorised by rules under subsection 19(7A) of that Act; or

                     (c)  the drug or medicinal preparation is exempted from the operation of Part 3 of that Act under regulation 12A of the Therapeutic Goods Regulations.

             (7)  A supply of a drug or medicinal preparation covered by this section is GST‑free if, and only if:

                     (a)  the drug or medicinal preparation is for human use or consumption; and

                     (b)  the supply is to an individual for private or domestic use or consumption.

38‑55  Private health insurance etc.

             (1)  A supply of *private health insurance is GST‑free.

             (2)  A supply of insurance against liability to pay for services supplied by ambulance is GST‑free.

             (3)  However, a supply of re‑insurance is not GST‑free under this section.

38‑60  Third party procured GST‑free health supplies

Insurers

             (1)  If:

                     (a)  a supply is a supply of a service to an insurer; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is:

                              (i)  wholly or partly *GST‑free under this Subdivision; and

                             (ii)  for settling one or more claims under an *insurance policy of which the insurer is an insurer;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Note:          For subparagraph (c)(ii), the insurer may be an insurer of the policy because of a portfolio transfer (see section 78‑118).

Compulsory third party scheme operators

             (2)  If:

                     (a)  a supply is a supply of a service to an *operator of a *compulsory third party scheme; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is:

                              (i)  wholly or partly *GST‑free under this Subdivision; and

                             (ii)  made under the compulsory third party scheme;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Government agencies

             (3)  If:

                     (a)  a supply is a supply of a service to an *Australian government agency; and

                     (b)  the service is the supplier making one or more other supplies of goods or services to an individual; and

                     (c)  at least one of the other supplies is wholly or partly *GST‑free under this Subdivision;

the first‑mentioned supply is GST‑free to the extent that the other supplies mentioned in paragraph (b) are GST‑free under this Subdivision.

Parties may agree for supply not to be GST‑free

             (4)  However, a supply is not GST‑free (to any extent) under this section if the supplier and the *recipient have agreed that the supply, or supplies of a kind that include that supply, not be treated as GST‑free supplies.

Subdivision 38‑CEducation

38‑85  Education courses

                   A supply is GST‑free if it is a supply of:

                     (a)  an *education course; or

                     (b)  administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course.

38‑90  Excursions or field trips

             (1)  A supply is GST‑free if it is a supply of an excursion or field trip, but only if the excursion or field trip:

                     (a)  is directly related to the curriculum of an *education course; and

                     (b)  is not predominantly recreational.

             (2)  However:

                     (a)  if the course is a *tertiary course, a *tertiary residential college course or a *professional or trade course—any supply of accommodation as part of the excursion or field trip is not GST‑free; and

                     (b)  in any case—any supply of *food as part of the excursion or field trip is not GST‑free under this section.

38‑95  Course materials

                   A supply of *course materials for a subject undertaken in an *education course is GST‑free.

38‑97  Lease etc. of curriculum related goods

                   A supply by way of lease or hire of goods is GST‑free if:

                     (a)  the goods are for use directly or principally by a student in undertaking a *pre‑school course, *primary course or *secondary course in which the student is enrolled; and

                     (b)  the entity supplying the course leases or hires the goods; and

                     (c)  at all times while the lease or hiring has effect, the entity supplying the course has the right to decide who uses goods and the use to which the goods are put; and

                     (d)  the lease or hiring is not part of an arrangement that includes:

                              (i)  a transfer of ownership of the goods; or

                             (ii)  an agreement to transfer ownership of the goods; or

                            (iii)  imposing an obligation, or conferring a right, to transfer ownership of the goods.

38‑100  Supplies that are not GST‑free

                   To avoid doubt, the following supplies related to an *education course are not GST‑free:

                     (a)  a supply by way of sale, lease or hire of goods (other than *course materials covered by section 38‑95, or a supply by way of lease or hire that is covered by section 38‑97);

                     (b)  a supply of membership of a student organisation.

38‑105  Accommodation at boarding schools etc.

             (1)  A supply is GST‑free if:

                     (a)  it is a supply of *student accommodation to students undertaking a *primary course, a *secondary course or a *special education course; and

                     (b)  the supplier of the accommodation also supplies the course.

             (2)  A supply is GST‑free if:

                     (a)  it is a supply of *student accommodation to students who are undertaking a *primary course, a *secondary course or a *special education course; and

                     (b)  the accommodation is provided in a hostel whose primary purpose is to provide accommodation for students from rural or remote locations who are undertaking such courses.

             (3)  Student accommodation means the right to occupy the whole or part of the premises used to provide the accommodation, including, if it is provided as part of the right so to occupy, the supply of:

                     (a)  cleaning and maintenance; or

                     (b)  electricity, gas, air‑conditioning or heating; or

                     (c)  telephone, television, radio or any other similar thing.

             (4)  However, a supply is not GST‑free under subsection (1) or (2) to the extent that it consists of the supply of *food.

38‑110  Recognition of prior learning etc.

             (1)  A supply is GST‑free if the supply is the assessment or issue of qualifications for the purpose of:

                     (a)  access to education; or

                     (b)  membership of a professional or trade association; or

                     (c)  registration or licensing for a particular occupation; or

                     (d)  employment.

             (2)  However, a supply is not GST‑free under subsection (1) unless the supply is carried out by:

                     (a)  a professional or trade association; or

                     (b)  an *education institution; or

                     (c)  an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian Recognition Framework to provide skill recognition (assessment only) services; or

                     (d)  an authority of the Commonwealth or of a State or Territory; or

                     (e)  a local government body.

Subdivision 38‑DChild care

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

                   A supply is GST‑free if it is a supply of child care by a registered carer (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999).

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

                   A supply is GST‑free if:

                     (a)  it is a supply of child care by an approved child care service (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999); or

                     (b)  it is a supply of an excursion that is directly related to a supply of child care covered by paragraph (a).

38‑150  Other child care

             (1)  A supply is GST‑free if it is a supply of child care specified in a determination made under subsection (2).

             (2)  The *Child Care Minister may, by legislative instrument, determine kinds of child care for the purposes of subsection (1). A kind of child care may only be included in a determination if the supplier of the care is eligible for Commonwealth funding in respect of the kind of care.

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

                   A supply is GST‑free if it is a supply that is directly related to a supply of child care that is:

                     (a)  GST‑free because of section 38‑140, 38‑145 or 38‑150; and

                     (b)  supplied by, or on behalf of, the supplier of the child care.

Subdivision 38‑EExports and other cross‑border supplies

38‑185  Exports of goods

             (1)  The third column of this table sets out supplies that are GST‑free:

 

GST‑free exports of goods

Item

Topic

These supplies are GST‑free ...

1

Export of goods—general

a supply of goods, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the *consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for the supply—the day on which the supplier gives the invoice.

2

Export of goods—supplies paid for by instalments

a supply of goods for which the *consideration is provided in instalments under a contract that requires the goods to be exported, but only if the supplier exports them from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after:

(a) the day on which the supplier receives any of the final instalment of the consideration for the supply; or

(b) if, on an earlier day, the supplier gives an *invoice for that final instalment—the day on which the supplier gives the invoice.

2A

Export of goods—supplies to associates without consideration

a supply of goods without *consideration to an *associate of the supplier, but only if the supplier exports them from the indirect tax zone.

3

Export of aircraft or ships

a supply of an aircraft or *ship, but only if the recipient of the aircraft or ship exports it from the indirect tax zone under its own power within 60 days (or such further period as the Commissioner allows) after taking physical possession of it.

4

Export of aircraft or ships—paid for by instalments

a supply of an aircraft or *ship for which the *consideration is provided in instalments under a contract that requires the aircraft or ship to be exported, but only if the *recipient exports it from the indirect tax zone before, or within 60 days (or such further period as the Commissioner allows) after, the earliest day on which one or more of the following occurs:

(a) the supplier receives any of the final instalment of the consideration for the supply;

(b) the supplier gives an *invoice for that final instalment;

(c) the supplier delivers the aircraft or ship to the recipient or (at the recipient’s request) to another person.

4A

Export of new recreational boats

a supply of a *ship, but only if:

(a) the ship is a *new recreational boat on the earliest day (the receipt day) on which one or more of the following occurs:

(i) the *recipient takes physical possession of the ship;

(ii) if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier receives any of the final instalment;

(iii) if consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier gives an *invoice for the final instalment; and

(b) the supplier or recipient exports the ship from the indirect tax zone within 12 months (or such further period as the Commissioner allows) after the receipt day; and

(c) subsection (6) does not apply at any time during the period:

(i) starting on the receipt day; and

(ii) ending when the supplier or recipient exports the ship.

5

Export of goods that are to be consumed on international flights or voyages

a supply of:

(a) *aircraft’s stores, or spare parts, for use, consumption or sale on an aircraft on a flight that has a destination outside the indirect tax zone; or

(b) *ship’s stores, or spare parts, for use, consumption or sale on a *ship on a voyage that has a destination outside the indirect tax zone;

whether or not part of the flight or voyage involves a journey between places in the indirect tax zone.

6

Export of goods used to repair etc. imported goods

a supply of goods in the course of repairing, renovating, modifying or treating other goods from outside the indirect tax zone whose destination is outside the indirect tax zone, but only if:

(a) the goods are attached to, or become part of, the other goods; or

(b) the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the other goods.

7

Goods exported by travellers as accompanied baggage

a supply of goods to a *relevant traveller, but only if:

(a) the supply is made in accordance with the rules specified in the regulations; and

(b) the goods are exported as accompanied baggage of the relevant traveller.

             (2)  However, a supply covered by any of items 1 to 6 in the table in subsection (1) is not GST‑free if the supplier reimports the goods into the indirect tax zone.

             (3)  Without limiting items 1 and 2 in the table in subsection (1), a supplier of goods is treated, for the purposes of those items, as having exported the goods from the indirect tax zone if:

                     (a)  before the goods are exported, the supplier supplies them to an entity that is not *registered or *required to be registered; and

                     (b)  that entity exports the goods from the indirect tax zone; and

                     (c)  the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

                     (d)  since their supply to that entity, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

                     (e)  the supplier has sufficient documentary evidence to show that the goods were exported; and

                      (f)  if that entity is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by that entity stating that:

                              (i)  a payment has not been sought under section 168‑5 for the supply; and

                             (ii)  if the goods are *wine—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note:          The entity will be covered by paragraph 168‑5(1A)(c) if the entity is an individual who resides in an external Territory.

             (4)  Without limiting item 2A in the table in subsection (1), a supplier of goods is treated, for the purposes of that item, as having exported the goods from the indirect tax zone if:

                     (a)  before the goods are exported, the supplier supplies them to an entity that:

                              (i)  is an *associate of the supplier; and

                             (ii)  is not *registered or *required to be registered; and

                     (b)  the associate exports the goods from the indirect tax zone within 60 days (or such further period as the Commissioner allows) after the earlier of the following:

                              (i)  the day the goods were delivered in the indirect tax zone to the associate;

                             (ii)  the day the goods were made available in the indirect tax zone to the associate; and

                     (c)  the goods have been entered for export within the meaning of section 113 of the Customs Act 1901; and

                     (d)  since their supply to the associate, the goods have not been altered or used in any way, except to the extent (if any) necessary to prepare them for export; and

                     (e)  the supplier has sufficient documentary evidence to show that the goods were exported; and

                      (f)  if the associate is covered by paragraph 168‑5(1A)(c)—the supplier has a declaration by the associate stating that:

                              (i)  a payment has not been sought under section 168‑5 for the supply; and

                             (ii)  if the goods are *wine—a payment has not been sought under section 25‑5 of that Act for the supply.

However, if the goods are reimported into the indirect tax zone, the supply is not GST‑free unless the reimportation is a *taxable importation.

Note:          The associate will be covered by paragraph 168‑5(1A)(c) if the associate is an individual who resides in an external Territory.

Export of new recreational boats

             (5)  For the purposes of item 4A of the table in subsection (1), the *ship is a new recreational boat if the ship:

                     (a)  has not been substantially reconstructed; and

                     (b)  has not been sold, leased or used since the completion of its construction, except in connection with:

                              (i)  the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or

                             (ii)  the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and

                     (c)  was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and

                     (d)  is not a commercial ship.

             (6)  For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:

                     (a)  as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or

                     (b)  in *carrying on an *enterprise in the indirect tax zone; or

                     (c)  in the indirect tax zone in carrying on an enterprise outside the indirect tax zone, not including use that involves the ship being used:

                              (i)  in a way that is private or domestic in nature; or

                             (ii)  in an activity, or series of activities, done as a private recreational pursuit or hobby; or

Example: Allowing an employee to live on the ship, or to take the ship on a fishing trip.

                     (d)  for *consideration, unless the consideration:

                              (i)  consists of the provision of services by an employee of an enterprise carried on by the *recipient outside the indirect tax zone; or

                             (ii)  is in respect of the recipient competing in a race or other sporting event (e.g. a prize).

38‑187  Lease etc. of goods for use outside the indirect tax zone

                   A supply of goods is GST‑free if:

                     (a)  the supply is by way of lease or hire; and

                     (b)  the goods are used outside the indirect tax zone.

Note:          If goods are leased or hired and used partly in the indirect tax zone and partly outside the indirect tax zone, the supply could be taxable to the extent that the goods are used in the indirect tax zone (see section 9‑5).

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

                   A supply of goods is GST‑free if:

                     (a)  the *recipient of the supply is a *non‑resident, and is not *registered or *required to be registered; and

                     (b)  the goods are jigs, patterns, templates, dies, punches and similar machine tools to be used in the indirect tax zone solely to manufacture goods that will be for export from the indirect tax zone.

38‑190  Supplies of things, other than goods or real property, for consumption outside the indirect tax zone

             (1)  The third column of this table sets out supplies that are GST‑free (except to the extent that they are supplies of goods or *real property):

 

Supplies of things, other than goods or real property, for consumption outside the indirect tax zone

Item

Topic

These supplies are GST‑free (except to the extent that they are supplies of goods or *real property)...

1

Supply connected with property outside the indirect tax zone

a supply that is directly connected with goods or real property situated outside the indirect tax zone.

2

Supply to *non‑resident outside the indirect tax zone.

a supply that is made to a *non‑resident who is not in the indirect tax zone when the thing supplied is done, and:

(a) the supply is neither a supply of work physically performed on goods situated in the indirect tax zone when the work is done nor a supply directly connected with *real property situated in the indirect tax zone; or

(b) the *non‑resident acquires the thing in *carrying on the non‑resident’s *enterprise, but is not *registered or *required to be registered.

3

Supplies used or enjoyed outside the indirect tax zone

a supply:

(a) that is made to a *recipient who is not in the indirect tax zone when the thing supplied is done; and

(b) the effective use or enjoyment of which takes place outside the indirect tax zone;

other than a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with *real property situated in the indirect tax zone.

4

Rights

a supply that is made in relation to rights if:

(a) the rights are for use outside the indirect tax zone; or

(b) the supply is to an entity that is not an *Australian resident and is outside the indirect tax zone when the thing supplied is done.

5

Export of services used to repair etc. imported goods

a supply that is constituted by the repair, renovation, modification or treatment of goods from outside the indirect tax zone whose destination is outside the indirect tax zone.

             (2)  However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST‑free if it is the supply of a right or option to acquire something the supply of which would be *connected with the indirect tax zone and would not be *GST‑free.

          (2A)  A supply covered by any of items 2 to 4 in the table in subsection (1) is not *GST‑free if the acquisition of the supply relates (whether directly or indirectly, or wholly or partly) to the making of a supply of *real property situated in the indirect tax zone that would be, wholly or partly, *input taxed under Subdivision 40‑B or 40‑C.

Note:          Subdivision 40‑B deals with the supply of premises (including a berth at a marina) by way of lease, hire or licence. Subdivision 40‑C deals with the sale of residential premises and the supply of residential premises by way of long‑term lease.

             (3)  Without limiting subsection (2) or (2A), a supply covered by item 2 in that table is not GST‑free if:

                     (a)  it is a supply under an agreement entered into, whether directly or indirectly, with a *non‑resident; and

                     (b)  the supply is provided, or the agreement requires it to be provided, to another entity in the indirect tax zone; and

                     (c)  for a supply other than an *input taxed supply—none of the following applies:

                              (i)  the other entity would be an *Australian‑based business recipient of the supply, if the supply had been made to it;

                             (ii)  the other entity is an individual who is provided with the supply as an employee or *officer of an entity that would be an Australian‑based business recipient of the supply, if the supply had been made to it; or

                            (iii)  the other entity is an individual who is provided with the supply as an employee or officer of the *recipient, and the recipient’s acquisition of the thing is solely for a *creditable purpose and is not a *non‑deductible expense.

             (4)  A supply is taken, for the purposes of item 3 in that table, to be a supply made to a *recipient who is not in the indirect tax zone if:

                     (a)  it is a supply under an agreement entered into, whether directly or indirectly, with an *Australian resident; and

                     (b)  the supply is provided, or the agreement requires it to be provided, to another entity outside the indirect tax zone.

             (5)  Subsection (4) does not apply to any of the following supplies:

                     (a)  a transport of goods within the indirect tax zone that is part of, or is connected with, the *international transport of the goods;

                     (b)  a loading or handling of goods within the indirect tax zone that is part of, or is connected with, the international transport of the goods;

                     (c)  a service, done within the indirect tax zone, in relation to the goods that facilitates the international transport of the goods;

Example: The services of a customs broker in processing the information necessary for the clearance of goods into home consumption.

                     (d)  insuring transport covered by paragraph (a);

                     (e)  arranging transport covered by paragraph (a), or insurance covered by paragraph (d).

Note:          The supply might still be GST‑free under item 5, 5A, 6 or 7 in the table in subsection 38‑355(1).

38‑191  Supplies relating to the repair etc. of goods under warranty

             (1)  A supply of anything other than goods or *real property is GST‑free if:

                     (a)  the *recipient is a *non‑resident who:

                              (i)  is not in the indirect tax zone when the thing supplied is done; and

                             (ii)  acquires the thing in *carrying on the recipient’s *enterprise, but is not *registered or *required to be registered; and

                     (b)  the supply is constituted by the repair, renovation, modification or treatment of goods; and

                     (c)  the repair, renovation, modification or treatment is done in order to meet the recipient’s obligations under a warranty relating to the goods; and

                     (d)  either:

                              (i)  *consideration for the warranty was included in the consideration for the supply of the goods; or

                             (ii)  the supply of the warranty was a separate *taxable supply to the supply of the goods.

             (2)  A supply of goods is GST‑free if:

                     (a)  it is made in the course of a supply that is GST‑free under subsection (1), and to the same *recipient; and

                     (b)  either:

                              (i)  the goods are attached to, or become part of, the goods to which the warranty relates; or

                             (ii)  the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat the goods to which the warranty relates.

Subdivision 38‑FReligious services

38‑220  Religious services

                   A supply is GST‑free if it is a supply of service that:

                     (a)  is supplied by a *ACNC‑registered religious institution; and

                     (b)  is integral to the practice of that religion.

Subdivision 38‑GActivities of charities etc.

38‑250  Nominal consideration etc.

             (1)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is for *consideration that:

                              (i)  if the supply is a supply of accommodation—is less than 75% of the *GST inclusive market value of the supply; or

                             (ii)  if the supply is not a supply of accommodation—is less than 50% of the GST inclusive market value of the supply.

             (2)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is for *consideration that:

                              (i)  if the supply is a supply of accommodation—is less than 75% of the cost to the supplier of providing the accommodation; or

                             (ii)  if the supply is not a supply of accommodation—is less than 75% of the consideration the supplier provided, or was liable to provide, for acquiring the thing supplied.

             (4)  Subsections (1) and (2) do not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

38‑255  Second‑hand goods

             (1)  A supply of *second‑hand goods is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the goods were supplied to the endorsed charity, gift‑deductible entity or government school:

                              (i)  as a gift; or

                             (ii)  by way of a supply that was GST‑free because of a previous application of this section.

However, the supply is not GST‑free if the endorsed charity, gift‑deductible entity or government school has dealt with the goods in such a way that the goods no longer have their original character.

             (3)  Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

38‑260  Supplies of retirement village accommodation etc.

                   A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity that operates a *retirement village; and

                     (b)  the supply is made to a resident of the retirement village; and

                     (c)  the supply is:

                              (i)  a supply of accommodation in the retirement village, or a supply of a service related to the supply of the accommodation; or

                             (ii)  a supply of meals.

38‑270  Raffles and bingo conducted by charities etc.

             (1)  A supply is GST‑free if:

                     (a)  the supplier is an *endorsed charity, a *gift‑deductible entity or a *government school; and

                     (b)  the supply is:

                              (i)  a supply of a ticket in a raffle; or

                             (ii)  an acceptance of a person’s participation in a game of bingo; or

                            (iii)  a *gambling supply of a kind specified in the regulations; and

                     (c)  the supply does not contravene a *State law or a *Territory law.

             (3)  Subsection (1) does not apply to a supply by a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless:

                     (a)  the supplier is:

                              (i)  an *endorsed charity; or

                             (ii)  a *government school; or

                            (iii)  a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997; or

                     (b)  each purpose to which the supply relates is a *gift‑deductible purpose of the supplier.

Note:          This subsection denies GST‑free status under this section to supplies by certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST‑free under this section if they relate to the principal purpose of the fund, authority or institution.

Subdivision 38‑IWater, sewerage and drainage

38‑285  Water

             (1)  A supply of water is GST‑free.

             (2)  However, a supply of water is not GST‑free under this section if it is:

                     (a)  supplied in a container; or

                     (b)  transferred into a container;

that has a capacity of less than 100 litres or such other quantity as the regulations specify.

             (3)  It does not matter whether or not the amount of water supplied or transferred fills the container.

38‑290  Sewerage and sewerage‑like services

             (1)  A supply of sewerage services is GST‑free.

             (2)  A supply that consists of removing waste matter from *residential premises is GST‑free if:

                     (a)  the premises are not serviced by sewers; and

                     (b)  the waste matter is of a kind that would normally be removed using sewers if the premises were serviced by sewers.

             (3)  A supply that consists of servicing a domestic self‑contained sewage system is GST‑free.

38‑295  Emptying of septic tanks

                   A supply of a service that consists of the emptying of a septic tank is GST‑free.

38‑300  Drainage

                   A supply of a service that consists of draining storm water is GST‑free.

Subdivision 38‑JSupplies of going concerns

38‑325  Supply of a going concern

             (1)  The *supply of a going concern is GST‑free if:

                     (a)  the supply is for *consideration; and

                     (b)  the *recipient is *registered or *required to be registered; and

                     (c)  the supplier and the recipient have agreed in writing that the supply is of a going concern.

             (2)  A supply of a going concern is a supply under an arrangement under which:

                     (a)  the supplier supplies to the *recipient all of the things that are necessary for the continued operation of an *enterprise; and

                     (b)  the supplier carries on, or will carry on, the enterprise until the day of the supply (whether or not as a part of a larger enterprise carried on by the supplier).

Subdivision 38‑KTransport and related matters

38‑355  Supplies of transport and related matters

             (1)  The third column of this table sets out supplies that are GST‑free:

 

Supplies of transport and related matters

Item

Topic

These supplies are GST‑free ...

1

Transport of passengers to, from or outside the indirect tax zone

the transport of a passenger:

(a) from the last place of departure in the indirect tax zone to a destination outside the indirect tax zone; or

(b) from a place outside the indirect tax zone to the first place of arrival in the indirect tax zone; or

(c) from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

2

Transport of passengers on domestic legs of international flights

the transport of a passenger within the indirect tax zone by air, but only if:

(a) the transport is part of a wider arrangement, itinerary or contract for transport by air involving international travel; and

(b) at the time the arrangement, itinerary or contract was entered into, the transport within the indirect tax zone formed part of a ticket for international travel, or was cross referenced to such a ticket, issued at that time.

3

Domestic air travel of non‑residents

the transport of a passenger within the indirect tax zone by air, but only if:

(a) the passenger is a *non‑resident; and

(b) the supply was purchased while the passenger was outside the indirect tax zone.

4

Transport of passengers on domestic legs of international sea voyages

the transport of a passenger within the indirect tax zone by sea, but only if:

(a) the transport is part of a journey by sea from the indirect tax zone to a destination outside the indirect tax zone, or from a destination outside the indirect tax zone to the indirect tax zone; and

(b) the transport is provided by the supplier who transports the passenger to or from the indirect tax zone.

5

Transport etc. of goods

subject to subsection (2), the *international transport of goods:

(a) from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or

(b) from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; or

(c) from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

5A

Loading or handling etc.

subject to subsection (2):

(a) loading or handling of goods, the *international transport of which is covered by item 5, during the course of the international transport; or

(b) supply of a service, during the course of the international transport of goods covered by item 5, that facilitates the international transport.

6

Insuring transport etc.

(a) insuring transport covered by item 1, 2, 3 or 4; or

(b) insuring the *international transport of goods from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or

(c) insuring:

(i) the transport of goods from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; and

(ii) the subsequent transport of those goods within the indirect tax zone, if it is an integral part of the transport of goods from the place outside the indirect tax zone to the place of consignment in the indirect tax zone;

including loading and handling within the indirect tax zone that is part of that transport; or

(d) insuring the transport of goods from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.

7

Arranging transport etc.

(a) arranging transport covered by item 1, 2, 3 or 4; or

(b) arranging the *international transport of goods covered by item 5; or

(c) arranging insurance covered by item 6.

             (2)  Paragraphs (a) and (b) of item 5, and item 5A, in the table in subsection (1) do not apply to a supply to the extent that the thing supplied is done in the indirect tax zone, unless:

                     (a)  the *recipient of the supply:

                              (i)  is a *non‑resident; and

                             (ii)  is not in the indirect tax zone when the thing supplied is done in the indirect tax zone; or

                     (b)  the supply is done by the supplier of the transport of the goods from or to the indirect tax zone (whichever is relevant).

38‑360  Travel agents arranging overseas supplies

                   A supply is GST‑free if:

                     (a)  the supplier makes it in the course of *carrying on an *enterprise as a travel agent; and

                     (b)  it consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside the indirect tax zone.

Subdivision 38‑LPrecious metals

38‑385  Supplies of precious metals

                   A supply of *precious metal is GST‑free if:

                     (a)  it is the first supply of that precious metal after its refining by, or on behalf of, the supplier; and

                     (b)  the entity that refined the precious metal is a *refiner of precious metal; and

                     (c)  the *recipient of the supply is a *dealer in precious metal.

Note:          Any other supply of precious metal is input taxed under section 40‑100.

Subdivision 38‑MSupplies through inwards duty free shops

38‑415  Supplies through inwards duty free shops

                   A supply is GST‑free if the supply is a sale of *airport shop goods through an *inwards duty free shop to a *relevant traveller.

Subdivision 38‑NGrants of land by governments

38‑445  Grants of freehold and similar interests by governments

             (1)  A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST‑free if:

                     (a)  the supply is of a freehold interest in the land; or

                     (b)  the supply is by way of *long‑term lease.

          (1A)  A supply by the Commonwealth, a State or a Territory of land is GST‑free if:

                     (a)  the supply is of a freehold interest in the land, or is by way of *long‑term lease; and

                     (b)  the Commonwealth, State or Territory had previously supplied the land, by way of lease, to the *recipient of the supply; and

                     (c)  at the time of that previous supply, there were no improvements on the land; and

                     (d)  because conditions to which that lease was subject had been satisfied, the recipient was entitled to the supply of the freehold interest or the supply by way of long‑term lease.

             (2)  However, the supply is not GST‑free if, since 1 July 2000, the land has already been the subject of a supply that is GST‑free under this section.

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

             (1)  A supply by the Commonwealth, a State or a Territory of land on which there are no improvements is GST‑free if:

                     (a)  the supply is by way of lease (other than *long‑term lease); and

                     (b)  the lease is subject to conditions the satisfaction of which will entitle the *recipient of the supply to the grant of a freehold interest in the land or a long‑term lease of the land.

             (2)  A supply consisting of the surrender, to the Commonwealth, a State or Territory, of a lease over land is GST‑free if:

                     (a)  the supplier acquired the land under a supply that:

                              (i)  was GST‑free under subsection (1); or

                             (ii)  if the supply was made before 1 July 2000—would have been GST‑free under subsection (1) if it had been made on or after that day; and

                     (b)  solely or partly in return for the surrender of the lease, the Commonwealth, State or Territory makes a supply of the land to the supplier that is GST‑free under section 38‑445.

Subdivision 38‑OFarm land

38‑475  Subdivided farm land

             (1)  The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, *potential residential land is GST‑free if:

                     (a)  the land is subdivided from land on which a *farming business has been *carried on for at least 5 years; and

                     (b)  the supply is made to an *associate of the supplier of the land without *consideration or for consideration that is less than the *GST inclusive market value of the supply.

             (2)  An entity *carries on a farming business if it carries on a *business of:

                     (a)  cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment; or

                     (b)  maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or

                     (c)  manufacturing dairy produce from raw material that the entity produced; or

                     (d)  planting or tending trees in a plantation or forest that are intended to be felled.

38‑480  Farm land supplied for farming

                   The supply of a freehold interest in, or the lease by an *Australian government agency of or the *long term lease of, land is GST‑free if:

                     (a)  the land is land on which a *farming business has been *carried on for at least the period of 5 years preceding the supply; and

                     (b)  the *recipient of the supply intends that a farming business be carried on, on the land.

Subdivision 38‑PCars for use by disabled people

38‑505  Disabled veterans

             (1)  A supply is GST‑free if it is a supply of a *car to an individual who:

                     (a)  has served in the Defence Force or in any other armed force of Her Majesty; and

                     (b)  as a result of that service:

                              (i)  has lost a leg or both arms; or

                             (ii)  has had a leg, or both arms, rendered permanently and completely useless; or

                            (iii)  is a veteran to whom section 24 of the Veterans’ Entitlements Act 1986 applies and receives a pension under Part II of that Act; or

                            (iv)  is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004, or satisfies the eligibility criteria in section 199 of that Act; and

                     (c)  intends to use the car in his or her personal transportation during all of the *Subdivision 38‑P period.

             (2)  However, a supply covered by subsection (1) is not GST‑free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.

             (3)  In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:

                     (a)  adapting it for driving by the person; or

                     (b)  adapting it for transporting the person.

             (4)  A supply is GST‑free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a), (b) and (c) apply.

38‑510  Other disabled people

             (1)  A supply is GST‑free if it is a supply of a *car to an individual who:

                     (a)  has a current disability certificate issued by:

                              (i)  the person holding the position of Managing Director of the nominated company (within the meaning of Part 2 of the Hearing Services and AGHS Reform Act 1997); or

                             (ii)  an officer or employee of that company who is authorised in writing by the Managing Director for the purposes of this section;

                            certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public transport; and

                     (b)  intends to use the car in his or her personal transportation to or from gainful employment during all of the *Subdivision 38‑P period.

             (2)  However, a supply covered by subsection (1) is not GST‑free to the extent that the *GST inclusive market value of the *car exceeds the *car limit.

             (3)  In working out the *GST inclusive market value of the *car for the purposes of subsection (2), disregard any value that is attributable to modifications made to the car solely for the purpose of:

                     (a)  adapting it for driving by the individual; or

                     (b)  adapting it for transporting the individual.

             (4)  A supply is GST‑free if it is a supply of *car parts that are for a *car for an individual to whom paragraphs (1)(a) and (b) applies.

Subdivision 38‑QInternational mail

38‑540  International mail

                   A supply is GST‑free if it is a supply of services to a foreign postal administration for:

                     (a)  the delivery in the indirect tax zone; or

                     (b)  the transit through the indirect tax zone;

of postal articles mailed outside the indirect tax zone.

Subdivision 38‑RTelecommunication supplies made under arrangements for global roaming in the indirect tax zone

38‑570  Telecommunication supplies made under arrangements for global roaming in the indirect tax zone

             (1)  A *telecommunication supply is GST‑free if:

                     (a)  the supply is to enable the use in the indirect tax zone of a portable device for sending and receiving signals, writing, images, sounds or information by an electromagnetic system while the device is linked to:

                              (i)  an international mobile subscriber identity; or

                             (ii)  an IP address; or

                            (iii)  another internationally recognised identifier;

                            containing a home network identity that indicates a subscription to a telecommunications network outside the indirect tax zone; and

                     (b)  the supply is covered by subsection (2) or (3).

Supply by non‑resident telecommunications supplier

             (2)  This subsection covers the supply if:

                     (a)  the supply is made to the subscriber in connection with the subscription; and

                     (b)  the billing of the subscriber for the supply is to an address outside the indirect tax zone; and

                     (c)  the supply is made by a *non‑resident that:

                              (i)  *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and

                             (ii)  does not *carry on in the indirect tax zone such an enterprise.

Supply by Australian resident telecommunications supplier

             (3)  This subsection covers the supply if:

                     (a)  the supply is made by an *Australian resident that is:

                              (i)  a carrier, or a carriage service provider, as defined in the Telecommunications Act 1997; or

                             (ii)  an internet service provider as defined in Schedule 5 to the Broadcasting Services Act 1992; and

                     (b)  the supply is provided to the user in the indirect tax zone of the device; and

                     (c)  the supply is made to a *non‑resident that:

                              (i)  *carries on outside the indirect tax zone an *enterprise of making *telecommunication supplies; and

                             (ii)  does not *carry on in the indirect tax zone such an enterprise.

Subdivision 38‑SEligible emissions units

38‑590  Eligible emissions units

                   A supply of an *eligible emissions unit is GST‑free.

Subdivision 38‑TInbound intangible consumer supplies

38‑610  Inbound intangible consumer supplies

             (1)  An *inbound intangible consumer supply is GST‑free if:

                     (a)  it is made by a *non‑resident; and

                     (b)  it is covered by a determination under subsection (2).

             (2)  The Minister may, by legislative instrument, determine that a specified class of *inbound intangible consumer supplies are GST‑free.

             (3)  However, the Minister must not make the determination unless:

                     (a)  the *Foreign Minister has advised the Minister in writing that the treatment of the class of supplies under the *GST law would, apart from the determination, be inconsistent with Australia’s international obligations; and

                     (b)  the Minister is satisfied that similar supplies made by *Australian residents would be GST‑free.

Division 40Input taxed supplies

Table of Subdivisions

40‑A     Financial supplies

40‑B      Residential rent

40‑C      Residential premises

40‑D     Precious metals

40‑E      School tuckshops and canteens

40‑F      Fund‑raising events conducted by charities etc.

40‑G     Inbound intangible consumer supplies

40‑1  What this Division is about

This Division provides for the supplies that are input taxed. If a supply is input taxed, then:

•      no GST is payable on the supply;

•      there is no entitlement to an input tax credit for anything acquired or imported to make the supply (see sections 11‑15 and 15‑10).

For the basic rules about supplies that are input taxed, see sections 9‑30 and 9‑80.

Subdivision 40‑AFinancial supplies

40‑5  Financial supplies

             (1)  A *financial supply is input taxed.

             (2)  Financial supply has