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.................................................................... 14
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.............................. 67
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 101
Division 37—Checklist of special rules 101
37‑1....................... Checklist of special rules................................................ 101
Chapter 3—The exemptions 104
Part 3‑1—Supplies that are not taxable supplies 104
Division 38—GST‑free supplies 104
38‑1....................... What this Division is about............................................. 105
Subdivision 38‑A—Food 105
38‑2....................... Food............................................................................... 105
38‑3....................... Food that is not GST‑free............................................... 105
38‑4....................... Meaning of food............................................................. 106
38‑5....................... Premises used in supplying food.................................... 106
38‑6....................... Packaging of food........................................................... 107
Subdivision 38‑B—Health 107
38‑7....................... Medical services............................................................. 107
38‑10..................... Other health services....................................................... 108
38‑15..................... Other government funded health services....................... 110
38‑20..................... Hospital treatment........................................................... 110
38‑25..................... Residential care etc.......................................................... 110
38‑30..................... Home care etc................................................................. 113
38‑35..................... Flexible care.................................................................... 114
38‑38..................... Disability support provided to NDIS participants........... 114
38‑40..................... Specialist disability services............................................ 115
38‑45..................... Medical aids and appliances............................................ 115
38‑47..................... Other GST‑free health goods.......................................... 115
38‑50..................... Drugs and medicinal preparations etc............................. 115
38‑55..................... Private health insurance etc............................................. 117
38‑60..................... Third party procured GST‑free health supplies............... 118
Subdivision 38‑C—Education 119
38‑85..................... Education courses........................................................... 119
38‑90..................... Excursions or field trips.................................................. 119
38‑95..................... Course materials............................................................. 120
38‑97..................... Lease etc. of curriculum related goods............................ 120
38‑100................... Supplies that are not GST‑free........................................ 120
38‑105................... Accommodation at boarding schools etc......................... 121
38‑110................... Recognition of prior learning etc..................................... 121
Subdivision 38‑D—Child care 122
38‑145................... Child care—approved child care services under the family assistance law 122
38‑150................... Other child care............................................................... 122
38‑155................... Supplies directly related to child care that is GST‑free.... 123
Subdivision 38‑E—Exports and other cross‑border supplies 123
38‑185................... Exports of goods............................................................ 123
38‑187................... Lease etc. of goods for use outside the indirect tax zone. 128
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 129
38‑191................... Supplies relating to the repair etc. of goods under warranty 132
Subdivision 38‑F—Religious services 133
38‑220................... Religious services........................................................... 133
Subdivision 38‑G—Activities of charities etc. 133
38‑250................... Nominal consideration etc............................................... 133
38‑255................... Second‑hand goods........................................................ 134
38‑260................... Supplies of retirement village accommodation etc........... 135
38‑270................... Raffles and bingo conducted by charities etc.................. 135
Subdivision 38‑I—Water, sewerage and drainage 136
38‑285................... Water.............................................................................. 136
38‑290................... Sewerage and sewerage‑like services............................. 137
38‑295................... Emptying of septic tanks................................................. 137
38‑300................... Drainage......................................................................... 137
Subdivision 38‑J—Supplies of going concerns 137
38‑325................... Supply of a going concern.............................................. 137
Subdivision 38‑K—Transport and related matters 138
38‑355................... Supplies of transport and related matters........................ 138
38‑360................... Travel agents arranging overseas supplies...................... 141
Subdivision 38‑L—Precious metals 141
38‑385................... Supplies of precious metals............................................ 141
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 143
38‑475................... Subdivided farm land...................................................... 143
38‑480................... Farm land supplied for farming...................................... 144
Subdivision 38‑P—Cars for use by disabled people 144
38‑505................... Disabled veterans............................................................ 144
38‑510................... Other disabled people..................................................... 145
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 146
38‑570................... Telecommunication supplies made under arrangements for global roaming in the indirect tax zone 146
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 149
40‑1....................... What this Division is about............................................. 149
Subdivision 40‑A—Financial supplies 149
40‑5....................... Financial supplies........................................................... 149
Subdivision 40‑B—Residential rent 150
40‑35..................... Residential rent............................................................... 150
Subdivision 40‑C—Residential premises 151
40‑65..................... Sales of residential premises........................................... 151
40‑70..................... Supplies of residential premises by way of long‑term lease 151
40‑75..................... Meaning of new residential premises............................. 152
Subdivision 40‑D—Precious metals 154
40‑100................... Precious metals............................................................... 154
Subdivision 40‑E—School tuckshops and canteens 155
40‑130................... School tuckshops and canteens....................................... 155
Subdivision 40‑F—Fund‑raising events conducted by charities etc. 155
40‑160................... Fund‑raising events conducted by charities etc............... 155
40‑165................... Meaning of fund‑raising event........................................ 156
Subdivision 40‑G—Inbound intangible consumer supplies 157
40‑180................... Inbound intangible consumer supplies............................ 157
Part 3‑2—Non‑taxable importations 158
Division 42—Non‑taxable importations 158
42‑1....................... What this Division is about............................................. 158
42‑5....................... Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995 158
42‑10..................... Goods returned to the indirect tax zone in an unaltered condition 159
42‑15..................... Supplies of low value goods........................................... 160
Chapter 4—The special rules 161
Division 45—Introduction 161
45‑1....................... What this Chapter is about.............................................. 161
45‑5....................... The effect of special rules............................................... 161
Part 4‑1—Special rules mainly about particular ways entities are organised 162
Division 48—GST groups 162
48‑1....................... What this Division is about............................................. 162
Subdivision 48‑A—Formation and membership of GST groups 162
48‑5....................... Formation of GST groups.............................................. 162
48‑7....................... Membership of GST groups........................................... 163
48‑10..................... Membership requirements of a GST group.................... 164
48‑15..................... Relationship of companies and non‑companies in a GST group 165
Subdivision 48‑B—Consequences of GST groups 167
48‑40..................... Who is liable for GST..................................................... 167
48‑45..................... Who is entitled to input tax credits.................................. 168
48‑50..................... Adjustments.................................................................... 169
48‑51..................... Consequences of being a member of a GST group for part of a tax period 169
48‑52..................... Consequences for a representative member of membership change during a tax period 170
48‑53..................... Consequences of changing a representative member during a tax period 171
48‑55..................... GST groups treated as single entities for certain purposes 171
48‑57..................... Tax invoices that are required to identify recipients........ 172
48‑60..................... GST returns.................................................................... 173
Subdivision 48‑C—Administrative matters 174
48‑70..................... Changing the membership etc. of GST groups............... 174
48‑71..................... Approval of early day of effect of forming, changing etc. GST groups 175
48‑73..................... Tax periods of GST groups with incapacitated members 176
48‑75..................... Effect of representative member becoming an incapacitated entity 177
Subdivision 48‑D—Ceasing to be a member of a GST group 177
48‑110................... Adjustments after you cease to be a member of a GST group 177
48‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST group 178
Division 49—GST religious groups 180
49‑1....................... What this Division is about............................................. 180
Subdivision 49‑A—Approval of GST religious groups 180
49‑5....................... Approval of GST religious groups................................. 180
49‑10..................... Membership requirements of a GST religious group...... 181
Subdivision 49‑B—Consequences of approval of GST religious groups 181
49‑30..................... Supplies between members of GST religious groups..... 181
49‑35..................... Acquisitions between members of GST religious groups 181
49‑40..................... Adjustment events.......................................................... 181
49‑45..................... Changes in the extent of creditable purpose.................... 182
49‑50..................... GST religious groups treated as single entities for certain purposes 182
Subdivision 49‑C—Administrative matters 183
49‑70..................... Changing the membership etc. of GST religious groups 183
49‑75..................... Revoking the approval of GST religious groups............ 183
49‑80..................... Notification by principal members.................................. 184
49‑85..................... Date of effect of approvals and revocations.................... 184
49‑90..................... Notification by the Commissioner.................................. 185
Division 50—GST treatment of religious practitioners 186
Guide to Division 50 187
50‑1....................... What this Division is about............................................. 186
50‑5....................... GST treatment of religious practitioners......................... 186
Division 51—GST joint ventures 187
51‑1....................... What this Division is about............................................. 187
Subdivision 51‑A—Formation of and participation in GST joint ventures 187
51‑5....................... Formation of GST joint ventures.................................... 187
51‑7....................... Participants in GST joint ventures.................................. 188
51‑10..................... Participation requirements of a GST joint venture.......... 189
Subdivision 51‑B—Consequences of GST joint ventures 190
51‑30..................... Who is liable for GST..................................................... 190
51‑35..................... Who is entitled to input tax credits.................................. 190
51‑40..................... Adjustments.................................................................... 191
51‑45..................... Additional net amounts relating to GST joint ventures... 191
51‑50..................... GST returns relating to GST joint ventures.................... 192
51‑52..................... Consolidation of GST returns relating to GST joint ventures 192
51‑55..................... Payments of GST relating to GST joint ventures............ 193
51‑60..................... Refunds relating to GST joint ventures........................... 194
Subdivision 51‑C—Administrative matters 194
51‑70..................... Changing the participants etc. of GST joint ventures...... 194
51‑75..................... Approval of early day of effect of forming, changing etc. GST joint ventures 196
Subdivision 51‑D—Ceasing to be a participant in, or an operator of, a GST joint venture 197
51‑110................... Adjustments after you cease to be a participant in a GST joint venture 197
51‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST joint venture 197
Division 54—GST branches 199
54‑1....................... What this Division is about............................................. 199
Subdivision 54‑A—Registration of GST branches 199
54‑5....................... Registration of GST branches......................................... 199
54‑10..................... The date of effect of registration of a GST branch.......... 200
54‑15..................... GST branch registration number..................................... 200
Subdivision 54‑B—Consequences of registration of GST branches 201
54‑40..................... Additional net amounts relating to GST branches........... 201
54‑45..................... Net amounts of parent entities......................................... 201
54‑50..................... Tax invoices and adjustment notes.................................. 202
54‑55..................... GST returns relating to GST branches............................ 203
54‑60..................... Payments of GST relating to GST branches................... 203
54‑65..................... Refunds relating to GST branches.................................. 203
Subdivision 54‑C—Cancellation of registration of GST branches 204
54‑70..................... When an entity must apply for cancellation of registration of a GST branch 204
54‑75..................... When the Commissioner must cancel registration of a GST branch 204
54‑80..................... The date of effect of cancellation of registration of a GST branch 205
54‑85..................... Application of Subdivision 25‑B.................................... 205
54‑90..................... Effect on GST branches of cancelling the entity’s registration 206
Division 57—Resident agents acting for non‑residents 207
57‑1....................... What this Division is about............................................. 207
57‑5....................... Who is liable for GST..................................................... 207
57‑7....................... Agreement to apply this Division to all supplies through a resident agent 207
57‑10..................... Who is entitled to input tax credits.................................. 208
57‑15..................... Adjustments.................................................................... 209
57‑20..................... Resident agents are required to be registered.................. 209
57‑25..................... Cancellation of registration of a resident agent................ 209
57‑30..................... Notice of cessation of agency......................................... 210
57‑35..................... Tax periods of resident agents........................................ 210
57‑40..................... GST returns for non‑residents........................................ 210
57‑45..................... Resident agents giving GST returns............................... 211
57‑50..................... Non‑residents that belong to GST groups...................... 211
Division 58—Representatives of incapacitated entities 212
58‑1....................... What this Division is about............................................. 212
58‑5....................... General principle for the relationship between incapacitated entities and their representatives 212
58‑10..................... Circumstances in which representatives have GST‑related liabilities and entitlements 213
58‑15..................... Adjustments for bad debts.............................................. 216
58‑20..................... Representatives are required to be registered.................. 216
58‑25..................... Cancellation of registration of a representative................ 216
58‑30..................... Notice of cessation of representation.............................. 217
58‑35..................... Tax periods of representatives........................................ 217
58‑40..................... Effect on attribution rules of not accounting on a cash basis 217
58‑45..................... GST returns for representatives of incapacitated entities. 218
58‑50..................... Representatives to give GST returns for incapacitated entities 218
58‑55..................... Incapacitated entities not required to give GST returns in some cases 219
58‑60..................... Representative to notify Commissioner of certain liabilities etc. 220
58‑65..................... Money available to meet representative’s liabilities......... 221
58‑70..................... Protection for actions of representative........................... 221
58‑95..................... Division does not apply to the extent that the representative is a creditor of the incapacitated entity 221
Division 60—Pre‑establishment costs 222
60‑1....................... What this Division is about............................................. 222
60‑5....................... Input tax credit for acquisitions and importations before establishment 222
60‑10..................... Registration etc. not needed for input tax credits............. 222
60‑15..................... Pre‑establishment acquisitions and importations............. 223
60‑20..................... Creditable purpose.......................................................... 223
60‑25..................... Attributing the input tax credit for pre‑establishment acquisitions 224
60‑30..................... Attributing the input tax credit for pre‑establishment importations 225
60‑35..................... Application of Division 129........................................... 225
Division 63—Non‑profit sub‑entities 226
63‑1....................... What this Division is about............................................. 226
63‑5....................... Entities that may choose to apply this Division............... 226
63‑10..................... Period for which a choice has effect............................... 226
63‑15..................... Consequences of choosing to apply this Division.......... 227
63‑20..................... Non‑profit sub‑entities may register............................... 228
63‑25..................... Registration turnover threshold for non‑profit sub‑entities 228
63‑27..................... Application of particular provisions relating to charities etc. 228
63‑30..................... When non‑profit sub‑entities must apply for cancellation of registration 229
63‑35..................... When the Commissioner must cancel registration of non‑profit sub‑entities 230
63‑40..................... Effect on adjustments of becoming a non‑profit sub‑entity 230
63‑45..................... Effect on adjustments of ceasing to be a non‑profit sub‑entity 231
63‑50..................... Membership requirements of GST groups..................... 231
Part 4‑2—Special rules mainly about supplies and acquisitions 233
Division 66—Second‑hand goods 233
66‑1....................... What this Division is about............................................. 233
Subdivision 66‑A—Input tax credits for acquiring second‑hand goods 233
66‑5....................... Creditable acquisitions of second‑hand goods................ 233
66‑10..................... Amounts of input tax credits for creditable acquisitions of second‑hand goods 234
66‑15..................... Attributing input tax credits for creditable acquisitions of second‑hand goods 234
66‑17..................... Records of creditable acquisitions of second‑hand goods 235
Subdivision 66‑B—Acquisitions of second‑hand goods that are divided for re‑supply 237
66‑40..................... Acquisitions of second‑hand goods that can be used to offset GST on future re‑supplies 237
66‑45..................... Future re‑supplies that are not taxable supplies............... 238
66‑50..................... Future re‑supplies on which GST is reduced.................. 238
66‑55..................... Records of acquisitions of second‑hand goods to which this Subdivision applied 239
66‑60..................... Input tax credits for acquiring second‑hand goods the supply of which is not fully taxable 239
66‑65..................... Total Subdivision 66‑B credit amounts and Subdivision 66‑B GST amounts 240
66‑70..................... Commissioner may determine rules for applying this Subdivision 240
Division 69—Non‑deductible expenses 241
69‑1....................... What this Division is about............................................. 241
Subdivision 69‑A—Non‑deductible expenses generally 241
69‑5....................... Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations 241
69‑10..................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars 242
Subdivision 69‑B—Elections for GST purposes relating to meal entertainment and entertainment facilities 244
69‑15..................... What this Subdivision is about....................................... 244
69‑20..................... Effect of elections on net amounts.................................. 244
69‑25..................... Election to use the 50/50 split method for meal entertainment 244
69‑30..................... Election to use the 12 week register method for meal entertainment 245
69‑35..................... Election to use the 50/50 split method for entertainment facilities 245
69‑40..................... When elections take effect............................................... 246
69‑45..................... When elections cease to have effect................................ 246
69‑50..................... Adjustment events relating to elections........................... 247
69‑55..................... Adjustment notes not required........................................ 248
Division 70—Financial supplies (reduced credit acquisitions) 249
70‑1....................... What this Division is about............................................. 249
70‑5....................... Acquisitions that attract the reduced credit...................... 249
70‑10..................... Extended meaning of creditable purpose........................ 249
70‑15..................... How much are the reduced input tax credits?.................. 250
70‑20..................... Extent of creditable purpose............................................ 250
70‑25..................... Sale of reduced credit acquisitions (Division 132).......... 251
Division 71—Fringe benefits provided by input taxed suppliers 253
71‑1....................... What this Division is about............................................. 253
71‑5....................... Acquisitions by input taxed suppliers to provide fringe benefits 253
71‑10..................... Importations by input taxed suppliers to provide fringe benefits 254
Division 72—Associates 255
72‑1....................... What this Division is about............................................. 255
Subdivision 72‑A—Supplies without consideration 255
72‑5....................... Taxable supplies without consideration.......................... 255
72‑10..................... The value of taxable supplies without consideration....... 256
72‑15..................... Attributing the GST to tax periods.................................. 256
72‑20..................... Supplies and acquisitions that would otherwise be sales etc. 256
72‑25..................... Supplies that would otherwise be GST‑free, input taxed or financial supplies 257
Subdivision 72‑B—Acquisitions without consideration 257
72‑40..................... Creditable acquisitions without consideration................. 257
72‑45..................... The amount of the input tax credit................................... 257
72‑50..................... Attributing the input tax credit to tax periods.................. 258
Subdivision 72‑C—Supplies for inadequate consideration 258
72‑70..................... The value of taxable supplies for inadequate consideration 258
Subdivision 72‑D—Application of this Division to certain sub‑entities 259
72‑90..................... GST branches................................................................. 259
72‑92..................... Non‑profit sub‑entities.................................................... 259
72‑95..................... Commonwealth government entities............................... 259
72‑100................... State or Territory government entities............................. 260
Division 75—Sale of freehold interests etc. 261
75‑1....................... What this Division is about............................................. 261
75‑5....................... Applying the margin scheme.......................................... 261
75‑10..................... The amount of GST on taxable supplies......................... 264
75‑11..................... Margins for supplies of real property in particular circumstances 266
75‑12..................... Working out margins to take into account failure to pay full consideration 272
75‑13..................... Working out margins to take into account supplies to associates 273
75‑14..................... Consideration for acquisition of real property not to include cost of improvements etc. 273
75‑15..................... Subdivided real property................................................. 274
75‑16..................... Margins for supplies of real property acquired through several acquisitions 274
75‑20..................... Supplies under a margin scheme do not give rise to creditable acquisitions 275
75‑22..................... Increasing adjustment relating to input tax credit entitlement 275
75‑25..................... Adjustments relating to bad debts................................... 277
75‑27..................... Decreasing adjustment for later payment of consideration 278
75‑30..................... Tax invoices not required for supplies of real property under the margin scheme 278
75‑35..................... Approved valuations....................................................... 278
Division 78—Insurance 279
78‑1....................... What this Division is about............................................. 279
Subdivision 78‑A—Insurers 279
78‑5....................... GST on insurance premiums is exclusive of stamp duty 279
78‑10..................... Decreasing adjustments for settlements of insurance claims 280
78‑15..................... How to work out the decreasing adjustments................. 281
78‑18..................... Increasing adjustments for payments of excess under insurance policies 282
78‑20..................... Settlements of insurance claims do not give rise to creditable acquisitions 283
78‑25..................... Supplies in settlement of claims are not taxable supplies 284
78‑30..................... Acquisitions by insurers in the course of settling claims under non‑taxable policies 284
78‑35..................... Taxable supplies relating to rights of subrogation........... 284
78‑40..................... Adjustment events relating to decreasing adjustments under this Division 285
78‑42..................... Adjustment events relating to increasing adjustments under section 78‑18 285
Subdivision 78‑B—Insured entities etc. 286
78‑45..................... Settlements of insurance claims do not give rise to taxable supplies 286
78‑50..................... Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed........................................................................................ 286
78‑55..................... Payments of excess under insurance policies are not consideration for supplies 287
78‑60..................... Supplies of goods to insurers in the course of settling claims 288
Subdivision 78‑C—Third parties 288
78‑65..................... Payments etc. to third parties by insurers........................ 288
78‑70..................... Payments etc. to third parties by insured entities............. 289
78‑75..................... Creditable acquisitions relating to rights of subrogation. 289
Subdivision 78‑D—Insured entities that are not registered etc. 290
78‑80..................... Net amounts.................................................................... 290
78‑85..................... GST returns.................................................................... 290
78‑90..................... Payments of GST........................................................... 291
Subdivision 78‑E—Statutory compensation schemes 291
78‑95..................... GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty 291
78‑100................... Settlements of claims for compensation under statutory compensation schemes 292
78‑105................... Meaning of statutory compensation scheme................... 293
Subdivision 78‑F—Miscellaneous 293
78‑110................... Effect of judgments and court orders.............................. 293
78‑115................... Exclusion of certain Commonwealth, State or Territory insurance schemes 294
78‑118................... Portfolio transfers........................................................... 294
78‑120................... HIH rescue package........................................................ 295
Division 79—Compulsory third party schemes 297
79‑1....................... What this Division is about............................................. 297
Subdivision 79‑A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies 298
79‑5....................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where premium selection test is satisfied........................................................................... 298
79‑10..................... Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied............................... 299
79‑15..................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement................................. 301
79‑20..................... Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery........................................................................................ 302
Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies 303
79‑25..................... Meaning of CTP hybrid payment or supply................... 303
79‑30..................... Application of Division 78............................................. 304
Subdivision 79‑C—Other payments and supplies under compulsory third party schemes 304
79‑35..................... Meaning of CTP compensation or ancillary payment or supply etc. 304
79‑40..................... GST on CTP premiums is exclusive of stamp duty........ 305
79‑45..................... Exclusion of certain compulsory third party schemes..... 306
79‑50..................... Decreasing adjustments for CTP compensation or ancillary payments or supplies 306
79‑55..................... Increasing adjustments for payments of excess etc. under compulsory third party schemes 306
79‑60..................... Effect of settlements and payments under compulsory third party schemes 307
79‑65..................... Taxable supplies relating to recovery by operators of compulsory third party schemes 308
79‑70..................... Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes 309
79‑75..................... Adjustment events relating to increasing adjustments under section 79‑55 310
79‑80..................... Payments of excess under compulsory third party schemes are not consideration for supplies 310
79‑85..................... Supplies of goods to operators in the course of settling claims 310
79‑90..................... Effect of judgments and court orders.............................. 311
Subdivision 79‑D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction 312
79‑95..................... How to work out decreasing adjustments using the applicable average input tax credit fraction 312
79‑100................... Meaning of average input tax credit fraction.................. 314
Division 80—Settlement sharing arrangements 316
80‑1....................... What this Division is about............................................. 316
Subdivision 80‑A—Insurance policy settlement sharing arrangements 316
80‑5....................... Meaning of insurance policy settlement sharing arrangement etc. 316
80‑10..................... Effect of becoming parties to industry deeds or entering into settlement sharing arrangements 317
80‑15..................... Effect of contributing operator’s payment....................... 318
80‑20..................... Managing operator’s payments or supplies.................... 318
80‑25..................... Contributing operator’s payment.................................... 319
80‑30..................... Managing operator’s increasing adjustment where contributing operator’s payment 319
80‑35..................... Adjustment events relating to managing operator’s payment or supply 321
Subdivision 80‑B—Nominal defendant settlement sharing arrangements 321
80‑40..................... Meaning of nominal defendant settlement sharing arrangement etc. 321
80‑45..................... Nominal defendant settlement sharing arrangements to which this Subdivision applies 322
80‑50..................... Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements................................................................... 322
80‑55..................... Effect of contributing operator’s payment....................... 323
80‑60..................... Managing operator’s payment or supply........................ 323
80‑65..................... Contributing operator’s payment.................................... 323
80‑70..................... Managing operator’s increasing adjustment where contributing operator’s payment 323
80‑75..................... Adjustment events relating to managing operator’s payment or supply 324
Subdivision 80‑C—Hybrid settlement sharing arrangements 325
80‑80..................... Meaning of hybrid settlement sharing arrangement etc. 325
80‑85..................... Subdivision 80‑A to apply to hybrid settlement sharing arrangement, subject to exceptions 326
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 326
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 327
Division 81—Payments of taxes, fees and charges 328
81‑1....................... What this Division is about............................................. 328
81‑5....................... Effect of payment of tax.................................................. 328
81‑10..................... Effect of payment of certain fees and charges................. 328
81‑15..................... Other fees and charges that do not constitute consideration 330
81‑20..................... Division has effect despite sections 9‑15 and 9‑17......... 330
81‑25..................... Retrospective application of regulations.......................... 330
Division 82—Supplies in return for rights to develop land 331
82‑1....................... What this Division is about............................................. 331
82‑5....................... Supplies of rights to develop land do not constitute consideration in certain cases 331
82‑10..................... Supplies by Australian government agencies of rights to develop land are not for consideration 331
Division 83—Non‑residents making supplies connected with the indirect tax zone 333
83‑1....................... What this Division is about............................................. 333
83‑5....................... “Reverse charge” on supplies made by non‑residents..... 333
83‑10..................... Recipients who are members of GST groups................. 334
83‑15..................... Recipients who are participants in GST joint ventures.... 334
83‑20..................... The amount of GST on “reverse charged” supplies made by non‑residents 334
83‑25..................... When non‑residents must apply for registration............. 334
83‑30..................... When the Commissioner must register non‑residents..... 335
83‑35..................... Tax invoices not required for “reverse charged” supplies made by non‑residents 335
Division 84—Offshore supplies 336
Subdivision 84‑A—Offshore supplies that are taxable supplies, and “reverse charged”, under this Subdivision 336
84‑1....................... What this Subdivision is about....................................... 336
84‑5....................... Offshore supplies that are taxable supplies under this Subdivision 336
84‑10..................... “Reverse charge” on offshore supplies........................... 338
84‑12..................... The amount of GST on offshore supplies that are “reverse charged” 339
84‑13..................... The amount of input tax credits relating to offshore supplies 339
84‑14..................... Supplies relating to employee share ownership schemes 340
84‑15..................... Transfers etc. between branches of the same entity......... 341
84‑20..................... The price of taxable supplies of offshore intangibles without, or for inadequate, consideration 341
84‑25..................... Tax periods for supplies from associates that are not connected with the indirect tax zone 342
84‑30..................... Adjustments for acquisitions made solely for a creditable purpose 342
Subdivision 84‑B—Inbound intangible consumer supplies 343
84‑45..................... What this Subdivision is about....................................... 343
84‑50..................... No tax invoices or adjustment notes for inbound intangible consumer supplies 343
84‑55..................... Operator of electronic distribution platform treated as supplier 344
84‑60..................... Extension of section 84‑55 to certain other supplies through an electronic distribution platform 345
84‑65..................... Meaning of inbound intangible consumer supply........... 346
84‑70..................... Meaning of electronic distribution platform................... 346
Subdivision 84‑C—Offshore supplies of low value goods 347
84‑73..................... What this Subdivision is about....................................... 347
84‑75..................... Supplies of low value goods that are connected with the indirect tax zone 348
84‑77..................... Meaning of offshore supply of low value goods............. 348
84‑79..................... Meaning of supply of low value goods........................... 350
84‑81..................... Who makes an offshore supply of low value goods....... 351
84‑83..................... Exception—when supplier reasonably believes there will be a taxable importation 353
84‑85..................... Exception—when there is also a taxable importation...... 354
84‑87..................... No tax invoices or adjustment notes for offshore supplies of low value goods 354
84‑89..................... Notifying amounts of GST to recipients of offshore supplies of low value goods 355
84‑91..................... The amount of GST on offshore supplies of low value goods made by redeliverers 355
84‑93..................... Suppliers of offshore supplies of low value goods to ensure tax information is included in customs documents........................................................................................ 356
Subdivision 84‑D—Consumers of offshore supplies 357
84‑95..................... What this Subdivision is about....................................... 357
84‑100................... When entities are treated as not being Australian consumers 357
84‑105................... When entities are treated as not being consumers........... 358
Division 85—Telecommunication supplies 359
85‑1....................... What this Division is about............................................. 359
85‑5....................... When telecommunication supplies are connected with the indirect tax zone 359
85‑10..................... Meaning of telecommunication supply........................... 359
Division 86—Valuable metals 361
86‑1....................... What this Division is about............................................. 361
86‑5....................... “Reverse charge” on supplies of goods consisting of valuable metal 361
86‑10..................... The valuable metal threshold........................................... 362
86‑15..................... Recipients who are members of GST groups................. 363
86‑20..................... Recipients who are participants in GST joint ventures.... 364
86‑25..................... The amount of GST on “reverse charged” supplies of goods consisting of valuable metal 364
Division 87—Long‑term accommodation in commercial residential premises 365
87‑1....................... What this Division is about............................................. 365
87‑5....................... Commercial residential premises that are predominantly for long‑term accommodation 365
87‑10..................... Commercial residential premises that are not predominantly for long‑term accommodation 365
87‑15..................... Meaning of commercial accommodation....................... 366
87‑20..................... Meaning of long‑term accommodation etc..................... 366
87‑25..................... Suppliers may choose not to apply this Division............ 367
Division 90—Company amalgamations 368
90‑1....................... What this Division is about............................................. 368
90‑5....................... Supplies not taxable—amalgamated company registered or required to be registered 368
90‑10..................... Value of taxable supplies—amalgamated company not registered or required to be registered 368
90‑15..................... Acquisitions not creditable—amalgamated company registered or required to be registered 369
90‑20..................... Liability after amalgamation for GST on amalgamating company’s supplies 369
90‑25..................... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions 369
90‑30..................... Adjustments.................................................................... 370
90‑35..................... Amalgamating companies accounting on a cash basis.... 370
Division 93—Time limit on entitlements to input tax credits 372
93‑1....................... What this Division is about............................................. 372
93‑5....................... Time limit on entitlements to input tax credits................. 372
93‑10..................... Exceptions to time limit on entitlements to input tax credits 372
93‑15..................... GST no longer able to be taken into account................... 374
Division 96—Supplies partly connected with the indirect tax zone 375
96‑1....................... What this Division is about............................................. 375
96‑5....................... Supplies that are only partly connected with the indirect tax zone 375
96‑10..................... The value of the taxable components of supplies that are only partly connected with the indirect tax zone........................................................................................ 376
Division 99—Deposits as security 377
99‑1....................... What this Division is about............................................. 377
99‑5....................... Giving a deposit as security does not constitute consideration 377
99‑10..................... Attributing the GST relating to deposits that are forfeited etc. 377
Division 100—Vouchers 378
100‑1..................... What this Division is about............................................. 378
100‑5..................... Supplies of vouchers with a stated monetary value......... 378
100‑10................... Redemption of vouchers................................................. 379
100‑12................... Consideration on redemption of vouchers...................... 379
100‑15................... Increasing adjustments for unredeemed vouchers........... 380
100‑18................... Arrangement for supply of voucher................................ 380
100‑20................... Vouchers supplied to non‑residents and redeemed by others in the indirect tax zone 381
100‑25................... Meaning of voucher etc.................................................. 381
Division 102—Cancelled lay‑by sales 382
102‑1..................... What this Division is about............................................. 382
102‑5..................... Cancelled lay‑by sales..................................................... 382
102‑10................... Attributing GST and input tax credits............................. 382
Division 105—Supplies in satisfaction of debts 383
105‑1..................... What this Division is about............................................. 383
105‑5..................... Supplies by creditors in satisfaction of debts may be taxable supplies 383
105‑10................... Net amounts.................................................................... 384
105‑15................... GST returns.................................................................... 384
105‑20................... Payments of GST........................................................... 384
Division 108—Valuation of taxable supplies of goods in bond 386
108‑1..................... What this Division is about............................................. 386
108‑5..................... Taxable supplies of goods in bond etc............................ 386
Division 110—Tax‑related transactions 387
110‑1..................... What this Division is about............................................. 387
Subdivision 110‑A—Income tax‑related transactions 387
110‑5..................... Transfers of tax losses and net capital losses.................. 387
110‑15................... Supplies under operation of consolidated group regime. 387
110‑20................... Tax sharing agreements—entering into agreement etc.... 388
110‑25................... Tax sharing agreements—leaving group clear of group liability 388
110‑30................... Tax funding agreements.................................................. 389
Subdivision 110‑B—Other tax‑related transactions 390
110‑60................... Indirect tax sharing agreements—entering into agreement etc. 390
110‑65................... Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability 390
Division 111—Reimbursement of employees etc. 392
111‑1..................... What this Division is about............................................. 392
111‑5..................... Creditable acquisitions relating to reimbursements......... 392
111‑10................... Amounts of input tax credits relating to reimbursements 393
111‑15................... Tax invoices relating to reimbursements......................... 394
111‑18................... Application of Division to volunteers working for charities etc. 394
111‑20................... Application of Division to recipients of certain withholding payments 395
111‑25................... Employers paying expenses of employees etc................ 396
111‑30................... Reimbursements etc. of former or future employees etc. 396
Division 113—PAYG voluntary agreements 398
113‑1..................... What this Division is about............................................. 398
113‑5..................... Supply of work or services not a taxable supply............ 398
An Act about a goods and services tax to implement A New Tax System, and for related purposes
Chapter 1—Introduction
Part 1‑1—Preliminary
Division 1—Preliminary
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 1‑2—Using this Act
Division 2—Overview 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 3—Defined 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 4—Status 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 2—The basic rules
Division 5—Introduction
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 2‑1—The central provisions
Division 7—The 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 2‑2—Supplies and acquisitions
Division 9—Taxable 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‑A—What 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, supply does not include:
(a) a supply of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b) a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
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.
(3A) A supply of goods that is an *offshore supply of low value goods is connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84‑C.
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 | 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‑B—Who 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 | 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‑C—How 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) or 84‑79(2), then the price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.
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) a currency other than Australian currency; or
(b) *digital currency;
is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.
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 | 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 11—Creditable 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, acquisition does not include:
(a) an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or
(b) an acquisition of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.
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 |
| 7A | Limited registration entities | Division 146 |
| 8 | Non‑deductible expenses | Division 69 |
| 8A | Offshore supplies | 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 2‑3—Importations
Division 13—Taxable 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 15—Creditable 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 2‑4—Net amounts and adjustments
Division 17—Net 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 19—Adjustment 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‑A—Adjustment 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‑B—Adjustments 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‑C—Adjustments 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 21—Bad 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 2‑5—Registration
Division 23—Who 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 25—How 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‑A—How 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 |
| 1AA | Limited registration entities | Division 146 |
| 2 | Non‑profit sub‑entities | Division 63 |
| 3 | Non‑residents making supplies connected with the indirect tax zone | Division 83 |
Subdivision 25‑B—How 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 |