A New Tax System (Goods and Services Tax) Act 1999
Act No.55 of 1999 as amended
This compilation was prepared on 26 May 2009
taking into account amendments up to Act No.33 of 2009
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
AttorneyGeneral’s Department, Canberra
A New Tax System (Goods and Services Tax) Act 1999 iii
Contents
Chapter1—Introduction 1
Part11—Preliminary 1
Division1—Preliminary 1
11 Short title [see Note 1] 1
12 Commencement 1
13 CommonwealthState financial relations 1
14 States and Territories are bound by the GST law 1
Part12—Using this Act 2
Division2—Overview of the GST legislation 2
21 What this Act is about 2
25 The basic rules (Chapter2) 2
210 The exemptions (Chapter3) 2
215 The special rules (Chapter4) 3
220 Miscellaneous (Chapter5) 3
225 Interpretative provisions (Chapter6) 3
230 Administration, collection and recovery provisions in the Taxation Administration Act 1953 3
Division3—Defined terms 4
31 When defined terms are identified 4
35 When terms are not identified 4
310 Identifying the defined term in a definition 5
Division4—Status of Guides and other nonoperative material 6
41 Nonoperative material 6
45 Explanatory sections 6
410 Other material 6
Chapter2—The basic rules 7
Division5—Introduction 7
51 What this Chapter is about 7
55 The structure of this Chapter 7
Part21—The central provisions 9
Division7—The central provisions 9
71 GST and input tax credits 9
75 Net amounts 9
710 Tax periods 9
715 Payments and refunds 9
Part22—Supplies and acquisitions 10
Division9—Taxable supplies 10
91 What this Division is about 10
Subdivision9A—What are taxable supplies? 10
95 Taxable supplies 10
910 Meaning of supply 10
915 Consideration 11
920 Enterprises 12
925 Supplies connected with Australia 14
930 Supplies that are GSTfree or input taxed 16
939 Special rules relating to taxable supplies 17
Subdivision9B—Who is liable for GST on taxable supplies? 18
940 Liability for GST on taxable supplies 18
969 Special rules relating to liability for GST on taxable supplies 18
Subdivision9C—How much GST is payable on taxable supplies? 18
970 The amount of GST on taxable supplies 18
975 The value of taxable supplies 18
980 The value of taxable supplies that are partly GSTfree or input taxed 20
985 Value of taxable supplies to be expressed in Australian currency 21
990 Rounding of amounts of GST 21
999 Special rules relating to the amount of GST on taxable supplies 23
Division11—Creditable acquisitions 24
111 What this Division is about 24
115 What is a creditable acquisition? 24
1110 Meaning of acquisition 24
1115 Meaning of creditable purpose 25
1120 Who is entitled to input tax credits for creditable acquisitions? 26
1125 How much are the input tax credits for creditable acquisitions? 26
1130 Acquisitions that are partly creditable 26
1199 Special rules relating to acquisitions 27
Part23—Importations 29
Division13—Taxable importations 29
131 What this Division is about 29
135 What are taxable importations? 29
1310 Meaning of nontaxable importation 29
1315 Who is liable for GST on taxable importations? 30
1320 How much GST is payable on taxable importations? 30
1325 The value of taxable importations that are partly nontaxable importations 31
1399 Special rules relating to taxable importations 31
Division15—Creditable importations 32
151 What this Division is about 32
155 What are creditable importations? 32
1510 Meaning of creditable purpose 32
1515 Who is entitled to input tax credits for creditable importations? 33
1520 How much are the input tax credits for creditable importations? 33
1525 Importations that are partly creditable 33
1599 Special rules relating to creditable importations 34
Part24—Net amounts and adjustments 35
Division17—Net amounts and adjustments 35
171 What this Division is about 35
175 Net amounts 35
1710 Adjustments 36
1715 Working out net amounts using approved forms 36
1720 Determinations relating to how to work out net amounts 36
1799 Special rules relating to net amounts or adjustments 37
Division19—Adjustment events 39
191 What this Division is about 39
195 Explanation of the effect of adjustment events 39
Subdivision19A—Adjustment events 40
1910 Adjustment events 40
Subdivision19B—Adjustments for supplies 41
1940 Where adjustments for supplies arise 41
1945 Previously attributed GST amounts 42
1950 Increasing adjustments for supplies 42
1955 Decreasing adjustments for supplies 42
Subdivision19C—Adjustments for acquisitions 42
1970 Where adjustments for acquisitions arise 42
1975 Previously attributed input tax credit amounts 43
1980 Increasing adjustments for acquisitions 43
1985 Decreasing adjustments for acquisitions 44
1999 Special rules relating to adjustment events 44
Division21—Bad debts 45
211 What this Division is about 45
215 Writing off bad debts (taxable supplies) 45
2110 Recovering amounts previously written off (taxable supplies) 45
2115 Bad debts written off (creditable acquisitions) 46
2120 Recovering amounts previously written off (creditable acquisitions) 46
2199 Special rules relating to adjustments for bad debts 46
Part25—Registration 48
Division23—Who is required to be registered and who may be registered 48
231 Explanation of Division 48
235 Who is required to be registered 48
2310 Who may be registered 49
2315 The registration turnover threshold 49
2399 Special rules relating to who is required to be registered or who may be registered 49
Division25—How you become registered, and how your registration can be cancelled 50
Subdivision25A—How you become registered 50
251 When you must apply for registration 50
255 When the Commissioner must register you 50
2510 The date of effect of your registration 51
2515 Effect of backdating your registration 51
2549 Special rules relating to registration 52
Subdivision25B—How your registration can be cancelled 52
2550 When you must apply for cancellation of registration 52
2555 When the Commissioner must cancel registration 52
2557 When the Commissioner may cancel your registration 53
2560 The date of effect of your cancellation 54
2565 Effect of backdating your cancellation of registration 54
2599 Special rules relating to cancellation of registration 55
Part26—Tax periods 56
Division27—How to work out the tax periods that apply to you 56
271 What this Division is about 56
275 General rule—3 month tax periods 56
2710 Election of one month tax periods 56
2715 Determination of one month tax periods 56
2720 Withdrawing elections of one month tax periods 57
2722 Revoking elections of one month tax periods 58
2725 Revoking determinations of one month tax periods 58
2730 Tax periods determined by the Commissioner to take account of changes in tax periods 59
2735 Changing the days on which your tax periods end 59
2737 Special determination of tax periods on request 60
2738 Revoking special determination of tax periods 60
2740 An entity’s concluding tax period 61
2799 Special rules relating to tax periods 61
Division29—What is attributable to tax periods 62
291 What this Division is about 62
Subdivision29A—The attribution rules 62
295 Attributing the GST on your taxable supplies 62
2910 Attributing the input tax credits for your creditable acquisitions 63
2915 Attributing the input tax credits for your creditable importations 64
2920 Attributing your adjustments 64
2925 Commissioner may determine particular attribution rules 65
2939 Special rules relating to attribution rules 66
Subdivision29B—Accounting on a cash basis 67
2940 Choosing to account on a cash basis 67
2945 Permission to account on a cash basis 67
2950 Ceasing to account on a cash basis 68
2969 Special rules relating to accounting on a cash basis 69
Subdivision29C—Tax invoices and adjustment notes 69
2970 Tax invoices 69
2975 Adjustment notes 70
2980 Tax invoices and adjustment notes not required for low value transactions 71
2999 Special rules relating to tax invoices and adjustment notes 71
Part27—Returns, payments and refunds 72
Division31—GST returns 72
311 What this Division is about 72
315 Who must give GST returns 72
318 When GST returns must be given—quarterly tax periods 72
3110 When GST returns must be given—other tax periods 73
3115 The form and contents of GST returns 73
3120 Additional GST returns 74
3125 Electronic lodgment of GST returns 74
3199 Special rules relating to GST returns 75
Division33—Payments of GST 76
331 What this Division is about 76
333 When payments of net amounts must be made—quarterly tax periods 76
335 When payments of net amounts must be made—other tax periods 77
3310 How payments of net amounts are made 77
3315 Payments of amounts of GST on importations 77
3399 Special rules relating to payments of GST 78
Division35—Refunds 79
351 What this Division is about 79
355 Entitlement to refund 79
3510 When entitlement arises 79
3599 Special rules relating to refunds 79
Part28—Checklist of special rules 81
Division37—Checklist of special rules 81
371 Checklist of special rules 81
Chapter3—The exemptions 84
Part31—Supplies that are not taxable supplies 84
Division38—GSTfree supplies 84
381 What this Division is about 84
Subdivision38A—Food 85
382 Food 85
383 Food that is not GSTfree 85
384 Meaning of food 85
385 Premises used in supplying food 86
386 Packaging of food 86
Subdivision38B—Health 87
387 Medical services 87
3810 Other health services 87
3815 Other government funded health services 89
3820 Hospital treatment 89
3825 Residential care etc. 90
3830 Community care etc. 92
3835 Flexible care 93
3840 Specialist disability services 93
3845 Medical aids and appliances 93
3847 Other GSTfree health goods 93
3850 Drugs and medicinal preparations etc. 94
3855 Private health insurance etc. 95
Subdivision38C—Education 96
3885 Education courses 96
3890 Excursions or field trips 96
3895 Course materials 96
3897 Lease etc. of curriculum related goods 96
38100 Supplies that are not GSTfree 97
38105 Accommodation at boarding schools etc. 97
38110 Recognition of prior learning etc. 98
Subdivision38D—Child care 98
38140 Child care—registered carers under the family assistance law 98
38145 Child care—approved child care services under the family assistance law 99
38150 Other child care 99
38155 Supplies directly related to child care that is GSTfree 99
Subdivision38E—Exports and other supplies for consumption outside Australia 99
38185 Exports of goods 99
38187 Lease etc. of goods for use outside Australia 102
38188 Tooling used by nonresidents to manufacture goods for export 102
38190 Supplies of things, other than goods or real property, for consumption outside Australia 102
Subdivision38F—Religious services 104
38220 Religious services 104
Subdivision38G—Activities of charitable institutions etc. 105
38250 Nominal consideration etc. 105
38255 Secondhand goods 106
38260 Supplies of retirement village accommodation etc. 107
38270 Raffles and bingo conducted by charitable institutions etc. 107
Subdivision38I—Water, sewerage and drainage 108
38285 Water 108
38290 Sewerage and seweragelike services 109
38295 Emptying of septic tanks 109
38300 Drainage 109
Subdivision38J—Supplies of going concerns 109
38325 Supply of a going concern 109
Subdivision38K—Transport and related matters 110
38355 Supplies of transport and related matters 110
38360 Travel agents arranging overseas supplies 112
Subdivision38L—Precious metals 112
38385 Supplies of precious metals 112
Subdivision38M—Supplies through inwards duty free shops 112
38415 Supplies through inwards duty free shops 112
Subdivision38N—Grants of land by governments 113
38445 Grants of freehold and similar interests by governments 113
38450 Leases preceding grants of freehold and similar interests by governments 113
Subdivision38O—Farm land 114
38475 Subdivided farm land 114
38480 Farm land supplied for farming 114
Subdivision38P—Cars for use by disabled people 115
38505 Disabled veterans 115
38510 Other disabled people 116
Subdivision38Q—International mail 117
38540 International mail 117
Division40—Input taxed supplies 118
401 What this Division is about 118
Subdivision40A—Financial supplies 118
405 Financial supplies 118
Subdivision40B—Residential rent 119
4035 Residential rent 119
Subdivision40C—Residential premises 120
4065 Sales of residential premises 120
4070 Supplies of residential premises by way of longterm lease 120
4075 Meaning of new residential premises 120
Subdivision40D—Precious metals 121
40100 Precious metals 121
Subdivision40E—School tuckshops and canteens 122
40130 School tuckshops and canteens 122
Subdivision40F—Fundraising events conducted by charitable institutions etc. 122
40160 Fundraising events conducted by charitable institutions etc. 122
40165 Meaning of fundraising event 123
Part32—Nontaxable importations 125
Division42—Nontaxable importations 125
421 What this Division is about 125
425 Nontaxable importations—Schedule4 to the Customs Tariff Act 1995 125
4210 Goods returned to Australia in an unaltered condition 126
Chapter4—The special rules 127
Division45—Introduction 127
451 What this Chapter is about 127
455 The effect of special rules 127
Part41—Special rules mainly about particular ways entities are organised 128
Division48—GST groups 128
481 What this Division is about 128
Subdivision48A—Approval of GST groups 128
485 Approval of GST groups 128
4810 Membership requirements of a GST group 129
4815 Relationship of companies and noncompanies in a GST group 130
Subdivision48B—Consequences of approval of GST groups 132
4840 Who is liable for GST 132
4845 Who is entitled to input tax credits 133
4850 Adjustments 133
4855 GST groups treated as single entities for certain purposes 134
4860 GST returns 134
Subdivision48C—Administrative matters 135
4870 Changing the membership etc. of GST groups 135
4875 Revoking the approval of GST groups 135
4880 Notification by representative members 136
4885 Date of effect of approvals and revocations 136
4890 Notification by the Commissioner 137
Subdivision48D—Ceasing to be a member of a GST group 137
48110 Adjustments after you cease to be a member of a GST group 137
48115 Changes in extent of creditable purpose after you cease to be a member of a GST group 137
Division49—GST religious groups 139
491 What this Division is about 139
Subdivision49A—Approval of GST religious groups 139
495 Approval of GST religious groups 139
4910 Membership requirements of a GST religious group 140