Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A supply that you make is not a * taxable supply to the extent that you make it under an arrangement (within the meaning of the * ITAA 1997) if:
(a) the arrangement the performance of which, in whole or in part, involves the performance of work or services (whether or not by you); and
(b) an agreement is in force that:
(i) complies with section 12 - 55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and
(ii) states that the section covers payments under the arrangement, or payments under a series of arrangements that includes the arrangement; and
(c) you, and the entity acquiring what you supply under the arrangement, are parties to that agreement; and
(d) you have an * ABN that is in force and is quoted in the agreement; and
(e) the acquisition, by that entity, of what you supply under the arrangement would be a * creditable acquisition (and not * partly creditable) if the supply were a * taxable supply.
(2) This section has effect despite section 9 - 5 (about what is a taxable supply.)
This Division sets out the supplies that are GST - free. If a supply is GST - free, then:
• no GST is payable on the supply;
• an entitlement to an input tax credit for anything acquired or imported to make the supply is not affected.
For the basic rules about supplies that are GST - free, see sections 9 - 30 and 9 - 80.
This Division provides for the supplies that are input taxed. If a supply is input taxed, then:
• no GST is payable on the supply;
• there is no entitlement to an input tax credit for anything acquired or imported to make the supply (see sections 11 - 15 and 15 - 10).
For the basic rules about supplies that are input taxed, see sections 9 - 30 and 9 - 80.
This Division sets out the importations that are non - taxable. No GST is payable on an importation that is non - taxable (see sections 7 - 1 and 13 - 5).
For the basic rules about non - taxable importations, see sections 13 - 10 and 13 - 25.
This Chapter sets out the special rules for the GST. The special rules apply only in particular circumstances, and are generally quite limited in their scope.
The special rules modify the application of the basic rules for the GST in Chapter 2.
This Division sets out how to ascribe activities of a representative of an incapacitated entity between the representative and the incapacitated entity for GST purposes.
In particular, supplies, acquisitions and importations, and associated acts and omissions, by the representative are, in most cases, treated as having been by the incapacitated entity. This ensures that a transaction by the representative has the same consequences under the GST law as if the incapacitated entity had no representative.
However, in most cases, GST - related liabilities and entitlements are allocated to the representative for transactions that are within the scope of the representative's responsibility or authority.
The GST consequences of incurring certain expenses for the provision of meal entertainment and entertainment facilities depend on elections made under fringe benefits tax law. These elections might not be made until after GST returns are due.
This Subdivision allows elections to be made for GST purposes so that GST returns can take into account the likely application of subsection 69 - 5(3A) to those expenses, before the fringe benefits tax elections are made.
Method statement
Step 1. Add together:
(a) the sum of the payments of * money, or * digital currency, (if any) made in settlement of the claim; and
(b) the * GST inclusive market value of the supplies (if any) made by the insurer in settlement of the claim (other than supplies that would have been * taxable supplies but for section 78 - 25).
Step 2. If any payments of excess were made to the insurer under the * insurance policy in question, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 - 18 applies).
Step 3. Multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following:
where:
extent of input tax credit has the meaning given by subsection (2).
Operators of compulsory third party schemes have adjustments which enable the net GST on the schemes to reflect correctly their margins after settlements of claims and other payments and supplies under the schemes are taken into account.
The normal application of Division 78 to some insurance policy payments and supplies under the schemes is modified (see Subdivision 79 - A). That Division is also extended so that it applies in a modified form to payments and supplies connected with, but not under, insurance policies (see Subdivision 79 - B). For other settlements, and payments, provisions similar to Division 78 apply (see Subdivision 79 - C). Certain adjustments are worked out using an "applicable average input tax credit fraction" (see Subdivision 79 - D).
Method statement
Step 1. Add together:
(a) the sum of the payments of * money, or * digital currency, (if any) that are included in the payment or supply; and
(b) the * GST inclusive market value of the supplies (if any) made by the * operator that are included in the payment or supply (other than supplies that would have been * taxable supplies but for section 78 - 25 or 79 - 60).
Step 2. If, in relation to the payment or supply, any payments of an excess were made to the * operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 - 18 or 79 - 55 applies).
Step 3. Except where the payment or supply is a * CTP ancillary payment or supply, multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following:
where:
applicable average input tax credit fraction has the meaning given by subsection (2).
Method statement
Step 1. Add together:
(a) the sum of the payments of * money, or * digital currency, (if any) that are included in the * managing operator's payment or supply; and
(b) the * GST inclusive market value of the supplies (if any) that are included in the * managing operator's payment or supply (other than supplies that would have been * taxable supplies but for section 78 - 25 or 79 - 60).
Step 2. If, in relation to the * managing operator's payment or supply, any payments of an excess were made to the * managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 - 18 or 79 - 55 applies).
Method statement
Step 1. Add together:
(a) the sum of the payments of * money, or * digital currency, (if any) that are included in the * managing operator's payment or supply; and
(b) the * GST inclusive market value of the supplies (if any) that are included in the * managing operator's payment or supply (other than supplies that would have been * taxable supplies but for section 78 - 25 or 79 - 60).
Step 2. If, in relation to the * managing operator's payment or supply, any payments of an excess were made to the * managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 - 18 or 79 - 55 applies).
GST does not apply to payments of taxes, fees and charges that are excluded from the GST by this Division or by regulations.
GST applies to certain taxes, fees and charges prescribed by regulations.
Tax invoices and adjustment notes are not required for offshore supplies to Australian consumers.
The operator of an electronic distribution platform is treated as having made electronic supplies that are made through the platform:
(a) from offshore to Australian consumers; or
(b) in some cases, under an agreement with the supplier.
The result is that the operator, instead of the suppliers, counts the supplies towards its GST turnover and pays GST on the supplies.
Supplies of low value goods involving goods being brought to the indirect tax zone may be connected with the indirect tax zone.
An entity may be treated as the supplier of an offshore supply of low value goods, if the entity is the operator of an electronic distribution platform through which the supply is made, or the entity is a redeliverer of the goods.
The result is that the operator or redeliverer, instead of the supplier, counts the supplies towards its GST turnover and pays GST on the supplies.
Suppliers of offshore supplies of low value goods are not required to issue tax invoices and adjustment notes, but they must ensure relevant information is included in customs documents.
(a) an amount must be withheld from payment for the supply because of section 12 - 55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and
(b) the acquisition of the thing supplied would be a creditable acquisition if the supply were a taxable supply.
A New Tax System (Goods and Services Tax) Act 1999
No. 55, 1999
Compilation No. 91
Compilation date: 1 October 2023
Includes amendments up to: Act No. 76, 2023
Registered: 14 October 2023
This compilation is in 2 volumes
Volume 1: sections 1 - 1 to 113 - 5
Volume 2: sections 114 - 1 to 195 - 1
Schedules
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 1 October 2023 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Part 4 - 3--Special rules mainly about importations
Division 114--Importations without entry for home consumption
114 - 1 What this Division is about
114 - 5 Importations without entry for home consumption
114 - 10 Goods that have already been entered for home consumption etc.
114 - 15 Payments of amounts of assessed GST where security for payment of customs duty is forfeited
114 - 20 Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act
114 - 25 Warehoused goods entered for home consumption by an entity other than the importer
Division 117--Valuation of re - imported goods
117 - 1 What this Division is about
117 - 5 Valuation of taxable importations of goods that were exported for repair or renovation
117 - 10 Valuation of taxable importations of live animals that were exported
117 - 15 Refunds of assessed GST on certain reimportations of live animals
Part 4 - 4--Special rules mainly about net amounts and adjustments
Division 123--Simplified accounting methods for retailers and small enterprise entities
123 - 1 What this Division is about
123 - 5 Commissioner may determine simplified accounting methods
123 - 7 Meaning of small enterprise entity
123 - 10 Choosing to apply a simplified accounting method
123 - 15 Net amounts
126 - 1 What this Division is about
126 - 5 Global accounting system for gambling supplies
126 - 10 Global GST amounts
126 - 15 Losses carried forward
126 - 25 Application of Subdivision 9 - C
126 - 27 When gambling supplies are connected with the indirect tax zone
126 - 30 Gambling supplies do not give rise to creditable acquisitions
126 - 32 Repayments of gambling losses are not consideration
126 - 33 Tax invoices not required for gambling supplies
126 - 35 Meaning of gambling supply and gambling event
Division 129--Changes in the extent of creditable purpose
129 - 1 What this Division is about
129 - 5 Adjustments arising under this Division
129 - 10 Adjustments do not arise under this Division for acquisitions and importations below a certain value
129 - 15 Adjustments do not arise under this Division where there are adjustments under Division 130
Subdivision 129 - B--Adjustment periods
129 - 20 Adjustment periods
129 - 25 Effect on adjustment periods of things being disposed of etc.
Subdivision 129 - C--When adjustments for acquisitions and importations arise
129 - 40 Working out whether you have an adjustment
129 - 45 Gifts to gift - deductible entities
129 - 50 Creditable purpose
129 - 55 Meaning of apply
Subdivision 129 - D--Amounts of adjustments for acquisitions and importations
129 - 70 The amount of an increasing adjustment
129 - 75 The amount of a decreasing adjustment
129 - 80 Effect of adjustment under certain Divisions
Subdivision 129 - E--Attributing adjustments under this Division
129 - 90 Attributing your adjustments for changes in extent of creditable purpose
Division 130--Goods applied solely to private or domestic use
130 - 1 What this Division is about
130 - 5 Goods applied solely to private or domestic use
Division 131--Annual apportionment of creditable purpose
131 - 1 What this Division is about
Subdivision 131 - A--Electing to have annual apportionment
131 - 5 Eligibility to make an annual apportionment election
131 - 10 Making an annual apportionment election
131 - 15 Annual apportionment elections by representative members of GST groups
131 - 20 Duration of an annual apportionment election
Subdivision 131 - B--Consequences of electing to have annual apportionment
131 - 40 Input tax credits for acquisitions that are partly creditable
131 - 45 Input tax credits for importations that are partly creditable
131 - 50 Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars
131 - 55 Increasing adjustments relating to annually apportioned acquisitions and importations
131 - 60 Attributing adjustments under section 131 - 55
Division 132--Supplies of things acquired etc. without full input tax credits
132 - 1 What this Division is about
132 - 5 Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable
132 - 10 Attribution of adjustments under this Division
Division 133--Providing additional consideration under gross - up clauses
133 - 1 What this Division is about
133 - 5 Decreasing adjustments for additional consideration provided under gross - up clauses
133 - 10 Availability of adjustments under Division 19 for acquisitions
Division 134--Third party payments
134 - 1 What this Division is about
134 - 5 Decreasing adjustments for payments made to third parties
134 - 10 Increasing adjustments for payments received by third parties
134 - 15 Attribution of decreasing adjustments
134 - 20 Third party adjustment notes
134 - 25 Adjustment events do not arise
134 - 30 Application of sections 48 - 55 and 49 - 50
Division 135--Supplies of going concerns
135 - 1 What this Division is about
135 - 5 Initial adjustments for supplies of going concerns
135 - 10 Later adjustments for supplies of going concerns
Division 136--Bad debts relating to transactions that are not taxable or creditable to the fullest extent
136 - 1 What this Division is about
Subdivision 136 - A--Bad debts relating to partly taxable or creditable transactions
136 - 5 Adjustments relating to partly taxable supplies
136 - 10 Adjustments in relation to partly creditable acquisitions
Subdivision 136 - B--Bad debts relating to transactions that are taxable or creditable at less than 1/11 of the price
136 - 30 Writing off bad debts (taxable supplies)
136 - 35 Recovering amounts previously written off (taxable supplies)
136 - 40 Bad debts written off (creditable acquisitions)
136 - 45 Recovering amounts previously written off (creditable acquisitions)
136 - 50 Meanings of taxable at less than 1 /11 of the price and creditable at less than 1 /11 of the consideration
Division 137--Stock on hand on becoming registered etc.
137 - 1 What this Division is about
137 - 5 Adjustments for stock on hand on becoming registered etc.
Division 138--Cessation of registration
138 - 1 What this Division is about
138 - 5 Adjustments for cessation of registration
138 - 10 Attributing adjustments for cessation of registration
138 - 15 Ceasing to be registered--amounts not previously attributed
138 - 17 Situations to which this Division does not apply
138 - 20 Application of Division 129
Division 139--Distributions from deceased estates
139 - 1 What this Division is about
139 - 5 Adjustments for distributions from deceased estates
139 - 10 Attributing adjustments for distributions from deceased estates
139 - 15 Application of Division 129
Division 141--Tradex scheme goods
141 - 1 What this Division is about
141 - 5 Adjustments for applying goods contrary to the Tradex Scheme
141 - 10 Meaning of tradex scheme goods etc.
141 - 15 Attribution of adjustments under this Division
141 - 20 Application of Division 129
142 - 1 What this Division is about
Subdivision 142 - A--Excess GST unrelated to adjustments
142 - 5 When this Subdivision applies
142 - 10 Refunding the excess GST
142 - 15 When section 142 - 10 does not apply
142 - 16 No refund of excess GST relating to supplies treated as non - taxable importations
Subdivision 142 - B--GST related to cancelled supplies
142 - 20 Refunding GST relating to cancelled supplies
Subdivision 142 - C--Passed - on GST
142 - 25 Working out if GST has been passed on
Part 4 - 5--Special rules mainly about registration
144 - 1 What this Division is about
144 - 5 Requirement to register
Division 146--Limited registration entities
146 - 1 What this Division is about
146 - 5 Limited registration entities
146 - 10 Limited registration entities cannot make creditable acquisitions
146 - 15 Limited registration entities cannot make creditable importations
146 - 20 Entries in the Australian Business Register
146 - 25 Limited registration entities have only quarterly tax periods
Division 149--Government entities
149 - 1 What this Division is about
149 - 5 Government entities may register
149 - 10 Government entities are not required to be registered
149 - 15 GST law applies to registered government entities
149 - 20 Government entities not required to cancel their registration
149 - 25 Membership requirements of a government GST group
Part 4 - 6--Special rules mainly about tax periods
Division 151--Annual tax periods
151 - 1 What this Division is about
Subdivision 151 - A--Electing to have annual tax periods
151 - 5 Eligibility to make an annual tax period election
151 - 10 Making an annual tax period election
151 - 15 Annual tax period elections by representative members of GST groups
151 - 20 When you must make your annual tax period election
151 - 25 Duration of an annual tax period election
Subdivision 151 - B--Consequences of electing to have annual tax periods
151 - 40 Annual tax periods
151 - 45 When GST returns for annual tax periods must be given
151 - 50 When payments of assessed net amounts for annual tax periods must be made
151 - 55 An entity's concluding annual tax period
151 - 60 The effect of incapacitation or cessation
Division 153--Agents etc. and insurance brokers
153 - 1 What this Division is about
153 - 5 Attributing the input tax credits for your creditable acquisitions
153 - 10 Attributing your adjustments
153 - 15 Tax invoices
153 - 20 Adjustment notes
153 - 25 Insurance supplied through insurance brokers
Subdivision 153 - B--Principals and intermediaries as separate suppliers or acquirers
153 - 50 Arrangements under which intermediaries are treated as suppliers or acquirers
153 - 55 The effect of these arrangements on supplies
153 - 60 The effect of these arrangements on acquisitions
153 - 65 Determinations that supplies or acquisitions are taken to be under these arrangements
Division 156--Supplies and acquisitions made on a progressive or periodic basis
156 - 1 What this Division is about
156 - 5 Attributing the GST on progressive or periodic supplies
156 - 10 Attributing the input tax credits on progressive or periodic acquisitions
156 - 15 Progressive or periodic supplies partly connected with the indirect tax zone
156 - 17 Application of Division 58 to progressive or periodic supplies and acquisitions
156 - 20 Application of Division 129 to progressive or periodic acquisitions
156 - 22 Leases etc. treated as being on a progressive or periodic basis
156 - 23 Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis
156 - 25 Accounting on a cash basis
Division 157--Accounting basis of charities etc.
157 - 1 What this Division is about
157 - 5 Charities etc. choosing to account on a cash basis
157 - 10 Charities etc. ceasing to account on a cash basis
Division 158--Hire purchase agreements
158 - 1 What this Division is about
158 - 5 Treat as not accounting on a cash basis
Division 159--Changing your accounting basis
159 - 1 What this Division is about
159 - 5 Ceasing to account on a cash basis--amounts not previously attributed
159 - 10 Ceasing to account on a cash basis--amounts partly attributed
159 - 15 Ceasing to account on a cash basis--bad debts
159 - 20 Starting to account on a cash basis
159 - 25 Starting to account on a cash basis--bad debts
159 - 30 Entities ceasing to exist or coming into existence
Part 4 - 7--Special rules mainly about returns, payments and refunds
Division 162--Payment of GST by instalments
162 - 1 What this Division is about
Subdivision 162 - A--Electing to pay GST by instalments
162 - 5 Eligibility to elect to pay GST by instalments
162 - 10 Your current GST lodgment record
162 - 15 Electing to pay GST by instalments
162 - 20 Elections by representative members of GST groups
162 - 25 When you must make your election
162 - 30 Duration of your election
Subdivision 162 - B--Consequences of electing to pay GST by instalments
162 - 50 GST instalment payers
162 - 55 Tax periods for GST instalment payers
162 - 60 When GST returns for GST instalment payers must be given
162 - 65 The form and contents of GST returns for GST instalment payers
162 - 70 Payment of GST instalments
162 - 75 Giving notices relating to GST instalments
162 - 80 Certain entities pay only 2 GST instalments for each year
162 - 85 A GST instalment payer's concluding tax period
162 - 90 The effect of incapacitation or cessation
162 - 95 The effect of changing the membership of GST groups
162 - 100 General interest charge on late payment
162 - 105 Net amounts for GST instalment payers
162 - 110 When payments of assessed net amounts must be made--GST instalment payers
Subdivision 162 - C--GST instalments
162 - 130 What are your GST instalments
162 - 135 Notified instalment amounts
162 - 140 Varied instalment amounts
162 - 145 Your annual GST liability
Subdivision 162 - D--Penalty payable in certain cases if varied instalment amounts are too low
162 - 170 What this Subdivision is about
162 - 175 GST payments are less than 85% of annual GST liability
162 - 180 Estimated annual GST amount is less than 85% of annual GST liability
162 - 185 Shortfall in GST instalments worked out on the basis of estimated annual GST amount
162 - 190 Periods for which penalty is payable
162 - 195 Reduction in penalties if notified instalment amount is less than 25% of annual GST liability
162 - 200 Reduction in penalties if GST instalment shortfall is made up in a later instalment
162 - 205 This Subdivision does not create a liability for general interest charge
Division 165--Anti - avoidance
165 - 1 What this Division is about
Subdivision 165 - A--Application of this Division
165 - 5 When does this Division operate?
165 - 10 When does an entity get a GST benefit from a scheme?
165 - 15 Matters to be considered in determining purpose or effect
Subdivision 165 - B--Commissioner may negate effects of schemes for GST benefits
165 - 40 Commissioner may make declaration for purpose of negating avoider's GST benefits
165 - 45 Commissioner may reduce an entity's net amount or GST to compensate
165 - 50 Declaration has effect according to its terms
165 - 55 Commissioner may disregard scheme in making declarations
165 - 60 One declaration may cover several tax periods and importations
165 - 65 Commissioner must give copy of declaration to entity affected
Division 168--Tourist refund scheme
168 - 1 What this Division is about
168 - 5 Tourist refund scheme
168 - 10 Supplies later found to be GST - free supplies
Division 171--Customs security etc. given on taxable importations
171 - 1 What this Division is about
171 - 5 Security or undertaking given under section 162 or 162A of the Customs Act
Division 176--Endorsement of charities etc.
176 - 1 Endorsement by Commissioner as charity
177 - 1 Commonwealth etc. not liable to pay GST
177 - 3 Acquisitions from State or Territory bodies where GST liability is notional
177 - 5 Cancellation of exemptions from GST
177 - 10 Ministerial determinations
177 - 11 Delegation by Aged Care Secretary
177 - 12 GST implications of references to price, value etc. in other Acts
177 - 20 Review of provisions relating to offshore supplies of low value goods
Chapter 6--Interpreting this Act
Part 6 - 1--Rules for interpreting this Act
Division 182--Rules for interpreting this Act
182 - 1 What forms part of this Act
182 - 5 What does not form part of this Act
182 - 10 Explanatory sections, and their role in interpreting this Act
Part 6 - 2--Meaning of some important concepts
Division 184--Meaning of entity
184 - 5 Supplies etc. by partnerships and other unincorporated bodies
Division 188--Meaning of GST turnover
188 - 1 What this Division is about
188 - 5 Explanation of the turnover thresholds
188 - 10 Whether your GST turnover meets, or does not exceed, a turnover threshold
188 - 15 Current GST turnover
188 - 20 Projected GST turnover
188 - 22 Settlements of insurance claims to be disregarded
188 - 23 Supplies "reverse charged" under Division 83 or 86 not to be included in a recipient's GST turnover
188 - 24 Supplies to which Subdivision 153 - B applies
188 - 25 Transfer of capital assets, and termination etc. of enterprise, to be disregarded
188 - 30 The value of non - taxable supplies
188 - 32 The value of gambling supplies
188 - 35 The value of loans
188 - 40 Supplies of employee services by overseas entities to be disregarded for the registration turnover threshold
Division 189--Exceeding the financial acquisitions threshold
189 - 1 What this Division is about
189 - 5 Exceeding the financial acquisitions threshold--current acquisitions
189 - 10 Exceeding the financial acquisitions threshold--future acquisitions
189 - 15 Meaning of financial acquisition
Division 190--90% owned groups of companies
190 - 5 When a company has at least a 90% stake in another company
Schedule 1--Food that is not GST - free
1 Food that is not GST - free
2 Prepared food, bakery products and biscuit goods
5 Goods that are not biscuit goods
Schedule 2--Beverages that are GST - free
1 Beverages that are GST - free
Schedule 3--Medical aids and appliances
Endnote 3--Legislation history
Note: The special rules in this Part mainly modify the operation of
Part 2 - 3, but they may affect other Parts of Chapter 2 in
minor ways.
