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

No. 55, 1999

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

No. 55, 1999

An Act about a goods and s ervices tax to implement
A New Tax System, and for related purposes

i A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
Contents
Chapter 1—Introduction 2
Part 1-1—Preliminary 2
Division 1—Preliminary 2
1-1 Short title 2
1-2 Commencement 2
1-3 Commonwealth-State financial relations 3
Part 1-2—Using this Act 4
Division 2—Overview of the GST legislation 4
2-1 What this Act is about 4
2-5 The basic rules (Chapter 2) 4
2-10 The exemptions (Chapter 3) 4
2-15 The special rules (Chapter 4) 5
2-20 Miscellaneous (Chapter 5) 5
2-25 Interpretative provisions (Chapter 6) 5
2-30 Administration, collection and recovery provisions (Part VI
of the Taxation Administration Act 1953 ) 5
Division 3—Defined terms 6
3-1 When defined terms are identified 6
3-5 When terms are not identified 6
3-10 Identifying the defined term in a definition 7
Division 4—Status of Guides and other non-operative material 8
4-1 Non-operative material 8
4-5 Explanatory sections 8
4-10 Other material 8
Chapter 2—The basic rules 9
Division 5—Introduction 9
5-1 What this Chapter is about 9
5-5 The structure of this Chapter 9
Part 2-1—The central provisions 12
Division 7—The central provisions 12
7-1 GST and input tax credits 12
7-5 Net amounts 12

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 ii
7-10 Tax periods 12
7-15 Payments and refunds 12
Part 2-2—Supplies and acquisitions 13
Division 9—Taxable supplies 13
9-1 What this Division is about 13
Subdivision 9-A—What are taxable supplies? 13
9-5 Taxable supplies 13
9-10 Meaning of
supply 13
9-15 Consideration 14
9-20 Enterprises 15
9-25 Supplies connected with Australia 16
9-30 Supplies that are GST-free or input taxed 17
9-39 Special rules relating to taxable supplies 17
Subdivision 9-B—Who is liable for GST on taxable supplies? 18
9-40 Liability for GST on taxable supplies 18
9-69 Special rules relating to liab ility for GST on taxable supplies 18
Subdivision 9-C—How much GST is payable on taxable supplies? 19
9-70 The amount of GST on taxable supplies 19
9-75 The value of taxable supplies 19
9-80 The value of taxable supplies that are partly GST-free or
input taxed 19
9-99 Special rules relating to the amount of GST on taxable
supplies 20
Division 11—Creditable acquisitions 21
11-1 What this Division is about 21
11-5 What is a creditable acquisition? 21
11-10 Meaning of acquisition 21
11-15 Meaning of creditable purpose 22
11-20 Who is entitled to input tax credits for creditable
acquisitions? 22
11-25 How much are the input tax credits for creditable acquisitions? 22
11-30 Acquisitions that are partly creditable 22
11-99 Special rules relating to acquisitions 24
Part 2-3—Importations 25
Division 13—Taxable importations 25
13-1 What this Division is about 25

iii A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 13-5 What are taxable importations? 25
13-10 Meaning of
non-taxable importation 25
13-15 Who is liable for GST on taxable importations? 26
13-20 How much GST is payable on taxable importations? 26
13-25 The value of taxable importations that are partly non-taxable importations 26
13-99 Special rules relating to taxable importations 26
Division 15—Creditable importations 28
15-1 What this Division is about 28
15-5 What are creditable importations? 28
15-10 Meaning of creditable purpose 28
15-15 Who is entitled to input tax credits for creditable
importations? 29
15-20 How much are the input tax credits for creditable importations? 29
15-25 Importations that are partly creditable 29
15-99 Special rules relating to creditable importations 30
Part 2-4—Net amounts and adjustments 31
Division 17—Net amounts and adjustments 31
17-1 What this Division is about 31
17-5 Net amounts 31
17-10 Adjustments 32
17-99 Special rules relating to net amounts or adjustments 32
Division 19—Adjustment events 33
19-1 What this Division is about 33
19-5 Explanation of the effect of adjustment events 33
Subdivision 19-A—Adjustment events 34
19-10 Adjustment events 34
Subdivision 19-B—Adjustments for supplies 35
19-40 Where adjustments for supplies arise 35
19-45 Previously attributed GST amounts 35
19-50 Increasing adjustments for supplies 36
19-55 Decreasing adjustments for supplies 36
Subdivision 19-C—Adjustments for acquisitions 36
19-70 Where adjustments for acquisitions arise 36
19-75 Previously attributed input tax credit amounts 37
19-80 Increasing adjustments for acquisitions 37

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 iv
19-85 Decreasing adjustments for acquisitions 37
Division 21—Bad debts 38
21-1 What this Division is about 38
21-5 Writing off bad debts (taxable supplies) 38
21-10 Recovering amounts previously written off (taxable supplies) 38
21-15 Bad debts written off
(creditable acquisitions) 39
21-20 Recovering amounts previously written off (creditable acquisitions) 39
21-99 Special rules relating to adjustments for bad debts 39
Part 2-5—Registration 41
Division 23—Who is required to be registered and who may be
registered
41
23-1 Explanation of Division 41
23-5 Who is required to be registered 41
23-10 Who may be registered 42
23-15 The registration turnover threshold 42
23-99 Special rules relating to who is required to be registered or
who may be registered 42
Division 25—How you become registered, and how your registration can be cancelled
43
Subdivision 25-A—How you become registered 43
25-1 When you must apply for registration 43
25-5 When the Commissioner must register you 43
25-10 The date of effect of your registration 44
25-15 Effect of backdating your registration 44
25-49 Special rules relating to registration 45
Subdivision 25-B—How your registration can be cancelled 45
25-50 When you must apply for cancellation of registration 45
25-55 When the Commissioner must cancel registration 45
25-60 The date of effect of your cancellation 46
25-65 Effect of backdating your cancellation of registration 46
25-99 Special rules relating to cancellation of registration 46
Part 2-6—Tax periods 48
Division 27—How to work out the tax periods that apply to you 48
27-1 What this Division is about 48
27-5 General rule—3 month tax periods 48

v A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 27-10 Election of one month tax periods 48
27-15 Determination of one month tax periods 48
27-20 Withdrawing elections of one month tax periods 49
27-25 Revoking determinations of one month tax periods 49
27-30 Tax periods determined by the Commissioner to take
account of changes in tax periods 50
27-35 Changing the days on which your tax periods end 50
27-37 Special determination of tax periods on request 51
27-38 Revoking special determin ation of tax periods 51
27-40 An entity’s concluding tax period 52
27-99 Special rules relating to tax periods 52
Division 29—What is attributable to tax periods 53
29-1 What this Division is about 53
Subdivision 29-A—The attribution rules 53
29-5 Attributing the GST on your taxable supplies 53
29-10 Attributing the input tax credits for your creditable acquisitions 54
29-15 Attributing the input tax credits for your creditable importations 55
29-20 Attributing your adjustments 55
29-25 Commissioner may determine pa rticular attribution rules 56
29-39 Special rules relating to attribution rules 57
Subdivision 29-B—Accounting on a cash basis 57
29-40 Choosing to account on a cash basis 57
29-45 Permission to account on a cash basis 58
29-50 Ceasing to account on a cash basis 58
Subdivision 29-C—Tax invoices and adjustment notes 59
29-70 Tax invoices 59
29-75 Adjustment notes 60
29-80 Tax invoices and adjustment notes not required for low value transactions 60
29-99 Special rules relating to tax invoices and adjustment notes 61
Part 2-7—Returns, payments and refunds 62
Division 31—GST returns 62
31-1 What this Division is about 62
31-5 Who must give GST returns 62
31-10 When GST returns must be given 62
31-15 The form and contents of GST returns 62

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 vi
31-20 Additional GST returns 63
31-25 Electronic lodgment of GST returns 63
31-30 Signing GST returns 64
31-99 Special rules relating to GST returns 64
Division 33—Payments of GST 65
33-1 What this Division is about 65
33-5 When payments of net amounts must be made 65
33-10 How payments of net amounts are made 65
33-15 Payments of amounts of GST on importations 66
33-20 Commissioner may extend time for payment 66
33-25 Commissioner may bring forw
ard payment date if you are
about to leave Australia 66
33-30 Net amounts etc. a debt due to the Commonwealth 67
33-99 Special rules relating to payments of GST 67
Division 35—Refunds 68
35-1 What this Division is about 68
35-5 When refunds must be made 68
35-10 How refunds are made 68
35-99 Special rules relating to refunds 69
Part 2-8—Checklist of special rules 70
Division 37—Checklist of special rules 70
37-1 Checklist of special rules 70
Chapter 3—The exemptions 72
Part 3-1—Supplies that are not taxable supplies 72
Division 38—GST-free supplies 72
38-1 What this Division is about 72
Subdivision 38-A—Food 73
38-2 Food 73
38-3 Food that is not GST-free 73
38-4 Meaning of food 73
38-5 Premises used in supplying food 74
38-6 Packaging of food 74
Subdivision 38-B—Health 75
38-7 Medical services 75
38-10 Other health services 75
38-15 Other government funded health services 77

vii A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
38-20 Hospital treatment 77
38-25 Residential
care etc. 77
38-30 Community care etc. 78
38-35 Flexible care 79
38-40 Specialist disability services 79
38-45 Medical aids and appliances 79
38-47 Other GST-free health goods 80
38-50 Drugs and medicinal preparations etc. 80
38-55 Private health insurance etc. 81
Subdivision 38-C—Education 81
38-85 Education courses 81
38-90 Excursions or field trips 82
38-95 Course materials 82
38-100 Supplies that are not GST-free 82
38-105 Accommodation at boarding schools etc. 82
38-110 Recognition of prior learning etc. 83
Subdivision 38-D—Child care 84
38-140 Child care—suppliers registered under the Childcare Rebate Act 84
38-145 Child care—eligible child care centres 84
38-150 Other child care 84
38-155 Supplies directly related to child care that is GST-free 85
Subdivision 38-E—Exports and other supplies for consumption outside Australia
85
38-185 Exports of goods 85
38-190 Supplies of things, other than goods or real property, for
consumption outside Australia 87
Subdivision 38-F—Religious services 88
38-220 Religious services 88
Subdivision 38-G—Non-commercial activities of charitable
institutions etc.
88
38-250 Nominal consideration etc. 88
38-255 Second-hand goods 88
Subdivision 38-H—Raffles and bingo conducted by charitable
institutions etc.
89
38-270 Raffles and bingo conducted by charitable institutions etc. 89
Subdivision 38-I—Water and sewerage 89
38-285 Water 89

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 viii 38-290 Sewerage 89
38-295 Emptying of septic tanks 90
Subdivision 38-J—Supplies of going concerns 90
38-325 Supply of a going concern 90
Subdivision 38-K—Transpo
rt and related matters 90
38-355 Supplies of transport and related matters 90
Subdivision 38-L—Precious metals 91
38-385 Supplies of precious metals 91
Subdivision 38-M—Supplies through inwards duty free shops 92
38-415 Supplies through inwards duty free shops 92
Subdivision 38-N—Grants of freehold and similar interests by
governments
92
38-445 Grants of freehold and similar interests by governments 92
Subdivision 38-O—Farm land 92
38-475 Subdivided farm land 92
38-480 Farm land supplied for farming 93
Subdivision 38-P—Cars for use by disabled people 93
38-505 Disabled veterans 93
38-510 Other disabled people 94
Division 40—Input taxed supplies 96
40-1 What this Division is about 96
Subdivision 40-A—Financial supplies 96
40-5 Financial supplies 96
Subdivision 40-B—Residential rent 99
40-35 Residential rent 99
Subdivision 40-C—Residential premises 99
40-65 Sales of residential premises 99
40-70 Supplies of residential premis es by way of long-term lease 99
Subdivision 40-D—Precious metals 100
40-100 Precious metals 100
Subdivision 40-E—School tuckshops and canteens 100
40-130 School tuckshops and canteens 100
Part 3-2—Non-taxable importations 101
Division 42—Non-taxable importations 101
42-1 What this Division is about 101

ix A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
42-5 Non-taxable importa
tions—Schedule 4 to the Customs Tariff
Act 1995 101
42-10 Ship and aircraft stores 101
42-15 Goods imported or purchased by overseas travellers 101
Chapter 4—The special rules 103
Division 45—Introduction 103
45-1 What this Chapter is about 103
45-5 The effect of special rules 103
Part 4-1—Special rules mainly about particular ways entities
are organised
104
Division 48—GST groups 104
48-1 What this Division is about 104
Subdivision 48-A—Approval of GST groups 104
48-5 Approval of GST groups 104
48-10 Membership requirements of a GST group 105
Subdivision 48-B—Consequences of approval of GST groups 105
48-40 Who is liable for GST 105
48-45 Who is entitled to input tax credits 106
48-50 Adjustments 107
48-55 GST groups treated as single entities for certain purposes 107
48-60 GST returns 107
Subdivision 48-C—Administrative matters 108
48-70 Changing the membership etc. of GST groups 108
48-75 Revoking the approval of GST groups 108
48-80 Notification by representative members 109
48-85 Date of effect of approvals and revocations 109
48-90 Notification by the Commissioner 109
Division 51—GST joint ventures 111
51-1 What this Division is about 111
Subdivision 51-A—Approval of GST joint ventures 111
51-5 Approval of GST joint ventures 111
51-10 Participation requirements of a GST joint venture 112
Subdivision 51-B—Consequences of approval of GST joint ventures
112
51-30 Who is liable for GST 112
51-35 Who is entitled to input tax credits 113

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 x
51-40 Adjustments 113
51-45 Additional net amounts relati
ng to GST joint ventures 113
51-50 GST returns relating to GST joint ventures 114
51-55 Payments of GST relati ng to GST joint ventures 114
51-60 Refunds relating to GST joint ventures 115
Subdivision 51-C—Administrative matters 115
51-70 Changing the participants etc. of GST joint ventures 115
51-75 Revoking the approval of GST joint ventures 116
51-80 Notification by joint venture operators 116
51-85 Date of effect of approvals and revocations 117
51-90 Notification by the Commissioner 117
Division 54—GST branches 118
54-1 What this Division is about 118
Subdivision 54-A—Registration of GST branches 118
54-5 Registration of GST branches 118
54-10 The date of effect of registration of a GST branch 119
54-15 GST branch registration number 119
Subdivision 54-B—Consequences of registration of GST branches 119
54-40 Additional net amounts relating to GST branches 119
54-45 Net amounts of parent entities 120
54-50 Tax invoices and adjustment notes 121
54-55 GST returns relating to GST branches 121
54-60 Payments of GST rela ting to GST branches 122
54-65 Refunds relating to GST branches 122
Subdivision 54-C—Cancellation of registration of GST branches 122
54-70 When an entity must apply for cancellation of registration of a GST branch 122
54-75 When the Commissioner must cancel registration of a GST branch 123
54-80 The date of effect of cancellation of registration of a GST branch 123
54-85 Application of Subdivision 25-B 124
54-90 Effect on GST branches of cancelling the entity’s registration 124
Division 57—Resident agents acting for non-residents 125
57-1 What this Division is about 125
57-5 Who is liable for GST 125
57-10 Who is entitled to input tax credits 125

xi A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
57-15 Adjustments 125
57-20 Resident agents are required to be registered 126
57-25 Cancellation of registration of a resident agent 126
57-30 Notice of cessation of agency 126
57-35 Tax periods of resident agents 126
57-40 GST returns for non-residents 127
57-45 Resident agents giving GST returns 127
57-50 Non-residents that belong to GST groups 127
Division 60—Pre-establishment costs 128
60-1 What this Division is about 128
60-5 Input tax credit for acquisitions and importations before
establishment 128
60-10 Registration etc. not need ed for input tax credits 128
60-15 Pre-establishment acqui sitions and importations 129
60-20 Creditable purpose 129
60-25 Attributing the input tax credit for pre-establishment
acquisitions 130
60-30 Attributing the input tax credit for pre-establishment
importations 131
60-35 Application of Division 129 131
Part 4-2—Special rules mainly about supplies and acquisitions 133
Division 66—Second-hand goods 133
66-1 What this Division is about 133
66-5 Creditable acquisitions of second-hand goods 133
66-10 Amounts of input tax credits for creditable acquisitions of
second-hand goods 134
66-15 Attributing input tax credits for creditable acquisitions of
second-hand goods 134
66-20 Returnable containers 135
Division 69—Non-deductible expenses 136
69-1 What this Division is about 136
69-5 Non-deductible expenses do not give rise to creditable
acquisitions or creditable importations 136
69-10 Amounts of input tax credits for creditable acquisitions or
creditable importations of certain cars 137
Division 70—Financial supplies (reduced credit acquisitions) 138
70-1 What this Division is about 138
70-5 Acquisitions that attr act the reduced credit 138

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 xii 70-10 Extended meaning of
creditable purpose 138
70-15 How much are the reduced input tax credits? 138
70-20 Extent of creditable purpose 139
70-25 Sale of reduced credit acquisitions (Division 132) 140
Division 72—Associates 141
72-1 What this Division is about 141
Subdivision 72-A—Supplies without consideration 141
72-5 Taxable supplies w ithout consideration 141
72-10 The value of taxable supplies without consideration 141
72-15 Attributing the GST to tax periods 142
Subdivision 72-B—Acquisitions without consideration 142
72-40 Creditable acquisitions without consideration 142
72-45 The amount of the input tax credit 142
72-50 Attributing the input tax credit to tax periods 143
Subdivision 72-C—Supplies for inadequate consideration 143
72-70 The value of taxable supplies for inadequate consideration 143
Division 75—Sale of freehold interests etc. 144
75-1 What this Division is about 144
75-5 Choosing to apply the margin scheme 144
75-10 The amount of GST on taxable supplies 144
75-15 Subdivided land 145
75-20 Supplies under a margin scheme do not give rise to creditable acquisitions 146
75-25 Adjustments relating to bad debts 146
Division 78—Insurance 147
78-1 What this Division is about 147
Subdivision 78-A—Insurers 147
78-5 Creditable acquis itions relating to settlements of insurance
claims 147
78-10 Amount of input tax credits relating to settlements of
insurance claims 148
78-15 Acquisitions of goods by insurers in the course of settling claims 148
Subdivision 78-B—Insured entities 149
78-30 Taxable supplies relating to se ttlements of insurance claims 149
78-35 Payments of excess under insurance policies are not consideration for supplies 149

xiii A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
78-40 Effect of payments of ex
cess under insurance policies on
amounts of GST 150
78-45 Supplies of goods to insurers in the course of settling claims 150
78-50 Settlements of claims relating to non-creditable insurance events 150
Subdivision 78-C—Third parties 151
78-65 Payments etc. to third parties by insurers 151
78-70 Payments etc. to third parties by insured entities 151
Subdivision 78-D—Insured entities that are not registered etc. 152
78-80 Net amounts 152
78-85 GST returns 152
78-90 Payments of GST 153
Division 81—Payments of taxes 154
81-1 What this Division is about 154
81-5 Payments of taxes can constitute consideration 154
81-10 Supplies need not be connected with Australia if the consideration is the payment of tax 154
Division 84—Offshore supplies other than goods or real property
155
84-1 What this Division is about 155
84-5 Intangible supplies from offs hore may be taxable supplies 155
84-10 “Reverse charge” on offshore intangible supplies 155
84-15 Transfers etc. between branches of the same entity 156
Division 87—Long-term accommodation in commercial residential premises
157
87-1 What this Division is about 157
87-5 Commercial residential premis es that are predominantly for
long-term accommodation 157
87-10 Commercial residential premis es that are not predominantly
for long-term accommodation 157
87-15 Meaning of commercial accommodation 158
87-20 Meaning of long-term accommodation etc. 158
87-25 Suppliers may choose not to apply this Division 159
Division 90—Company amalgamations 160
90-1 What this Division is about 160
90-5 Supplies not taxable—amalga mated company registered or
required to be registered 160

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 xiv 90-10 Value of taxable supplie
s—amalgamated company not
registered or required to be registered 160
90-15 Acquisitions not creditable—amalgamated company registered or required to be registered 160
90-20 Liability after amalgama tion for GST on amalgamating
company’s supplies 161
90-25 Entitlement after amalgama tion to input tax credits for
amalgamating company’s acquisitions 161
90-30 Adjustments 161
90-35 Amalgamating companies accounting on a cash basis 162
Division 93—Returnable containers 164
93-1 What this Division is about 164
93-5 Creditable acquisitions of returnable containers 164
93-10 How much are the input tax credits for creditable acquisitions of returnable containers? 164
93-15 Attributing creditable acquisiti ons of returnable containers 165
93-20 Ownership of returnable containers 165
Division 96—Supplies partly connected with Australia 167
96-1 What this Division is about 167
96-5 Supplies that are only partly connected with Australia 167
96-10 The value of the taxable components of supplies that are only partly connected with Australia 168
Division 99—Deposits as security 169
99-1 What this Division is about 169
99-5 Giving a deposit as security does not constitute consideration 169
99-10 Attributing the GST relating to deposits that are forfeited etc. 169
Division 102—Cancelled lay-by sales 170
102-1 What this Division is about 170
102-5 Cancelled lay-by sales 170
102-10 Attributing GST and input tax credits 170
Division 105—Supplies in satisfaction of debts 171
105-1 What this Division is about 171
105-5 Supplies by creditors in satisfaction of debts may be taxable
supplies 171
105-10 Net amounts 172
105-15 GST returns 172
105-20 Payments of GST 172

xv A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
Division 108—Valuation of taxable supplies of goods in bond 174
108-1 What this Division is about 174
108-5 Taxable supplies of goods in bond etc. 174
Division 111—Reimbursement of employees etc. 175
111-1 What this Division is about 175
111-5 Creditable acquisitions relating to reimbursements 175
111-10 Amounts of input tax credits relating to reimbursements 176
111-15 Tax invoices relatin g to reimbursements 176
Part 4-3—Special rules mainly about importations 177
Division 114—Importations without entry for home
consumption
177
114-1 What this Division is about 177
114-5 Importations without entr y for home consumption 177
Division 117—Importations of goods that were exported for
repair or renovation
180
117-1 What this Division is about 180
117-5 Valuation of taxable impor tations of goods that were
exported for repair or renovation 180
117-10 The value of repairs and renovations 181
Part 4-4—Special rules mainly about net amounts and adjustments
182
Division 126—Gambling 182
126-1 What this Division is about 182
126-5 Global accounting system for gambling supplies 182
126-10 Global GST amounts 183
126-15 Losses carried forward 184
126-20 Bad debts 184
126-25 Application of Subdivision 9-C 184
126-30 Gambling supplies do not give rise to creditable acquisitions 184
126-32 Repayments of gambling losses are not consideration 185
126-33 Tax invoices not required for gambling supplies 185
126-35 Meaning of gambling supply and gambling event 185
Division 129—Changes in the extent of creditable purpose 186
129-1 What this Division is about 186
Subdivision 129-A—General 186
129-5 Adjustments arising under this Division 186

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 xvi 129-10 Adjustments do not arise under
this Division for acquisitions
and importations below a certain value 187
Subdivision 129-B—Adjustment periods 187
129-20 Adjustment periods 187
129-25 Effect on adjustment periods of things being disposed of etc. 188
Subdivision 129-C—When adjustments for acquisitions and
importations arise
189
129-40 Working out whether you have an adjustment 189
129-45 Gifts to gift-deductible entities 190
129-50 Creditable purpose 191
129-55 Meaning of apply 191
Subdivision 129-D—Amounts of adjustments for acquisitions and
importations
191
129-70 The amount of an increasing adjustment 191
129-75 The amount of a decreasing adjustment 192
129-80 Effect of adjustments under Division 19 192
Subdivision 129-E—Attributing adjustments under this Division 193
129-90 Attributing your adjustments for changes in extent of
creditable purpose 193
Division 132—Supplies of things acquired, imported or applied to make financial supplies
194
132-1 What this Division is about 194
132-5 Decreasing adjustments for supplies of things acquired, imported or applied to ma ke financial supplies 194
132-10 Attribution of adjustments under this Division 195
Division 135—Supplies of going concerns 196
135-1 What this Division is about 196
135-5 Initial adjustments for supplies of going concerns 196
135-10 Later adjustments for supplies of going concerns 196
Division 138—Cessation of registration 198
138-1 What this Division is about 198
138-5 Adjustments for cessation of registration 198
138-10 Attributing adjustments for cessation of registration 199
138-15 Ceasing to be registered—am ounts not previously attributed 199
138-20 Application of Division 129 200

xvii A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999
Part 4-5—Special rules mainly about registration 201
Division 144—Taxis 201
144-1 What this Division is about 201
144-5 Requirement to register 201
Division 147—Representatives of incapacitated entities 202
147-1 What this Division is about 202
147-5 Representatives are required to be registered 202
147-10 Cancellation of registration of a representative 202
147-15 Notice of cessation of representation 202
147-20 Adjustments 203
Part 4-6—Special rules mainly about tax periods 204
Division 153—Agents 204
153-1 What this Division is about 204
153-5 Attributing the input tax credits for your creditable
acquisitions 204
153-10 Attributing your adjustments 204
153-15 Tax invoices 205
153-20 Adjustment notes 205
Division 156—Supplies and acquisitions made on a progressive or periodic basis
207
156-1 What this Division is about 207
156-5 Attributing the GST on progressive or periodic supplies 207
156-10 Attributing the input tax credits on progressive or periodic
acquisitions 207
156-15 Progressive or periodic s upplies partly connected with
Australia 208
156-20 Application of Division 129 to progressive or periodic acquisitions 208
156-25 Accounting on a cash basis 208
Division 159—Changing your accounting basis 209
159-1 What this Division is about 209
159-5 Ceasing to account on a cash basis—amounts not previously attributed 209
159-10 Ceasing to account on a cash basis—amounts partly attributed 210
159-15 Ceasing to account on a cash basis—bad debts 211
159-20 Starting to account on a cash basis 211
159-25 Starting to account on a cash basis—bad debts 212

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 xviii 159-30 Entities ceasing to exist
or coming into existence 212
Part 4-7—Special rules mainly about returns, payments and
refunds
213
Division 165—Anti-avoidance 213
165-1 What this Division is about 213
Subdivision 165-A—Application of this Division 214
165-5 When does this Division operate? 214
165-10 When does an entity get a GST benefit from a scheme? 215
165-15 Matters to be considered in determining purpose or effect 216
Subdivision 165-B—Commissioner ma y negate effects of schemes
for GST benefits
217
165-40 Commissioner may negate avoider’s GST benefits 217
165-45 Commissioner may reduce an entity’s net amount or GST to
compensate 217
165-50 GST or refund payable in accordance with declaration 219
165-55 Commissioner may disregard sc heme in making declarations 219
165-60 One declaration may cover several tax periods and importations 219
165-65 Commissioner must give copy of declaration to entity affected 220
Subdivision 165-C—Penalties for getting GST benefits from schemes
220
165-80 Penalty 220
Division 168—Tourist refund scheme 222
168-1 What this Division is about 222
168-5 Tourist refund scheme 222
Division 171—Customs security etc. given on taxable
importations
223
171-1 What this Division is about 223
171-5 Security or undertaking given under section 162 or 162A of
the Customs Act 223
Chapter 5—Miscellaneous 224
Part 5-1—Miscellaneous
224
Division 177—Miscellaneous 224
177-1 Commonwealth etc. not liable to pay GST 224

xix A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 177-3 Acquisitions from State or Territory bodies where GST
liability is notional 225
177-5 Cancellation of exemptions from GST 225
177-10 Ministerial determinations 225
177-15 Regulations 226
Chapter 6—Interpreting this Act 227
Part 6-1—Rules for interpreting this Act
227
Division 182—Rules for interpreting this Act 227
182-1 What forms part of this Act 227
182-5 What does not form part of this Act 227
182-10 Explanatory sections, and their role in interpreting this Act 227
182-15 Schedules 1 and 2 228
Part 6-2—Meaning of some important concepts 229
Division 184—Meaning of entity 229
184-1 Entities 229
Division 186—Meaning of approved form 231
186-1 Approved forms 231
Division 188—Meaning of annual turnover 232
188-1 What this Division is about 232
188-5 Explanation of the turnover thresholds 232
188-10 Whether your annual turnover meets, or does not exceed, a
turnover threshold 233
188-15 Current annual turnover 233
188-20 Projected annual turnover 234
188-25 Transfer of capital assets, a nd termination etc. of enterprise,
to be disregarded 235
188-30 The value of non-taxable supplies 235
Division 190—90% owned groups of companies 236
190-1 90% owned groups 236
190-5 When a company has at least a 90% stake in another company 236
Part 6-3—Dictionary 237
Division 195—Dictionary 237
195-1 Dictionary 237

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 xx
Schedule 1—Food that is not GST-free 261
1 Food that is not GST-free 261
2 Prepared food, bakery products and biscuit goods 262
3 Prepared meals 263
4 Candied peel 263
5 Goods that are not biscuit goods 263
Schedule 2—Beverages that are GST-free 264
1 Beverages that are GST-free 264
2 Tea, coffee etc. 265
3 Fruit and vegetable juices 265
Schedule 3—Medical aids and appliances 266

A New Tax System (Goods and Services Tax) Act 1999 1

A New Tax System (Goods and Services
Tax) Act 1999
No. 55, 1999

An Act about a goods and s ervices tax to implement
A New Tax System, and for related purposes
[Assented to 8 July 1999 ] The Parliament of Australia enacts:

Chapter 1 Introduction
Part 1-1 Preliminary
Division 1 Preliminary

Section 1-1

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

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.
(2) However, if, before the day on which this Act would (but for this
subsection) commence under subsection (1), there have not been
appropriated, for the purposes of the programs referred to in the
second column of an item in the table:
(a) in respect of the financial year starting on 1 July 2000—the amount referred to in the third column of that item; and
(b) in respect of the financial year starting on 1 July 2001—the amount referred to in the fourth column of that item; and
(c) in respect of the financial year starting on 1 July 2002—the amount referred to in the fifth column of that item; and
(d) in respect of the financial year starting on 1 July 2003—the amount referred to in the sixth column of that item;
this Act commences on, and tax is not payable under the
*GST law
until, the day on which the last of those amounts to be appropriated
for those purposes has been appropriated under an Act.

Amounts to be appropriated
Financial years Program 2000/01 2001/02 2002/03 2003/04
($ million) ($ million) ($ million) ($ million)

Introduction Chapter 1
Preliminary Part 1-1
Preliminary Division 1

Section 1-3

A New Tax System (Goods and Services Tax) Act 1999 3

Amounts to be appropriated
Financial years Program
2000/01 2001/02 2002/03 2003/04
1 Book industry assistance plan 60 60 60 60
2 Supported
Accommodation
Assistance
Program 15 15 15 15
Total 75 75 75 75
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 a nd 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.

Chapter 1 Introduction
Part 1-2 Using this Act
Division 2 Overview of the GST legislation

Section 2-1

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

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 3 Acts:
(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 ru les 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.

Introduction Chapter 1
Using this Act Part 1-2
Overview of the GST legislation Division 2

Section 2-15

A New Tax System (Goods and Services Tax) Act 1999 5

2-15 The special rules (Chapter 4)
Chapter 4 has special rules whic h, 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 an d recovery provisions (Part VI of
the Taxation Administration Act 1953 )
Part VI of the Taxation Administration Act 1953 contains
provisions relating to the administration of the GST, and to
collection and recovery of amounts of GST.

Chapter 1 Introduction
Part 1-2 Using this Act
Division 3 Defined terms

Section 3-1

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

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 Australia
4 Commissioner
5 entity
6 goods
7 GST
8 import
9 input tax credit
10 tax period
11 thing

Introduction Chapter 1
Using this Act Part 1-2
Defined terms Division 3

Section 3-10

A New Tax System (Goods and Services Tax) Act 1999 7

Common definitions that are not asterisked
Item This term:
12 supply
13 you
3-10 Identifying the defined term in a definition
Within a definition, the defined term is identified by bold italics.

Chapter 1 Introduction
Part 1-2 Using this Act
Division 4 Status of Guides and other non-operative material

Section 4-1

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

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.

The basic rules Chapter 2

Introduction Division 5

Section 5-1

A New Tax System (Goods and Services Tax) Act 1999 9

Chapter 2—The basic rules

Division 5—Introduction
5-1 What this Chapter is about
This Chapter sets out the basic ru les 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.

Chapter 2 The basic rules

Division 5 Introduction

Section 5-5

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

Part 2-1
Central provisions
Part 2-4
Net amounts
and adjustments
Part 2-7 Returns,
payments
and refunds
Part 2-6
Tax periods Part 2-5
Registration
Chapter 2 The Basic Rules
Chapter 4
The Special Rules
Part 2-2
Supplies and acquisitions
Part 2-3
Importations
Part 2-8 contains
a checklist of
the special rules.
Chapter 3
The Exemptions

The basic rules Chapter 2

Introduction Division 5

Section 5-5

A New Tax System (Goods and Services Tax) Act 1999 11

Chapter 2 The basic rules
Part 2-1 The central provisions
Division 7 The central provisions

Section 7-1

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

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 creditab le acquisitions, see Part 2-2.
For taxable importations and credita ble 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 adjustment s 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 *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: Refunds may be set off against your other liabilities (if any) under
laws administered by the Commissioner.

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Taxable supplies Division 9

Section 9-1

A New Tax System (Goods and Services Tax) Act 1999 13

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 Australia; and
(d) you are
*registered, or *required to be registered.
However, the supply is not a
*taxable supply to the extent that it is *GST-free or *input taxed.
9-10 Meaning of supply
(1) A supply is any form of supply whatsoever.
(2) Without limiting subsection (1), supply includes any of these:
(a) a supply of goods;
(b) a supply of services;
(c) a provision of advice or information;

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 9 Taxable supplies

Section 9-15

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

(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).
However, it does not include a supply of
*money unless the money
is provided as *consideration for a supply that is a supply of
money.
(3) It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or s ituation constituting the supply.
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 th e payment, act or forbearance was
voluntary, or whether it was by the
*recipient of the supply.
(3) However:
(a) if a right or option to acquire a thing is granted, then:
(i) 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
(ii) if there is no such additional consideration—there is no consideration for the supply; and
(b) a payment made as a gift to a non-profit body is not the provision of consideration; and

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Taxable supplies Division 9

Section 9-20

A New Tax System (Goods and Services Tax) Act 1999 15
(c) a payment made by an
*Australian government agency to
another Australian government agency is not the provision of
consideration if the payment is specifically covered by an
appropriation under an
*Australian law.
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
Income Tax Assessment Act 1997 and to which deductible
gifts can be made; or
(e) by a charitable institution or by a trustee of a charitable fund; or
(f) by a religious institution; 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.
(2) However, enterprise does not include an activity, or series of
activities, done:
(a) as an employee or other
*PAYE earner (unless it is done in
supplying services as the holder of an office that the
employee or PAYE earner has accepted in the course of or in
connection with an activity or series of activities of the kind
mentioned in subsection (1)); or
Note: An employee’s or PAYE earner’s acts will still form part of the activities of the enterprise in which he or she is employed.
(b) as a private recreational pursuit or hobby; or
(c) by an individual (other than a trustee of a charitable fund), or
a
*partnership (all the members of which are individuals),
without a reasonable expectation of profit or gain; or

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 9 Taxable supplies

Section 9-25

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

(d) as a member of a local governing body established by or
under a
*State law or *Territory law (other than an eligible
local governing body within the meaning of section 221A of
the Income Tax Assessment Act 1936 ).
9-25 Supplies connected with Australia
Supplies of goods wholly within Australia
(1) A supply of goods is connected with Australia if the goods are
delivered, or made available, in Australia to the
*recipient of the
supply.
Supplies of goods from Australia
(2) A supply of goods that involves the goods being removed from Australia is connected with Australia .
Supplies of goods to Australia
(3) A supply of goods that involves the goods being brought to Australia is connected with Australia if the supplier either:
(a) imports the goods into Australia; or
(b) installs or assembles the goods in Australia.
Supplies of real property
(4) A supply of
*real property is connected with Australia if the real
property is in Australia.
Supplies of anything else
(5) A supply of anything other than goods or
*real property is
connected with Australia if either:
(a) the thing is done in Australia; or
(b) the supplier makes the supply through an
*enterprise that the
supplier *carries on in Australia.
When enterprises are ca rried on in Australia
(6) An
*enterprise is carried on in Australia if the enterprise is carried
on through:

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Taxable supplies Division 9

Section 9-30

A New Tax System (Goods and Services Tax) Act 1999 17
(a) a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936 ); or
(b) a place that would be such a permanent establishment if paragraph (e), (f) or (g) of th at definition did not apply.
9-30 Supplies that are GST-free or input taxed
GST-free
(1) A supply is GST-free if it is GST-free under Division 38.
Input taxed
(2) A supply is input taxed if it is input taxed under Division 40.
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).
GST-free overrides input taxed
(3) If, apart from this subsection, a supply would be both wholly
*GST-free and wholly *input taxed, then the supply is taken to be
GST-free and not input taxed.
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 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:
1 Associates Division 72
2 Cancelled lay-by sales Division 102
3 Company amalgamations Division 90

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 9 Taxable supplies

Section 9-40

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

Checklist of special rules
Item For this case … See:
4 Deposits as security Division 99
5 Gambling Division 126
6 Insurance Division 78
7 Offshore supplies other than goods or
real property Division 84
8 Payments of taxes Division 81
9 Supplies and acquisitions made on a progressive or periodic basis Division 156
10 Supplies in satisfaction of debts Division 105
11 Supplies partly connected with Australia Division 96
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 lia bility for GST on taxable supplies
Chapter 4 contains special rules relating to liability for GST on
taxable supplies, as follows:

Checklist of special rules
Item For this case … See:
1 Company amalgamations Division 90
2 GST groups Division 48
3 GST joint ventures Division 51
4 Offshore supplies other than goods or real property Division 84
5 Resident agents acting for non-residents Division 57

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Taxable supplies Division 9

Section 9-70

A New Tax System (Goods and Services Tax) Act 1999 19

Subdivision 9-C—How much GS T 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
The value of a *taxable supply is as follows:
Price 10
11
×
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 taxabl e supply by selling a car for $22,000 in the course
of carrying on an enterprise.
The value of the supply is:
$22,000 10
11 $20,000
×=
The GST on the supply is theref ore $2,000 (i.e. 10% of $20,000).
9-80 The value of taxable supplies that are partly GST-free or input
taxed
If a supply (the actual supply) is:
(a) partly a
*taxable supply; and
(b) partly a supply that is
*GST-free or *input taxed;

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 9 Taxable supplies

Section 9-99

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

the
value of the part of the actual supply that is a taxable supply is
the proportion of the value of the actual supply (worked out as if it
were solely a taxable supply) that the taxable supply represents.
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:
1 Associates Division 72
2 Company amalgamations Division 90
3 Gambling Division 126
4 Long-term accommodation in commercial residential premises Division 87
5 Sale of freehold interests etc. Division 75
6 Second-hand goods Division 66
7 Supplies partly connected with Australia Division 96
8 Transactions relating to insurance policies Division 78
9 Valuation of taxable supplies of goods in bond Division 108

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Creditable acquisitions Division 11

Section 11-1

A New Tax System (Goods and Services Tax) Act 1999 21

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;

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 11 Creditable acquisitions

Section 11-15

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

(h) any combination of any 2 or more of the matters referred to
in paragraphs (a) to (g).
However, it does not include an acquisition of
*money unless the
money is provided as *consideration for a supply that is a supply of
money.
11-15 Meaning of creditable purpose
(1) You acquire a thing for a creditable purpose to the extent that you
acquire it in
*carrying on your *enterprise.
(2) However, you do not acquire the thing for a creditable purpose to the extent that:
(a) the acquisition relates to making supplies that would be
*input taxed; or
(b) the acquisition is of a private or domestic nature.
(3) To the extent that an acquisition relates to making
*financial
supplies through an
*enterprise, or a part of an enterprise, that you
*carry on outside Australia, the acquisition is not, for the purposes
of paragraph (2)(a), treated as one that relates to making supplies
that would be
*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.
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:

The basic rules Chapter 2
Supplies and acquisitions Part 2-2
Creditable acquisitions Division 11

Section 11-30

A New Tax System (Goods and Services Tax) Act 1999 23
(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.
(2) However, the acquisition is not
*partly creditable if:
(a) it was made for a
*creditable purpose except to the extent (if
any) that the acquisition relates to making *financial supplies;
and
(b) your
*annual turnover of financial supplies does not exceed
either:
(i) $50,000 or such other amount specified in the regulations; or
(ii) 5% of your
*annual turnover (treating supplies that are
input taxed as part of your annual turnover).
(3) The amount of the input tax credit on an acquisition that you make that is
*partly creditable is as follows:
Full inputtax credit Extent of creditable
purpose Extent of
consideration
××
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.

Chapter 2 The basic rules
Part 2-2 Supplies and acquisitions
Division 11 Creditable acquisitions

Section 11-99

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

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:
1 Associates Division 72
2 Company amalgamations Division 90
3 Financial supplies (reduced credit acquisitions) Division 70
4 Gambling Division 126
5 GST groups Division 48
6 GST joint ventures Division 51
7 Insurance Division 78
8 Non-deductible expenses Division 69
9 Pre-establishment costs Division 60
10 Reimbursement of employees etc. Division 111
11 Resident agents acting for non-residents Division 57
12 Returnable containers Division 93
13 Sale of freehold interests etc. Division 75
14 Second-hand goods Division 66

The basic rules Chapter 2
Importations Part 2-3
Taxable importations Division 13

Section 13-1

A New Tax System (Goods and Services Tax) Act 1999 25

Part 2-3—Importations
Division 13—Taxable importations
13-1 What this Division is about
GST is payable on taxable importa tions. 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 ar e supplied overseas for use in Australia
(and are therefore in that sense “imported”) are not taxable
importations, but they can at tract GST under Division 84.
13-5 What are taxable importations?
(1) A taxable importation is an *importation of goods into Australia,
but only to the extent that it is not a
*non-taxable importation.
Note: There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.
(2) You make an importation of goods into Australia if:
(a) you enter the goods for home consumption (within the meaning of the Customs Act 1901 ); and
(b) at the time they are so entered for home consumption, you are the owner (within the meaning of that Act) of the goods.
(3) However, an importation of
*money is not an importation of goods
into Australia.
13-10 Meaning of non-taxable importation
An importation is a non-taxable importation if:
(a) it is a non-taxable importation under Part 3-2; or
(b) it would have been a supply that was
*GST-free or *input
taxed if it had been a supply.

Chapter 2 The basic rules
Part 2-3 Importations
Division 13 Taxable importations

Section 13-15

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

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 (for the purposes of Division 2 of Part VIII of the Customs Act 1901 ) of the goods imported; and
(b) the amount paid or payable:
(i) to transport the goods to Australia; and
(ii) to insure the goods for that transport;
to the extent that the amount is not already included under paragraph (a); and
(c) any
*customs duty payable in respect of the importation of
the goods.
13-25 The value of taxable importat ions 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 rul es relating to taxable importations, as
follows:

The basic rules Chapter 2
Importations Part 2-3
Taxable importations Division 13

Section 13-99

A New Tax System (Goods and Services Tax) Act 1999 27

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 Non-deductible expenses Division 69
5 Resident agents acting for non-residents Division 57
6 Valuation of taxable importations of goods that were exported for repair or
renovation Division 117

Chapter 2 The basic rules
Part 2-3 Importations
Division 15 Creditable importations

Section 15-1

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

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) To the extent that an importation relates to making
*financial
supplies through an
*enterprise, or a part of an enterprise, that you
*carry on outside Australia, the im portation is not, for the purposes
of paragraph (2)(a), treated as one that relates to making supplies
that would be
*input taxed.

The basic rules Chapter 2
Importations Part 2-3
Creditable importations Division 15

Section 15-15

A New Tax System (Goods and Services Tax) Act 1999 29

15-15 Who is entitled to i nput 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.
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.
(2) However, the importation is not
*partly creditable if:
(a) it was made for a
*creditable purpose except to the extent (if
any) that the importation relates to making *financial
supplies; and
(b) your
*annual financial supplies turnover does not exceed
either:
(i) $50,000 or such other amount specified in the regulations; or
(ii) 5% of your
*annual turnover (treating supplies that are
input taxed as part of your annual turnover)
(3) The amount of the input tax credit on an importation that you make that is
*partly creditable is as follows:
Full input tax credit Exte nt of creditable purpose
×
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.

Chapter 2 The basic rules
Part 2-3 Importations
Division 15 Creditable importations

Section 15-99

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

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.
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:
1 GST groups Division 48
2 GST joint ventures Division 51
3 Pre-establishment costs Division 60
4 Resident agents acting for non-residents Division 57

The basic rules Chapter 2
Net amounts and adjustments Part 2-4
Net amounts and adjustments Division 17

Section 17-1

A New Tax System (Goods and Services Tax) Act 1999 31

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.
This is the amount payable by you to the Commonwealth, or
payable to you by the Commonwealth, for the tax period.
Adjustments can be made to the net amount. Increasing
adjustments increase your net amount, and decreasing adjustments
decrease your net amount.
Note 1: GST on taxable im portations is not included in the net amount. It is
dealt with separately under section 33-15.
Note 2: Net amounts payable to the Co mmonwealth are to be paid to the
Commissioner on the Commonwealth’s behalf (see Division 33).
17-5 Net amounts
(1) The net amount for a tax period applying to you is worked out
using the following formula:
GST Input tax credits –
where:
GST is the sum of all of the GST for which you are liable on the
*taxable supplies that are attributable to the tax period.
input tax credits is the sum of all of the input tax credits to which
you are entitled for the
*creditable acquisitions and *creditable
importations that are attributable to the tax period.
For the basic rules on what is attributable to a particular period, see Division 29.
(2) However, the *net amount for the tax period may be increased or
decreased if you have any *adjustments for the tax period.

Chapter 2 The basic rules
Part 2-4 Net amounts and adjustments
Division 17

Section 17-10

32 A New Tax System (Goods and Services Tax) Act 1999
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.
17-99 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:
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
5 Gambling Division 126
6 GST branches Division 54
7 GST groups Division 48
8 GST joint ventures Division 51
9 Insurance Division 78
10 Representatives of incapacitated entities Division 147
11 Resident agents acting for non-residents Division 57
12 Second-hand goods Division 66
13 Supplies in satisfaction of debts Division 105
14 Supplies of going concerns Division 135
15 Supplies of things acquired, imported or applied to make financial supplies Division 132

The basic rules Chapter 2
Net amounts and adjustments Part 2-4
Adjustment events Division 19

Section 19-1

A New Tax System (Goods and Services Tax) Act 1999 33

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 su pply 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.

Chapter 2 The basic rules
Part 2-4 Net amounts and adjustments
Division 19 Adjustment events

Section 19-10

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

Has the GST on the
supply increased or
decreased because of the
adjustment event?
Has the input tax credit
for the acquisition
increased or decreased
because of the
adjustment event?
You have an increasing
adjustment, which will
increase your net amount
You have a decreasing
adjustment, which will
decrease your net amount
You have neither an
increasing adjustment nor
a decreasing adjustment
neither
neither
increased(section 19-85)
decreased(section 19-80)
Supply
Acquisition increased(section 19-50)
decreased(section 19-55)

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 ex port are not exported within the time
provided in section 38-185, the suppl y 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);

The basic rules Chapter 2
Net amounts and adjustments Part 2-4
Adjustment events Division 19

Section 19-40

A New Tax System (Goods and Services Tax) Act 1999 35
(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.
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 no longer correctly
reflects the amount of GST on the supply (the corrected GST
amount ), taking into account any adjustments for the supply.
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, that were previously attributable to a tax period
in respect of the supply; minus

Chapter 2 The basic rules
Part 2-4 Net amounts and adjustments
Division 19 Adjustment events

Section 19-50

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

(c) the sum of any
*decreasing adjustments, under this
Subdivision, that were previously attributable to a tax period
in respect of the supply.
19-50 Increasing adju stments 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
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 ), taking into account any adjustments for the
acquisition.

The basic rules Chapter 2
Net amounts and adjustments Part 2-4
Adjustment events Division 19

Section 19-75

A New Tax System (Goods and Services Tax) Act 1999 37

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; plus
(b) the sum of any
*increasing adjustments, under this
Subdivision, that were previously attributable to a tax period
in respect of the acquisition; minus
(c) the sum of any
*decreasing adjustments, under this
Subdivision, that were previously attributable to a tax period
in respect of the acquisition.
19-80 Increasing adjus tments 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.

Chapter 2 The basic rules
Part 2-4 Net amounts and adjustments
Division 21 Bad debts

Section 21-1

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

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 due 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 due 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 previous ly 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 due for 12
months or more, as the case requires.
The amount of the increasing adjustment is
1/11 of the amount
recovered.

The basic rules Chapter 2
Net amounts and adjustments Part 2-4
Bad debts Division 21

Section 21-15

A New Tax System (Goods and Services Tax) Act 1999 39

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 due, but you have not provided the consideration due; 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 due 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 due 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 previo usly 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 due 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:
1 Changing your accountin g basis Division 159
2 Gambling Division 126

Chapter 2 The basic rules
Part 2-4 Net amounts and adjustments
Division 21 Bad debts

Section 21-99

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

Checklist of special rules
Item For this case … See:
3 Sale of freehold interests etc. Division 75

The basic rules Chapter 2
Registration Part 2-5
Who is required to be registered and who may be registered Division 23

Section 23-1

A New Tax System (Goods and Services Tax) Act 1999 41

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.

Are you carrying on an enterprise?
(see section 9-20) You can’t be registered
Does your annual turnover meet the
registration turnover threshold?
(see section 23-15)
You are required to be registered
(see section 23-5 and
Divisions 57, 144 and 147)
You may be registered
(see section 23-10)
No
Yes
Yes
No

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
*annual turnover meets the *registration turnover
threshold.

Chapter 2 The basic rules
Part 2-5
Registration
Division 23
Who is required to be registered and who may be registered

Section 23-10

42 A New Tax System (Goods and Services Tax) Act 1999
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 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.
23-99 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:
1 Representatives of incap acitated entities Division 147
2 Resident agents acting for non-residents Division 57
3 Taxis Division 144

The basic rules Chapter 2
Registration Part 2-5
How you become registered, and how your registration can be cancelled Division 25

Section 25-1

A New Tax System (Goods and Services Tax) Act 1999 43

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 Division 7 of Part VI of 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 subs ection is a reviewable GST decision
(see Division 7 of Part VI of 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

Chapter 2 The basic rules
Part 2-5
Registration
Division 25
How you become registered, and how your registration can be cancelled

Section 25-10

44 A New Tax System (Goods and Services Tax) Act 1999
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
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 Division 7 of Part VI of the Taxation Administration Act
1953 ).
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;

The basic rules Chapter 2
Registration Part 2-5
How you become registered, and how your registration can be cancelled Division 25

Section 25-49

A New Tax System (Goods and Services Tax) Act 1999 45
to have been registered from and including your registration day.
Note: This section ensures that bac
kdating your registration enables your
supplies and acquisitions made on or after the date of effect to be
picked up by the GST system. Sectio n 25-10 limits the extent to which
your registration can be backdated.
25-49 Special rules rel ating to registration
Chapter 4 contains special rules relating to *registration in
particular cases, as follows:

Checklist of special rules
Item For this case … See:
1 GST branches Division 54
Subdivision 25-B—How your re gistration 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 regi stration under this subsection is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The Commissioner must cancel your *registration (even if you
have not applied for cancellati on of your registration) if:

Chapter 2 The basic rules
Part 2-5
Registration
Division 25
How you become registered, and how your registration can be cancelled

Section 25-60

46 A New Tax System (Goods and Services Tax) Act 1999
(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 Division 7 of Part VI of 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.
25-60 The date of effect of your cancellation
The Commissioner must decide the date on which the cancellation of your *registration under subsection 25-55(1) or (2) 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 Division 7 of Part VI of the Taxation
Administration Act 1953 ).
25-65 Effect of backdating you r 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:

The basic rules Chapter 2
Registration Part 2-5
How you become registered, and how your registration can be cancelled Division 25

Section 25-99

A New Tax System (Goods and Services Tax) Act 1999 47

Checklist of special rules
Item For this case … See:
1 GST branches Division 54
2 Representatives of incap acitated entities Division 147
3 Resident agents acting for non-residents Division 57

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 27
How to work out the tax periods that apply to you

Section 27-1

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

Part 2-6—Tax periods
Division 27—How to work out the tax periods that apply to you
27-1 What this Division is about
This Division tells you the tax peri ods that apply to you. You need
to know this because your net amounts (the amounts payable by
you or to you) are worked out in respect of these tax periods.
27-5 General rule—3 month tax periods
The tax periods that apply to you are each period of 3 months
ending on 31 March, 30 June, 30 September or 31 December in
any year, except to the extent that:
(a) an election is in force under section 27-10; or
(b) the Commissioner determines otherwise under this Division.
27-10 Election of one month tax periods
(1) The tax periods that apply to you are each individual month if, by
notifying the Commissioner in the
*approved form, you elect to
have as the tax periods that appl y to you each individual month.
(2) The election takes effect on the day specified in the notice.
However, the day specified must be 1 January, 1 April, 1 July or 1
October.
27-15 Determination of one month tax periods
(1) The Commissioner must determine that the tax periods that apply
to you are each individual month if:
(a) the Commissioner is satisfied that your
*annual turnover
meets the *tax period turnover threshold; or
(b) the Commissioner is satisfied that the period for which you will be
*carrying on an *enterprise in Australia is less than 3
months; or

The basic rules Chapter 2
Tax periods Part 2-6
How to work out the tax periods that apply to you Division 27

Section 27-20

A New Tax System (Goods and Services Tax) Act 1999 49
(c) the Commissioner is satisfied that you have a history of failing to comply with your obligations under a
*taxation
law; or
(d) your
*income year is not the same as the *financial year.
Note: Determining under this section the tax periods applying to you is a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The determination takes effect on the day specified in the
determination. However, the day specified must be 1 January, 1
April, 1 July or 1 October.
Note: Deciding the date of effect of the determination is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
(3) The tax period turnover threshold is:
(a) $20 million; or
(b) such other amount as the regulations specify. However, if the regulations change the tax period turnover
threshold, the change does not apply to you until the start of the
next tax period that starts after the regulation in question comes
into operation.
27-20 Withdrawing elections of one month tax periods
(1) You may, by notifying the Commissioner in the *approved form,
withdraw an election under section 27-10, unless your
*annual
turnover meets the
*tax period turnover threshold.
(2) The withdrawal takes effect on the day specified in the notice.
However, the day specified:
(a) must be 1 January, 1 April, 1 July or 1 October, or any day occurring before the election takes effect; and
(b) must not be a day occurring earlier than 12 months after the election took effect.
27-25 Revoking determinations of one month tax periods
(1) The Commissioner must revoke a determination under section
27-15 relating to you if you so request, unless the Commissioner is

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 27
How to work out the tax periods that apply to you

Section 27-30

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

satisfied that any of the grounds for making a determination under
that section apply to you.
Note: Refusing to revoke a determinati
on under this section is a reviewable
GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The revocation takes effect on th e day specified in the instrument
of revocation. However, the day specified:
(a) must be 1 January, 1 April, 1 July or 1 October; and
(b) must not be a day occurring earlier than 12 months after the determination took effect.
Note: Deciding the date of effect of the revocation is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
27-30 Tax periods determined by the Commissioner to take account
of changes in tax periods
(1) For the purpose of ensuring the effective operation of this Division
where the tax periods have changed, the Commissioner may, by
written notice given to you, determine that a period specified in the
notice is a tax period that applies to you.
Note: Determining under this secti on a tax period applying to you is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The period specified in the notice may start earlier than the day on
which the notice is given to you.
(3) However, the period specified in the notice:
(a) must be less than 3 months; and
(b) must not overlap with any part of any other tax period for which you have already given a
*GST return to the
Commissioner.
For the giving of GST returns to the Commissioner, see Division 31.
27-35 Changing the days on which your tax periods end
(1) You may change the day in each year on which a tax period would otherwise end. However:

The basic rules Chapter 2
Tax periods Part 2-6
How to work out the tax periods that apply to you Division 27

Section 27-37

A New Tax System (Goods and Services Tax) Act 1999 51
(a) the day must be no more than 7 days earlier or 7 days later than a day on which one of the tax periods that applies to you
would otherwise end if the days were not changed; and
(b) the change must be consistent with the commercial accounting periods that apply to you.
(2) If the day on which a tax peri od ends is changed, the next tax
period starts on the day after that day.
27-37 Special determination of tax periods on request
(1) The Commissioner may, in accord ance with a request you make in
the
*approved form, determine the tax periods applying to you to
be the tax periods specified in the request if the Commissioner is
satisfied that:
(a) your
*annual turnover meets the *tax period turnover
threshold; and
(b) the tax periods specified in th e request are consistent with the
commercial accounting periods that apply to you; and
(c) the tax periods specified in the request would, if determined
under this section, result in 12 complete tax periods in each
year; and
(d) any other requirements specified in the regulations are complied with.
Note: Refusing a request for a dete rmination under this section is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) A determination under this section overrides any determination
under section 27-15 or 27-30 relati ng to tax periods applying to
you.
27-38 Revoking special determination of tax periods
(1) The Commissioner must revoke a determination under section
27-37 if the Commissioner is satisfied that any of the requirements
of paragraphs 27-37(1)(a), (b), (c) and (d) are not complied with.
Note: Revoking a determination under th is section is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 27
How to work out the tax periods that apply to you

Section 27-40

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

(2) The revocation takes effect on th
e day specified in the instrument
of revocation. However, the day specified must be 1 January, 1
April, 1 July or 1 October.
Note: Deciding the date of effect of the revocation is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
(3) A revocation under this section revives any election under section
27-10, or any determin ation under section 27-15 or 27-30, relating
to tax periods applying to you.
27-40 An entity’s concluding tax period
(1) If:
(a) an individual dies, becomes bankrupt or ceases to
*carry on
any *enterprise; or
(b) any other entity goes into liquidation or receivership, ceases
to carry on any enterprise or for any reason ceases to exist;
the individual’s or entity’s tax period at the time is taken to have
ceased at the end of the day before the death, bankruptcy,
cessation, liquidation or receivership.
(2) If an entity’s
*registration is cancelled, the entity’s tax period at the
date of effect of the cancellation (the cancellation day) ceases at
the end of the cancellation day.
27-99 Special rules relating to tax periods
Chapter 4 contains special rules relating to tax periods, as follows:

Checklist of special rules
Item For this case … See:
1 Changes in the extent of creditable purpose Division 129
2 Resident agents acting for non-residents Division 57

The basic rules Chapter 2
Tax periods Part 2-6
What is attributable to tax periods Division 29

Section 29-1

A New Tax System (Goods and Services Tax) Act 1999 53

Division 29—What is attributable to tax periods
Table of Subdivisions
29-A The attribution rules
29-B Accounting on a cash basis
29-C Tax invoices and adjustment notes
29-1 What this Division is about
This Division tells you the tax periods to which your taxable
supplies, creditable acquisitions , creditable importations and
adjustments are attributable. You need to know this to work out
your net amounts under Part 2-4.
Note: This Division does not deal with your taxable importations, because
they are not attributed to tax peri ods. See section 33-15 for payment of
GST on taxable importations.
Subdivision 29-A—The attribution rules
29-5 Attributing the GST on your taxable supplies
(1) The GST payable by you on a *taxable supply is attributable to:
(a) the tax period in which any of the
*consideration is received
for the supply; or
(b) if, before any of the consideration is received, an
*invoice is
issued relating to the supply—the tax period in which the
invoice is issued.
(2) However, if you
*account on a cash basis, then:
(a) if, in a tax period, all of the
*consideration is received for a *taxable supply—GST on the supply is attributable to that tax
period; or
(b) if, in a tax period, part of the consideration is received—GST
on the supply is attributable to that tax period, but only to the
extent that the consideration is received in that tax period; or

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 29
What is attributable to tax periods

Section 29-10

54 A New Tax System (Goods and Services Tax) Act 1999
(c) if, in a tax period,
none of the consideration is received—
none of the GST on the supply is attributable to that tax
period.
29-10 Attributing the input t ax credits for your creditable
acquisitions
(1) The input tax credit to which you are entitled for a *creditable
acquisition is attributable to:
(a) the tax period in which you provide any of the
*consideration
for the acquisition; or
(b) if, before you provide any of the consideration, an
*invoice is
issued relating to the acquisition—the tax period in which the
invoice is issued.
(2) However, if you
*account on a cash basis, then:
(a) if, in a tax period, you provide all of the
*consideration for a *creditable acquisition—the input tax credit for the
acquisition is attributable to that tax period; or
(b) if, in a tax period, you provide part of the consideration—the
input tax credit for the acquisition is attributable to that tax
period, but only to the extent that you provided the
consideration in that tax period; or
(c) if, in a tax period, none of the consideration is provided—
none of the input tax credit for the acquisition is attributable
to that tax period.
(3) If you do not hold a
*tax invoice for a *creditable acquisition when
you give to the Commissioner a
*GST return for the tax period to
which the input tax credit (or any part of the input tax credit) on
the acquisition would otherwise be attributable:
(a) the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(b) the input tax credit (or part) is attributable to the first tax period for which you give to the Commissioner a GST return
at a time when you hold that tax invoice.
However, this subsection does not apply in circumstances of a kind
determined in writing by the Commissioner to be circumstances in
which the requirement for a tax invoice does not apply.

The basic rules Chapter 2
Tax periods Part 2-6
What is attributable to tax periods Division 29

Section 29-15

A New Tax System (Goods and Services Tax) Act 1999 55

For the giving of GST returns to the Commissioner, see Division 31.
29-15 Attributing the input t ax credits for your creditable
importations
The input tax credit to which you are entitled for a *creditable
importation is attributable to the tax period in which you pay the
GST on the importation.
29-20 Attributing your adjustments
(1) An *adjustment that you have is attributable to the tax period in
which you become aware of the adjustment.
(2) However, if you
*account on a cash basis, and the *adjustment
arises from an
*adjustment event as a resu lt of which you are liable
to provide *consideration, then:
(a) if, in a tax period, all of the consideration is provided—the
*adjustment is attributable to that tax period; or
(b) if, in a tax period, part of the consideration is provided—the
adjustment is attributable to that tax period, but only to the
extent that the consideration is provided in that tax period; or
(c) if, in a tax period, none of the consideration is provided—
none of the adjustment is attributable to that tax period.
(3) If:
(a) you have a
*decreasing adjustment arising from an *adjustment event; and
(b) you do not hold an
*adjustment note for the adjustment when
you give to the Commissioner a *GST return for the tax
period to which the adjustment (or any part of the
adjustment) would otherwise be attributable;
then:
(c) the adjustment (including any part of the adjustment) is not attributable to that tax period; and
(d) the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a
time when you hold that adjustment note.

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 29
What is attributable to tax periods

Section 29-25

56 A New Tax System (Goods and Services Tax) Act 1999
However, this subsection does not apply in circumstances of a kind
determined in writing by the Commissioner to be circumstances in
which the requirement for an adjustment note does not apply.
For the giving of GST returns to the Commissioner, see Division 31.
29-25 Commissioner may determine
particular attribution rules
(1) The Commissioner may, in writing, determine the tax periods to
which:
(a) GST on
*taxable supplies of a specified kind; or
(b) input tax credits for
*creditable acquisitions of a specified
kind; or
(c) input tax credits for
*creditable importations of a specified
kind; or
(d)
*adjustments of a specified kind;
are attributable.
(2) However, the Commissioner must not make a determination under
this section unless satisfied that it is necessary to prevent the
provisions of this Division and Chapter 4 applying in a way that is
inappropriate in circumstances involving:
(a) a supply or acquisition in which possession of goods passes, but title in the goods will, or may, pass at some time in the
future; or
(b) a supply or acquisition for which payment is made or an
*invoice is issued, but use, enjoyment or passing of title will,
or may, occur at some time in the future; or
(c) a supply or acquisition occurring, but still being subject to a statutory cooling off period under an
*Australian law; or
(d) a supply or acquisition occurring before the supplier or
*recipient knows it has occurred; or
(e) a supply or acquisition occurring before the supplier or recipient knows the total
*consideration; or
(f) a supply or acquisition made under a contract that is subject to preconditions; or
(g) a supply or acquisition made under a contract that provides for retention of some or all of the consideration until certain
conditions are met.

The basic rules Chapter 2
Tax periods Part 2-6
Division 29

Section 29-39

A New Tax System (Goods and Services Tax) Act 1999 57
(3) Determinations under subsection (1 ) override the provisions of this
Division (except this section) and Chapter 4, but only to the extent
of any inconsistency.
29-39 Special rules relatin g to attribution rules
Chapter 4 contains special rules relating to attribution rules, as
follows:

Checklist of special rules
Item For this case … See:
1 Agents Division 153
2 Associates Division 72
3 Cancelled lay-by sales Division 102
4 Cessation of regist ration Division 138
5 Changes in the extent of creditable purpose Division 129
6 Changing your accountin g basis Division 159
7 Company amalgamations Division 90
8 Deposits as security Division 99
9 Pre-establishment costs Division 60
10 Reimbursement of employ ees etc. Division 111
11 Returnable containers Division 93
12 Supplies and acquisitions made on a progressive or periodic basis Division 156
13 Supplies of things acquired, imported or applied to make financial supplies Division 132
Subdivision 29-B—Accounti
ng on a cash basis
29-40 Choosing to account on a cash basis
(1) If your *annual turnover does not exceed the *cash accounting
turnover threshold, you may choose to
*account on a cash basis,
with effect from the first day of the tax period that you choose.
(2) However, any charitable institution, any trustee of a charitable fund or any
*gift-deductible entity may choose to *account on a cash

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 29

Section 29-45

58 A New Tax System (Goods and Services Tax) Act 1999
basis, with effect from the first day of the tax period that the
institution, trustee or entity chooses, whether or not its
*annual
turnover exceeds the *cash accounting turnover threshold.
(3) The cash accounting turnover threshold is:
(a) $500,000; or
(b) such higher amount as the regulations specify.
29-45 Permission to account on a cash basis
(1) The Commissioner may permit you to *account on a cash basis if:
(a) you apply to the Commissioner in the
*approved form for
permission to account on a cash basis; and
(b) the Commissioner is satisfied that, having regard to:
(i) the nature and size of the
*enterprise that you *carry on;
and
(ii) the nature of the accounting system that you use; and
(iii) how you account for income tax purposes;
it is appropriate to permit you to account on a cash basis.
Note: Refusing to permit you to account on a cash basis is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
(2) The Commissioner must notify you in writing of any decision he or
she makes in relation to you under this section. If the
Commissioner decides to permit you to
*account on a cash basis,
the notice must specify the date of effect of your permission.
Note: Deciding the date of effect of your permission to account on a cash
basis is a reviewable GST decision (s ee Division 7 of Part VI of the
Taxation Administration Act 1953 ).
29-50 Ceasing to account on a cash basis
(1) You cease to *account on a cash basis if:
(a) your
*annual turnover meets the *cash accounting turnover
threshold and you do not have permission to *account on a
cash basis; or
(b) you notify the Commissioner, in the
*approved form, that
you are ceasing to *account on a cash basis.

The basic rules Chapter 2
Tax periods Part 2-6
Division 29

Section 29-70

A New Tax System (Goods and Services Tax) Act 1999 59
(2) The date of effect of your cessation is the first day of the next tax
period to commence after your
*annual turnover meets the *cash
accounting turnover threshold, or you notify the Commissioner, as
the case may be.
(3) The Commissioner must revoke any permission for you to
*account on a cash basis if the Commissioner is satisfied that:
(a) your
*annual turnover meets the *cash accounting turnover
threshold; and
(b) it is not appropriate to permit you to account on a cash basis.
Note: Revoking your permission to acc ount on a cash basis is a reviewable
GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(4) The Commissioner must notify you in writing of his or her
decision under subsection (3). The notice must specify the date of
effect of the revocation, which can be the first day of any tax
period starting before, on or after the day on which the
Commissioner makes the decision.
Note: Deciding the date of effect of the revocation of your permission to
account on a cash basis is a review able GST decision (see Division 7
of Part VI of the Taxation Administration Act 1953 ).
(5) Paragraph (1)(a) and subsection (3 ) do not apply in relation to any
charitable institution, any trustee of a charitable fund or any
*gift-
deductible entity.
Subdivision 29-C—Tax invoices and adjustment notes
29-70 Tax invoices
(1) A tax invoice for a *taxable supply:
(a) must be issued by the supplier, unless it is a
*recipient
created tax invoice (in which case it must be issued by the
*recipient); and
(b) must set out the
*ABN of the entity that issues it; and
(c) must set out the
*price for the supply; and
(d) must contain such other information as the regulations specify; and
(e) must be in the
*approved form.

Chapter 2 The basic rules
Part 2-6
Tax periods
Division 29

Section 29-75

60 A New Tax System (Goods and Services Tax) Act 1999
(2) The supplier of a
*taxable supply must, within 28 days after the
*recipient of the supply requests it, give to the recipient a *tax
invoice for the supply, unless it is a *recipient created tax invoice.
(3) A recipient created tax invoice is a
*tax invoice belonging to a
class of tax invoices that the Commissioner has determined in
writing may be issued by the
*recipient of a *taxable supply.
29-75 Adjustment notes
(1) An adjustment note for an *adjustment that arises from an
*adjustment event relating to a *taxable supply:
(a) must be issued by the supplier of the
*taxable supply, unless
any *tax invoice relating to the supply would have been a *recipient created tax invoice (in which case it must be issued
by the
*recipient of the supply); and
(b) must set out the
*ABN of the entity that issues it; and
(c) must contain such other information as the Commissioner determines in writing; and
(d) must be in the
*approved form.
(2) The supplier of the
*taxable supply must:
(a) within 28 days after the
*recipient of the supply requests the
supplier to give an *adjustment note for the *adjustment
relating to the supply; or
(b) if, before receiving such a request, the supplier becomes
aware of the adjustment—within 28 days after becoming
aware of that fact;
give to the recipient an
*adjustment note for the *adjustment, unless
any *tax invoice relating to the supply would have been a *recipient
created tax invoice.
29-80 Tax invoices and adjustment notes not required for low value transactions
(1) Subsections 29-10(3) and 29-70(2) do not apply to a *creditable
acquisition that relates to a
*taxable supply the *value of which
does not exceed $50, or such higher amount as the regulations
specify.

The basic rules Chapter 2
Tax periods Part 2-6
Division 29

Section 29-99

A New Tax System (Goods and Services Tax) Act 1999 61
(2) Subsections 29-20(3) and 29-75(2) do not apply to a
*decreasing
adjustment that relates to a
*taxable supply the *value of which
does not exceed $50, or such higher amount as the regulations
specify.
29-99 Special rules relating to t ax invoices and adjustment notes
Chapter 4 contains special rules relating to tax invoices and
adjustment notes, as follows:

Checklist of special rules
Item For this case … See:
1 Agents Division 153
2 Gambling Division 126
3 GST branches Division 54

Chapter 2 The basic rules
Part 2-7
Returns, payments and refunds
Division 31
GST returns

Section 31-1

62 A New Tax System (Goods and Services Tax) Act 1999
Part 2-7—Returns, payments and refunds
Division 31—GST returns
31-1 What this Division is about
This Division is about your obligation (if you are registered or
required to be registered) to give to the Commissioner GST returns
for each tax period.
For the penalties for failing to comply with these obligations, see the Taxation
Administration Act 1953 .
31-5 Who must give GST returns
(1) If you are *registered or *required to be registered, you must give
to the Commissioner a
*GST return for each tax period.
(2) You must give the return whether or not:
(a) your
*net amount for the tax period is zero; or
(b) you are liable for the GST on any
*taxable supplies that are
attributable to the tax period.
31-10 When GST returns must be given
You must give your *GST return for a tax period to the
Commissioner:
(a) on or before the 21st day of the month following the end of that tax period; or
(b) within such further period as the Commissioner allows.
31-15 The form and contents of GST returns
(1) Your *GST return for a tax period must:
(a) be in the
*approved form; and
(b) state your
*net amount for the tax period; and
(c) set out such other information as the approved form requires; and

The basic rules Chapter 2
Returns, payments and refunds Part 2-7
GST returns Division 31

Section 31-20

A New Tax System (Goods and Services Tax) Act 1999 63
(d) be signed in accordance with section 31-30.
(2) However, if during the tax period:
(a) you are not liable for the GST on any
*taxable supplies, and
you did not make any supplies that would have been taxable
supplies had they not been
*GST-free or *input taxed; and
(b) you are not liable for the GST on any
*taxable importations
the GST on which is payable at the time when GST on
taxable supplies is normally payable; and
(c) you are not entitled to the input tax credits on any
*creditable
acquisitions or *creditable importations;
you may give your
*GST return for the period to the Commissioner
in the manner the Commissioner requires.
31-20 Additional GST returns
In addition to the *GST returns required under section 31-5, you
must give to the Commissioner such further or fuller GST returns
as the Commissioner directs you to give (including any GST return
in your capacity as agent or trustee).
31-25 Electronic lodgment of GST returns
(1) You may give your *GST returns to the Commissioner by *lodging
them electronically.
(2) However, if your
*annual turnover meets the *electronic lodgment
turnover threshold, you must give your
*GST returns to the
Commissioner by *lodging them electronically.
(3) A
*GST return is lodged electronically if it is transmitted to the
Commissioner in an electronic format approved by the
Commissioner.
(4) The electronic lodgment turnover threshold is:
(a) $20 million; or
(b) such higher amount as the regulations specify.

Chapter 2 The basic rules
Part 2-7
Returns, payments and refunds
Division 31

Section 31-30

64 A New Tax System (Goods and Services Tax) Act 1999
31-30 Signing GST returns
(1) You must sign your *GST returns unless they are *lodged
electronically.
(2) Any
*GST return of yours that is *lodged electronically:
(a) if you give it to the Commissioner—must contain your
*electronic signature; or
(b) if a
*registered tax agent gives it to the Commissioner on
your behalf—must contain the registered tax agent’s
electronic signature.
31-99 Special rules relating to GST returns
Chapter 4 contains special rules relating to *GST returns, as
follows:

Checklist of special rules
Item For this case … See:
1 GST branches Division 54
2 GST groups Division 48
3 GST joint ventures Division 51
4 Insurance Division 78
5 Resident agents acting for non-residents Division 57
6 Supplies in satisfaction of debts Division 105

The basic rules Chapter 2
Returns, payments and refunds Part 2-7
Payments of GST Division 33

Section 33-1

A New Tax System (Goods and Services Tax) Act 1999 65

Division 33—Payments of GST
33-1 What this Division is about
This Division is about your obligation to pay to the
Commonwealth amounts of GST that remain after off-setting your
entitlements to input tax credits. The obligation to pay arises for
any of your net amounts that are greater than zero.
For the penalties for failing to comp ly with these obligations, see the Taxation
Administration Act 1953 .
Note: Payments of GST on importations of goods are dealt with separately
in section 33-15.
33-5 When payments of net amounts must be made
(1) If the *net amount for a tax period applying to you is greater than
zero, you must pay the net amount to the Commissioner on or
before the 21st day of the month following the end of that tax
period.
(2) However, if the tax period ends during the first 7 days of a month, you must pay the
*net amount to the Commissioner on or before
the 21st day of that month.
33-10 How payments of net amounts are made
(1) You may pay by *electronic payment any *net amounts payable by
you under section 33-5. Any amounts of a net amount that you do
not pay by electronic payment must be paid in the manner
determined in writing by the Commissioner.
(2) However, if your
*annual turnover meets the *electronic lodgment
turnover threshold, you must pay by
*electronic payment any *net
amounts payable by you under section 33-5.
Note: A penalty applies if you fail to make an electronic payment as
required—see section 41 of the Taxation Administration Act 1953 .

Chapter 2 The basic rules
Part 2-7
Returns, payments and refunds
Division 33
Payments of GST

Section 33-15

66 A New Tax System (Goods and Services Tax) Act 1999
33-15 Payments of amounts of GST on importations
Amounts of GST on *taxable importations are to be paid by the
importer to the Commonwealth:
(a) at the same time, at the same place, and in the same manner, as
*customs duty is payable on the goods in question (or
would be payable if the goods were subject to customs duty);
or
(b) in the circumstances specified in the regulations, within such
further time specified in the regulations, and at the place and
in the manner specified in the regulations.
Note: The regulations could (for example) allow for deferral of
payments to coincide with payments of net amounts.
33-20 Commissioner may extend time for payment
The Commissioner may, in a particular case, extend the time for a
payment of:
(a) a
*net amount; or
(b) an amount of GST; or
(c) an amount of a penalty under Part VI of the Taxation
Administration Act 1953 ;
or allow it to be paid by instalments on terms determined by the
Commissioner.
33-25 Commissioner may bring forw ard payment date if you are
about to leave Australia
If the Commissioner has reason to believe that you may leave
Australia before a particular payment of:
(a) a
*net amount; or
(b) an amount of GST; or
(c) an amount of a penalty under Part VI of the Taxation
Administration Act 1953 ;
would (apart from this section) become due, that amount becomes
due for payment on the day the Commissioner fixes and notifies to
you.
Note: The Commissioner has power to issue departure prohibition orders under Part IVA of the Taxation Administration Act 1953 .

The basic rules Chapter 2
Returns, payments and refunds Part 2-7
Division 33

Section 33-30

A New Tax System (Goods and Services Tax) Act 1999 67

33-30 Net amounts etc. a debt due to the Commonwealth
When a *net amount, an amount of GST or an amount of a penalty
under Part VI of the Taxation Administration Act 1953 becomes
payable, it is a debt due to the Commonwealth.
33-99 Special rules relatin g to payments of GST
Chapter 4 contains special rules relating to payments of GST, as
follows:

Checklist of special rules
Item For this case … See:
1 Anti-avoidance Division 165
2 Customs security etc. given on taxable
importations Division 171
3 GST branches Division 54
4 GST joint ventures Division 51
5 Insurance Division 78
6 Supplies in satisfaction of debts Division 105

Chapter 2 The basic rules
Part 2-7
Returns, payments and refunds
Division 35
Refunds

Section 35-1

68 A New Tax System (Goods and Services Tax) Act 1999
Division 35—Refunds
35-1 What this Division is about
This Division is about the Commissioner’s obligation to pay to you
your entitlements to input tax credits that remain after off-setting
amounts of GST. The obligation to pay arises for any of your net
amounts that are less than zero.
35-5 When refunds must be made
(1) If the *net amount for a tax period is less than zero, the
Commissioner must, on behalf of the Commonwealth, pay that
amount (expressed as a positive amount) to you within 14 days
after you give to the Commissioner, under Division 31, your
*GST
return for that tax period.
Note: Interest is payable under the Taxation (Interest on Overpayments and
Early Payments) Act 1983 if the Commonwealth is late in making the
payment.
(2) However, if you have a liab ility to the Commonwealth arising
under or because of an Act of which the Commissioner has the
general administration, the Commissioner may:
(a) apply that
*net amount against the liability; and
(b) pay to you any part of that net amount not so applied.
35-10 How refunds are made
(1) The Commissioner must pay any *net amounts payable to you
under section 35-5 to the credit of a *financial institution account
nominated and maintained by you.
(2) However, the Commissioner may direct that any
*net amounts
payable to you under section 35-5 be paid to you in a different
way.
(3) If you have not nominated a
*financial institution account for the
purposes of this section and a direction has not been made under
subsection (2) relating to you, the Commissioner is not obliged to

The basic rules Chapter 2
Returns, payments and refunds Part 2-7
Division 35

Section 35-99

A New Tax System (Goods and Services Tax) Act 1999 69
pay any refunds to you until you nominate an account for the
purposes of this section.
35-99 Special rules relating to refunds
Chapter 4 contains special rules relating to refunds, as follows:

Checklist of special rules
Item For this case … See:
1 Anti-avoidance Division 165
2 GST branches Division 54
3 GST joint ventures Division 51
4 Tourist refund scheme Division 168
Note: Sections 38 and 39 of the Taxation Administration Act 1953 also
relate to refunds of net amounts.

Chapter 2 The basic rules
Part 2-8
Checklist of special rules
Division 37
Checklist of special rules

Section 37-1

70 A New Tax System (Goods and Services Tax) Act 1999
Part 2-8—Checklist of special rules
Division 37—Checklist of special rules
37-1 Checklist of special rules
The provisions set out in the table contain special rules relating to
the matters indicated.

Checklist of special rules
Item For this case… See:
1 Agents Division 153
2 Anti-avoidance Division 165
3 Associates Division 72
4 Cancelled lay-by sales Division 102
5 Cessation of regist ration Division 138
6 Changes in the extent of creditable purpose Division 129
7 Changing your accountin g basis Division 159
8 Company amalgamations Division 90
9 Customs security etc. given for taxable importations Division 171
10 Deposits as security Division 99
11 Financial supplies (reduced cr edit acquisitions) Division 70
12 Gambling Division 126
13 GST branches Division 54
14 GST groups Division 48
15 GST joint ventures Division 51
16 Importations of goods that were exported for repair or renovation Division 117
17 Importations without entry for home consumption Division 114
18 Insurance Division 78
19 Long-term accommodation in commercial residential
premises Division 87
20 Non-deductible expenses Division 69
21 Offshore supplies other than goods or real property Division 84
22 Payments of taxes Division 81

The basic rules Chapter 2
Checklist of special rules Part 2-8
Checklist of special rules Division 37

Section 37-1

A New Tax System (Goods and Services Tax) Act 1999 71

Checklist of special rules
Item For this case… See:
23 Pre-establishment costs Division 60
24 Reimbursement of employ ees etc. Division 111
25 Representatives of incap acitated entities Division 147
26 Resident agents acting for non-residents Division 57
27 Returnable containers Division 93
28 Sale of freehold interests etc. Division 75
29 Second-hand goods Division 66
30 Supplies and acquisitions made on a progressive or periodic
basis Division 156
31 Supplies in satisfaction of debts Division 105
32 Supplies of going concerns Division 135
33 Supplies of things acquired, imported or applied to make financial supplies Division 132
34 Supplies partly connected w ith Australia Division 96
35 Taxis Division 144
36 Tourist refund scheme Division 168
37 Valuation of taxable supplies of goods in bond Division 108

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-1

72 A New Tax System (Goods and Services Tax) Act 1999
Chapter 3—The exemptions
Part 3-1—Supplies that are not taxable supplies
Division 38—GST-free supplies
Table of Subdivisions
38-A Food
38-B Health
38-C Education
38-D Child care
38-E Exports and other supplies that are for consumption outside
Australia
38-F Religious services
38-G Non-commercial activities of charitable institutions etc.
38-H Raffles and bingo conducted by charitable institutions etc.
38-I Water and sewerage
38-J Supplies of going concerns
38-K Transport and related matters
38-L Precious metals
38-M Supplies through inwards duty free shops
38-N Grants of freehold and similar interests by governments
38-O Farm land
38-P Cars for use by disabled people
38-1 What this Division is about
This Division sets out the supplies that are GST-free. If a supply is
GST-free, then:
• no GST is payable on the supply;

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-2

A New Tax System (Goods and Services Tax) Act 1999 73

• 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 ar e GST-free, see sections 9-30 and 9-80.
Subdivision 38-A—Food
38-2 Food
A supply of *food is GST-free .
38-3 Food that is not GST-free
(1) A supply is not GST-free under section 38-2 if it is a supply of:
(a)
*food for consumption on the *premises from which it is
supplied; or
(b) hot food for consumption away from those premises; or
(c) food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one
or more foods at least one of which is food of such a kind; or
(d) a
*beverage (or an ingredient for a beverage), other than a
beverage (or ingredient) of a kind specified in the third
column of the table in clause 1 of Schedule 2; or
(e) food of a kind specified in regulations made for the purposes
of this subsection.
(2) However, this section does not apply to a supply of
*food of a kind
specified in regulations made for the purposes of this subsection.
(3) The items in the table in clause 1 of Schedule 1 or 2 are to be interpreted subject to the other clauses of Schedule 1 or 2, as the
case requires.
38-4 Meaning of food
(1) Food means any of these, or any combination of any of these:
(a) food for human consumption (whether or not requiring processing or treatment);
(b) ingredients for food for human consumption;

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-5

74 A New Tax System (Goods and Services Tax) Act 1999
(c)
*beverages;
(d) ingredients for beverages;
(e) goods to be mixed with or added to food for human consumption (including condiments, spices, seasonings,
sweetening agents or flavourings);
(f) fats and oils marketed for culinary purposes; but does not include:
(g) live animals (other than crustaceans or molluscs); or
(h) any grain, cereal or sugar cane that has not been subject to any process or treatment resulting in an alteration of its form,
nature or condition; or
(i) plants under cultivation that can be consumed (without being subject to further process or treatment) as food for human
consumption.
(2) Beverage includes water.
38-5 Premises used in supplying food
Premises , in relation to a supply of *food, includes:
(a) the place where the supply takes place; or
(b) the grounds surrounding a cafe or public house, or other outlet for the supply; or
(c) the whole of any enclosed space such as a football ground,
garden, showground, amusement park or similar area where
there is a clear boundary or limit;
but does not include any part of a public thoroughfare unless it is
an area designated for use in conn ection with supplies of food from
an outlet for the supply of food.
38-6 Packaging of food
(1) A supply of the packaging in which *food is supplied is GST-free
if the supply of the food is GST-free.
(2) However, the supply of the packaging is GST-free under this section only to the extent that the packaging:
(a) is necessary for the supply of the food; and

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-7

A New Tax System (Goods and Services Tax) Act 1999 75
(b) is packaging of a kind in which food of that kind is normally supplied.
Subdivision 38-B—Health
38-7 Medical services
(1) A supply of a *medical service is GST-free.
(2) However, a supply of a
*medical service is not GST-free under
subsection (1) if:
(a) it is a supply of a
*professional service rendered in prescribed
circumstances within the meaning of regulation 14 of the
Health Insurance Regulations made under the Health
Insurance Act 1973 (other than the prescribed circumstances
set out in regulations 14(2)(ea) and (f)); or
(b) it is rendered for cosm etic reasons and is not a
*professional
service for which medicare benefit is payable under Part II of
the Health Insurance Act 1973 .
(3) A supply of goods is GST-free if:
(a) it is made to an individual in the course of supplying to him or her a
*medical service the supply of which is GST-free;
and
(b) it is made at the premises at which the medical service is supplied.
38-10 Other health services
(1) A supply is GST-free if:
(a) it is a service of a kind specified in the table in this subsection, or of a kind specified in the regulations; and
(b) the supplier is a
*recognised professional in relation to the
supply of services of that kind; and
(c) the supply would generally be accepted, in the profession associated with supplying services of that kind, as being
necessary for the appropriate treatment of the
*recipient of
the supply.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-10

76 A New Tax System (Goods and Services Tax) Act 1999
Health services
Item Service
1 Aboriginal or Torres Strait Islander health
2 Acupuncture
3 Audiology, audiometry
4 Chiropody
5 Chiropractic
6 Dental
7 Dietary
8 Herbal medicine (including traditional
Chinese herbal medicine)
9 Naturopathy
10 Nursing
11 Occupational therapy
12 Optical
13 Osteopathy
14 Paramedical
15 Pharmacy
16 Psychology
17 Physiotherapy
18 Podiatry
19 Speech pathology
20 Speech therapy
21 Social work
(2) However, a supply of a pharmacy service is not GST-free under
subsection (1) unless it is:
(a) a supply relating to a supply that is GST-free because of section 38-50; or
(b) a service of conducting a medication review.
(3) A supply of goods is GST-free if:
(a) it is made to a person in th e course of supplying to the person
a service the supply of which is GST-free under subsection
(1) (other than a service referred to in item 8, 9, 12 or 15 of
the table in subsection (1)); and

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-15

A New Tax System (Goods and Services Tax) Act 1999 77
(b) it is made at the premises at which the service is supplied.
(4) A supply of goods is GST-free if:
(a) it is made to a person in th e course of supplying to the person
a service referred to in item 8 or 9 of the table in subsection
(1); and
(b) it is supplied, and used or c onsumed, at the premises at which
the service is supplied.
(5) A supply is GST-free if it is provided by an ambulance service in
the course of the treatment of the
*recipient of the supply.
38-15 Other government funded health services
A supply is GST-free if:
(a) it is a supply of a health service in connection with a supply that is GST-free because of section 38-7 or 38-10; and
(b) the supplier receives funding from the Commonwealth , a
State or a Territory in connection with the supply of the
health service; and
(c) the supply of the health service is of a kind determined in writing by the
*Health Minister.
38-20 Hospital treatment
(1) A supply of *hospital treatment is GST-free.
(2) However, a supply of
*hospital treatment is not GST-free to the
extent that it relates to a supply of a
*professional service that,
because of subsection 38-7(2), is not GST-free.
(3) A supply of goods is GST-free if it is a supply that is directly
related to a supply of
*hospital treatment that is:
(a) GST-free because of subsection (1); and
(b) supplied by, or on behalf of, the supplier of the hospital treatment.
38-25 Residential care etc.
(1) A supply of services is GST-free if:

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-25

78 A New Tax System (Goods and Services Tax) Act 1999
(a) it is a supply of services covered by Schedule 1 to the
*Quality of Care Principles; and
(b) it is provided through a residential care service (within the meaning of the Aged Care Act 1997 ); and
(c) the supplier is an approved provider (within the meaning of that Act).
(2) A supply of services is GST-free if:
(a) the services are provided to one or more aged or disabled people; and
(b) the
*Aged Care Minister has determined in writing that the
services are of a kind covered by Schedule 1 to the *Quality
of Care Principles; and
(c) the supplier receives funding from the Commonwealth , a
State or a Territory in connection with the supply.
(3) A supply of services is GST-free if:
(a) the services are provided to one or more aged or disabled people in a residential setting; and
(b) the
*Aged Care Minister has determined in writing that the
services are of a kind covered by Schedule 1 to the *Quality
of Care Principles; and
(c) the services include, and ar e only provided to people who
require, the services set out in:
(i) item 2.1 (daily living activities assistance) of Part 2 of that Schedule; or
(ii) item 3.8 (nursing services) of Part 3 of that Schedule.
(4) A supply of accommodation is GST-free if it is made to a person in
the course of making a supply to that person that is GST-free under
subsection (1), (2) or (3).
(5) However, a supply of services that is covered by an extra services fee within the meaning of Division 35 of the Aged Care Act 1997
is only GST-free under this section to the extent that the services
are covered by Schedule 1 to the
*Quality of Care Principles.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-30

A New Tax System (Goods and Services Tax) Act 1999 79

38-30 Community care etc.
(1) A supply of *community care is GST-free if community care
subsidy is payable under Part 3-2 of the Aged Care Act 1997 to the
supplier for the care.
(2) A supply of care is GST-free if the supplier receives funding under
the Home and Community Care Act 1985 in connection with the
supply.
(3) A supply of
*community care is GST-free if the supply is of
services:
(a) that are provided to one or more aged or disabled people; and
(b) that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the
*Quality of Care
Principles.
(4) A supply of care is GST-free if:
(a) the supplier receives funding from the Commonwealth, a State or a Territory in connection with the supply; and
(b) the supply of the care is of a kind determined in writing by the
*Aged Care Minister to be similar to a supply that is
GST-free because of subsection (2).
38-35 Flexible care
A supply of flexible care (within the meaning of section 49-3 of the Aged Care Act 1997 ) is GST-free if flexible care subsidy is
payable under Part 3.3 of that Act to the supplier for the care.
38-40 Specialist disability services
A supply of services is GST-free if the supplier receives funding
under the Disability Services Act 1986 or under a complementary
*State law or *Territory law in respect of the services.
38-45 Medical aids and appliances
(1) A supply is GST-free if:
(a) it is covered by Schedule 3 (m edical aids and appliances), or
specified in the regulations; and

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-47

80 A New Tax System (Goods and Services Tax) Act 1999
(b) the thing supplied is specifica
lly designed for people with an
illness or disability, and is not widely used by people without
an illness or disability.
(2) A supply is GST-free if the thing supplied is supplied as a spare
part for, and is specifically designed as a spare part for, another
thing the supply of which would be GST-free under subsection (1).
(3) However, a supply is not GST-free under subsection (1) or (2) if
the supplier and the
*recipient have agreed that the supply, or
supplies of a kind that include that supply, not be treated as
GST-free supplies.
38-47 Other GST-free health goods
(1) A supply is GST-free if it is a supply of goods of a kind that the
*Health Minister, by determination in writing, declares to be goods
the supply of which is GST-free.
(2) However, a supply is not GST-free under subsection (1) if the
supplier and the
*recipient have agreed that the supply, or supplies
of a kind that include that supply, not be treated as GST-free
supplies.
38-50 Drugs and medicinal preparations etc.
(1) A supply of a drug or medicinal preparation is GST-free if the
supply is on prescription and:
(a) under a
*State law or a *Territory law in the State or Territory
in which the supply takes place, supply of the drug or
medicinal preparation is prohibited except on prescription; or
(b) the drug or medicinal prepar ation is a pharmaceutical benefit
(within the meaning of Part VII of the National Health Act
1953 ).
(2) A supply of a drug or medicinal preparation is GST-free if, under a
*State law or a *Territory law in the State or Territory in which it is
supplied, the drug or medicinal preparation may only be supplied
by a
*medical practitioner, *dental practitioner or pharmacist.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-55

A New Tax System (Goods and Services Tax) Act 1999 81
(3) A supply of a drug or medicinal preparation is GST-free if, under a
*State law or a *Territory law in the State or Territory in which it is
supplied, the drug or medicinal pr eparation may only be supplied:
(a) by a
*medical practitioner, *dental practitioner, or by, or on
behalf of, a pharmacist; or
(b) a person who is permitted by that law to supply the drug or
medicinal preparation in circumstances where pharmacy
services are not available.
(4) A supply of a drug, medicine or other pharmaceutical item is GST-free if the supply is on prescription and:
(a) it is supplied as a pharmaceuti cal benefit (within the meaning
of section 91 of the Veterans’ Entitlements Act 1986); and
(b) it is supplied under an approved scheme (within the meaning of that section).
(5) A supply of a drug or medicinal preparation is GST-free if:
(a) the drug or medicinal preparation is an analgesic that has a single active ingredient the supply of which as a drug or
medicinal preparation would be GST-free under subsection
(3) if it were supplied in a larger quantity; and
(b) the drug or medicinal preparation is of a kind the supply of which is declared by the
*Health Minister to be GST-free, by
determination in writing.
38-55 Private health insurance etc.
(1) A supply of *private health insurance is GST-free.
(2) A supply of insurance against liability to pay for services supplied by ambulance, or a supply of re-insurance of such insurance, is
GST-free.
Subdivision 38-C—Education
38-85 Education courses
A supply is GST-free if it is a supply of:
(a) an
*education course; or

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-90

82 A New Tax System (Goods and Services Tax) Act 1999
(b) administrative services directly related to the supply of such
a course, but only if they are supplied by the supplier of the
course.
38-90 Excursions or field trips
(1) A supply is GST-free if it is a supply of an excursion or field trip,
but only if the excursion or field trip:
(a) is directly related to the curriculum of an
*education course;
and
(b) is not predominantly recreational.
(2) However:
(a) if the course is a
*tertiary course, a *Masters or Doctoral
course, a *tertiary residential college course or a
*professional or trade course—any supply of accommodation
as part of the excursion or field trip is not GST-free; and
(b) in any case—any supply of
*food as part of the excursion or
field trip is not GST-free under this section.
38-95 Course materials
A supply of *course materials for a subject undertaken in an
*education course is GST-free.
38-100 Supplies that are not GST-free
To avoid doubt, the following supplies related to an *education
course are not GST-free:
(a) a supply by way of sale, lease or hire of goods (other than
*course materials covered by section 38-95);
(b) a supply of membership of a student organisation.
38-105 Accommodation at boarding schools etc.
(1) A supply is GST-free if:
(a) it is a supply of
*student accommodation to students
undertaking a *primary course, a *secondary course or a *special education course; and
(b) the supplier of the accommoda tion also supplies the course.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-110

A New Tax System (Goods and Services Tax) Act 1999 83
(2) A supply is GST-free if:
(a) it is a supply of
*student accommodation to students who are
undertaking a *primary course, a *secondary course or a *special education course; and
(b) the accommodation is provided in a hostel whose primary purpose is to provide accommodation for students from rural
or remote locations who are undertaking such courses.
(3) Student accommodation means the right to occupy the whole or
part of the premises used to pr ovide the accommodation, including,
if it is provided as part of the right so to occupy, the supply of:
(a) cleaning and maintenance; or
(b) electricity, gas, air-conditioning or heating; or
(c) telephone, television, radio or any other similar thing.
(4) However, a supply is not GST-free under subsection (1) or (2) to
the extent that it consists of the supply of
*food.
38-110 Recognition of prior learning etc.
(1) A supply is GST-free if the supply is the assessment or issue of
qualifications for the purpose of:
(a) access to education; or
(b) membership of a professional or trade association; or
(c) registration or licensing for a particular occupation; or
(d) employment.
(2) However, a supply is not GST-free under subsection (1) unless the
supply is carried out by:
(a) a professional or trade association; or
(b) an
*education institution; or
(c) an entity that is registered by a training recognition authority of a State or Territory in accordance with the Australian
Recognition Framework to provide skill recognition
(assessment only) services; or
(d) an authority of the Commonw ealth or of a State or Territory;
or
(e) a local government body.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-140

84 A New Tax System (Goods and Services Tax) Act 1999
Subdivision 38-D—Child care
38-140 Child care—suppliers registered under the Childcare Rebate Act
A supply is GST-free if:
(a) it is a supply of child care (within the meaning of the Childcare Rebate Act 1993 ) relating to a child; and
(b) the supplier is registered under section 49 of that Act.
38-145 Child care—eligible child care centres
(1) A supply is GST-free if:
(a) it is a supply of child care (within the meaning of the Child
Care Act 1972 ) at an eligible child care centre (within the
meaning of section 12A of that Act); and
(b) the supplier of the child care is the operator (within the
meaning of section 4 of that Act) of the centre; and
(c) the operator is granted fee relief (whether or not in respect of that particular supply) under section 12A of that Act .
(2) A supply is GST-free if it is a supply of an excursion that is
directly related to the supply of child care covered by subsection
(1).
38-150 Other child care
A supply is GST-free if it is a supply of child care by a supplier
that is eligible for funding (whether or not in respect of that
particular supply) from the Commonwealth under guidelines made
by the
*Child Care Minister that relate to the funding of:
(a) family day care; or
(b) occasional care; or
(c) outside school hours care; or
(d) vacation care; or
(e) any other type of care determined in writing by that Minister.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-155

A New Tax System (Goods and Services Tax) Act 1999 85

38-155 Supplies directly related to child care that is GST-free
A supply is GST-free if it is a supply that is directly related to a
supply of child care that is:
(a) GST-free because of section 38-140, 38-145 or 38-150; and
(b) supplied by, or on behalf of, the supplier of the child care.
Subdivision 38-E—Exports and other supplies for consumption outside Australia
38-185 Exports of goods
(1) The third column of this table sets out supplies that are GST-free:

GST-free exports of goods
Item Topic These supplies are GST-free …
1 Export of
goods—general a supply of goods, but only
if the supplier exports them
from Australia within 60 days (or such further period as
the Commissioner allows) after:
(a) the day on which the su pplier receives any of the
*consideration for the supply; or
(b) if, on an earlier day, the supplier gives an *invoice for
the supply—the day on which the supplier gives the
invoice.
2 Export of
goods—
supplies paid
for by
instalments a supply of goods for which the *consideration is provided
in instalments under a contract that requires the goods to
be exported, but only if th e supplier exports them from
Australia within 60 days (or such further period as the
Commissioner allows) after:
(a) the day on which the supp lier receives any of the final
instalment of the consider ation for the supply; or
(b) if, on an earlier day, the supplier gives an
*invoice for
that final instalment—the day on which the supplier
gives the invoice.
3 Export of
aircraft or ships a supply of an aircraft or *ship, but only if
the recipient of
the aircraft or ship exports it from Australia under its own
power within 60 days (or such further period as the
Commissioner allows) of taking physical possession of it.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-185

86 A New Tax System (Goods and Services Tax) Act 1999
GST-free exports of goods
Item Topic These supplies are GST-free …
4 Export of
aircraft or
ships—paid for
by instalments a supply of an aircraft or *ship for which the *consideration is provided in
instalments under a contract
that requires the aircraft or ship to be exported, but only if
the
*recipient exports it from Aust ralia within 60 days (or
such further period as the Commissioner allows) after the
earliest day on which one or more of the following occurs:
(a) the supplier receives any of the final instalment of the
consideration for the supply;
(b) the supplier gives an
*invoice for that final instalment;
(c) the supplier deliver s the aircraft or ship to the recipient
or (at the recipient’s request) to another person.
5 Export of
goods that are
to be consumed
on international
flights or
voyages a supply of:
(a) *aircraft’s stores for use, consumption or sale on an
aircraft on a flight that has a destination outside
Australia; or
(b)
*ship’s stores for use, consumption or sale on a *ship
on a voyage that has a destination outside Australia;
whether or not part of the flight or voyage involves a
journey between places in Australia.
6 Export of goods used to
repair etc.
imported goods a supply of goods in the course of repairing, renovating,
modifying or treating other goods from outside Australia
whose destination is outside Australia, but only if:
(a) the goods are attached to,
or become part of, the other
goods; or
(b) the goods become unusable or worthless as a direct result of being used to repair, renovate, modify or treat
the other goods.
7 Goods exported
by travellers as
accompanied
baggage a supply of goods to a *relevant traveller, but only if:
(a) the supply is made in accordance with the rules
specified in the regulations; and
(b) the goods are exported as accompanied baggage of the relevant traveller.
(2) However, a supply covered by any of items 1 to 6 in the table in
subsection (1) is not GST-free if the supplier reimports the goods
into Australia.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-190

A New Tax System (Goods and Services Tax) Act 1999 87

38-190 Supplies of things, other than goods or real property, for consumption outside Australia
(1) The third column of this table sets out supplies that are GST-free
(except to the extent that they are supplies of goods or
*real
property):

Supplies of things, other than goods or real property, for consumption outside
Australia
Item Topic These supplies are GST-fr ee (except to the extent that
they are supplies of goods or *real property)…
1 Supply connected with property
outside Australia a supply that is directly c
onnected with goods or real
property situated outside Australia.
2 Recipient not an *Australian
resident etc. a supply that is made to a
*recipient who:
(a) is not an *Australian resident; and
(b) is not in Australia when the thing supplied is done;
other than a supply directly co nnected with goods situated
in Australia when the thing supplied is done, or with
*real
property situated in Australia.
3 Supplies used or enjoyed outside
Australia a supply:
(a) that is made to a *recipient who is not in Australia
when the thing supplied is done; and
(b) the effective use or en joyment of which takes place
outside Australia;
other than a supply directly co nnected with goods situated
in Australia when the thing supplied is done, or with
*real
property situated in Australia.
4 Rights a supply that is made in relation to rights if:
(a) the rights are for us e outside Australia; or
(b) the supply is to an entity that is not an
*Australian
resident and is outside Australia when the thing
supplied is done.
5 Export of services
used to repair etc.
imported goods a supply that is constituted
by the repair, renovation,
modification or treatment of goods from outside Australia
whose destination is outside Australia.
(2) However, a supply covered by any of items 1 to 5 in the table in subsection (1) is not GST-free if it is the supply of a right or option

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-220

88 A New Tax System (Goods and Services Tax) Act 1999
to acquire something the supply of which would be
*connected
with Australia.
Subdivision 38-F—Religious services
38-220 Religious services
A supply is GST-free if it is a supply of service that:
(a) is supplied by a religious institution; and
(b) is integral to the practice of that religion.
Subdivision 38-G—Non-commercial activities of charitable institutions etc.
38-250 Nominal consideration etc.
(1) A supply is GST-free if:
(a) the supplier is a charitable institution, a trustee of a charitable fund or a
*gift-deductible entity; and
(b) the supply is for
*consideration that is less than 50% of the *GST inclusive market value of the supply.
(2) A supply is GST-free if:
(a) the supplier is a charitable institution, a trustee of a charitable fund or a
*gift-deductible entity; and
(b) the supply is for
*consideration that is less than 50% of the
consideration the supplier provide d, or was liable to provide,
for acquiring the thing supplied.
38-255 Second-hand goods
A supply of *second-hand goods is GST-free if:
(a) the supplier is a charitable institution, a trustee of a charitable fund or a
*gift-deductible entity; and
(b) the goods were supplied to the institution, trustee or
gift-deductible entity:
(i) as a gift; or
(ii) by way of a supply that was GST-free because of a previous application of this section.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-270

A New Tax System (Goods and Services Tax) Act 1999 89
However, the supply is
not GST-free if the institution, trustee or
gift-deductible entity has dealt with the goods in such a way that
the goods no longer have their original character.
Subdivision 38-H—Raffles and bi ngo conducted by charitable
institutions etc.
38-270 Raffles and bingo conducted by charitable institutions etc.
A supply is GST-free if:
(a) the supplier is a charitable institution, a trustee of a charitable fund or a
*gift-deductible entity; and
(b) the supply is:
(i) a supply of a ticket in a raffle; or
(ii) an acceptance of a person’s participation in a game of bingo; or
(iii) a
*gambling supply of a kind specified in the
regulations; and
(c) the supply does not contravene a
*State law or a *Territory
law.
Subdivision 38-I—Water and sewerage
38-285 Water
(1) A supply of water is GST-free.
(2) However, a supply of water is not GST-free under this section if it
is:
(a) supplied in a container; or
(b) transferred into a container; that has a capacity of less than 100 litres or such other quantity as
the regulations specify.
(3) It does not matter whether or not the amount of water supplied or transferred fills the container.
38-290 Sewerage
A supply of sewerage services is GST-free.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-295

90 A New Tax System (Goods and Services Tax) Act 1999
38-295 Emptying of septic tanks
A supply of a service that consists of the emptying of a septic tank
is GST-free .
Subdivision 38-J—Supplies of going concerns
38-325 Supply of a going concern
(1) The *supply of a going concern is GST-free if:
(a) the supply is for
*consideration; and
(b) the
*recipient is *registered or *required to be registered; and
(c) the supplier and the recipient have agreed in writing that the supply is of a going concern.
(2) A supply of a going concern is a supply under an arrangement
under which:
(a) the supplier supplies to the
*recipient all of the things that are
necessary for the continued operation of an *enterprise; and
(b) the supplier carries on, or will carry on, the enterprise until the day of the supply (whether or not as a part of a larger
enterprise carried on by the supplier).
Subdivision 38-K—Transport and related matters
38-355 Supplies of transport and related matters
The third column of this table sets out supplies that are GST-free:

Supplies of transport and related matters
Item Topic These supplies are GST-free …
1 Transport to,
from or outside
Australia the transport of a passenger or goods:
(a) from the last place of departure in Australia to a
destination outside Australia; or
(b) from a place outside Australia to the first place of arrival in Australia; or
(c) from a place outside Australia to the same or another
place outside Australia.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-385

A New Tax System (Goods and Services Tax) Act 1999 91

Supplies of transport and related matters
Item Topic These supplies are GST-free …
2 Transport of
passengers on
domestic legs of
international
flights the transport of a passenger w
ithin Australia by air, but
only if:
(a) the transport is part of a wider arrangement, itinerary
or contract for transport by air involving international
travel; and
(b) at the time the arrangement , itinerary or contract was
entered into, the transport within Australia formed
part of a ticket for interna tional travel, or was cross
referenced to such a ticke t, issued at that time.
3 Domestic air
travel of
non-residents the transport of a passenger w
ithin Australia by air, but
only if:
(a) the passenger is a
*non-resident; and
(b) the supply was purchased while the passenger was outside Australia.
4 Transport of
passengers on
domestic legs of
international sea
voyages the transport of a passenger w
ithin Australia by sea, but
only if:
(a) the transport is part of a journey by sea from Australia to a destination outside Australia, or from a
destination outside Australia to Australia; and
(b) the transport is provided by the supplier who
transports the passenger to or from Australia.
5 Transport etc. of
goods within
Australia the transport, loading or
handling of goods within
Australia, but only if:
(a) it is an integral part of the supply of transporting
goods to or from Australia; and
(b) it is provided by the supp lier who transports those
goods to or from Australia.
6 Insuring transport
etc. (a) insuring transport covered by item 1, 2, 3 or 4; or
(b) insuring transport, loading or handling of goods
covered by item 5.
7 Arranging
transport etc. (a) arranging transport covered by item 1, 2, 3 or 4; or
(b) arranging transport, loading or handling of goods
covered by item 5; or
(c) arranging insurance covered by item 6.
Subdivision 38-L—Precious metals
38-385 Supplies of precious metals
A supply of *precious metal is GST-free if:

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-415

92 A New Tax System (Goods and Services Tax) Act 1999
(a) it is the first supply of that
precious metal after its refining by
the supplier; and
(b) the supplier is a
*refiner of precious metal; and
(c) the
*recipient of the supply is a *dealer in precious metal who
acquires the precious metal for investment purposes.
Note: Any other supply of precious metal is input taxed under section
40-100.
Subdivision 38-M—Supplies th rough inwards duty free shops
38-415 Supplies through inwards duty free shops
A supply is GST-free if:
(a) the supply is a sale of
*airport shop goods through an *inwards duty free shop to a *relevant traveller; and
(b) the goods are
*imported or are *excisable goods.
Subdivision 38-N—Grants of freeh old and similar interests by
governments
38-445 Grants of freehold and si milar interests by governments
(1) A supply by the Commonwealth, a State or a Territory of land on
which there are no improvements is GST-free if:
(a) the supply is of a freehold interest in the land; or
(b) the supply is by way of
*long-term lease.
(2) However, the supply is not GST-free if, since 1 July 2000, the land
has already been the subject of a supply that is GST-free under this
section.
Subdivision 38-O—Farm land
38-475 Subdivided farm land
(1) A supply of *potential residential land is GST-free if:
(a) the land is subdivided from land on which the supplier has
*carried on a *farming business for at least 5 years; and

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-480

A New Tax System (Goods and Services Tax) Act 1999 93
(b) the supply is made to an
*associate without *consideration or
for consideration that is less than the *GST inclusive market
value of the supply.
(2) An entity
*carries on a farming business if it carries on a *business
of:
(a) cultivating or propagating plan ts, fungi or their products or
parts (including seeds, spores, bulbs and similar things), in
any physical environment; or
(b) maintaining animals for the purpose of selling them or their bodily produce (including natural increase); or
(c) manufacturing dairy produce from raw material that the entity produced; or
(d) planting or tending trees in a plantation or forest that are intended to be felled.
38-480 Farm land supplied for farming
A supply of land is GST-free if:
(a) the supplier has
*carried on a *farming business on the land
for at least the period of 5 years preceding the supply; and
(b) the
*recipient of the supply intends to carry on a farming
business on the land.
Subdivision 38-P—Cars for use by disabled people
38-505 Disabled veterans
(1) A supply is GST-free if it is a supply of a *car to an individual
who:
(a) has served in the Defence Force or in any other armed force of Her Majesty; and
(b) as a result of that service:
(i) has lost a leg or both arms; or
(ii) has had a leg, or both arms, rendered permanently and completely useless; or
(iii) is a veteran to whom section 24 of the Veterans’
Entitlements Act 1986 applies and receives a pension
under Part II of that Act; and

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 38
GST-free supplies

Section 38-510

94 A New Tax System (Goods and Services Tax) Act 1999
(c) intends to use the car in his or her personal transportation
during all of the
*Subdivision 38-P period.
(2) However, a supply covered by subsection (1) is not GST-free to
the extent that the
*GST inclusive market value of the *car exceeds
the
*car depreciation limit.
(3) In working out the
*GST inclusive market value of the *car for the
purposes of subsection (2), disregard any value that is attributable
to modifications made to the car solely for the purpose of:
(a) adapting it for driving by the person; or
(b) adapting it for transporting the person.
(4) A supply is GST-free if it is a supply of
*car parts that are for a
*car for an individual to whom paragraphs (1)(a), (b) and (c) apply.
38-510 Other disabled people
(1) A supply is GST-free if it is a supply of a *car to an individual
who:
(a) has a current disability certificate issued by:
(i) the Secretary to the Department responsible for the administration of the Disability Services Act 1986 ; or
(ii) an officer of that Department authorised in writing by that Secretary for the purposes of this Act;
certifying that the individual has lost the use of one or more limbs to such an extent that he or she is unable to use public
transport; and
(b) intends to use the car in his or her personal transportation to or from gainful employment during all of the
*Subdivision
38-P period.
(2) However, a supply covered by subsection (1) is not GST-free to
the extent that the
*GST inclusive market value of the *car exceeds
the
*car depreciation limit.
(3) In working out the
*GST inclusive market value of the *car for the
purposes of subsection (2), disregard any value that is attributable
to modifications made to the car solely for the purpose of:
(a) adapting it for driving by the individual; or
(b) adapting it for transporting the individual.

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
GST-free supplies Division 38

Section 38-510

A New Tax System (Goods and Services Tax) Act 1999 95
(4) A supply is GST-free if it is a supply of
*car parts that are for a
*car for an individual to whom paragraphs (1)(a) and (b) applies.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 40
Input taxed supplies

Section 40-1

96 A New Tax System (Goods and Services Tax) Act 1999
Division 40—Input taxed supplies
Table of Subdivisions
40-A Financial supplies
40-B Residential rent
40-C Residential premises
40-D Precious metals
40-1 What this Division is about
This Division sets out the supplies that are input taxed. If a supply
is input taxed, then:
• no GST is payable on the supply;
• there is no entitlement to an input tax credit for anything
acquired or imported to make the supply (see sections 11-15
and 15-10).
For the basic rules about supplies that are input taxed, see sections 9-30 and 9-80.
Subdivision 40-A—Financial supplies
40-5 Financial supplies
(1) A *financial supply is input taxed.
(2) The third column of this table sets out the supplies that are financial supplies :

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
Input taxed supplies Division 40

Section 40-5

A New Tax System (Goods and Services Tax) Act 1999 97

Supplies that are financial supplies
Item Topic These are financial supplies …
1 Money the creation, issue, transf er, assignment or receipt of, or
any other dealing with, *money including:
(a) lending or borrowing money; and
(b) creating or transferring a de bt or an interest in a debt;
and
(c) making any advance or granting any credit.
2 Accounts the creation, keeping or closing of a savings account,
cheque account or deposit account.
3 Debt securities the creation, issue, transfer, assignment or receipt of, or
any other dealing with, a security for a debt (including a
guarantee or indemnity), but not if the security is a lease,
licence or other similar arrangement in respect of
*real
property.
4 Equity securities the allotment, issue, transfer
, assignment or receipt of, or
any other dealing with, a secu rity within the meaning of
subsection 92(1) of the Corporations Law (other than
paragraph (ca) of that subsection).
5 Unit trusts the creation, issue, tr ansfer, assignment or receipt of, or
any other dealing with:
(a) a
*unit trust; or
(b) an interest in, or a right to or under, a unit trust.
the management of a unit trust.
6 Futures the provision, transfer or assignment of a futures contract
through a *futures exchange.
7 Options and warrants the creation, issue, transfer,
assignment or receipt of, or
any other dealing with, an option or warrant relating to a
future supply covered by item 3, 4 or 5.
8 Underwriting an underwriting of a supply covered by any of items 1 to 7 (other than items 2 and 3).
9 Superannuation funds the creation, transfer, assignmen
t or receipt of, or any other
dealing with, an interest in, or a right under, a
*superannuation fund.
the management of a superannuation fund.
10 Life insurance the provision, transfer or assignment of: (a) a *life insurance policy; or
(b) reinsurance relating to a life insurance policy.

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 40
Input taxed supplies

Section 40-5

98 A New Tax System (Goods and Services Tax) Act 1999
Supplies that are financial supplies
Item Topic These are financial supplies …
11 Hire purchase
etc. the provision of credit under a *hire purchase agreement,
or a sale, relating to goods, but only if:
(a) the credit is provided for a separate charge; and
(b) the separate charge is disclosed to the
*recipient of the
goods.
12 Incidental
supplies a supply of anything directly
in connection with a supply
covered by any of items 1 to 13 (other than this item), but
only if the supplier under this item is the same supplier as
that under the other item.
13 Arranging etc. supplies agreeing to make, or arranging, a supply covered by any of
items 1 to 12 (oth
er than item 2).
(3) The third column of the follo wing table sets out the supplies that
are not financial supplies:

Supplies that are not financial supplies
Item Topic These are not financial supplies …
1 Advice a supply of advice, incl uding any advice in relation to a
supply covered by any of items 1 to 12 of the table in
subsection (2).
2 Insurance a supply of insurance (other than insurance covered by
item 10 of the table in subsection (2)).
3 Legal service a supply of a legal service by a *legal practitioner in the
course of a profe ssional practice.
4 Accounting
service a supply of an accounting service by an accountant in the
course of a profe
ssional practice.
5 Tax agents
management by a *registered tax agent of an entity’s
affairs relating to taxation.
6 Safe custody a supply of a safe custody service for cash, documents or other things.
7 Payroll services a supply of a payroll service.
(4) The regulations may provide that a particular supply is, or is not, a
financial supply. The regulations have effect despite subsections
(2) and (3).

The exemptions Chapter 3
Supplies that are not taxable supplies Part 3-1
Input taxed supplies Division 40

Section 40-35

A New Tax System (Goods and Services Tax) Act 1999 99

Subdivision 40-B—Residential rent
40-35 Residential rent
(1) A supply of premises that is by way of lease, hire or licence
(including a renewal or extension of a lease, hire or licence) is
input taxed if:
(a) the supply is of
*residential premises (other than *commercial
residential premises); or
(b) the supply is of
*commercial accommodation and Division
87 (which is about long-term accommodation in commercial
premises) would apply to the supply but for a choice made by
the supplier under section 87-25.
(2) However:
(a) the supply is input taxed only to the extent that the premises are to be used predominantly for residential accommodation;
and
(b) the supply is not input taxed under this section if the lease, hire or licence, or the renewal or extension of a lease, hire or
licence, is a
*long-term lease.
Subdivision 40-C—Residential premises
40-65 Sales of residential premises
(1) A sale of *real property is input taxed, but only to the extent that
the property is
*residential premises to be used predominantly for
residential accommodation.
(2) However, the sale is not input taxed to the extent that the
*residential premises are *commercial residential premises or *new
residential premises.
40-70 Supplies of residential premis es by way of long-term lease
(1) A supply is input taxed if:
(a) the supply is of
*real property but only to the extent that the
property is *residential premises to be used predominantly for
residential accommodation; and

Chapter 3 The exemptions
Part 3-1
Supplies that are not taxable supplies
Division 40
Input taxed supplies

Section 40-100

100 A New Tax System (Goods and Services Tax) Act 1999
(b) the supply is by way of
*long-term lease.
(2) However, the supply is not input taxed to the extent that the
*residential premises are *commercial residential premises or *new
residential premises.
Subdivision 40-D—Precious metals
40-100 Precious metals
A supply of *precious metal is input taxed.
Note: If the supply is the first supply of precious metal after refinement, the
supply is GST-free under section 38-385.
Subdivision 40-E—School tuckshops and canteens
40-130 School tuckshops and canteens
(1) A supply of *food is input taxed if:
(a) the supply is made by a non-profit body through a shop
operating on the grounds of a
*school that supplies *primary
courses or
*secondary courses; and
(b) the non-profit body chooses to have all its supplies of food
through the shop treated as input taxed.
(2) However, the non-profit body:
(a) cannot make a choice under paragraph (1)(b) if any supplies are made through the shop that are not supplies of
*food; and
(b) cannot revoke the choice within 12 months after the day on which the non-profit body made the choice; and
(c) cannot make a further choice within 12 months after the day
on which the non-profit body revoked a previous choice.
(3) This section does not apply to a supply of
*food by a *school to
boarding students of the school as part of their board.

The exemptions Chapter 3
Non-taxable importations Part 3-2
Non-taxable importations Division 42

Section 42-1

A New Tax System (Goods and Services Tax) Act 1999 101

Part 3-2—Non-taxa ble importations
Division 42—Non-taxable importations
42-1 What this Division is about
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 importa tions, see sections 13-10 and 13-25.
42-5 Non-taxable importations—Schedule 4 to the Customs Tariff
Act 1995
(1) An importation of goods is a non-taxable importation if the goods
are covered by item 17, 18A, 18B, 18C, 21, 23A, 23B, 24, 25A,
25B, 25C, 32A, 32B, 33A, 33B or 34 in Schedule 4 to the Customs
Tariff Act 1995 .
(2) To avoid doubt, a reference to goo ds that are covered by an item in
Schedule 4 to the Customs Tariff Act 1995 includes a reference to
goods to which that item would appl y if they were dutiable goods
within the meaning of the Customs Act 1901.
42-10 Ship and aircraft stores
An importation of goods is a non-taxable importation if the goods
are
*ship’s stores or *aircraft’s stores.
42-15 Goods imported or purchased by overseas travellers
(1) An importation of goods is a non-taxable importation if the goods:
(a) are imported by a passenger or member of the crew of a
*ship
or aircraft; and
(b) are covered by item 15 in Schedule 4 to the Customs Tariff
Act 1995 .

Chapter 3 The exemptions
Part 3-2
Non-taxable importations
Division 42
Non-taxable importations

Section 42-15

102 A New Tax System (Goods and Services Tax) Act 1999
(2) An importation of goods is a
non-taxable importation if the goods:
(a) are purchased from an
*inwards duty free shop by a *relevant
traveller; and
(b) are covered by item 15 in Schedule 4 to the Customs Tariff
Act 1995 (or would be covered if they had been imported by
the
*relevant traveller).

The special rules Chapter 4

Introduction Division 45

Section 45-1

A New Tax System (Goods and Services Tax) Act 1999 103

Chapter 4—The special rules

Division 45—Introduction
45-1 What this Chapter is about
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 appli cation of the basic rules for the
GST in Chapter 2.
Note 1: The special rules that modify each group of basic rules in Chapter 2
are specifically identified in tables located at the end of the Divisions
and Subdivisions in Chapter 2. In a ddition, a checklist of special rules
is set out in Part 2-8.
Note 2: This section is an explanatory section.
45-5 The effect of special rules
The provisions of this Chapter override the provisions of Chapter 2 (except section 29-25), but only to the extent of any inconsistency.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 48
GST groups

Section 48-1

104 A New Tax System (Goods and Services Tax) Act 1999
Part 4-1—Special rules mainly about particular
ways entities are organised
Note: The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules
also affect other aspects of Part 2- 2 and the other Parts of Chapter 2.
Division 48—GST groups
Table of Subdivisions
48-A Approval of GST groups
48-B Consequences of approval of GST groups
48-C Administrative matters
48-1 What this Division is about
Companies within a 90% owned group can be approved as a GST
group. One member of the group then deals with all the GST
liabilities and entitlements (except for GST on most taxable
importations) of the group, and intra-group transactions are
excluded from the GST.
Subdivision 48-A—Approval of GST groups
48-5 Approval of GST groups
(1) The Commissioner must approve 2 or more entities as a *GST
group if:
(a) the entities jointly apply, in the
*approved form, for approval
as a GST group; and
(b) each of the entities
*satisfies the membership requirements
for that GST group; and
(c) the application nominates one of the entities to be the
*representative member for the group; and
(d) the entity so nominated is an
*Australian resident.
A group of entities that is so approved is a GST group.

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GST groups Division 48

Section 48-10

A New Tax System (Goods and Services Tax) Act 1999 105
(2) If the application for approval includes 2 or more
*companies, the
application need not include all the companies of the
*90% owned
group to which the 2 or more companies belong.
Note: Refusing an application for approval under this section is a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
48-10 Membership requirements of a GST group
(1) An entity satisfies the membership requirements of a *GST group,
or a proposed GST group, if the entity:
(a) is:
(i) a
*company; or
(ii) a
*partnership or trust that satisfies the requirements
specified in the regulations; and
(b) is, if the entity is a company, a company of the same
*90%
owned group as all the other members of the GST group or
proposed GST group that are also companies; and
(c) is
*registered; and
(d) has the same tax periods applying to it as the tax periods applying to all those other members; and
(e) accounts on the same basis as all those other members; and
(f) is not a member of any other GST group.
(2) However, paragraph (1)(a) does not apply if:
(a) the entity is a non-profit body; and
(b) all the other members of the GST group or proposed GST group are non-profit bodies; and
(c) the entity and all those other members are members of the same
*non-profit association.
Subdivision 48-B—Consequences of approval of GST groups
48-40 Who is liable for GST
(1) GST payable on any *taxable supply or *taxable importation that a *member of a *GST group makes:
(a) is payable by the
*representative member; and

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 48
GST groups

Section 48-45

106 A New Tax System (Goods and Services Tax) Act 1999
(b) is not payable by the member that made it (unless the
member is the representative member).
(2) However:
(a) a supply that an entity makes to another
*member of the same *GST group is treated as if it were not a *taxable supply
(unless it is a taxable supply because of Division 84 (which is
about offshore supplies other than goods or real property));
and
(b) this section only applies to GST payable on a
*taxable
importation made, by a member of the GST group other than
the
*representative member, if the GST on the importation is
payable at a time when GST on
*taxable supplies is normally
payable by the representative member.
(3) This section has effect despite sections 9-40 and 13-15 (which are about liability for GST).
48-45 Who is entitled to input tax credits
(1) If a *member of a *GST group makes a *creditable acquisition or
*creditable importation:
(a) the
*representative member is entitled to the input tax credit
on the acquisition or importation; and
(b) the member making the acquisition or importation is not entitled to the input tax credit on the acquisition or
importation (unless the member is the representative
member).
(2) In deciding, for the purposes of subsection (1), whether an acquisition or importation by a
*member of a *GST group is a *creditable acquisition or *creditable importation, the acquisition or
importation is treated as being solely or partly for a
*creditable
purpose if, and only if, it would be so treated if:
(a) the GST group were treated as a single entity; and
(b) the GST group were not treated as a number of entities corresponding to the members of the GST group.
(3) However, an acquisition that an entity makes from another
*member of the same *GST group is treated as if it were not a *creditable acquisition.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
GST groups Division 48

Section 48-50

A New Tax System (Goods and Services Tax) Act 1999 107
(4) This section has effect despite sections 11-5 and 15-5 (which are
about what are creditable acquisiti ons and creditable importations),
and sections 11-20 and 15-15 (which are about who is entitled to
input tax credits).
48-50 Adjustments
(1) Any *adjustment that a *member of a *GST group has is to be
treated as if:
(a) that member did not have the adjustment (unless that member is the
*representative member); and
(b) the representative member had the adjustment.
(2) This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
48-55 GST groups treated as single entities for certain purposes
(1) Despite sections 48-45 and 48-50, a *GST group is treated as a
single entity, and not as a number of entities corresponding to the
*members of the GST group, for the purposes of working out:
(a) the amounts of any input tax credits to which the
*representative member is entitled; and
(b) whether the representative member has any
*adjustments;
and
(c) the amounts of any such adjustments.
(2) This section has effect despite section 11-25 (which is about the amount of input tax credits) and section 17-10 (which is about the
effect of adjustments on net amounts).
48-60 GST returns
(1) If you are a *member of a *GST group during the whole of a tax
period, you are not required to give to the Commissioner a
*GST
return for that tax period, unless you are the
*representative
member of the group during that period.
(2) This section has effect despite section 31-5 (which is about who
must give GST returns).

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 48
GST groups

Section 48-70

108 A New Tax System (Goods and Services Tax) Act 1999
Subdivision 48-C—Administrative matters
48-70 Changing the membership etc. of GST groups
Changes made on application
(1) The Commissioner must, if the
*representative member of a *GST
group applies to the Commissioner in the
*approved form, do one
or more of these (as requested in the application):
(a) approve, as an additional
*member of the GST group, another *company that *satisfies the membership requirements for the
GST group;
(b) revoke the approval of one of the members of the GST group as a member of the group;
(c) approve another member of the GST group to replace the
applicant as the representative member of the group.
Note: Refusing an application for approval or revocation under this subsection is a reviewable GST decisi on (see Division 7 of Part VI of
the Taxation Administration Act 1953 ).
Changes made without application
(2) The Commissioner must revoke the approval of one of the
*members of a *GST group if satisfied that the member does not *satisfy the membership requirements for the GST group.
Note: Revoking under this subsection an approval under this Division is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
48-75 Revoking the approval of GST groups
Revoking on application
(1) The Commissioner must, if the
*representative member of a *GST
group applies to the Commissioner in the *approved form, revoke
the approval of the group as a GST group.
Note: Refusing an application for re vocation under this subsection is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).

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Special rules mainly about particular ways entities are organised Part 4-1
GST groups Division 48

Section 48-80

A New Tax System (Goods and Services Tax) Act 1999 109
Revoking without application
(2) The Commissioner must revoke the approval of the
*GST group if
satisfied that none of its members, or only one of its members,
*satisfies the membership requirements for that GST group.
Note: Revoking under this subsection the approval of a GST group is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
48-80 Notification by representative members
The *representative member of a *GST group must notify the
Commissioner of any circumstances under which the
Commissioner must:
(a) revoke the approval of one of the
*members of the group
under subsection 48-70(2); or
(b) revoke the approval of th e group under subsection 48-75(2).
The notification may (in appropriate cases) be in the form of an
application under subsection 48-70(1). The notification, or
application, must be given to the Commissioner within 21 days
after the circumstances occurred.
48-85 Date of effect of approvals and revocations
(1) The Commissioner must decide the date of effect of any approval,
or any revocation of an approval, under this Division.
(2) The date of effect may be the day of the decision, or a day before or after that day. However, it must be the beginning of a tax period
applying to the members of the
*GST group in question.
Note: Deciding under this section the date of effect of any approval, or any
revocation of an approval, under th is Division is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
48-90 Notification by the Commissioner
The Commissioner must give notice of any decision that he or she
makes under this Division:
(a) if the decision relates to the approval of 2 or more companies as a
*GST group—to the company nominated in the

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 48
GST groups

Section 48-90

110 A New Tax System (Goods and Services Tax) Act 1999
application for approval to be the
*representative member of
the group; or
(b) otherwise—to the representative member of the
*GST group
to which the decision relates.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
GST joint ventures Division 51

Section 51-1

A New Tax System (Goods and Services Tax) Act 1999 111

Division 51—GST joint ventures
Table of Subdivisions
51-A Approval of GST joint ventures
51-B Consequences of approval of GST joint ventures
51-C Administrative matters
51-1 What this Division is about
Companies engaged in a joint venture can have it approved as a
GST joint venture. The joint vent ure operator then deals with the
GST liabilities and entitlements arising from the joint venture
operator’s dealings on behalf of th e other participants in the joint
venture.
Subdivision 51-A—Approval of GST joint ventures
51-5 Approval of GST joint ventures
(1) The Commissioner must approve 2 or more *companies as the
*participants in a *GST joint venture if:
(a) the joint venture is a joint venture for the exploration or exploitation of
*mineral deposits, or for a purpose specified
in the regulations; and
(b) the joint venture is not a
*partnership; and
(c) the companies jointly apply, in the
*approved form, for
approval of the joint venture as a GST joint venture; and
(d) each of the companies
*satisfies the participation
requirements for that GST joint venture; and
(e) the application nominates one of the companies to be the
*joint venture operator for the joint venture.
A joint venture that is so approved is a GST joint venture.
(2) The application for approval need not include all the
*companies
that are engaged in, or intend to engage in, the joint venture.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 51
GST joint ventures

Section 51-10

112 A New Tax System (Goods and Services Tax) Act 1999
Note: Refusing an application for approval under this section is a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
51-10 Participation requiremen ts of a GST joint venture
A *company satisfies the participation requirements for a *GST
joint venture, or a proposed GST joint venture, if the company:
(a) participates in, or intends to participate in, the joint venture; and
(b) is a party to a joint venture agreement with all the other companies participating in, or intending to participate in, the
joint venture; and
(c) is
*registered; and
(d) is an
*Australian resident; and
(e) has the same tax periods applying to it as the tax periods applying to all the other participants of the GST joint
venture; and
(f) accounts on the same basis as all those other participants; and
(g) is not a member of a
*GST group.
Subdivision 51-B—Consequences of approval of GST joint ventures
51-30 Who is liable for GST
(1) GST payable on any *taxable supply or *taxable importation that
the
*joint venture operator of a *GST joint venture makes, on
behalf of another *participant in the joint venture, in the course of
activities for which the joint venture was entered into:
(a) is payable by the joint venture operator; and
(b) is not payable by the other participant.
(2) However, a supply that the
*joint venture operator of a *GST joint
venture makes is treated as if it were not a *taxable supply if:
(a) it is made to another
*participant in the joint venture; and
(b) the other participant acquired the thing supplied for consumption, use or supply in the course of activities for
which the joint venture was entered into.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
GST joint ventures Division 51

Section 51-35

A New Tax System (Goods and Services Tax) Act 1999 113
(3) This section has effect despite sections 9-40 and 13-15 (which are
about liability for GST).
51-35 Who is entitled to input tax credits
(1) If the *joint venture operator of a *GST joint venture makes a *creditable acquisition or *creditable importation, on behalf of
another
*participant in the joint venture, in the course of activities
for which the joint venture was entered into:
(a) the
*joint venture operator is entitled to the input tax credit
for the acquisition or importation; and
(b) the other participant is not entitled to the input tax credit on the acquisition or importation.
(2) This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
51-40 Adjustments
(1) Any *adjustment relating to any s upply, acquisition or importation
that the
*joint venture operator of a *GST joint venture makes, on
behalf of another
*participant in the joint venture, in the course of
activities for which the joint venture was entered into is to be
treated as if:
(a) the other participant did not have the adjustment; and
(b) the joint venture operator had the adjustment.
(2) This section has effect despite section 17-10 (which is about the effect of adjustments on net amounts).
51-45 Additional net amounts relating to GST joint ventures
(1) Division 17 applies to the *joint venture operator of a *GST joint
venture as if the joint venture operator had an additional
*net
amount, relating to the joint venture, for each tax period.
(2) The additional
*net amount relating to the joint venture is worked
out as if the joint venture operator:
(a) is only liable for the GST on
*taxable supplies that the joint
venture operator makes, on behalf of another *participant in

Chapter 4 The special rules
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Special rules mainly about partic ular ways entities are organised
Division 51
GST joint ventures

Section 51-50

114 A New Tax System (Goods and Services Tax) Act 1999
the joint venture, in the course of activities for which the
joint venture was entered into; and
(b) is only entitled to the input tax credits for
*creditable
acquisitions or *creditable importations that the joint venture
operator makes on behalf of another participant in the joint
venture, in the course of activities for which the joint venture
was entered into; and
(c) only has adjustments relating to supplies, acquisitions or importations that the joint vent ure operator makes, on behalf
of another participant in the joint venture, in the course of
activities for which the joint venture was entered into.
(3) This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
51-50 GST returns relating to GST joint ventures
(1) The *joint venture operator of a *GST joint venture must, in
relation to each *GST joint venture of the joint venture operator,
give to the Commissioner a
*GST return for each tax period
applying to the joint venture operator.
(2) The
*net amount stated in such a return must be the net amount
relating to the
*GST joint venture in question.
(3) This section has effect despite sections 31-5 and 31-15 (which are about GST returns).
51-55 Payments of GST relating to GST joint ventures
(1) If the *net amount relating to a *GST joint venture for a tax period
is greater than zero:
(a) the
*joint venture operator of the GST joint venture must pay
that net amount to the Commissioner; and
(b) Division 33 applies to payment of that amount as if it were a payment the joint venture operator was obliged to make
under section 33-5.
(2) This section has effect despite Division 33 (which is about payments of GST).

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
GST joint ventures Division 51

Section 51-60

A New Tax System (Goods and Services Tax) Act 1999 115

51-60 Refunds relating to GST joint ventures
(1) If the *net amount relating to a *GST joint venture for a tax period
is less than zero:
(a) the Commissioner must, on behalf of the Commonwealth, pay that net amount (expressed as a positive amount) to the
*joint venture operator of the GST joint venture; and
(b) Division 35 applies to payment of that amount as if it were a payment the Commissioner was obliged to make under
section 35-5.
(2) This section has effect despite Division 35 (which is about refunds).
Subdivision 51-C—Administrative matters
51-70 Changing the participants etc. of GST joint ventures
Changes made on application
(1) The Commissioner must, if the
*joint venture operator of a *GST
joint venture applies to the Commissioner in the *approved form,
do one or more of these (as requested in the application):
(a) approve, as an additional
*participant of the GST joint
venture, another *company that *satisfies the participation
requirements of the GST joint venture;
(b) revoke the approval of one of the participants of the GST joint venture as a participant in the joint venture;
(c) approve another participan t of the GST joint venture to
replace the applicant as the joint venture operator of the joint
venture.
Note: Refusing an application for approval or revocation under this subsection is a reviewable GST decisi on (see Division 7 of Part VI of
the Taxation Administration Act 1953 ).
Changes made without application
(2) The Commissioner must revoke the approval of one of the
*participants of a *GST joint venture if satisfied that the participant
does not
*satisfy the participation requirements of the GST joint
venture.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 51
GST joint ventures

Section 51-75

116 A New Tax System (Goods and Services Tax) Act 1999
Note: Revoking under this subsection an approval under this Division is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
51-75 Revoking the approval of GST joint ventures
Revoking on application
(1) The Commissioner must, if the
*joint venture operator of a *GST
joint venture applies to the Commissioner in the
*approved form,
revoke the approval of the joint venture as a GST joint venture.
Note: Refusing an application for re vocation under this subsection is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
Revoking without application
(2) The Commissioner must revoke the approval of the
*GST joint
venture if satisfied that none of its
*participants, or only one of its
participants,
*satisfies the participation requirements of the GST
joint venture.
Note: Revoking under this subsection the approval of a GST joint venture is
a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
51-80 Notification by joint venture operators
The *joint venture operator of a *GST joint venture must notify the
Commissioner of any circumstances under which the
Commissioner must:
(a) revoke the approval of one of the
*participants of the joint
venture under subsection 51-70(2); or
(b) revoke the approval of th e joint venture under subsection
51-75(2).
The notification may (in appropriate cases) be in the form of an
application under subsection 51-70(1). The notification, or
application, must be given to the Commissioner within 21 days
after the circumstances occurred.

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Special rules mainly about particular ways entities are organised Part 4-1
GST joint ventures Division 51

Section 51-85

A New Tax System (Goods and Services Tax) Act 1999 117

51-85 Date of effect of approvals and revocations
(1) The Commissioner must decide the date of effect of any approval,
or any revocation of an approval, under this Division.
(2) The date of effect may be the day of the decision, or a day before or after that day. However, it must be the beginning of a tax period
applying to the participants of the
*GST joint venture in question.
Note: Deciding under this section the date of effect of any approval, or any
revocation of an approval, under th is Division is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
51-90 Notification by the Commissioner
The Commissioner must give notice of any decision that he or she
makes under this Division:
(a) if the decision relates to the approval of 2 or more
*companies as the *participants of a *GST joint venture—to
the company nominated in the application for approval to be
the
*joint venture operator of the joint venture; or
(b) otherwise—to the joint venture operator of the
*GST joint
venture to which the decision relates.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 54
GST branches

Section 54-1

118 A New Tax System (Goods and Services Tax) Act 1999
Division 54—GST branches
Table of Subdivisions
54-A Registration of GST branches
54-B Consequences of registration of GST branches
54-C Cancellation of registration of GST branches
54-1 What this Division is about
A branch of a registered entity can be separately registered as a
GST branch. Separate GST returns are given, and separate
payments and refunds of GST are made, in respect of the branch.
Subdivision 54-A—Registration of GST branches
54-5 Registration of GST branches
(1) The Commissioner must *register a branch of a *registered entity
if:
(a) the registered entity applies, in the
*approved form, for
registration of the branch; and
(b) the Commissioner is satisfied that the branch maintains an
independent system of accounting, and can be separately
identified by reference to:
(i) the nature of the activities carried on through the branch; or
(ii) the location of the branch; and
(c) the Commissioner is satisfied that the registered entity is
*carrying on an *enterprise through the branch, or intends to
carry on an enterprise through the branch, from a particular
date specified in the application.
A branch that is so registered is a GST branch.
(2) A branch of a
*registered entity can be registered as a *GST branch
without all or any of the other branches of the entity being so
registered.

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GST branches Division 54

Section 54-10

A New Tax System (Goods and Services Tax) Act 1999 119
(3) However, a branch of a
*registered entity cannot be registered as a
*GST branch if the registered entity is a *member of a *GST group.
Note: Refusing an application for re gistration under this section is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
54-10 The date of effect of registration of a GST branch
The Commissioner must decide the date from which *registration
as a
*GST branch takes effect. However, the date of effect must not
be a day before:
(a) the day specified in the application for that purpose; or
(b) if the branch is being registered only because it is intended that an
*enterprise be *carried on through the branch—the
date of effect must not be a day before the day specified, in
the application, as the day from which it is intended to carry
on the enterprise through the branch.
Note: Deciding the date of effect of registration as a GST branch is a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
54-15 GST branch registration number
If the Commissioner registers a *GST branch, the Commissioner
must notify the
*registered entity of the branch’s *GST branch
registration number.
Subdivision 54-B—Consequences of registration of GST branches
54-40 Additional net amounts relating to GST branches
(1) If an entity (the parent entity) has a *GST branch, Division 17
applies to the parent entity as if it had an additional *net amount,
relating to the branch, for each tax period.
(2) The additional
*net amount relating to the branch is worked out as
if the branch were a separate entity and as if:
(a) all the supplies, acquisitions and importations made through
the branch were made by that separate entity; and

Chapter 4 The special rules
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Division 54
GST branches

Section 54-45

120 A New Tax System (Goods and Services Tax) Act 1999
(b) all the
*adjustments that the parent entity has arising from
such supplies, acquisitions and importations were
adjustments that the branch has; and
(c) all transfers of anything by the branch to the parent entity
(including any other branch of the parent entity), that would
have been supplies made by the branch if it were an entity,
were supplies made by the separate entity; and
(d) all transfers of anything by the parent entity (including any other branch of the parent entity) to the branch, that would
have been acquisitions made by the branch if it were an
entity, were acquisitions made by the separate entity; and
(e) all adjustments that the branch would have had, if it were an entity, relating to the supplies and acquisitions it would have
made as mentioned in para graphs (c) and (d), were
adjustments that the branch had.
(3) This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
54-45 Net amounts of parent entities
(1) If an entity (the parent entity) has a *GST branch, the parent
entity’s *net amount is worked out as if:
(a) all the supplies, acquisitions and importations made through
any GST branch of the parent entity were not supplies for
which the parent entity is liable for GST, or acquisitions or
importations for which the parent entity is entitled to input
tax credits; and
(b) the parent entity does not have any
*adjustments arising from
such supplies, acquisiti ons and importations; and
(c) all transfers of anything by the parent entity to any GST branch of the parent entity, that would have been supplies
made to the branch if it were an entity, were supplies made
by the parent entity; and
(d) all transfers of anything by any GST branch of the parent
entity to the parent entity, that would have been acquisitions
made from the branch if it were an entity, were acquisitions
made by the parent entity; and

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GST branches Division 54

Section 54-50

A New Tax System (Goods and Services Tax) Act 1999 121
(e) all adjustments that the parent entity would have had, if the GST branches of the parent entity were entities, relating to
the supplies and acquisitions th e parent entity would have
made as mentioned in para graphs (c) and (d), were
adjustments that the parent entity had.
(2) However, the parent entity has no
*net amount under this section if
all the
*enterprises that it *carries on are carried on through its
*GST branches.
(3) This section has effect despite sections 17-5 and 17-10 (which are about net amounts and adjustments).
54-50 Tax invoices and adjustment notes
(1) The *GST branch registration number of a *GST branch must be
set out in:
(a) any
*tax invoice relating to a *taxable supply made through
that GST branch; and
(b) any
*adjustment note for a *decreasing adjustment that arose
from the occurrence of an *adjustment event relating to a
*taxable supply made through that GST branch.
(2) This section has effect despite sections 29-70 and 29-75 (which are about tax invoices and adjustment notes).
54-55 GST returns relating to GST branches
(1) An entity must, in relation to each *GST branch of the entity, give
to the Commissioner a
*GST return for each tax period applying to
the entity.
(2) The
*net amount stated in such a return must be the net amount
relating to the
*GST branch in question.
(3) The entity must still give a
*GST return under section 31-5, unless
all the
*enterprises that it *carries on are carried on through its
*GST branches.
(4) This section has effect despite sections 31-5 and 31-15 (which are about GST returns).

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 54
GST branches

Section 54-60

122 A New Tax System (Goods and Services Tax) Act 1999
54-60 Payments of GST relating to GST branches
(1) If an entity has a *GST branch and the *net amount relating to the
*GST branch for a tax period is greater than zero:
(a) the entity must pay that net amount to the Commissioner; and
(b) Division 33 applies to payment of that amount as if it were a payment the entity was obliged to make under section 33-5.
(2) This section has effect despite Division 33 (which is about payments of GST).
54-65 Refunds relating to GST branches
(1) If an entity has a *GST branch and the *net amount relating to the *GST branch for a tax period is less than zero:
(a) the Commissioner must, on behalf of the Commonwealth, pay that net amount (expressed as a positive amount) to the
entity; and
(b) Division 35 applies to payment of that amount as if it were a payment the Commissioner was obliged to make under
section 35-5.
(2) This section has effect despite Division 35 (which is about refunds).
Subdivision 54-C—Cancellation of registration of GST branches
54-70 When an entity must apply fo r cancellation of registration of a
GST branch
(1) If an entity has a *GST branch and the entity is not *carrying on
any
*enterprise through the branch, the entity must apply to the
Commissioner in the *approved form for cancellation of the
*registration of the branch.
(2) The entity must lodge its application within 21 days after the day on which it ceased to
*carry on any *enterprise through the branch.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
GST branches Division 54

Section 54-75

A New Tax System (Goods and Services Tax) Act 1999 123

54-75 When the Commissioner must cancel registration of a GST
branch
(1) The Commissioner must cancel the *registration of a *GST branch
of an entity if:
(a) the entity has applied for cancellation of registration in the
*approved form; and
(b) at the time it applied, the br anch had been registered for at
least 12 months.
Note: Refusing to cancel the regist ration of a GST branch under this
subsection is a reviewable GST decisi on (see Division 7 of Part VI of
the Taxation Administration Act 1953 ).
(2) The Commissioner must cancel the *registration of a *GST branch
of the entity (even if the entity has not applied for cancellation of
the registration) if:
(a) the Commissioner is satisfied that the entity is not
*carrying
on an *enterprise through the branch; and
(b) the Commissioner believes on reasonable grounds that the entity is unlikely to carry on an enterprise through the branch
for at least 12 months.
Note: Cancelling the registration of a GS T branch under this subsection is a
reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(3) The Commissioner must notify th e entity of any decision he or she
makes in relation to it under this section. If the Commissioner
decides to cancel the registration, the notice must specify the date
of effect of the cancellation.
54-80 The date of effect of canc ellation of registration of a GST
branch
The Commissioner must decide the date on which the cancellation
of the
*registration of a *GST branch of an entity under subsection
54-75(1) or (2) 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 the registration of a
GST branch is a reviewable GST deci sion (see Division 7 of Part VI
of the Taxation Administration Act 1953 ).

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 54
GST branches

Section 54-85

124 A New Tax System (Goods and Services Tax) Act 1999
54-85 Application of Subdivision 25-B
Subdivision 25-B does not apply to the cancellation of the
*registration of a *GST branch.
54-90 Effect on GST branches of cancelling the entity’s registration
If an entity’s *registration is cancelled, the registration of any *GST
branches of the entity ceases to have effect from the day the
cancellation takes effect.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
Resident agents actin g for non-residents Division 57

Section 57-1

A New Tax System (Goods and Services Tax) Act 1999 125

Division 57—Resident agents acting for non-residents
57-1 What this Division is about
This Division effectively makes resident agents acting for
non-residents responsible for the GST consequences of what the
non-residents do through their resident agents.
57-5 Who is liable for GST
(1) GST payable on a *taxable supply or *taxable importation made by
a *non-resident through a *resident agent:
(a) is payable by the agent; and
(b) is not payable by the non-resident.
(2) This section has effect despite sections 9-40 and 13-15 (which are about liability for GST).
57-10 Who is entitled to input tax credits
(1) If a *non-resident makes a *creditable acquisition or *creditable
importation through a *resident agent:
(a) the agent is entitled to the input tax credit on the acquisition or importation; and
(b) the non-resident is not entitle d to the input tax credit on the
acquisition or importation.
(2) This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
57-15 Adjustments
(1) Any *adjustment that a *non-resident has relating to a supply,
acquisition or importation made through a
*resident agent is to be
treated as if:
(a) the non-resident did not have the adjustment; and
(b) the agent had the adjustment.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 57
Resident agents acting for non-residents

Section 57-20

126 A New Tax System (Goods and Services Tax) Act 1999
(2) This section has effect despite section 17-10 (which is about the
effect of adjustments on net amounts).
57-20 Resident agents are required to be registered
(1) A *resident agent who is acting as agent for a *non-resident is
required to be registered if the non-resident is *registered or
*required to be registered.
(2) The section has effect despite section 23-5 (which is about who is required to be registered).
57-25 Cancellation of regist ration of a resident agent
(1) The Commissioner must cancel the *registration of a *resident
agent if the Commissioner is satisfied that the resident agent is not
*required to be registered.
Note: Cancelling the registration of a resident agent under this subsection is
a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The Commissioner must notify the *resident agent of the
cancellation.
(3) Sections 25-50 and 25-55 do not apply to the cancellation of the
*registration of a *resident agent.
57-30 Notice of cessation of agency
A *resident agent who ceases to act as agent for a *non-resident
must notify the Commissioner of that cessation, in the
*approved
form, within 14 days after so ceasing to act.
57-35 Tax periods of resident agents
(1) If you are a *resident agent who is acting as agent for a
*non-resident, the Commissioner must determine that the tax
periods that apply to you are each individual month if the
Commissioner is satisfied that the non-resident’s
*annual turnover
meets the
*tax period turnover threshold.

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
Resident agents actin g for non-residents Division 57

Section 57-40

A New Tax System (Goods and Services Tax) Act 1999 127

Note: Determining under this section the tax periods applying to you is a reviewable GST decision (see Division 7 of Part VI of the Taxation
Administration Act 1953 ).
(2) The determination takes effect on the day specified in the
determination. However, the day specified must be 1 January, 1
April, 1 July or 1 October.
Note: Deciding the date of effect of the determination is a reviewable GST
decision (see Division 7 of Part VI of the Taxation Administration Act
1953 ).
(3) This section has effect in addition to section 27-15 (which is about
determination of one month tax periods).
57-40 GST returns for non-residents
(1) A *non-resident is not required to give a *GST return for a tax
period if:
(a) the non-resident’s
*net amount for the tax period is zero; or
(b) the only
*taxable supplies or *taxable importations that the
non-resident made that are attributable to the tax period are
taxable supplies or taxable importations made through a
*resident agent.
(2) This section has effect despite section 31-5 (which is about who
must give GST returns).
57-45 Resident agents giving GST returns
If you are a *resident agent acting for a *non-resident, subsection
31-15(2) does not apply to you in re lation to a tax period if, during
the tax period:
(a) the non-resident made
*taxable supplies, or supplies that
would have been taxable supplies had they not been
*GST-free or *input taxed, through you as agent; or
(b) the non-resident made
*creditable acquisitions through you as
agent.
57-50 Non-residents that belong to GST groups
This Division does not apply in relation to a *non-resident that is a *member of a *GST group.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 60
Pre-establishment costs

Section 60-1

128 A New Tax System (Goods and Services Tax) Act 1999
Division 60—Pre-establishment costs
60-1 What this Division is about
This Division enables input tax credits to arise in some
circumstances in which acquisitions and importations are made
before a company is in existence.
60-5 Input tax credit for acquisitions and importations before
establishment
(1) If you make a *creditable acquisition that is a *pre-establishment
acquisition, or a *creditable importation that is a *pre-establishment
importation, relating to a
*company before it is *in existence:
(a) you are not entitled to the input tax credit on the acquisition or importation; and
(b) once the company is in existence, it is entitled to the input tax credit on the acquisition or importation.
(2) This section has effect despite sections 11-20 and 15-15 (which are about who is entitled to input tax credits).
60-10 Registration etc. not needed for input tax credits
(1) If you make a *pre-establishment acquisition, the fact that you are
not *registered or *required to be registered does not stop the
acquisition being a
*creditable acquisition.
(2) If you make a
*pre-establishment importation, the fact that you are
not *registered or *required to be registered does not stop the
acquisition being a
*creditable importation.
(3) This section has effect despite sections 11-5 and 15-5 (which are about what are creditable acquisiti ons and creditable importations).

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
Pre-establishment costs Division 60

Section 60-15

A New Tax System (Goods and Services Tax) Act 1999 129

60-15 Pre-establishment acquisitions and importations
(1) An acquisition that you make is a pre-establishment acquisition ,
and an importation that you make is a pre-establishment
importation , if:
(a) you do not
*apply the thing acquired or imported for any
purpose other than for a *creditable purpose relating to a
*company not yet *in existence; and
(b) the company comes into existence, and becomes
*registered,
within 6 months after the acquisition or importation; and
(c) you become a member, officer or employee of the company; and
(d) in the case of an acquisition—you have been fully reimbursed by the company for the
*consideration you
provided for the acquisition; and
(e) in the case of an importation—you have been fully reimbursed by the company:
(i) for the GST paid on the importation; and
(ii) for the cost of acquiring or producing the thing imported.
(2) However, the acquisition or importation is not a pre-establishment
acquisition or a pre-establishment importation if:
(a) you are entitled to an input tax credit for the acquisition or importation; or
(b) the company acquires the thing acquired or imported, and that acquisition by the company is a
*creditable acquisition.
60-20 Creditable purpose
(1) If, before a *company is *in existence, you make an acquisition or
importation:
(a) for the purpose of bringing th e company into existence; or
(b) for the purpose of the company
*carrying on an *enterprise
after it is in existence;
you acquire or import the thing for a creditable purpose only to the
extent that you acquire or import it for either or both of those
purposes.

Chapter 4 The special rules
Part 4-1
Special rules mainly about partic ular ways entities are organised
Division 60
Pre-establishment costs

Section 60-25

130 A New Tax System (Goods and Services Tax) Act 1999
(2) However, you do not acquire or import the thing for a creditable
purpose to the extent that:
(a) the acquisition or importation relates (directly or indirectly) to the company making supplies that would be
*input taxed;
or
(b) the acquisition or importation is of a private or domestic nature.
(3) To the extent that an acquisition or importation relates to making
*financial supplies through an *enterprise, or a part of an
enterprise, that the company will
*carry on outside Australia, the
acquisition or importation is not , for the purposes of paragraph
(2)(a), treated as one that relates to making supplies that would be
*input taxed.
(4) This section has effect despite sections 11-15 and 15-10 (which are about creditable purpose).
60-25 Attributing the input tax credit for pre-establishment
acquisitions
(1) The input tax credit to which a *company is entitled under this
Division for an acquisition that you made is attributable to the tax
period (applying to the company) in which you were fully
reimbursed by the company for the
*consideration you paid for the
acquisition.
(2) However, if the company does not hold a copy of a
*tax invoice
that you (or your agent) hold for the acquisition when the company
gives to the Commissioner a
*GST return for the tax period to
which the input tax credit for the acquisition would otherwise be
attributable, then:
(a) the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and
(b) the input tax credit (or the part of the input tax credit) is attributable to the first tax period for which the company
gives to the Commissioner a GST return at a time when it
holds a copy of that tax invoice.
However, this subsection does not apply in circumstances of a kind
determined in writing by the Commissioner, under subsection

The special rules Chapter 4
Special rules mainly about particular ways entities are organised Part 4-1
Pre-establishment costs Division 60

Section 60-30

A New Tax System (Goods and Services Tax) Act 1999 131
29-10(3), to be circumstances in which the requirement for a tax
invoice does not apply.
For the giving of GST returns to the Commissioner, see Division 31.
(3) This section has effect despite section 29-10 (which is about
attributing input tax credits for acquisitions).
60-30 Attributing the input tax credit for pre-establishment
importations
(1) The input tax credit to which a *company is entitled under this
Division for an importation that you made is attributable to the tax
period (applying to the company) in which you were fully
reimbursed by the company:
(a) for the GST paid on the importation; and
(b) for the cost of acquiring or producing the thing imported.
(2) This section has effect despite section 29-15 (which is about attributing input tax credits for importations).
60-35 Application of Division 129
If a *company is entitled under this Division to an input tax credit
for an acquisition or importation, the acquisition or importation is
treated, for the purposes of Division 129 (which is about changes
in the extent of creditable purpose), as if the company had made it.

A New Tax System (Goods and Services Tax) Act 1999 1