Commonwealth of Australia Bills
[Index]
[Search]
[Download]
[Related Items]
[Help]
This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (2010 GST ADMINISTRATION MEASURES NO. 1) BILL 2010
2008-2009-2010
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2010 GST
Administration Measures No. 1) Bill 2010
No. , 2010
(Treasury)
A Bill for an Act to amend legislation relating to
indirect tax, and for related purposes
i Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. ,
2010
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
3
Schedule 1--Adjustments for third party payments
4
A New Tax System (Goods and Services Tax) Act 1999
4
Taxation Administration Act 1953
10
Schedule 2--Attribution of input tax credits
12
A New Tax System (Goods and Services Tax) Act 1999
12
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
1
A Bill for an Act to amend legislation relating to
1
indirect tax, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment (2010 GST
5
Administration Measures No. 1) Act 2010.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. ,
2010
Commencement information
Column 1
Column 2
Column 3
Provision(s) Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1,
items 1 and 2
The day this Act receives the Royal Assent.
3. Schedule 1,
item 3
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
Schedule 1 to the Tax Laws Amendment
(2009 GST Administration Measures)
Act 2010.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
4. Schedule 1,
items 4 to 9
The day this Act receives the Royal Assent.
5. Schedule 1,
items 10 and 11
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
Schedule 1 to the Tax Laws Amendment
(2009 GST Administration Measures)
Act 2010.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
6. Schedule 1,
items 12 to 29
The day this Act receives the Royal Assent.
7. Schedule 2,
item 1
The day this Act receives the Royal Assent.
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
3
Commencement information
Column 1
Column 2
Column 3
Provision(s) Commencement
Date/Details
8. Schedule 2,
item 2
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
Schedule 1 to the Tax Laws Amendment
(2009 GST Administration Measures)
Act 2010.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
9. Schedule 2,
item 3
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
passed by both Houses of the Parliament and assented to. It will not be
2
expanded to deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
12
Schedule 1 Adjustments for third party payments
4 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. ,
2010
Schedule 1--Adjustments for third party
1
payments
2
3
A New Tax System (Goods and Services Tax) Act 1999
4
1 Section 17-99 (after table item 15)
5
Insert:
6
15A
Third party payments
Division 134
2 Paragraphs 19-40(c) and 19-45(c)
7
After "Division 21", insert "or 134".
8
3 Paragraph 19-70(2)(a)
9
Omit "or 133", substitute ", 133 or 134".
10
4 Paragraph 19-75(b)
11
Omit "or 131", substitute ", 131 or 134".
12
5 Section 19-99 (at the end of the table)
13
Add:
14
4
Third party payments
Division 134
6 Section 29-39 (after table item 13)
15
Insert:
16
13A
Third party payments
Division 134
7 Section 37-1 (after table item 35A)
17
Insert:
18
35B
Third party payments
Division 134
8 At the end of subsection 54-50(1)
19
Add:
20
; and (c) any
*
third party adjustment note for a decreasing adjustment
21
under section 134-5 that relates to a taxable supply made
22
through that GST branch.
23
9 At the end of subsection 54-50(2)
24
Adjustments for third party payments Schedule 1
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
5
Add ", and section 134-20 (which is about third party adjustment
1
notes)".
2
10 Section 129-80 (heading)
3
Repeal the heading, substitute:
4
129-80 Effect of adjustment under certain Divisions
5
11 Section 129-80
6
Omit "or 133", substitute ", 133 or 134".
7
12 At the end of subsections 131-55(3) and (4) (before the
8
notes)
9
Add:
10
; or (c) an adjustment for the acquisition under Division 134.
11
13 Before Division 135
12
Insert:
13
Division 134--Third party payments
14
134-1 What this Division is about
15
You may have a decreasing adjustment if you make a payment to
16
an entity that acquires something that you had supplied to another
17
entity. The entity receiving the payment may have an increasing
18
adjustment.
19
134-5 Decreasing adjustments for payments made to third parties
20
(1) You have a decreasing adjustment if:
21
(a) you make a payment to an entity (the payee) that acquires a
22
thing that you supplied to another entity (whether or not that
23
other entity supplies the thing to the payee); and
24
(b) your supply of the thing to the other entity was a
*
taxable
25
supply; and
26
(c) the payment is in one or more of the following forms:
27
(i) a payment of money;
28
Schedule 1 Adjustments for third party payments
6 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. ,
2010
(ii) an offset of an amount of money that the payee owes to
1
you;
2
(iii) a crediting of an amount of money to an account that the
3
payee holds; and
4
(d) the payment is made in connection with, in response to or for
5
the inducement of the payee's acquisition of the thing; and
6
(e) the payment is not
*
consideration for a supply to you.
7
(2) The amount of the
*
decreasing adjustment is an amount equal to
8
the difference between:
9
(a) the amount of GST payable on your supply to the other
10
entity, taking into account any other
*
adjustments relating to
11
the supply; and
12
(b) the amount of GST that would have been payable for that
13
supply:
14
(i)
if
the
*
consideration for the supply had been reduced by
15
the amount of your payment to the payee; and
16
(ii) taking into account any other adjustments relating to the
17
supply, as they would have been affected (if applicable)
18
by such a reduction in the consideration.
19
134-10 Increasing adjustments for payments received by third
20
parties
21
(1) You have an increasing adjustment if:
22
(a) you receive a payment from an entity (the payer) that
23
supplied a thing that you acquire from another entity
24
(whether or not that other entity acquired the thing from the
25
payer); and
26
(b) your acquisition of the thing from the other entity was a
27
*
creditable acquisition; and
28
(c) the payment is in one or more of the following forms:
29
(i) a payment of money;
30
(ii) an offset of an amount of money that you owe to the
31
payer;
32
(iii) a crediting of an amount of money to an account that
33
you hold; and
34
(d) the payment is made in connection with, in response to or for
35
the inducement of your acquisition of the thing; and
36
(e) the payment is not
*
consideration for a supply from you.
37
Adjustments for third party payments Schedule 1
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
7
(2) The amount of the
*
increasing adjustment is an amount equal to the
1
difference between:
2
(a) the amount of the input tax credit to which you are entitled
3
for your acquisition from the other entity, taking into account
4
any other
*
adjustments relating to the acquisition; and
5
(b) the amount of the input tax credit to which you would have
6
been entitled for that acquisition:
7
(i)
if
the
*
consideration for the acquisition had been
8
reduced by the amount of the payer's payment to you;
9
and
10
(ii) taking into account any other adjustments relating to the
11
acquisition, as they would have been affected (if
12
applicable) by such a reduction in the consideration.
13
134-15 Attribution of decreasing adjustments
14
(1)
If:
15
(a) you have a
*
decreasing adjustment under section 134-5; and
16
(b) you do not hold a
*
third party adjustment note for the
17
adjustment when you give to the Commissioner a
*
GST
18
return for the tax period to which the adjustment (or any part
19
of the adjustment) would otherwise be attributable;
20
then:
21
(c) the adjustment (including any part of the adjustment) is not
22
attributable to that tax period; and
23
(d) the adjustment (or part) is attributable to the first tax period
24
for which you give to the Commissioner a GST return at a
25
time when you hold that third party adjustment note.
26
However, this subsection does not apply in circumstances of a kind
27
determined by the Commissioner, by legislative instrument, to be
28
circumstances in which the requirement for an adjustment note
29
does not apply.
30
Note:
For the giving of GST returns to the Commissioner, see Division 31.
31
(2) This section does not apply to a
*
decreasing adjustment of an
32
amount that does not exceed the amount provided for under
33
subsection 29-80(2).
34
(3) This section has effect despite section 29-20 (which is about
35
attributing adjustments).
36
Schedule 1 Adjustments for third party payments
8 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. ,
2010
134-20 Third party adjustment notes
1
(1)
A
third party adjustment note for a
*
decreasing adjustment that
2
you have under section 134-5 is a document:
3
(a) that is created by you; and
4
(b) a copy of which is given, in the circumstances set out in
5
subsection (2), to the entity that received the payment that
6
gave rise to the adjustment; and
7
(c) that sets out your
*
ABN; and
8
(d) that contains such other information as the Commissioner
9
determines in writing; and
10
(e) that is in the
*
approved form.
11
However, the Commissioner may treat as a third party adjustment
12
note a particular document that is not a third party adjustment note.
13
(2) You must give the copy of the document to the entity that received
14
the payment:
15
(a) within 28 days after the entity requests you to give the copy;
16
or
17
(b) if you become aware of the
*
adjustment before the copy is
18
requested--within 28 days, or such other number of days as
19
the Commissioner determines under subsection (4) or (6),
20
after becoming aware of the adjustment.
21
(3) Subsection (2) does not apply to an
*
adjustment of an amount that
22
does not exceed the amount provided for under subsection
23
29-80(2).
24
(4) The Commissioner may determine in writing that paragraph (2)(b)
25
has effect, in relation to a particular document, as if the number of
26
days referred to in that paragraph is the number of days specified in
27
the determination.
28
(5) A determination made under subsection (4) is not a legislative
29
instrument.
30
(6) The Commissioner may determine, by legislative instrument,
31
circumstances in which paragraph (2)(b) has effect, in relation to
32
those circumstances, as if the number of days referred to in that
33
paragraph is the number of days specified in the determination.
34
Adjustments for third party payments Schedule 1
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
9
(7) A determination made under subsection (4) has effect despite any
1
determination made under subsection (6).
2
134-25 Adjustment events do not arise
3
To avoid doubt, a payment that gives rise to an
*
adjustment under
4
this Division cannot give rise to an
*
adjustment event.
5
14 Paragraph 153-10(1)(b)
6
After "
*
adjustment note", insert "or
*
third party adjustment note".
7
15 At the end of paragraph 153-10(1)(d)
8
Add "or third party adjustment note".
9
16 Subsection 153-10(2)
10
Repeal the subsection, substitute:
11
(2) This section has effect despite subsections 29-20(3) (which is
12
about the requirement to hold an adjustment note) and 134-15(1)
13
(which is about the requirement to hold a third party adjustment
14
note).
15
17 Subsection 153-20(1)
16
After "for the adjustment", insert ", or an obligation under subsection
17
134-20(2) to issue a
*
third party adjustment note for the adjustment".
18
18 Paragraphs 153-20(1)(a) and (b)
19
After "an adjustment note", insert "or a third party adjustment note".
20
19 Subsection 153-20(2)
21
After "
*
adjustment notes", insert "or
*
third party adjustment notes".
22
20 Subsection 153-20(3)
23
Repeal the subsection, substitute:
24
(3) This section has effect despite sections 29-75 (which is about
25
adjustment notes) and 134-20 (which is about third party
26
adjustment notes).
27
Schedule 1 Adjustments for third party payments
10 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No.
, 2010
21 Section 195-1 (before table item 7 of the definition of
1
decreasing adjustment)
2
Insert:
3
6B
Section 134-5
Third party payments
22 Section 195-1 (after table item 5B of the definition of
4
increasing adjustment)
5
Insert:
6
6
Section 134-10
Third party payments
23 Section 195-1
7
Insert:
8
third party adjustment note means a document that complies with
9
the requirements of section 134-20 and (if applicable)
10
section 54-50.
11
Taxation Administration Act 1953
12
24 At the end of paragraph 8J(10)(a)
13
Add "or".
14
25 Paragraph 8J(10)(aa)
15
Repeal the paragraph, substitute:
16
(aa)
made
in:
17
(i) a tax invoice (within the meaning of the A New Tax
18
System (Goods and Services Tax) Act 1999); or
19
(ii) an adjustment note (within the meaning of that Act); or
20
(iii) a third party adjustment note (within the meaning of that
21
Act);
22
given to the person; or
23
26 Section 288-45 in Schedule 1 (heading)
24
Repeal the heading, substitute:
25
Adjustments for third party payments Schedule 1
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No. , 2010
11
288-45 Penalty for failing to issue tax invoice etc.
1
27 At the end of section 288-45 in Schedule 1 (before the
2
note)
3
Add:
4
(3) You are liable to an administrative penalty of 20 penalty units if
5
you fail to issue a third party adjustment note as required by
6
section 134-20 of the
*
GST Act.
7
28 Paragraph 288-50(b) in Schedule 1
8
After "adjustment notes", insert ", or third party adjustment notes,".
9
29 Application
10
The amendments made by this Schedule apply in relation to payments
11
made on or after 1 July 2010.
12
13
Schedule 2 Attribution of input tax credits
12 Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 No.
, 2010
Schedule 2--Attribution of input tax credits
1
2
A New Tax System (Goods and Services Tax) Act 1999
3
1 Subsection 29-10(4)
4
Omit "the tax period referred to in paragraph (3)(b)", substitute "a tax
5
period".
6
2 At the end of section 29-10
7
Add:
8
Note:
Section 93-5 may provide a time limit on your entitlement to an input
9
tax credit.
10
3 Application of amendments
11
The amendments made by this Schedule apply in relation to net
12
amounts for tax periods starting on or after 1 July 2010.
13