COMMONWEALTH OF AUSTRALIA
A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999
DETERMINATION
Under subsection 29-75(3)of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901 I make the following determination:
Citation
1. This determination may be cited as the A New Tax System (Goods and Services Tax) Act 1999 Extension of Time to Issue An Adjustment Note Determination (No. 1) 2000.
Commencement
2. (a) This determination commences from the date A New Tax System (Goods and
Services Tax) Act 1999 commences.
(b) This determination does not revoke or vary any previous determination made by the Commissioner.
Suppliers that can extend the period of time in which they must issue an adjustment note
3. This determination applies to a Public Utility Provider who is a gas retailer. A Public Utility Provider, upon becoming aware of an adjustment can extend the time in which they must issue an adjustment note to the date on which the next invoice would normally issue for that customer or 98 days, whichever is the earlier.
Requirements that must be satisfied by an entity that is subject to this determination
4. An entity must satisfy the following requirements:
(a) the supplier must be registered for GST;
(b) the supplier must be a Public Utility Provider;
(c) the supply to which this determination applies is the provision of utility services;
(d) the supplier must have issued a tax invoice in relation to the supply which is now subject to an adjustment;
(e) the recipient must not have requested an adjustment note for the adjustment relating to the supply; and
(f) if a recipient of a supply requests from a supplier an adjustment note for an adjustment relating to the supply, the supplier must issue an adjustment note within 28 days of the receipt of the request.
Definitions
5. The following expressions are defined for the purposes of this determination:
Public Utility Provider has the same definition as provided in GSTR 2000/32:-
"a Public Utility Provider is an authority or an enterprise, the primary business of which is to provide electricity or gas to the public for domestic or business purposes. The public utility provider may be publicly or privately owned".
Utility Services the provision of gas and electricity supplies and associated ancillary supplies.
5. Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
Signed this 9th day of October 2000
Signed by Bruce Quigley
Senior Assistant Deputy Commissioner
Goods and Services Tax Program
Delegate of the Commissioner
Overview
The A New Tax System (Goods and Services Tax) Act 1999 was enacted by the Parliament of Australia to introduce a goods and services tax (GST) across the country, aiming to replace a range of federal and state taxes with a broad-based consumption tax. This Act was introduced to create a more streamlined and efficient tax system, harmonising indirect taxes and reducing the tax burden on businesses. The policy objective was to provide a fair and simple tax system that would support economic growth and revenue generation for the government. One legislative instrument under this Act is the A New Tax System (Goods and Services Tax) Act 1999 Extension of Time to Issue An Adjustment Note Determination (No. 1) 2000, which provides certain public utility providers with an extended period to issue an adjustment note in the event of an adjustment to a previous tax invoice, provided certain conditions are met. This instrument ensures compliance and clarity in the tax treatment of utility services.
Scope and Application
The A New Tax System (Goods and Services Tax) Act 1999 Extension of Time to Issue An Adjustment Note Determination (No. 1) 2000 applies specifically to Public Utility Providers who are gas retailers, extending the period in which they must issue an adjustment note to the date the next invoice would normally issue for that customer or 98 days, whichever is the earlier. This determination is applicable to entities that meet the criteria of being registered for GST, providing utility services, and having issued a tax invoice for the supply now subject to an adjustment, with no request for an adjustment note from the recipient. Conversely, if a recipient requests an adjustment note, the supplier must issue it within 28 days of receiving the request. The determination's jurisdictional reach is under the Commonwealth of Australia, and it does not revoke or vary any previous determinations made by the Commissioner. The definition of "Public Utility Provider" aligns with that provided in GSTR 2000/32, referring to authorities or enterprises primarily providing electricity or gas for domestic or business purposes, which may be publicly or privately owned.
Key Provisions
The main operative sections of this determination, as outlined in section 3, allow a Public Utility Provider who is a gas retailer to extend the period in which they must issue an adjustment note in specific circumstances. According to section 4, the extension can be made to the date on which the next invoice would normally issue for the customer, or up to 98 days, whichever is earlier. This provision applies only when the supplier becomes aware of an adjustment and the recipient has not requested an adjustment note for that adjustment. It is crucial that the supplier meets the specified requirements to qualify for this extension, such as being registered for GST, being a Public Utility Provider, and having issued a tax invoice related to the supply in question.
The obligations imposed by this determination, as stated in section 4, include the necessity for the supplier to be registered for GST, to be a Public Utility Provider, and to provide utility services. The supply in question must have already been invoiced, and the recipient must not have requested an adjustment note for the adjustment. Additionally, if a recipient requests an adjustment note, the supplier must issue it within 28 days of receiving the request. The supplier must ensure all these conditions are met to comply with the provisions of this determination.
The determination does not explicitly state any offences or penalties for breach. However, it is likely that failure to comply with the requirements could lead to legal consequences under the broader A New Tax System (Goods and Services Tax) Act 1999, which governs GST regulations in Australia. Under the principal Act, breaches of GST obligations can result in civil and criminal penalties, including fines and imprisonment, depending on the nature and severity of the breach. The exact penalties are not specified in this determination but are defined in the primary Act.