COMMONWEALTH OF AUSTRALIA
A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999
DETERMINATION
Under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999, I make the following determination, being satisfied under paragraph 29-25(2)(e) of the Act that it is necessary to prevent the provisions of Division 29 and Chapter 4 applying in a way that is inappropriate in circumstances involving a supply or acquisition occurring before the supplier or recipient knows the total consideration:
Citation
1. This Determination is the A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Supplies of Gas or Electricity made by Public Utility Providers) Determination (No. 1) 2000.
Application of Determination
2. This Determination applies to a taxable supply of gas or electricity made on or after the commencement of the A New Tax System (Goods and Services Tax) Act 1999 by an entity that:
(a) is a public utility provider; and
(b) has a payment arrangement with the recipient of that supply; and
(c) does not account on a cash basis.
Particular attribution rule for GST payable on a taxable supply of gas or electricity made by a public utility provider
3. The GST payable on a taxable supply of gas or electricity made by a public utility provider is attributable to:
(a) if an invoice is issued in relation to that supply - the tax period in which that invoice is issued; or
(b) the tax period in which an invoice would have been issued by the supplier in relation to that supply if the supplier did not have a payment arrangement with the recipient;
whichever is the earlier.
Definitions
4. (1) The following expressions are defined for the purposes of this Determination:
payment arrangement means an arrangement between a public utility provider and a recipient where the provider may receive consideration from the recipient in respect of a supply made or to be made by the provider before any invoice is issued by the provider to the recipient in relation to that supply;
public utility provider means an authority or an enterprise the primary business of which is to provide electricity or gas to the public for domestic or business purposes.
(2) Other expressions in this Determination have the same meaning as in the Act.
Signed this 26th day of July 2000
Signed by Lawrie Hill
Assistant Commissioner
Rulings
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 Australian Parliament to introduce a goods and services tax (GST) across the country. This Act aimed to replace a range of other taxes and levies with a uniform tax system, streamlining the taxation process and aiming for a more efficient and equitable distribution of the tax burden. The legislation was introduced to address the need for a more comprehensive and unified taxation system, replacing the myriad of indirect taxes previously in place. The A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Supplies of Gas or Electricity made by Public Utility Providers) Determination (No. 1) 2000 further clarifies the application of GST in specific circumstances, ensuring that the tax is appropriately attributed to the periods in which supplies of gas or electricity are made, particularly for public utility providers who may have payment arrangements in place with their recipients.
Scope and Application
The A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Supplies of Gas or Electricity made by Public Utility Providers) Determination (No. 1) 2000 applies to any taxable supply of gas or electricity made by an entity that qualifies as a public utility provider, has a payment arrangement with the recipient, and does not account on a cash basis. This Determination is designed to ensure that the goods and services tax (GST) payable on such supplies is attributed appropriately. The Determination specifies that the GST payable on a supply of gas or electricity is attributable to the tax period in which the invoice is issued or, if no invoice is issued, the period in which an invoice would have been issued in the absence of a payment arrangement. This approach ensures that the timing of the GST liability aligns with the economic reality of the transaction, providing clarity for both suppliers and recipients. The Determination also provides definitions for terms such as "payment arrangement" and "public utility provider," ensuring that the application of the GST provisions is consistent and clear within the specified context.
Key Provisions
The A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Supplies of Gas or Electricity made by Public Utility Providers) Determination (No. 1) 2000 (the Determination) primarily addresses the attribution of GST for supplies of gas or electricity made by public utility providers (section 2). This legislation specifies that the Determination applies to taxable supplies of gas or electricity made by public utility providers who do not account on a cash basis and have a payment arrangement with the recipient (section 2(a)-(c)). The Determination introduces a particular attribution rule that mandates the GST payable on such supplies to be attributed to the tax period in which the invoice is issued or, if no invoice is issued, the period when an invoice would have been issued if there were no payment arrangement (section 3).
The obligations imposed by the Determination on public utility providers include ensuring that any payment arrangements with recipients are properly documented and that the GST is attributed correctly according to the specified periods. Providers must be mindful of the timing of invoice issuance and the impact of payment arrangements on GST attribution (section 3). Additionally, public utility providers need to maintain records that demonstrate compliance with these attribution rules, ensuring that the GST is accounted for accurately in the appropriate tax periods (section 3).
The Determination does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches within its text. However, breaches of GST laws generally attract penalties under the A New Tax System (Goods and Services Tax) Act 1999. These can include financial penalties, interest, and potentially criminal charges for intentional or reckless disregard of GST obligations. The severity of penalties depends on the nature and extent of the breach, with maximum penalties potentially reaching significant financial amounts and, in cases of criminal negligence, imprisonment (as outlined in the primary Act).