A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000

Administered by Department of the Treasury

Legislation au F2006B11651 Not in force Legislative Instrument

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COMMONWEALTH OF AUSTRALIA

 

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999

 

DETERMINATION

 

Under paragraph 29-75(1)(c) 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 is the A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000.

 

Commencement

 

2. This determination commences on the date the A New Tax System (Goods and Services Tax) Act 1999 commences.

 

Information requirements - Adjustment Notes other than Recipient Created Adjustment Notes

 

3. An adjustment note other than an adjustment note referred to in Clauses 4 and 5 must contain the following information:

 

(a)                the following words must be shown in a prominent place on the document:

(i)                 where the adjustment to the price is shown:

(A) as a positive or debit amount to either the supplier or the recipient - the words "Adjustment Note" stated prominently; or

(B)  as a negative or credit amount to the supplier - the words "Adjustment Note" stated prominently; or

(ii)               where the adjustment to the price is shown as a negative or credit amount to the recipient - the words "Tax Invoice" or "Adjustment Note" stated prominently;

(b) the name of the supplier or the agent of the supplier;

(c) the name of the recipient or the agent of the recipient;

(d) the address or ABN of the recipient or the agent of the recipient;

(e)                the issue date of the adjustment note;

(f) the difference between the price of the supply before the adjustment event and the price of the supply after the adjustment event;

(g) a brief explanation of the reason for the adjustment;


(h) the amount of the adjustment to the GST payable or a statement to the effect that the difference in the price of the supply includes GST;

(ha) if the adjustment note relates to a supply that is partly a taxable supply:

(i)                 the amount of the adjustment to the GST payable; and

(ii)               the difference between the price of the supply (to the extent that it is a taxable supply) before the adjustment event and the price of the supply (to the extent that it is a taxable supply) after the adjustment event;

(j) if the adjustment note relates to a supply that has an amount of GST payable that is less than 1/11th of the price (other than a supply of insurance):

(i) the amount of the adjustment to the GST payable; and

(ii)               the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event;

(k)                if the adjustment note relates to a supply of insurance that has an amount of GST payable that is less than 1/11th of the price:

(i) the amount of the adjustment to the GST payable; and

(ii)               either:

(A) the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event; or

 

(B) a statement to the effect that if an entity is registered for GST, the adjustment for that entity is either the GST amount shown in the adjustment note or based on the GST amount shown in the adjustment note and the GST amount may be less than 1/11th of the total amount payable.

 

4. An adjustment note which:

 

(a)  relates to a tax invoice showing a total amount payable of less than $1000; or

(b)               arises out of an adjustment event where a supply that was not taxable becomes taxable and the price of the supply was less than $1000;

 

 must contain the following information:

 

(c) the following words must be shown in a prominent place on the document:

(i)                 where the adjustment to the price is shown:

(A) as a positive or debit amount to either the supplier or the recipient - the words "Adjustment Note" stated prominently; or

(B) as a negative or credit amount to the supplier - the words "Adjustment Note" stated prominently; or

(ii)               where the adjustment to the price is shown as a negative or credit amount to the recipient - the words "Tax Invoice" or "Adjustment Note" stated prominently;

(d) the name of the supplier or the agent of the supplier;

(e) the issue date of the adjustment note;

(f) the difference between the price of the supply before the adjustment event and the price of the supply after the adjustment event;

(g) a brief explanation of the reason for the adjustment;

(h) the amount of the adjustment to the GST payable or a statement to the effect that the difference in the price of the supply includes GST;

(ha) if the adjustment note relates to a supply that is partly a taxable supply:

(i) the amount of the adjustment to the GST payable; and

(ii) the difference between the price of the supply (to the extent that it is a taxable supply) before the adjustment event and the price of the supply (to the extent that it is a taxable supply) after the adjustment event;

(j) if the adjustment note relates to a supply that has an amount of GST payable that is less than 1/11th of the price (other than a supply of insurance):

(i) the amount of the adjustment to the GST payable; and

(ii) the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event;

(k) if the adjustment note relates to a supply of insurance that has a GST amount payable that is less than 1/11th of the price:

(i) the amount of the adjustment to the GST payable; and

(ii) either:

(A)  the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event; or

 

(B)  a statement to the effect that if an entity is registered for GST, the adjustment for that entity is either the GST amount shown in the adjustment note or based on the GST amount shown in the adjustment note and the GST amount may be less than 1/11th of the total amount payable.

 


Information requirements - Recipient Created Adjustment Notes

 

5. A recipient created adjustment note must contain the following information:

 

(a) the following words must be shown in a prominent place on the document:

(i) where the adjustment to the price is shown:

(A) as a positive or debit amount to either the supplier or the recipient - the words "Recipient Created Adjustment Note" stated prominently; or

(B) as a negative or credit amount for the supplier - the words "Recipient Created Adjustment Note" stated prominently; or

(ii)               where the adjustment to the price is shown as a negative or credit amount for the recipient - the words "Recipient Created Tax Invoice" or "Recipient Created Adjustment Note" stated prominently;

(b)               the name of the supplier or the agent of the supplier;

(c)                the ABN of the supplier or the agent of the supplier;

(d) the name of the recipient or the agent of the recipient;

(e) the issue date of the adjustment note;

(f) the difference between the price of the supply before the adjustment event and the price of the supply after the adjustment event;

(g) a brief explanation of the reason for the adjustment;

(h) the amount of the adjustment to the GST payable or a statement to the effect that the difference in the price of the taxable supply includes GST;

(ha) if the adjustment note relates to a supply that is partly a taxable supply:

(i)                 the amount of the adjustment to the GST payable; and

(ii)               the difference between the price of the supply (to the extent that it is a taxable supply) before the adjustment event and the price of the supply (to the extent that it is a taxable supply) after the adjustment event;

(j) if the adjustment note relates to a supply that has an amount of GST payable that is less than 1/11th of the price (other than a supply of insurance):

(i) the amount of the adjustment to the GST payable; and

(ii) the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event;

(k)               if the adjustment note relates to a supply of insurance that has an amount of GST payable that is less than 1/11th of the price:

(i) the amount of the adjustment to the GST payable; and

(ii) either:

(A)  the difference between the GST exclusive price of the supply before the adjustment event and the GST exclusive price of the supply after the adjustment event; or

 

(B)  a statement to the effect that if an entity is registered for GST, the adjustment for that entity is either the GST amount shown in the adjustment note or based on the GST amount shown in the adjustment note and the GST amount may be less than 1/11th of the total amount payable.

 

Definitions

 

6. (1) The following expression is defined for the purpose of this determination:

recipient created adjustment note means an adjustment note issued by a recipient in the circumstances referred to in subsection 29-75(2).

 

(2) Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.

 

Dated this 14th day of  June  2000.

 

 

Signed by Peter Chochula

Senior Tax Counsel

Goods and Services Tax Program

Delegate of the Commissioner

Overview

The A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000 was enacted to provide specific requirements for the information that must be included on adjustment notes issued under the A New Tax System (Goods and Services Tax) Act 1999. This legislation was introduced to ensure that adjustment notes contain clear and sufficient information to facilitate compliance with GST obligations. The determination was made by Peter Chochula, the Senior Tax Counsel of the Goods and Services Tax Program, as a delegate of the Commissioner of Taxation, and it commenced on the date the A New Tax System (Goods and Services Tax) Act 1999 itself came into effect. This legislative instrument aims to establish precise information requirements for adjustment notes, ensuring that suppliers and recipients can accurately reflect any adjustments to the price of a supply, including the impact on the GST payable. The policy objective is to maintain transparency and accuracy in the documentation of adjustments to taxable supplies, thereby supporting the effective administration of the GST system. The determination distinguishes between standard adjustment notes and recipient-created adjustment notes, outlining the necessary details for each type to ensure clarity and compliance.

Scope and Application

The A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000 applies to entities and individuals involved in the issuance of adjustment notes in the context of goods and services tax (GST) in Australia. This legislation falls under the purview of the Commonwealth and is intended to ensure clarity and accuracy in the documentation of adjustments to the price of supplies, particularly in relation to the GST payable. It applies to suppliers and recipients of goods and services, necessitating that certain information is included on adjustment notes. This includes prominent labels such as "Adjustment Note" or "Recipient Created Adjustment Note", depending on the context, along with details such as the parties involved, the issue date, the nature of the adjustment, and the GST implications. The Act does not specify any exclusions, but it does differentiate between adjustment notes related to supplies with total amounts payable above and below $1000, and between adjustment notes created by suppliers and those created by recipients. The application of this determination can be further defined through subordinate instruments, ensuring that the requirements remain adaptable to various business scenarios.

Key Provisions

The A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination (No. 1) 2000 outlines the necessary information requirements for adjustment notes under the A New Tax System (Goods and Services Tax) Act 1999. Adjustment notes are documents that reflect changes in the price of a supply after the initial supply has been made, and they play a crucial role in maintaining accurate GST records. Section 3 of the Determination specifies that an adjustment note, excluding Recipient Created Adjustment Notes, must include several key pieces of information. These include the prominent display of "Adjustment Note" or "Tax Invoice" or "Adjustment Note" depending on the nature of the adjustment, the names and addresses or ABNs of the supplier and recipient, the issue date of the note, the difference in price before and after the adjustment event, a brief explanation of the adjustment's reason, and the amount of the GST adjustment or a statement indicating that the price difference includes GST. For supplies that are partly taxable or where the GST payable is less than 1/11th of the price, additional specific details must be included. The Determination also imposes certain obligations on the parties involved. Suppliers and recipients must ensure that all adjustment notes contain the required information as outlined in the Determination. This includes ensuring that the notes are issued in a timely manner and that all details are accurately and clearly stated. The obligation extends to providing all necessary details, including the adjustment amount and reasons for the adjustment, to ensure compliance with GST regulations. For Recipient Created Adjustment Notes, the requirements are similar but include the ABN of the supplier and the use of specific wording to indicate the note's origin. In terms of consequences for non-compliance, the Determination does not explicitly state penalties but references the A New Tax System (Goods and Services Tax) Act 1999, which outlines various penalties for breaches of GST legislation. These penalties can include fines and, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, but they can range from substantial fines to imprisonment. The primary goal of these penalties is to enforce compliance and ensure that all parties adhere to the specified information requirements for adjustment notes, thereby maintaining the integrity of the GST system.

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