EXPLANATORY STATEMENT
Select Legislative Instrument 2013 No. 6
Issued by authority of the Assistant Treasurer
A New Tax System (Goods and Services Tax) Act 1999
A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No. 1)
Section 177-15 of the A New Tax System (Goods and Services Tax) Act 1999 provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or as necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No. 1)
(the Regulation) amends the A New Tax System (Goods and Services Tax) Regulations 1999 to make minor changes to the Tourist Refund Scheme (TRS) and the sealed bag scheme (SBS).
As part of the introduction of a New Tax System (Goods and Services Tax) Act 1999, the Australian Government established the TRS to enable overseas tourists and Australians travelling abroad to claim refunds of goods and services tax (GST) and Wine Equalisation Tax (WET) paid on goods that they purchase in Australia and take with them.
The SBS allows international travellers to purchase goods, tax free (excise or customs duty, GST or WET) from duty free stores and certain retail stores. Goods purchased through the SBS are placed in a sealed bag which remains sealed to ensure that the traveller takes the goods out of the country so that the goods cannot be consumed in Australia, and therefore are not subject to Australian taxes.
The Regulation extends the period during which travellers can acquire goods to access the TRS or SBS from 30 days to 60 days prior to departure and also allow travellers accessing the TRS to aggregate multiple invoices from single retailers in order to meet the $300 threshold for TRS claims rather than the requirement to hold one invoice only.
The Regulation applies to acquisitions made 60 days or more after the day the Regulation is registered on the Federal Register of Legislative Instruments.
For example, once the Regulation applies, a tourist can make several acquisitions from the same retailer and provided the total of the invoices for that 60 day period are over $300 and they are exporting the goods when they leave Australia, they can claim a GST refund, and a WET refund if applicable, at the TRS facility at any international airport or seaport.
Consultation was undertaken on the proposed amendments and no changes were made as a result of consultation.
The Regulation commences on the day after it is registered.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A New Tax System (Goods and Services Tax) Amendment Regulation 2013
(No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Tourist Refund Scheme (TRS) and sealed bag scheme (SBS) are arrangements that allow international travellers to purchase tax-free goods on leaving Australia.
The purpose of the Legislative Instrument is to extend the period during which international travellers can acquire goods to access to the TRS or SBS from 30 days to 60 days and also to allow travellers accessing the TRS to aggregate multiple invoices from single retailers in order to meet the $300 threshold for TRS claims rather than the requirement to hold one invoice only.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms. It increases the flexibility of international travellers to access the TRS and SBS.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No. 1) was enacted to amend the A New Tax System (Goods and Services Tax) Regulations 1999, primarily targeting the Tourist Refund Scheme (TRS) and the sealed bag scheme (SBS). This regulation, introduced by the Assistant Treasurer and issued by authority, aims to address the need for greater flexibility in the schemes that allow international travellers to purchase tax-free goods when leaving Australia. The Regulation extends the acquisition period for accessing these schemes from 30 to 60 days prior to departure and allows travellers to aggregate multiple invoices from single retailers to meet the $300 threshold for TRS claims. The objective of these changes is to provide greater convenience and flexibility to international travellers, ensuring they can more easily claim refunds on taxes paid on goods taken out of Australia.
Scope and Application
The A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No. 1) applies to the acquisition of goods by international travellers seeking to access the Tourist Refund Scheme (TRS) or the sealed bag scheme (SBS) in Australia. These schemes are designed to provide tax refunds to overseas tourists and Australians travelling abroad for GST and Wine Equalisation Tax (WET) on goods purchased in Australia and taken out of the country. The Regulation extends the allowable period for acquiring goods for these schemes from 30 days to 60 days prior to departure, thereby providing greater flexibility for travellers. Furthermore, it allows travellers to aggregate multiple invoices from the same retailer to meet the $300 threshold for TRS claims, rather than requiring a single invoice. The Regulation applies to acquisitions made 60 days or more after its registration, and it does not contain any exclusions, exemptions, or specific thresholds beyond the general application of the schemes. The Regulation was made under the authority of the Assistant Treasurer and is compatible with human rights as it does not engage any of the applicable rights or freedoms.
Key Provisions
The A New Tax System (Goods and Services Tax) Amendment Regulation 2013 (No. 1) (the Regulation) amends the A New Tax System (Goods and Services Tax) Regulations 1999 to alter the Tourist Refund Scheme (TRS) and the sealed bag scheme (SBS). Section 2 of the Regulation extends the period during which international travellers can acquire goods to access the TRS or SBS from 30 days to 60 days. It also allows travellers to aggregate multiple invoices from a single retailer to meet the $300 threshold for TRS claims, rather than requiring a single invoice. These changes are designed to increase the flexibility and convenience for international travellers.
The obligations imposed by the Regulation on the parties it governs are primarily related to the administration of the TRS and SBS. Retailers, for instance, must ensure that the goods sold to international travellers are eligible for these schemes and must provide the necessary documentation for GST and WET refunds. Travellers must comply with the extended acquisition period and aggregation rules to qualify for tax refunds. The Australian Government and its agencies, such as the Australian Taxation Office (ATO), are responsible for overseeing the implementation of these changes and ensuring that the schemes operate smoothly.
Breaches of the Regulation may result in various consequences, although the specific offences and penalties are not detailed in the provided text. Generally, non-compliance with GST and tax refund regulations can lead to administrative penalties, including fines. For GST-related offences, the penalties can be substantial, with maximum fines often tied to the amount of tax evaded or the degree of negligence. In criminal matters, penalties can include imprisonment, reflecting the seriousness of tax evasion and fraud. The exact penalties depend on the specific nature of the breach and the applicable laws.