A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005
No. 2, 2005
An Act to implement A New Tax System by imposing the tax payable under the GST law, so far as that tax is imposed on recipients of taxable supplies and is a duty of excise
Contents
1 Short title
2 Commencement
3 Imposition
4 Rate
5 Act does not impose a tax on property of a State
A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005
No. 2, 2005
An Act to implement A New Tax System by imposing the tax payable under the GST law, so far as that tax is imposed on recipients of taxable supplies and is a duty of excise
[Assented to 18 February 2005]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005.
2 Commencement
This Act commences on 1 July 2005.
3 Imposition
(1) The tax that is payable under the GST law is imposed by this section under the name of goods and services tax (GST).
(2) This section imposes GST only so far as that tax:
(a) would be imposed on the recipient of a taxable supply; and
(b) is a duty of excise within the meaning of section 55 of the Constitution.
(3) In this section, GST law, recipient and taxable supply have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
4 Rate
The rate of goods and services tax payable under the GST law (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999) is 10%.
5 Act does not impose a tax on property of a State
(1) This Act does not impose a tax on property of any kind belonging to a State.
(2) Property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.
[Minister’s second reading speech made in—
House of Representatives on 8 December 2004
Senate on 9 December 2004]
Overview
The A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005 was enacted by the Parliament of Australia to implement a new tax system by imposing a goods and services tax (GST) on the recipients of taxable supplies that constitute a duty of excise, as defined under the A New Tax System (Goods and Services Tax) Act 1999. The Act aims to align the GST with constitutional requirements and ensure it is imposed only on the recipients of taxable supplies while expressly excluding any tax on property belonging to a State. The tax rate was set at 10% under this Act, which commenced on 1 July 2005. This legislative measure was critical in formalising the GST framework within the Australian taxation system, addressing a gap in the imposition of GST on specific supplies and ensuring compliance with constitutional provisions.
Scope and Application
The A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005 applies to the imposition of goods and services tax (GST) on recipients of taxable supplies in accordance with the GST law. This Act specifically imposes the GST on recipients of taxable supplies that are also classified as duties of excise under the Australian Constitution, aligning with the provisions outlined in the A New Tax System (Goods and Services Tax) Act 1999. It does not impose any tax on property belonging to any State, as defined in section 114 of the Constitution. The Act applies nationally across Australia, covering all recipients of taxable supplies that meet the specified criteria, and it came into effect on 1 July 2005. The rate of GST imposed by this Act is set at 10%, as per the GST law. The application of this Act can be further extended or modified through subordinate instruments, though the primary text does not detail these potential amendments.
Key Provisions
The A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005 (section 3) introduces the imposition of goods and services tax (GST) on the recipients of taxable supplies, which is a duty of excise. This tax is imposed under the GST law as defined in the A New Tax System (Goods and Services Tax) Act 1999. The rate of this tax, as specified in section 4, is 10%. It is important to note that this Act does not impose any tax on property belonging to a State, a point clarified in section 5.
The Act places certain obligations on the recipients of taxable supplies. Firstly, they are required to account for and pay the GST on the taxable supplies they receive (section 3(2)). The Act specifies that GST is only imposed to the extent that it would be on the recipient of a taxable supply, which is defined in the A New Tax System (Goods and Services Tax) Act 1999. Additionally, the recipients must ensure compliance with the GST law and other related provisions. This includes maintaining accurate records of all taxable supplies received, which are necessary for reporting and paying the GST correctly.
Under this Act, there are potential consequences for non-compliance. While the Act itself does not specify particular offences or penalties, breaches of GST obligations could lead to enforcement actions under other legislation, such as the A New Tax System (Goods and Services Tax) Act 1999. Under this related Act, penalties for non-compliance can include fines of up to $1,100 for individuals and up to $5,500 for entities, with additional penalties for serious or repeated breaches. Furthermore, ongoing non-compliance may result in criminal charges, with maximum penalties including fines and imprisonment for directors or officers of entities found in breach of GST laws.