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 and subsection 4(1) of the Acts Interpretation Act 1901, I make the following determination, being satisfied under paragraph 29-25(2)(d) 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 it has occurred:
Citation
1. This Determination is the A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Banknote and Coin-operated Machines and Similar Devices) Determination (No. 1) 2000.
Commencement
2. This Determination commences on the date the A New Tax System (Goods and Services Tax) Act 1999 commences.
Particular attribution rule for GST payable on a taxable supply made through a banknote or coin-operated machine or similar device before the supplier knows it has occurred
3. (1) The GST payable by you on a taxable supply where:
(a) you receive the consideration through a banknote-operated machine, a coin-operated machine or a similar device; and
(b) removal of the notes and coins from the machine is the only way you have of knowing when the consideration is received;
is attributable to the tax period in which the consideration is removed from the machine or similar device.
(2) This rule applies whether or not you account on a cash basis.
Definitions
4. (1) The following expression is defined for the purposes of this Determination:
the Act means the A New Tax System (Goods and Services Tax) Act 1999.
(2) Other expressions in this Determination have the same meaning as in the Act.
Signed this 30th day of June 2000
Signed by Marilyn Knight
Senior Tax Counsel
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 comprehensive Goods and Services Tax (GST) system across the nation, aiming to replace the previous Federal wholesale tax. This legislation sought to address the need for a more uniform and efficient tax system that would streamline indirect taxation, thus facilitating easier interstate trade and reducing the tax burden on businesses. The Act, through its legislative instrument F2006B11602, specifically aims to clarify the attribution of GST liabilities for supplies made via automated machines such as banknote or coin-operated devices before the supplier becomes aware of the transaction. This particular determination, signed by Marilyn Knight, Senior Tax Counsel, ensures that the GST liability is attributed to the tax period when the consideration is removed from the machine, providing certainty for suppliers who operate on a cash basis.
Scope and Application
The A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Banknote and Coin-operated Machines and Similar Devices) Determination (No. 1) 2000 applies to suppliers who receive consideration through a banknote-operated machine, a coin-operated machine, or a similar device, where the removal of the notes and coins from the machine is the only way the supplier knows when the consideration is received. This determination is a legislative instrument under the A New Tax System (Goods and Services Tax) Act 1999, which commenced on the date the Act itself commenced. The rule is designed to address situations where the actual supply occurs before the supplier becomes aware of it, ensuring that the Goods and Services Tax (GST) is correctly attributed to the tax period when the consideration is removed from the machine. This rule applies irrespective of whether the supplier accounts on a cash basis. It is important to note that this Determination provides specific guidance on the attribution of GST for certain types of transactions, ensuring clarity and preventing inappropriate application of the GST provisions in these circumstances.
Key Provisions
The A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Banknote and Coin-operated Machines and Similar Devices) Determination (No. 1) 2000, under the A New Tax System (Goods and Services Tax) Act 1999, establishes specific rules for attributing the payment of Goods and Services Tax (GST) in relation to supplies made through banknote or coin-operated machines or similar devices. Specifically, section 3(1) outlines that the GST payable on such a supply is attributed to the tax period in which the consideration is removed from the machine or device, provided the removal of notes and coins from the machine is the only way the supplier knows the consideration has been received. This rule applies regardless of whether the supplier accounts on a cash basis, as stipulated in section 3(2).
This Determination imposes certain obligations on suppliers who use banknote or coin-operated machines or similar devices to receive consideration for their taxable supplies. They must ensure that the GST is attributable to the tax period in which the notes or coins are removed from the machine, as per section 3(1). This requirement is intended to provide clarity and prevent the inappropriate application of GST provisions in cases where the supply occurs before the supplier is aware of it. The obligation extends to all suppliers who meet the criteria outlined in section 3, irrespective of their accounting methods.
Failure to comply with the GST attribution rules set out in this Determination can result in civil or criminal consequences. Although the specific penalties for breaches are not detailed in this Determination, it is important to note that the A New Tax System (Goods and Services Tax) Act 1999 generally provides for penalties for non-compliance with GST obligations. These can include fines, interest on unpaid GST, and potential criminal charges for serious or deliberate breaches. The exact penalties depend on the nature and extent of the non-compliance and are prescribed in other sections of the primary Act.