A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Cooling off Periods) Determination (No. 1) 2000

Administered by Department of the Treasury

Legislation au F2006B11605 Not in force Legislative Instrument

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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)(c) 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, but still being subject to a statutory cooling off period under an Australian law:

 

Citation

 

1. This Determination is the A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Cooling off Periods) 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 still subject to a statutory cooling off period under an Australian law

 

3.                  (1)              If you do not account on a cash basis and you make a taxable supply subject to a statutory cooling off period under an Australian law, then the GST payable on the supply is attributable to the earlier of:

(a) the tax period in which any of the consideration is received for               the supply; or

(b) the tax period in which an invoice is issued relating to the supply.

(2) However, if the GST payable on the supply would be attributable under subclause (1) to a tax period that ends before the cooling off period expires, then the GST payable is attributable to the tax period in which the cooling off period expires.

 

4. (1) If you account on a cash basis and you make a taxable supply subject to a statutory cooling off period under an Australian law, then the GST on the supply is attributable to:

(a) if, in a tax period, all of the consideration for the supply is received – the tax period in which that consideration is received; or

(b)              if, in a tax period, part of the consideration is received – the tax period in which part of the consideration is received, but only to the extent that the consideration is received in that tax period.

(2) However, if some or all of the GST payable on the supply (the relevant GST payable) would be attributable under subclause (1) to a tax period or tax periods that end before the cooling off period expires, then the relevant GST payable is attributable to the tax period in which the cooling off period expires.

 

Particular attribution rule for input tax credits arising from a creditable acquisition still  subject to a statutory cooling off period

 

5. (1) If you do not account on a cash basis and you make a creditable acquisition subject to a statutory cooling off period under an Australian law, then the input tax credit to which you are entitled for the acquisition is attributable to the earlier of:

(a)               the tax period in which you provide any of the consideration for the acquisition; or

(b)              the tax period in which an invoice is issued relating to the acquisition.

(2)       However, if the input tax credit for the acquisition would be attributable under subclause (1) to a tax period that ends before the cooling off period expires, the input tax credit is attributable to the tax period in which the cooling off period expires.

 

6. (1) If you account on a cash basis and you make a creditable acquisition subject to a statutory cooling off period under an Australian law, then the input tax credit to which you are entitled for the acquisition is attributable to:

(a)               if, in a tax period, you provide all of the consideration for the acquisition – the tax period in which that consideration is provided; or

(b)              if, in a tax period, you provide part of the consideration – the tax period in which part of the consideration is provided, but only to the extent that the consideration is provided in that tax period.

(2) However, if some or all of the input tax credit (the relevant input tax credit) would be attributable under subclause (1) to a tax period or tax periods that end before the cooling off period expires, then the relevant input tax credit is attributable to the tax period in which the cooling off period expires.

 

7.      To avoid doubt, this determination is not intended to override subsection 29-10(3) or Division 156 of the Act.

 

 


Definitions

 

8. (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) (Particular Attribution Rules for Cooling off Periods) Determination (No. 1) 2000, enacted under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999, addresses the issue of attributing Goods and Services Tax (GST) liabilities and credits when a supply or acquisition is subject to a statutory cooling off period. The problem it aims to resolve is the potential misalignment between the timing of GST liabilities and credits and the statutory cooling off periods that may extend beyond the usual tax accounting periods. This determination ensures that the GST treatment aligns with the cooling off periods, preventing inappropriate application of GST rules in such circumstances. The objective of the determination is to clarify the attribution of GST liabilities and credits in situations where a cooling off period is applicable, thereby ensuring that the GST treatment is consistent with the cooling off period under Australian law.

Scope and Application

The A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Cooling off Periods) Determination (No. 1) 2000 is a legislative instrument that aims to address the application of the A New Tax System (Goods and Services Tax) Act 1999 in circumstances involving a supply or acquisition that is subject to a statutory cooling off period under Australian law. This determination applies to both taxable supplies and creditable acquisitions, and it modifies the attribution rules for Goods and Services Tax (GST) payable and input tax credits for such transactions. The rules apply to entities that do not account on a cash basis and those that do, providing specific guidelines on when the GST payable or input tax credit is attributable depending on whether consideration is received or provided and whether the cooling off period has expired. The determination does not override other provisions of the Act and is intended to ensure that the application of GST is appropriate in the context of statutory cooling off periods.

Key Provisions

The A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Cooling off Periods) Determination (No. 1) 2000 establishes specific rules for attributing Goods and Services Tax (GST) payable on taxable supplies and input tax credits on creditable acquisitions that are subject to statutory cooling-off periods under Australian law. Under section 3, if a taxable supply is made and is subject to a statutory cooling-off period, the GST payable on the supply is attributable to either the tax period in which any of the consideration is received or the tax period in which an invoice is issued, unless the cooling-off period expires earlier. If the GST payable would otherwise be attributable to a tax period that ends before the cooling-off period expires, it is instead attributed to the tax period in which the cooling-off period expires. Section 4 provides similar rules for businesses accounting on a cash basis, attributing GST payable to the tax period in which consideration is received, but also adjusting for the cooling-off period. Entities governed by this determination must comply with these attribution rules when making taxable supplies or creditable acquisitions subject to statutory cooling-off periods. This involves correctly determining the tax period to which the GST or input tax credit is attributable, ensuring that the timing of consideration received or provided aligns with the cooling-off period stipulations. Section 5 outlines that if a creditable acquisition is subject to a statutory cooling-off period, the input tax credit is attributable to either the tax period in which any consideration is provided or the tax period in which an invoice is issued. Similar to taxable supplies, if the input tax credit would otherwise be attributable to a tax period that ends before the cooling-off period expires, it is instead attributed to the tax period in which the cooling-off period expires. The determination also specifies, under section 6, that for creditable acquisitions, if a business accounts on a cash basis, the input tax credit is attributable to the tax period in which consideration is provided. This attribution is adjusted if the cooling-off period expires before the tax period in which the credit would otherwise be attributed. It is crucial for entities to maintain accurate records and apply these rules meticulously to avoid any misattribution of GST liabilities or credits. Failure to comply with the provisions of this determination may result in incorrect GST reporting, potentially leading to civil or criminal consequences. The maximum penalties for non-compliance with GST laws can include fines and imprisonment. Specifically, for serious or repeated non-compliance, individuals may face fines of up to $22,200 and imprisonment for up to two years, while corporations may face fines of up to $111,000 under section 29-1 of the A New Tax System (Goods and Services Tax) Act 1999. Additionally, officers of the entity may also face personal liability for breaches, further underscoring the importance of adherence to these rules.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.