A New Tax System (Goods and Services Tax) Rules for Applying Subdivision 66-B Determination (No. 1) 2000

Administered by Department of the Treasury

Legislation au F2005B01877 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 66-70(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999 I make the following determination:

 

Citation

 

 1.  This determination may be cited as the A New Tax System (Goods and Services Tax) Rules for Applying Subdivision 66-B Determination (No. 1) 2000. 

 

Commencement

 

2. (1)  This determination is taken to have commenced on 1 July 2000 which is the date the A New Tax System (Goods and Services Tax) Act 1999 commenced.

 

(2)  This determination does not revoke or vary any previous determination made by the Commissioner.

 

Application of determination

 

 3.  This determination does not apply to second-hand goods that Subdivision 66-B already applies to, nor does it affect the operation of the Subdivision in relation to those goods.

 

4.                    This determination applies to second-hand goods of a kind specified in

Clause 6 that a GST registered entity acquires for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business.

 

 5.  This determination does not apply to second-hand goods of a kind specified in Clause 6 where:

(a)                 the consideration provided by the entity for the acquisition, is more than               $1,000 and Subdivision 66-A would apply to the acquisition if this               determination did not apply; or

(b)                 the supply of the goods to the entity was GST-free; or

(c)                 the supply of the goods to the entity was a supply by way of hire; or

(d)                 the entity has included, or will include, the amount of an input tax credit               for the acquisition as part of its net amount for the purposes of section               17-5 or any other section of the Act; or

(e)                 the entity imported the goods, where the importation was not a taxable               importation; or

(f)                  the goods acquired or part of the goods acquired, other than by way of a               taxable supply or a taxable importation, are subsequently supplied as a               supply that is not a taxable supply.

 

Specified kinds of second-hand goods to which this determination applies

 

 6.  The following second-hand goods are the kind specified to which this determination applies:

(a)                 an aircraft;

(b)                 an antique;

(c)                 a bag, carry case, suitcase or similar item;

(d)                 a boat, ship or other marine craft;

(e)                 a book, newspaper, magazine, folio, manuscript or other printed               material;

(f)                  bric-a-brac;

(g)                 building materials;

(h)                 clothing or shoes;

(i)                   a coin, medallion or other numismatic item;

(j)                   a collectable;

(k)                 a compact disc, DVD, record, video or audio cassette;

(l)                   a cot, pram, stroller, safety seat or other item designed for infants;

(m)               computer hardware or software;

(n)                 a container;

(o)                 an electrical appliance or item of electrical equipment;

(p)                 electronic equipment;

(q)                 a firearm;

(r)                  furniture;

(s)                  furnishings;

(t)                   a gardening tool or equipment;

(u)                 equipment used for hobbies;

(v)                 household ware including kitchenware or a bathroom fitting;

(w)               jewellery or personal accessory (including spectacles or a watch);

(x)                 machinery, tool, implement, apparatus or equipment;

(y)                 a medical or health aid or appliance;

(z)                 a motor vehicle or any other form of vehicle including non-powered               vehicle such as a bicycle or a horse drawn vehicle;

(aa)        a musical instrument;

(bb)        an ornament or decorative item;

(cc)        an item used for outdoor recreation;

(dd)        a personal item or appliance;

(ee)                  a print, photograph, etching, drawing, painting, sculpture or other               similar work of art;

(ff)                   photographic equipment;

(gg)                 scrap materials;

(hh)                 sports equipment;

(ii)                    a trailer or caravan;

(jj)                    a stamp or label;

(kk)                 telephonic equipment including a mobile phone or answering               machine;

(ll)                    a toy or game;

(mm)   a weapon;

(nn)                 a writing implement or stationery; or

(oo)                 a part, accessory or component of any of the above.

 

 

Acquisitions of second-hand goods to which Subdivision 66-B applies under this determination

 

7.  Subdivision 66-B will apply to acquisitions of second-hand goods of a kind specified in Clause 6, other than those acquisitions excluded from this determination by Clause 5, to the extent that the entity chooses that the acquisitions will be covered by Subdivision 66-B, providing:

 

(a)                 the input tax credit attributable to the acquisition is added to the entity’s               total Subdivision 66-B credit amount; and

 

(b)                 the GST payable on the subsequent supply of the goods is calculated in               accordance with sections 66-45 and 66-50 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.

 

 

Dated this 6th day of November 2000.

 

 

Signed by Tracey Mellick

Assistant Commissioner

GST Law and Interpretation

Delegate of the Commissioner

 

Overview

The A New Tax System (Goods and Services Tax) Act 1999 was enacted to implement a broad-based consumption tax in the form of a Goods and Services Tax (GST) across Australia. This Act was introduced to address the need for a unified national tax system that could replace the previous fragmented system of state-based taxes and provide a more equitable and efficient tax framework. The Act was enacted by the Parliament of Australia, aiming to streamline the tax system and provide a consistent tax regime across the country. The policy objective behind the Act was to create a simpler and more efficient tax system that would ultimately benefit businesses and consumers by reducing the compliance burden and promoting economic efficiency. This legislative instrument, the A New Tax System (Goods and Services Tax) Rules for Applying Subdivision 66-B Determination (No. 1) 2000, was issued under the authority of the Act to provide specific rules for the application of the GST to certain acquisitions of second-hand goods, ensuring clarity and consistency in the implementation of the tax system.

Scope and Application

The A New Tax System (Goods and Services Tax) Rules for Applying Subdivision 66-B Determination (No. 1) 2000 applies to GST registered entities that acquire second-hand goods for the purposes of sale or exchange in the ordinary course of business. These goods must be of the specified kinds listed in Clause 6, which include aircraft, antiques, books, clothing, medical aids, motor vehicles, musical instruments, sports equipment, and many other categories. However, this determination does not apply to second-hand goods that are already subject to Subdivision 66-B, nor does it affect the operation of the Subdivision in relation to those goods. Additionally, the determination excludes certain acquisitions such as those where the consideration is over $1,000, GST-free supplies, supplies by way of hire, supplies where an input tax credit has been included in the net amount, non-taxable importations, and supplies that are not taxable. The rules extend their application through subordinate instruments, as indicated in the definition section, where certain expressions are defined for the purposes of this determination.

Key Provisions

This determination outlines specific provisions for applying Subdivision 66-B of the A New Tax System (Goods and Services Tax) Act 1999 to the acquisition of second-hand goods. According to section 4, this applies to second-hand goods of a kind specified in Clause 6 that a GST-registered entity acquires for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business. Section 5 details exceptions to this application, including acquisitions where the consideration is over $1,000 or the supply of goods was GST-free or by way of hire, among other scenarios. The Act imposes several obligations on GST-registered entities that acquire second-hand goods as defined. Firstly, they must ensure that the input tax credit attributable to the acquisition is added to their total Subdivision 66-B credit amount, as stated in section 7(a). Secondly, entities must calculate the GST payable on the subsequent supply of the goods in accordance with sections 66-45 and 66-50 of the Act, as per section 7(b). These requirements ensure that the entities properly account for the GST implications of their transactions. Breach of the provisions outlined in this determination may lead to various consequences. While specific offences, penalties, or consequences are not detailed in this excerpt, general provisions within the A New Tax System (Goods and Services Tax) Act 1999 may apply. For instance, failure to comply with the Act can result in civil or criminal penalties, including fines and imprisonment. The maximum penalties for tax evasion or fraudulent behaviour can be significant, reflecting the seriousness with which non-compliance is treated under Australian tax law.

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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.