A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023

Administered by Department of the Treasury

Legislation au F2023L00342 In force Legislative Instrument

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Explanatory Statement

A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023

 

General outline of determination

  1. This determination is made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 (the Act).
  2. This determination waives the requirement for a recipient making a creditable acquisition through a property manager to hold a tax invoice when they hold a document that meets the requirements prescribed in this determination.
  3. This determination replaces A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Legislative Instrument 2013.
  4. The determination is a legislative instrument for the purposes of the Legislation Act 2003.
  5. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations and by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Date of effect

6.                  This determination commences on the day after it is registered on the Federal Register of Legislation.

 

Effect of this determination

7.                  This determination applies to a recipient making a creditable acquisition through a property manager.

8.                  This determination waives the requirement for a recipient to hold a tax invoice before an input tax credit for a creditable acquisition made through a property manager (on behalf of a principal) is attributable to a tax period. It applies when the recipient holds a document that meets the information requirements specified in the determination.

9.                  The waiver applies in circumstances where, instead of a tax invoice, a recipient holds a document that contains the identity and Australian business number (ABN) of the supplier's property manager, and that otherwise satisfies the requirements in paragraphs 29-70(1)(a) and 29-70(1)(c) of the Act, other than subparagraph 29-70(1)(c)(i). This instrument has the effect of allowing the input tax credit for a creditable acquisition to be attributed at the time the recipient gives a GST return to the Commissioner for the tax period.

 

Compliance cost assessment

10.              Compliance cost impact: Minor – There will be no additional impacts as the instruments are minor and machinery in nature OBPR22-03758.

 

Background

11.              Generally, when a recipient makes a creditable acquisition, an input tax credit for the acquisition is not attributable to a tax period until they hold a tax invoice. A tax invoice is a document that meets the requirements in subsection 29‑70(1) of the Act.

12.              In some cases, the necessity for the recipient to hold a document that meets the requirements in subsection 29-70(1) of the Act may impose a disproportionate burden on a supplier or recipient, particularly if the document that they do hold has most of the required features of a tax invoice.

13.              A supplier’s property manager (when an agent at common law) may issue tax invoices in respect of supplies made or facilitated on behalf of the principal. Where the document contains the property manager’s identity and ABN rather than the supplier’s, the document would not meet the tax invoice requirements set out in subsection 29-70(1) of the Act.

14.              Property managers may act on behalf of the principal, in terms of being authorised to manage the real property of the principal, making or facilitating supplies on behalf of the principal, and issuing tax invoices in respect of supplies of that real property made or facilitated on behalf of the principal.

15.              Where a property manager issues a tax invoice for a supply made on behalf of the supplier that contains the property manager's identity and ABN rather than the supplier's, the document would not meet the tax invoice requirements set out in subsection 29-70(1) of the Act. In these situations, under subsection 29‑10(3) of the Act, an input tax credit for a creditable acquisition would not be attributable to a tax period until the recipient held a document that complied with the tax invoice requirements. It does not matter that the property manager for the supplier may have transacted with the recipient either by disclosing the property manager relationship but without naming the supplier, or by not disclosing either the property manager relationship or the identity of the supplier.

16.              The Commissioner has a discretion under subsection 29-70(1B) of the Act to treat a document as a tax invoice where not all the requirements in subsection 29-70(1) of the Act are met. However, the Commissioner’s discretion under subsection 29-70(1B) of the Act is administrative and can only be exercised on a case-by-case basis.

17.              As such, the Commissioner makes this instrument under subsection 29-10(3) of the Act to ensure that taxpayers do not have to change their administrative practices formed in reliance on past legislative instruments and rulings that are now either withdrawn or repealed.

 

Consultation

18.              Subsection 17(1) of the Legislation Act 2003 requires that the Commissioner be satisfied that appropriate and reasonably practicable consultation has been undertaken before he makes a determination.

19.              Public consultation was undertaken on this instrument for a period of 3 weeks from 25 November 2022 to 16 December 2022 inclusive.

20.              The draft instrument and draft explanatory statement were published on the ATO Legal database, which is publicly available. Publication was advertised via the 'What's new' page on that website, and via the 'Open Consultation' page on ato.gov.au. Major tax and superannuation publishers and associations monitor these pages and include the details in the daily and weekly alerts and newsletters that they provide to their subscribers and members.

21.              No comments were received as part of the consultation process.

 

 

 

Legislative references

A New Tax System (Goods and Services) Tax Act 1999

Acts Interpretation Act 1901

Human Rights (Parliamentary Scrutiny) Act 2011

Legislation 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): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023

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

A taxpayer must generally hold a tax invoice to be able to claim an input tax credit under the A New Tax System (Goods and Services Tax) Act 1999 (the Act). A tax invoice is a document that meets certain requirements under the Act. This determination waives the requirement under the Act to hold a tax invoice before an input tax credit can be claimed in a tax period. This waiver will only apply if the conditions set out in the determination are met. The purpose of this waiver is to reduce the compliance burden for recipients and suppliers.

 

Human rights implications

This legislative instrument does not engage any of the applicable rights or freedoms because it merely waives the requirement to hold a tax invoice in certain circumstances, and replaces it with a requirement to hold a different document or documents that meet alternative conditions.

 

Conclusion

The 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): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023, enacted by the Australian Taxation Office, addresses the burden on recipients who make creditable acquisitions through property managers, ensuring they do not have to hold a tax invoice to claim an input tax credit. This legislative instrument was introduced to provide relief to taxpayers who might otherwise face difficulties in claiming input tax credits due to the requirement of holding a tax invoice, especially when the property manager, rather than the supplier, issues the document. The determination is a legislative instrument for the purposes of the Legislation Act 2003 and was made under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999. The policy objective of this determination is to streamline the tax compliance process, reduce administrative burdens, and ensure that taxpayers are not disadvantaged by the necessity of holding a tax invoice, thereby facilitating smoother operation of the GST system.

Scope and Application

The New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023 applies to recipients making creditable acquisitions through property managers under the A New Tax System (Goods and Services Tax) Act 1999. This waiver exempts recipients from the necessity to hold a tax invoice when they possess a document that satisfies the conditions prescribed within the determination, facilitating the attribution of an input tax credit to a tax period. The document must identify the property manager and contain their Australian Business Number (ABN) while meeting other specified requirements under the Act. This determination ensures consistency with prior legislative instruments, thereby preventing disruptions in established administrative practices of taxpayers. It is a legislative instrument subject to the Legislation Act 2003 and can be amended or repealed in a manner consistent with the Acts Interpretation Act 1901. The determination applies on a Commonwealth level, commencing on the day after its registration on the Federal Register of Legislation.

Key Provisions

The A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023, under subsection 29-10(3) of the A New Tax System (Goods and Services Tax) Act 1999, waives the requirement for a recipient making a creditable acquisition through a property manager to hold a tax invoice, provided they hold a document that meets the prescribed requirements. Specifically, this waiver applies when the recipient holds a document that contains the identity and Australian Business Number (ABN) of the supplier's property manager and satisfies other specific conditions outlined in the Act (sections 7-9). This waiver allows an input tax credit to be attributed at the time the recipient submits their GST return for the tax period. The determination imposes obligations on the parties involved, primarily requiring recipients to ensure that any document they hold in lieu of a tax invoice must contain the identity and ABN of the supplier's property manager and meet the specified criteria. The property manager must also ensure that any documents issued in the context of creditable acquisitions through them contain the necessary information as per the determination. The Commissioner of Taxation has the responsibility to ensure that this determination is applied correctly and consistently across all affected transactions. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of this determination. However, any failure to comply with the requirements set out in the determination may lead to the disallowance of input tax credits for the creditable acquisitions in question. This means that the financial benefit of claiming a tax credit would be lost, which could have significant implications for the taxpayer's GST liabilities.

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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.