Goods and Services Tax: Accounting on a cash basis Determination 2017 – Industrial Trade Unions

Administered by Department of the Treasury

Legislation au F2017L00423 In force Legislative Instrument

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Explanatory Statement 

Goods and Services Tax: Accounting on a cash basis Determination 2017 – Industrial Trade Unions
 

 

 

General outline of Instrument

  1. This determination is made under paragraph 29-40(1)(c) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
  2. Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any determination of a legislative or administrative character (including rules, regulations or 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 determination.
  3. This determination specifies industrial trade union enterprises as being a kind of enterprise for which a choice to account on a cash basis under section 29-40 of the GST Act may be made.
  4. This determination is a legislative instrument for the purposes of the Legislation Act 2003.
     

Date of effect

5.      This determination will commence retrospectively on 1 April 2017. This is to allow for reasonable and appropriate consultation to be completed.

 

6.      Subsection 12(2) of the Legislation Act 2003 allows a retrospective application date for a Legislative Instrument. This determination aims to reduce compliance costs.  A commencement date after 1 April 2017 would create unexpected compliance obligations for the intervening period. To provide certainty to taxpayers who have relied upon the previous determination and continue to rely on this determination and protect the rights of all affected taxpayers the retrospective application date is reasonable and appropriate. The retrospective application date will not adversely affect the rights of any person and will not impose a liability on any person for any act or omission before this instrument’s registration date.
 

What is this determination about?

7.      Section 29-40 of the GST Act provides that an entity can choose to account for GST on a cash basis where the conditions specified in subsection 29-40(1) are satisfied.

 

8.      The determination specifies industrial trade unions as being a kind for which a choice to account on a cash basis under section 29-40 of the GST Act may be made. An industrial trade union may elect to account for GST on a cash basis even when it does not satisfy any one of the conditions in subsection 29-40(1).

What is the effect of the determination?

9.      This determination specifies industrial trade unions as being a kind of enterprise for which a choice to account on a cash basis under section 29-40 of the GST Act may be made.
 

10.  This determination is substantially the same as the previous determination it replaces.  An entity that satisfied the requirements of the previous determination will  satisfy the requirements of this determination.
 

11.  Compliance cost impact:  Minor – there will be no or minimal impact for both implementation and ongoing compliance costs. The determination is minor or machinery in nature.

Background

12.    The determination replaces A New Tax System (Goods and Services Tax) Act 1999 Accounting on a cash basis Determination – Industrial Trade Unions - F2006B11576 (previous determination), registered on 14 November 2006. The previous determination is repealed from 1 April 2017.

Consultation

13.    Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the rule-maker is satisfied that appropriate and reasonably practicable consultation has been undertaken.

14.    Broad consultation has been undertaken. The draft determination and draft explanatory statement were published on the ATO Legal database at ato.gov.au seeking feedback and comments for a period of two weeks. Notice of the draft determination was also published to ato.gov.au and subscription alerts issued. Tax professionals and tax associations regularly review both the Legal database and ato.gov.au and further promulgate advice of new drafts issued in their internal news bulletins. The major legal publishers also publish news of the drafts in their key tax alerting services - such as the Weekly Tax Bulletin (published by Thomson Reuters Australia) and Tax Tracker and Tax Week (published by CCH Australia).  Additionally, draft determinations and draft explanatory statements have been published on the ATO Consultation Hub.  Links to these drafts were published organisations and newsletters such as the Taxation News (Chartered Accountants Australia and New Zealand) weekly bulletin. No comments have been received to date.

 

Legislative references

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

Acts Interpretation Act 1901

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011

 


 

Statement of Compatibility with Human Rights

 

This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Goods and Services Tax: Accounting on a cash basis Determination 2017 – Industrial Trade Unions

 

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

 

Generally, to elect to account for GST on a cash basis, an entity must satisy one of the requirements in paragraphs 29-40(1)(a), 29-40(1)(ab) or 29-40(1)(b) of the the A New Tax System (Goods and Services Tax) Act 1999. This legislative instrument determines industrial trade union enterprises as being enterprises of a kind for which an election to account on a cash basis may be made.

 

Human rights implications

 

This legislative instrument does not engage any of the applicable rights or freedoms. It allows for industrial trade unions to elect to account for GST on a cash basis.

 

Conclusion

 

This legislative instrument is compatible with human rights as it does not raise any human rights issues.

 

 

Overview

The Goods and Services Tax: Accounting on a Cash Basis Determination 2017, enacted to streamline tax accounting processes for industrial trade unions, was introduced to address the need for flexibility in accounting methods for certain entities under the A New Tax System (Goods and Services Tax) Act 1999. This legislative instrument was made by the Australian Taxation Office (ATO) and is intended to reduce compliance costs by providing a choice for industrial trade unions to account for GST on a cash basis, even if they do not meet the typical criteria set out in the Act. The determination aims to provide certainty to taxpayers, ensuring that those who have relied on previous provisions continue to do so without unexpected obligations. It is designed to have a minimal impact on compliance costs, maintaining the integrity and rights of taxpayers while offering a practical accounting method.

Scope and Application

The Goods and Services Tax: Accounting on a Cash Basis Determination 2017 – Industrial Trade Unions applies specifically to industrial trade unions, providing them with the option to account for GST on a cash basis under section 29-40 of the A New Tax System (Goods and Services Tax) Act 1999. This determination was made under the authority conferred by the GST Act and is applicable on a Commonwealth level. It provides a legislative basis for industrial trade unions to elect cash basis accounting for GST, irrespective of whether they meet the typical conditions specified in subsection 29-40(1). The instrument is designed to reduce compliance costs and was implemented with a retrospective application date of 1 April 2017 to ensure there was no unexpected compliance burden during the intervening period and to maintain certainty for taxpayers relying on the previous determination. This determination replaces the earlier Goods and Services Tax: Accounting on a Cash Basis Determination – Industrial Trade Unions from 2006, ensuring continuity in policy and application. The legislative instrument also complies with the Human Rights (Parliamentary Scrutiny) Act 2011, confirming that it does not engage any of the applicable rights or freedoms.

Key Provisions

The Goods and Services Tax: Accounting on a Cash Basis Determination 2017 – Industrial Trade Unions (the Determination) primarily specifies that industrial trade unions can elect to account for GST on a cash basis under section 29-40 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) (section 9). This choice is available even if the industrial trade union does not meet the general conditions specified in subsection 29-40(1) of the GST Act. The Determination applies retrospectively from 1 April 2017, to ensure taxpayers who have relied on the previous determination are not adversely affected and to avoid unexpected compliance obligations during the transition period (sections 5 and 6). Industrial trade unions that choose to account for GST on a cash basis must comply with the specific requirements set out in section 29-40 of the GST Act, including the rules for reporting and accounting for GST (section 29-40). The Determination specifies that these entities can make the election regardless of whether they meet the general conditions stipulated in subsection 29-40(1) of the GST Act. This means that industrial trade unions can opt for the cash basis of accounting without needing to satisfy the conditions related to their annual turnover or the nature of their GST-free supplies. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for failure to comply with its provisions. However, any breach of the GST Act related to the cash basis of accounting could lead to penalties under that Act. For instance, failure to comply with the GST Act can result in civil penalties, including fines up to 50% of the GST not accounted for, and in some cases, criminal penalties for serious or repeated breaches (section 28-10 and section 28-15 of the GST Act). The Determination itself does not introduce new penalties but rather aligns with the existing framework of the GST Act. The Determination aims to reduce compliance costs for industrial trade unions by allowing them to account for GST on a cash basis without meeting the general conditions. This simplification is expected to have a minimal impact on both implementation and ongoing compliance costs for affected entities (section 11). By specifying industrial trade unions as eligible for this election, the Determination provides certainty and protects the rights of taxpayers who have relied on the previous provisions. The retrospective application ensures that there are no unexpected compliance burdens imposed on taxpayers during the transition period. Overall, the Goods and Services Tax: Accounting on a Cash Basis Determination 2017 – Industrial Trade Unions provides a clear framework for industrial trade unions to opt for cash basis accounting for GST, simplifying their compliance obligations and ensuring they can make this election without meeting the general conditions. The Determination’s retrospective application date and minimal compliance cost impact further support its aim of facilitating smoother tax administration for these entities.

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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.