Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators

Administered by Department of the Treasury

Legislation au F2017L00418 Not in force Legislative Instrument

Legislation content

Explanatory Statement 

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators

 

General outline of determination

  1. The determination is made under subsection 29-70(3) 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 instrument 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 instrument.
  3. The determination allows a caravan park operator to issue recipient created tax invoices (RCTIs) in certain circumstances.
  4. The 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 the determination about?

7.                  Generally, under the GST Act, tax invoices are issued by the entity that makes the taxable supply.

8.                  The purpose of the determination is to outline a class of tax invoices (called RCTIs) that the Commissioner has determined may be issued by GST registered recipients of taxable supplies. The Commissioner makes the determination by taking into account a number of factors including the type of industry, the taxable supply, GST turnover of the recipient and certain requirements for issuing RCTIs. The factors reflect a balance between facilitating the practical use of RCTIs by businesses and maintaining the integrity of the GST system.

9.                  In accordance with the determination, a caravan park operator that is a recipient of a taxable supply of caravan park management services may issue an RCTI for the taxable supply where they:

(a) establish the value of the taxable supply using a calculation process; and

(b) satisfy the requirements set out in paragraph 6 of the determination.

 

What is the effect of the determination?

10.              The effect of the determination is to streamline payment and invoicing processes by allowing the recipient of a taxable supply, that has the information to establish the value of the taxable supply, to issue the tax invoice.  

11.              The determination is substantially the same as the previous determination that it replaces. An entity that satisfied the requirements of the previous determination will satisfy the requirements of the determination.

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

Background

13.              This determination replaces A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 15) 2000 – F2006B00662 (previous determination) registered on 2 November 2006. The previous determination is repealed from 1 April 2017.

 

Consultation

14.   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.

15.  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 in 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: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators.

 

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, tax invoices are issued by a supplier under the basic rules for GST. This determination allows a caravan park operator that is a recipient of a taxable supply of caravan park management services to issue the tax invoice called a recipient created tax invoice subject to a number of provisos.
 

Human rights implications

 

The legislative instrument does not engage any of the applicable rights or freedoms. It allows for the streamlining of invoicing and payment practices.

 

Conclusion

 

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

 

 

 

Overview

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators, enacted under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, addresses the issue of allowing caravan park operators to issue recipient created tax invoices (RCTIs) under specific conditions. The determination, which commenced retrospectively on 1 April 2017, is designed to streamline payment and invoicing processes while maintaining the integrity of the GST system. It was introduced to reduce compliance costs by allowing caravan park operators who can establish the value of the taxable supply to issue RCTIs, provided they meet certain criteria outlined in the determination. The policy objective is to facilitate practical use of RCTIs by businesses while ensuring compliance with GST regulations. The determination is a legislative instrument made under the Legislation Act 2003 and aims to replace the previous Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 15) 2000, which was repealed from 1 April 2017. The enactment process involved appropriate consultation, with the draft determination and explanatory statement published on the ATO Legal database and various professional newsletters to gather feedback. The statement of compatibility with human rights confirms that the legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators applies to caravan park operators who are recipients of taxable supplies of caravan park management services. This determination allows such operators to issue recipient created tax invoices (RCTIs) under certain conditions, primarily where they establish the value of the taxable supply through a specified calculation process and meet the requirements outlined in the determination. The legislative instrument operates within the framework of the A New Tax System (Goods and Services Tax) Act 1999, and it replaces the previous A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 15) 2000, effective from 1 April 2017. The determination aims to streamline payment and invoicing processes while maintaining the integrity of the GST system. This retrospective application date ensures certainty for taxpayers who have relied on the previous determination and protects their rights without imposing new liabilities. The instrument is minor in nature and is expected to have minimal impacts on both implementation and ongoing compliance costs.

Key Provisions

The primary sections of the Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Caravan Park Operators (the "Determination") allow caravan park operators who are recipients of taxable supplies of caravan park management services to issue recipient created tax invoices (RCTIs). This is stipulated under subsection 9(a) and (b) of the Determination, which requires the operator to establish the value of the supply using a calculation process and satisfy the requirements outlined in paragraph 6 of the Determination. The Determination aims to streamline invoicing processes by permitting recipients with the necessary information to issue tax invoices, as detailed in subsection 10. The Determination imposes specific obligations on caravan park operators who wish to issue RCTIs. Firstly, the operator must establish the value of the taxable supply using a prescribed calculation process, as required under subsection 9(a). Secondly, the operator must meet the conditions outlined in paragraph 6 of the Determination, which likely include maintaining accurate records, providing the tax invoice to the supplier within a specified timeframe, and adhering to other stipulated requirements. Failure to meet these obligations could result in the RCTI not being recognised as a valid tax invoice for GST purposes. Breaches of the Determination's provisions could result in penalties and consequences for the caravan park operator. While the Determination does not explicitly state penalties, it is made under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and the Acts Interpretation Act 1901, which provide for penalties for non-compliance with tax laws. Under the GST Act, penalties for non-compliance can include fines up to 50 penalty units ($10,150 as of 2023) per offence for individuals and significantly higher for corporations, along with potential criminal charges for serious or repeated breaches. Additionally, the operator may face civil consequences such as being unable to claim input tax credits for the taxable supply, leading to higher overall tax 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.