Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Horseracing Clubs

Administered by Department of the Treasury

Legislation au F2017L00417 Not in force Legislative Instrument

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Explanatory Statement 

Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Horseracing Clubs
 


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 horseracing club 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 horseracing club that is a recipient of a taxable supply of jockey riding services may issue an RCTI for the taxable supply if they:

(a) establish the value of the taxable supply rather than the supplier; and

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

 

What is the effect of this 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.              This 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 this 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.              The determination replaces A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No. 1A) 2000 – F2006B11599, (previous determination), registered on 20 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 Horseracing Clubs

 

The 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. The determination allows a horseracing club that is a recipient of a taxable supply of jockey riding services to issue the tax invoice (called a recipient created tax invoice) subject to a number of provisos being met.
 

Human rights implications

 

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

 

Conclusion

 

This 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 Horseracing Clubs was enacted to address a gap in the tax system regarding the issuance of tax invoices by recipients of certain services, specifically jockey riding services, within the horseracing industry. This determination was made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, and it outlines circumstances under which horseracing clubs can issue Recipient Created Tax Invoices (RCTIs). The objective of this legislative instrument, which is classified as minor or machinery in nature, is to reduce compliance costs and streamline invoicing processes for affected entities, thereby ensuring minimal impact on both implementation and ongoing compliance. The retrospective application date of 1 April 2017 was chosen to provide certainty to taxpayers and protect their rights, ensuring that no unexpected compliance obligations arise. This legislative instrument was developed following appropriate consultation, as mandated by the Legislation Act 2003, and it is compatible with human rights as it does not raise any human rights issues.

Scope and Application

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Horseracing Clubs applies specifically to horseracing clubs that are recipients of a taxable supply of jockey riding services. This determination, made under the A New Tax System (Goods and Services Tax) Act 1999, allows these horseracing clubs to issue Recipient Created Tax Invoices (RCTIs) in certain circumstances, provided they establish the value of the taxable supply and meet the requirements set out in the determination. The legislation applies across the Commonwealth of Australia and serves to reduce compliance costs by streamlining payment and invoicing processes. The determination came into effect retrospectively on 1 April 2017, allowing for appropriate consultation and providing certainty to taxpayers. It replaces the previous determination from 2006, ensuring that entities meeting the criteria of the old determination will also meet those of the new one. This legislative instrument does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, as it primarily aims to facilitate practical use of RCTIs while maintaining the integrity of the GST system.

Key Provisions

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 (the Determination) primarily outlines the circumstances under which a horseracing club can issue a Recipient Created Tax Invoice (RCTI) (subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)). The Determination permits a horseracing club, as a recipient of a taxable supply of jockey riding services, to issue an RCTI if certain conditions are met, such as establishing the value of the taxable supply and meeting the requirements set out in the Determination (paragraph 9). The primary objective of the Determination is to streamline the payment and invoicing processes by enabling recipients who can establish the value of the taxable supply to issue tax invoices themselves, thereby reducing compliance costs. The Determination imposes several obligations on horseracing clubs. Firstly, they must establish the value of the taxable supply themselves rather than relying on the supplier (subsection 9(a)). Secondly, they must comply with the specific requirements set out in the Determination to ensure the legitimacy and accuracy of the tax invoice (subsection 9(b)). This includes adhering to the general principles of issuing tax invoices under the GST Act, such as including all necessary details like the recipient's and supplier's information, description of the goods or services, value, GST amount, and applicable tax credits. Additionally, the horseracing club must ensure that the RCTI complies with the legal requirements to maintain the integrity of the GST system. There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Determination for non-compliance. However, failure to comply with the requirements for issuing RCTIs could potentially lead to issues such as incorrect GST reporting, which could attract penalties under the GST Act. The GST Act includes provisions for penalties for non-compliance, which can include fines and interest on unpaid GST. The Determination aims to reduce compliance costs by allowing horseracing clubs to issue RCTIs under specific conditions, which indirectly helps in avoiding potential penalties related to incorrect invoicing practices. The Determination is designed to be minor or machinery in nature, implying minimal impact on compliance costs and legal obligations.

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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.