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

Administered by Department of the Treasury

Legislation au F2017L00421 Not in force Legislative Instrument

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Explanatory Statement

 

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

 

General outline of determination

  1. This 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 determination.
  3. This determination allows a quarry operator to issue recipient created tax invoices (RCTIs) in certain circumstances.
  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 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 this determination is to outline a class of tax invoice (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. These 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 quarry operator that is the recipient of a taxable supply, may issue an RCTI for the taxable supply of the transport of the quarry products where they:

(a) establish the value of the taxable supply, and

(b) satisfy the requirements set out in paragraph 7 of the determination.
 

What is the effect of this determination?

10.  The effect of this determination is to streamline payment and invoicing processes by allowing the recipient 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 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 impact for both implementation and ongoing compliance costs. This 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. 63) 2000 – F2006B11581, (previous determination) registered on 15 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 quarry operators.

 

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 legislative instrument allows a quarry operator that is a recipient of a taxable supply of the transport of quarry products to issue the tax invoice - called a recipient created tax invoice (RCTI) 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 Quarry Operators, enacted under the A New Tax System (Goods and Services Tax) Act 1999, was introduced to address the need for streamlined invoicing processes in the quarrying industry. This legislative instrument, made by the Commissioner of Taxation and approved by the Governor-General, aims to reduce compliance costs by allowing quarry operators who are recipients of taxable supplies to issue recipient created tax invoices (RCTIs) under specific conditions. The policy objective is to balance facilitating practical use of RCTIs by businesses while maintaining the integrity of the GST system. This determination streamlines the invoicing process by enabling the recipient to issue the tax invoice if they can establish the value of the taxable supply and meet the outlined requirements, thereby providing certainty to taxpayers and protecting their rights.

Scope and Application

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Quarry Operators, made under the A New Tax System (Goods and Services Tax) Act 1999, applies to quarry operators who are recipients of taxable supplies of the transport of quarry products. It enables these operators to issue recipient created tax invoices (RCTIs) under specific conditions, facilitating the practical use of RCTIs by businesses while maintaining the integrity of the GST system. This determination applies on a Commonwealth level and came into effect retrospectively on 1 April 2017, allowing for reasonable and appropriate consultation to be completed. It is designed to streamline payment and invoicing processes, reducing compliance costs and ensuring continuity for entities that satisfied the requirements of the previous determination. The application of this determination is further governed by the requirements and factors outlined in the determination itself, which are balanced to reflect both practical business needs and the need to protect the integrity of the GST system.

Key Provisions

The main sections of the Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination 2017 for Quarry Operators (the Determination) outline the conditions under which quarry operators can issue recipient created tax invoices (RCTIs). Under section 9 of the Determination, a quarry operator can issue an RCTI for the taxable supply of the transport of quarry products if they establish the value of the taxable supply and meet the requirements set out in paragraph 7 of the Determination. This streamlines the invoicing process by allowing the recipient with the necessary information to issue the tax invoice. The Determination imposes several obligations on quarry operators who may issue RCTIs. Firstly, they must establish the value of the taxable supply (section 9(a)). Secondly, they must satisfy the requirements outlined in paragraph 7 of the Determination, which include having a GST registration, ensuring the RCTI contains specified details such as the date of issue, the recipient's name and address, and the value of the supply, among others. The Determination also requires that the RCTI be issued in accordance with the general invoicing requirements under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Breaching the requirements of the Determination may result in certain consequences. While the Determination itself does not specify explicit offences or penalties, non-compliance with the GST Act, which governs the overall tax invoicing requirements, could lead to civil or criminal penalties. For example, providing a false or misleading document under the GST Act can result in fines and imprisonment. The specific penalties would depend on the nature and severity of the breach, as outlined in the GST Act. In summary, the Determination simplifies the invoicing process for quarry operators by allowing them to issue RCTIs under certain conditions, provided they meet the specified requirements. Non-compliance with these conditions may lead to penalties under the broader framework of the GST Act. The Determination aims to reduce compliance costs while maintaining the integrity of the GST system.

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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.