Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 14) 2015

Administered by Department of the Treasury

Legislation au F2015L01567 Not in force Legislative Instrument

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Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No.14) 2015

 

Explanatory Statement

 

General Outline of Instrument

  1. This determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999.
  2. The determination allows a recipient of a defined commission and/or fee based service to issue Recipient Created Tax Invoices (RCTIs) to the supplier if the recipient determines the value of the taxable supply.
  3. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Date of effect

4.      The instrument commences on the day after registration.

5.      The instrument does not apply retrospectively.

 

What is this instrument about:

6.      The purpose of this instrument is to outline a class of tax invoices that the Commissioner has determined may be issued by recipients of taxable supplies. The Commissioner makes the determination by taking account of 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.

7.      A tax invoice that belongs to a class of tax invoices for a taxable supply of a defined commission and/or fee based service, may be issued by a recipient, where:

  • the recipient establishes the value of the service acquired from the supplier; and
  • the recipient satisfies the requirements set out in Clause 6 of the legislative instrument.

 

What is the effect of this instrument:

8.      The effect of this instrument is to allow recipients of a defined commission and/or fee based service to issue RCTIs to the supplier. The recipient of the service has the expertise, knowledge and access to the relevant rates and information to accurately calculate the value of the taxable supply. This instrument allows them to streamline their current invoicing and payment practices.

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

 

Background:

10.  This instrument replaces A New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice (RCTI) in relation to an agent or broker in respect of general insurance business Determination (No 44) 2000. The replaced instrument is repealed on the commencement of this determination.

 

Consultation:

11.  Section 18 of the Legislative Instruments Act 2003 specifically provides for circumstances where consultation may not be necessary or appropriate.  One of those circumstances is where the instrument is considered minor or machinery in nature, and does not substantially change the law. 

12.  Because there is no substantive change from the previous instrument therefore the instrument is considered minor or machinery in nature.

13.  As such, no further consultation has been undertaken in the development of this instrument.

 

 

 

James O’Halloran

Deputy Commissioner of Taxation

15 September 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (No. 14) 2015

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

This Legislative Instrument allows the recipient of a defined commission and/or fee based service to issue Recipient Created Tax Invoices (RCTIs) to service providers, if the recipient determines the value of the taxable supply, and the requirements of the legislative instrument are satisfied.

Human rights implications

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

Conclusion

This 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 (No. 14) 2015 was enacted to address the need for flexibility in the invoicing process for services involving commissions and fees. This legislative instrument, made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, aims to balance the practical use of Recipient Created Tax Invoices (RCTIs) by businesses with the integrity of the GST system. It was introduced by the Commissioner of Taxation and seeks to allow recipients of commission and/or fee-based services to issue RCTIs to suppliers when the recipient determines the value of the taxable supply and meets specified requirements. This approach streamlines invoicing and payment practices for businesses while maintaining compliance and ensuring minimal disruption to existing processes.

Scope and Application

The Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No.14) 2015 is a legislative instrument created under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, which enables recipients of specific commission and/or fee-based services to issue Recipient Created Tax Invoices (RCTIs) to their suppliers. This applies to recipients who accurately determine the value of the taxable supply they receive and meet the stipulated requirements set out in Clause 6 of the instrument. The instrument is designed to facilitate practical invoicing and payment processes for businesses while maintaining the integrity of the GST system. It has a minor compliance cost impact and does not substantially alter existing law, hence no consultation was deemed necessary during its development. The instrument does not engage any of the applicable rights or freedoms and is compatible with human rights as it does not raise any human rights issues.

Key Provisions

The main operative sections of the Goods and Services Tax: Classes of Recipient Created Tax Invoice Determination (No. 14) 2015 (the Determination) provide that recipients of a defined commission and/or fee-based service may issue a Recipient Created Tax Invoice (RCTI) to the supplier if the recipient determines the value of the taxable supply and meets certain requirements (section 6). This allows recipients who have the necessary expertise and access to relevant rates to accurately calculate the value of the service they have acquired to streamline their invoicing and payment practices. The Determination imposes certain obligations and requirements on the parties it governs. Recipients of the taxable supply must establish the value of the service acquired from the supplier and satisfy the requirements set out in Clause 6 of the Determination (section 7). This includes ensuring that the RCTI includes all the details required by the A New Tax System (Goods and Services Tax) Act 1999, such as the date of supply, the value of the supply, the GST amount, and the supplier's and recipient's details. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. However, failure to comply with the requirements for issuing an RCTI may result in the RCTI not being accepted as a valid tax invoice for GST purposes. This could potentially lead to issues with input tax credits and other GST-related matters. It is important to note that the Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003, and therefore, any breach of its provisions may be subject to the general legal consequences under that Act.

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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.