Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 for Demand Side Response Aggregators

Administered by Department of the Treasury

Legislation au F2017L00431 Not in force Legislative Instrument

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Explanatory Statement


Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 for Demand Side Response Aggregators

 

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 instrument.
  3. This determination allows Demand Side Response (DSR) aggregators to issue Recipient Created Tax Invoices (RCTIs) to their suppliers.
  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 the class of tax invoice (called RCTIs) that may be issued by the GST registered recipients of a taxable supply. 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 this determination, a DSR aggregator that is a recipient of a taxable supply of DSR may issue an RCTI for the supply if they:

(a) establish the value of the DSR acquired from the DSR 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 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 that it replaces. An entity that satisfied the requirements of the previous determination and is an aggregator of DSR 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 Invoices Determination (No 1) 2001, F2006L03480 (previous determination), registered on 17 October 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 Invoices Determination 2017 for Demand Side Response Aggregators


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. The legislative instrument allows an aggregator of Demand Side Response (DSR) who is the recipient of a taxable supply of DSR, to issue the tax invoice (called a recipient created tax invoice) subject to a number of provisos.

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 Invoices Determination 2017 for Demand Side Response Aggregators was enacted to streamline the tax invoicing process for Demand Side Response (DSR) aggregators under the A New Tax System (Goods and Services Tax) Act 1999. This determination, made under the authority of the Australian Parliament, aims to address compliance costs and simplify the invoicing process for DSR aggregators by allowing them to issue Recipient Created Tax Invoices (RCTIs) to their suppliers. The determination was introduced to provide clarity and certainty for businesses involved in the DSR sector, ensuring they can issue tax invoices when they have the necessary information to establish the value of the DSR acquired, thus maintaining the integrity of the GST system while facilitating practical use of RCTIs. This legislative instrument is compatible with human rights, as it does not engage any of the applicable rights or freedoms, and it allows for the streamlining of invoicing and payment practices.

Scope and Application

The Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 for Demand Side Response Aggregators applies specifically to Demand Side Response (DSR) aggregators who are recipients of taxable supplies of DSR. This determination, made under the A New Tax System (Goods and Services Tax) Act 1999, allows DSR aggregators to issue Recipient Created Tax Invoices (RCTIs) to their suppliers, provided they meet certain conditions. It applies nationwide and is effective retrospectively from 1 April 2017. This determination replaces the previous A New Tax System (Goods and Services Tax) Act 1999: Classes of Recipient Created Tax Invoices Determination (No 1) 2001, which was repealed from the same date. The effect of this determination is to streamline payment and invoicing processes by enabling DSR aggregators to issue tax invoices if they establish the value of the DSR acquired and satisfy the outlined requirements. The instrument is minor in nature, indicating minimal impact on both implementation and ongoing compliance costs. It is compatible with human rights as it does not engage any of the applicable rights or freedoms, facilitating efficient invoicing practices without raising any human rights issues.

Key Provisions

The Goods and Services Tax: Classes of Recipient Created Tax Invoices Determination 2017 (the Determination) is a legislative instrument made under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) (section 29-70(3)). This Determination allows Demand Side Response (DSR) aggregators to issue Recipient Created Tax Invoices (RCTIs) to their suppliers. This Determination is designed to streamline the invoicing process for DSR aggregators and is effective from 1 April 2017, allowing for a retrospective application to ensure certainty for taxpayers (sections 5, 6, 12(2)). Generally, under the GST Act, tax invoices are issued by the entity that makes the taxable supply (section 7). However, this Determination enables DSR aggregators who are recipients of a taxable supply of DSR to issue an RCTI if they establish the value of the DSR acquired from the supplier and meet the requirements set out in the Determination (section 9). This is intended to facilitate the practical use of RCTIs by businesses while maintaining the integrity of the GST system (section 8). The Determination imposes certain obligations on DSR aggregators. Firstly, they must establish the value of the DSR acquired from the supplier (section 9(a)). Secondly, they must satisfy the requirements set out in the Determination, which include ensuring that the RCTI meets the necessary criteria to be valid under the GST Act (section 9(b)). These obligations aim to ensure that RCTIs issued by DSR aggregators are accurate and compliant with GST regulations, thereby facilitating efficient payment and invoicing processes (section 10). The Determination does not introduce significant compliance costs and is considered minor or machinery in nature (section 12). The Determination does not specify any offences, penalties, or civil/criminal consequences for breach. However, any failure to comply with the requirements for issuing RCTIs could potentially lead to general GST compliance issues, which might result in penalties under the GST Act. The GST Act provides for a range of penalties for non-compliance, including fines and imprisonment for serious offences (GST Act sections 164-10, 164-25). Although the Determination itself does not detail specific penalties, entities must ensure they adhere to the requirements to avoid broader GST compliance issues.

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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.