Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015

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Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015

 

Explanatory Statement

 

General Outline of Instrument

  1. This determination is made under subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901.
  2. The determination allows an extension of time for a Public Utility Provider who is an electricity retailer to issue an adjustment note.
  3. The determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Date of effect

4.      The determination commences on the day after registration.

5.      The determination does not apply retrospectively.

 

What is this instrument about

6.      The purpose of this determination is to outline the extension of time that the Commissioner has determined for a Public Utility Provider who is an electricity retailer to issue an adjustment note.

7.      A Public Utility Provider who is an electricity retailer would normally issue tax invoices to their customers for the provision of services over a period of about 3 months. The issuing of the tax invoice would generally follow the reading of the recipient’s meter.

8.      Under paragraph 29-75(2)(b) of the A New Tax System (Goods and Services Tax) Act 1999, if a gas retailer has issued a tax invoice and becomes aware of an adjustment to the taxable supply, and it’s before an adjustment note is requested by the recipient, the gas retailer must give the recipient an adjustment note within 28 days.

9.      However, under subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999, the Commissioner can specify a different number of days in relation to certain circumstances.

10.  Therefore, under this determination the gas retailer has the earlier of 98 days from becoming aware of an adjustment or when they issue the next tax invoice, to issue an adjustment note to the recipient.

11.  This extension of time only applies if the customer did not request an adjustment note. If the customer did request an adjustment note then the normal timeframe of 28 days from receipt of the request would apply.

 

What is the effect of this instrument

12.  The effect of this determination is to provide extra time for a Public Utility Provider who is an electricity retailer to issue an adjustment note where there is no customer’s request for an adjustment note.

13.  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

14.  This determination replaces the A New Tax System (Goods and Services Tax) Act 1999 Extension of Time to issue An Adjustment Determination (No. 78) 2000. The replaced instrument is repealed on the commencement of this determination.

 

Consultation:

15.  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.

16.  There is no substantive change from the previous instrument therefore the instrument is considered minor or machinery in nature.

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

 

 

 

James O’Halloran

Deputy Commissioner of Taxation

15 September 2015

 

Legislative references:

A New Tax System (Goods and Services Tax) Act 1999

Acts Interpretation Act 1901

Legislative Instruments 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: Extension of Time to Issue An Adjustment Note Determination (No. 36) 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 a Public Utility Provider who is an electricity retailer to extend the time in which they must issue an adjustment note to the earlier of when the next invoice would normally issue or 98 days from when they became aware of the adjustment.  Generally a supplier would be required to issue an adjustment note within 28 days of becoming aware of the adjustment, however, the Commissioner can specify a different number of days in certain circumstances.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms as it is considered to be minor or machinery in nature and does not substantially change the law.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015 was introduced to address the need for an extension in the timeframe for electricity retailers, who are Public Utility Providers, to issue adjustment notes to their customers. This legislative instrument was enacted under the authority of subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901 by the Commissioner of Taxation, as part of the Commonwealth Parliament’s legislative instruments. The primary policy objective is to provide flexibility for electricity retailers by allowing them more time to issue adjustment notes in specific circumstances, thereby easing compliance burdens without substantially altering the existing legislative framework. The determination allows the electricity retailer up to 98 days from becoming aware of an adjustment, or until the next tax invoice issuance, to issue an adjustment note, provided the customer has not requested one. This extension is intended to be a minor adjustment to the legislative regime, with minimal impact on compliance costs.

Scope and Application

The Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015 applies specifically to Public Utility Providers who are electricity retailers, allowing them to extend the timeframe for issuing an adjustment note under certain conditions. This legislation operates within the framework of the A New Tax System (Goods and Services Tax) Act 1999 and is designed to provide flexibility in the administration of tax adjustments for electricity services. The determination applies to the Commonwealth of Australia and provides an extension to the usual 28-day period for issuing an adjustment note, allowing the retailer up to 98 days from when they became aware of the adjustment, or the earlier of when the next invoice would normally issue, provided no adjustment note has been requested by the customer. This legislative instrument does not apply retrospectively and is minor in nature, meaning it does not substantially alter the existing legal requirements, and therefore did not require further consultation beyond what was deemed necessary under the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Goods and Services Tax: Extension of Time to Issue an Adjustment Note Determination (No. 36) 2015 provide an extension of time for Public Utility Providers who are electricity retailers to issue adjustment notes under specific conditions. Under section 10, the determination allows the electricity retailer to have up to 98 days from the time they become aware of an adjustment to issue an adjustment note to the recipient, provided the recipient has not already requested an adjustment note. This timeframe is the earlier of 98 days from the date of awareness or the date when the next tax invoice is due to be issued. If the customer requests an adjustment note, the standard 28-day period applies from the date of the request, as per section 8. The determination also specifies that it does not apply retrospectively, starting from the day after its registration, as outlined in section 4. The obligations imposed by the Act on the parties it governs primarily involve ensuring compliance with the extended timeframe for issuing adjustment notes. Electricity retailers, who are the primary entities affected by this determination, must adhere to the specified conditions to avoid penalties or repercussions. If they become aware of an adjustment to a taxable supply, they must issue an adjustment note within 98 days, barring any request from the recipient. The determination aims to provide clarity and flexibility in the timeframe for issuing adjustment notes, ensuring that the process is fair and manageable for the retailers while maintaining compliance with GST regulations. Any breaches of the provisions outlined in the determination can lead to civil or criminal consequences. Although the explanatory statement does not explicitly mention penalties, under the A New Tax System (Goods and Services Tax) Act 1999, non-compliance with GST obligations can result in significant penalties. For instance, providing false or misleading information can lead to fines of up to $22,200 per offence for individuals and $111,000 for corporations. Additionally, failure to issue a correct adjustment note within the specified timeframe can result in penalties that might include fines or other administrative actions as deemed necessary by the Commissioner of Taxation. These provisions ensure that the integrity of the GST system is maintained and that all parties comply with their obligations under the Act.

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