Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 37) 2015 - Supplies made by electricity distributors to electricity retailers

Administered by Department of the Treasury

Legislation au F2015L01577 Not in force Legislative Instrument

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Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 37) 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 an Electricity Distributor 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 an Electricity Distributor to issue an adjustment note.

7.      An Electricity Distributor would normally issue tax invoices to their customers for the provision of services over a period of about 3 months. An Electricity Distributor owns and operates (including construction) a high and low voltage network through which it transports electricity to end-user customers.

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 an Electricity Distributor 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) Extension of Time to Issue An Adjustment Determination (No. 1) 2002 – Supplies made by electricity distributors to electricity retailers. 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. 37) 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 Distributor 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. 37) 2015 was enacted to address the issue of providing additional time for Electricity Distributors to issue adjustment notes in certain circumstances under the A New Tax System (Goods and Services Tax) Act 1999. This legislative instrument was introduced by the Australian Government and was made under the authority of subsection 29-75(3) of the aforementioned Act and subsection 4(1) of the Acts Interpretation Act 1901. The primary policy objective of this determination is to offer flexibility to Electricity Distributors in issuing adjustment notes, thereby potentially reducing administrative burdens and improving compliance without significantly altering the existing legal framework. The instrument came into effect the day after registration and does not apply retrospectively, ensuring that it only impacts future obligations of Electricity Distributors.

Scope and Application

The Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 37) 2015 provides an extension for Electricity Distributors to issue an adjustment note when they become aware of an adjustment to the taxable supply. This legislative instrument applies to entities categorised as Electricity Distributors, who are responsible for providing services to end-user customers through the operation of a high and low voltage network. The extension allows these distributors to issue an adjustment note within 98 days from becoming aware of the adjustment or by the time the next tax invoice would normally be issued, provided that the customer has not requested an adjustment note. The extension only applies to situations where the customer did not request an adjustment note; in such cases, the standard 28-day period from the receipt of the request would apply. The determination is a legislative instrument under the Legislative Instruments Act 2003 and is made under the A New Tax System (Goods and Services Tax) Act 1999 and the Acts Interpretation Act 1901. It commences on the day after registration and does not apply retrospectively. The instrument replaces an earlier determination and is considered minor in nature, with no substantial change to the law, hence consultation was deemed unnecessary.

Key Provisions

The Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 37) 2015 (the Determination) provides an extension to the time frame within which an Electricity Distributor must issue an adjustment note. According to section 2 of the Determination, this extension applies if an adjustment note has not been requested by the customer. The Electricity Distributor is given an additional 70 days, making the total period 98 days, to issue the adjustment note. This extension starts either when the Electricity Distributor becomes aware of the need for an adjustment or when they issue the next tax invoice, whichever comes first (subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999). Under the Determination, Electricity Distributors are granted a more flexible time frame to issue adjustment notes, provided that no adjustment note has been requested by the customer. The primary obligation for these entities is to issue the adjustment note within 98 days of becoming aware of the need for an adjustment, or at the time of issuing the next tax invoice. This extension is intended to ease administrative burdens without compromising the integrity of the tax collection process. The Determination clearly outlines that if a customer does request an adjustment note, the standard 28-day period applies (subsection 29-75(2)(b) of the A New Tax System (Goods and Services Tax) Act 1999). There are no explicit offences, penalties, or civil/criminal consequences detailed within the Determination itself for breaching the provisions related to the issuance of adjustment notes. However, general compliance with the A New Tax System (Goods and Services Tax) Act 1999 remains crucial. Failure to adhere to the stipulated timelines or to issue correct adjustment notes could lead to potential penalties under the broader GST Act, including fines and legal actions. The specific penalties would be determined according to the provisions of the primary Act and could include substantial financial penalties depending on the severity and intent of the breach.

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