Goods and Services Tax: Particular Attribution Rules Determination (No. 29) 2016 for Electricity Distribution Services

Administered by Department of the Treasury

Legislation au F2016L00179 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

Goods and Services Tax: Particular Attribution Rules Determination (No. 29) 2016 for Electricity Distribution Services  

 

General outline of determination

  1. This determination is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) on the basis that paragraph 29-25(2)(e) of the GST Act applies.
  2. The determination sets out the particular attribution rules for GST and adjustments relating to taxable supplies of electricity distribution services in the circumstances described in the determination.  
  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.

 

What is this determination about

5.      Under section 29-25 of the GST Act, the Commissioner may determine the tax period or periods to which GST payable, input tax credits and adjustments for taxable supplies, creditable acquisitions and creditable importations of certain kinds are attributable on the basis that the basic attribution and the special rules in Chapter 4 of the GST Act apply inappropriately.

 

6.      Subsection 29-25(2) of the GST Act provides the circumstances where the Commissioner may make these particular attribution rules. Paragraph 29-25(2)(e) involves a supply or acquisition occurring before the supplier or recipient knows the total consideration.

7.      The determination sets out the particular attribution rules for GST payable and adjustments relating to taxable supplies of electricity distribution services  by an entity who

  • makes a taxable supply of electricity distribution services and the  invoice for the supply is issued by a billing agent who is not an associate; and

 

  • does not know the total consideration for the supply when any consideration is received for the supply or an invoice is issued relating to the supply; and 

 

  • ascertains the total consideration for the supply based on information provided by a billing agent, alternatively ascertains the amount of adjustment based on information provided by a billing agent; and

 

  • accounts on a non-cash basis.

 

8.      In the circumstances described in Clause 4 of the determination, the GST payable relating to the taxable supply of electricity distribution services is attributable to the tax period in which the billing agent provides the information so that the total consideration can be ascertained.

 

9.      In the circumstances described in Clause 4 of the determination, the adjustment relating to the taxable supply of electricity distribution services is attributable to the tax period in which the entity in becomes aware of the adjustment.

 

What is the effect of this determination

10.  The determination changes the basic attribution rules for GST payable in the circumstances set out in the determination. It overrides the attribution rule in subsection 29-5(1) of the GST Act for a taxable supply by an entity who accounts on a non cash basis.

11.  This determination is not intended to override the requirement to hold a tax invoice or adjustment note prior to claiming an input tax credit or making a decreasing adjustment (subsection 29‑10(3) and subsection 29-20(3) of the GST Act respectively). It does not override the provisions in the GST Act relating to resident agents acting for non-residents (Division 57); agents and insurance brokers (Division 153) or supplies and acquisitions made on a progressive or periodic basis (Division 156).  

12.  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

13.  This determination replaces the A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Suppliers of Electricity Distribution Services relying on information from Billing Agents) Determination 2003 (the pervious determination)- F2006B00501. The replaced instrument is repealed on commencement of this determination.

 

Consultation:

14.  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.

15.  In this case, no further consultation has been undertaken in the development of this determination because there is no substantive change from the previous determination and it is considered minor or machinery in nature.

 

 

 

Legislative references:

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

Legislative Instruments Act 2003

 

Timothy Dyce

Deputy Commissioner of Taxation

24 February 2016

 

 


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: Particular Attribution Rules Determination (No. 29) 2016 for Electricity Distribution Services

 

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 prescribes the particular attribution rules for GST payable and adjustments relating to the taxable supply of electricity distribution services in the circumstances described in the determination. It prevents the basic rules of attribution and special rules under Chapter 4 of the A New Tax System (Goods and Services Tax) Act 1999 from applying inappropriately because the supply occurs before the supplier of electricity distribution services knows the total consideration.

 

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: Particular Attribution Rules Determination (No. 29) 2016, enacted under the A New Tax System (Goods and Services Tax) Act 1999, aims to address the issue of inappropriate application of basic attribution and special rules in the context of taxable supplies of electricity distribution services. This determination was issued by the Commonwealth Parliament, with the primary policy objective being to ensure the accurate attribution of GST payable and adjustments when the total consideration for the supply of electricity distribution services is not known at the time of supply or invoicing. This legislative instrument is designed to modify the basic attribution rules under the GST Act for certain electricity distribution services, specifically where the supplier relies on a billing agent to ascertain the total consideration and accounts on a non-cash basis. The determination ensures that the GST payable is attributed to the tax period in which the billing agent provides the necessary information, thereby addressing potential issues arising from the timing of the supply and invoicing processes.

Scope and Application

The Goods and Services Tax: Particular Attribution Rules Determination (No. 29) 2016 for Electricity Distribution Services is a legislative instrument made under the A New Tax System (Goods and Services Tax) Act 1999. It applies to entities that make taxable supplies of electricity distribution services, specifically those who issue invoices through a billing agent that is not an associate, and who do not know the total consideration for the supply when the supply occurs or when an invoice is issued. This determination sets out specific attribution rules for the GST payable and adjustments relating to these supplies, attributing the GST payable to the tax period in which the billing agent provides the information that allows the total consideration to be ascertained. It also attributes the adjustment to the tax period in which the entity becomes aware of the adjustment. The determination applies nationwide across Australia and overrides the basic attribution rules for GST payable in these particular circumstances but does not affect other provisions of the GST Act, such as those relating to input tax credits, decreasing adjustments, or supplies made on a progressive or periodic basis. This legislative instrument is considered minor or machinery in nature, with minimal compliance costs, and does not substantially change the law, hence no consultation was deemed necessary. It is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Key Provisions

The Goods and Services Tax: Particular Attribution Rules Determination (No. 29) 2016 (the Determination) is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) to address situations where paragraph 29-25(2)(e) applies, specifically when a supply or acquisition of electricity distribution services occurs before the supplier knows the total consideration (subsection 29-25(2)(e)). This Determination sets out particular attribution rules for GST and adjustments relating to these supplies, ensuring the GST is attributed to the correct tax period (section 9). For entities making taxable supplies of electricity distribution services and accounting on a non-cash basis, where the invoice is issued by a billing agent who is not an associate and the entity does not know the total consideration when the supply is made or the invoice is issued, the GST payable is attributed to the tax period in which the billing agent provides the information necessary to ascertain the total consideration (section 8). Under the Determination, entities must ascertain the total consideration for the supply of electricity distribution services based on information provided by a billing agent and account for GST accordingly (section 7). If the entity becomes aware of an adjustment, it must attribute the adjustment to the tax period in which it becomes aware of it (section 9). This Determination does not affect the requirement to hold a tax invoice or adjustment note prior to claiming an input tax credit or making a decreasing adjustment (subsections 29-10(3) and 29-20(3) of the GST Act). Furthermore, it does not override the provisions in the GST Act relating to resident agents acting for non-residents, agents and insurance brokers, or supplies and acquisitions made on a progressive or periodic basis (Divisions 57, 153, and 156 respectively). Entities that fail to comply with the provisions of this Determination may face penalties under the GST Act. The penalties for non-compliance can include fines and, in serious cases, criminal prosecution. The maximum penalty for providing false or misleading statements or information under the GST Act can be up to 25 penalty units for individuals and up to 125 penalty units for corporations, with each penalty unit equating to $220 as of 2023 (section 286-15 of the GST Act). Additionally, failure to attribute GST correctly may result in the entity owing additional GST, interest, and penalties, which can significantly increase the financial burden on non-compliant entities.

Legal classification tags

Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Offence Provisions
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.