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Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 25) 2016 for Refrigerant Processors

Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 25) 2016 for Refrigerant Processors

Administered by Department of the Treasury

Legislation au F2016L00187 Not in force Legislative Instrument

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Explanatory Statement

Goods and Services Tax: Recipient Created Tax Invoice Determination (No.25) 2016 for Refrigerant Processors

General outline of determination

This determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
The determination allows a refrigerant processor, who is a recipient of taxable supply of recovered refrigerants, to issue recipient created tax invoices (RCTIs) to the supplier if the refrigerant processor determines the value of the taxable supply and satisfies the other requirements of determination.
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. Generally, tax invoices are issued by the entity that makes the supply under the GST Act.

6. The purpose of this determination is to outline a class of tax invoices that the Commissioner has determined may be issued by recipients of taxable supplies (called RCTIs). The Commissioner makes the determination by taking account a number of factors including the type of industry, the taxable supply, the 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. In accordance with this determination, a refrigerant processor who is a recipient of a taxable supply of recovered refrigerants may issue a RCTI for the supply if the refrigerant processor

establishes the value of the taxable supply after the supply is made using a qualitative or quantitative process; and
satisfies the requirements set out in Clause 7 of the determination.

What is the effect of this determination

8. The effect of this determination is to allow a refrigerant processor that is a recipient of a taxable supply of recovered refrigerants, to issue a RCTI to the supplier provided the requirements of the determination are satisfied. As the refrigerant processor has the information such as volume of refrigerant recovered to calculate the value of the taxable supply, issuing the RCTIs for such supplies will simplify invoicing and payments processes.

9. This determination is substantially the same as the previous determination that it replaces. Therefore, a refrigerant processor who satisfied the previous determination will satisfy this determination and can continue to issue RCTIs under this determination.

10. 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

11. This determination replaces New Tax System (Goods and Services Tax) Act 1999 Classes of Recipient Created Tax Invoice Determination (No.1) 2003.The replaced instrument is repealed on the commencement of this determination.

Consultation:

12. 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 determination is considered minor or machinery in nature, and does not substantially change the law.

13. 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: Recipient Created Tax Invoice

Determination (No. 25) 2016 for Refrigerant Processors

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. This Legislative Instrument allows a refrigerant processor who is the recipient of taxable supply of recovered refrigerant to issue the tax invoice (called recipient created tax invoice) to the suppliers, if the refrigerant processor determines the value of the taxable supply in the manner set out under the Legislative Instrument and all the requirements of the Instrument are satisfied. This will simplify invoicing and payment processes for both the refrigerant processor and supplier.

Human rights implications

This Instrument does not engage any of the applicable rights or freedoms. It allows for the streamlining of 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: Recipient Created Tax Invoice Determination (No. 25) 2016 for Refrigerant Processors, enacted to address the specific needs of refrigerant processors in the goods and services tax (GST) framework, was introduced to streamline the invoicing and payment processes for these entities. This determination is made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), and it allows refrigerant processors, who are recipients of taxable supplies of recovered refrigerants, to issue recipient created tax invoices (RCTIs) to suppliers if they determine the value of the taxable supply and meet the requirements set out in the determination. This legislative instrument aims to balance the practical use of RCTIs by businesses with the need to maintain the integrity of the GST system, facilitating easier and more efficient invoicing and payment processes for refrigerant processors.

Scope and Application

The Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 25) 2016, made under subsection 29-70(3) of the A New Tax System (Goods and Services Tax) Act 1999, applies to refrigerant processors who are recipients of taxable supplies of recovered refrigerants. This legislative instrument allows these processors to issue recipient created tax invoices (RCTIs) to suppliers if they establish the value of the taxable supply using a qualitative or quantitative process and satisfy the requirements outlined in Clause 7 of the determination. This determination aims to facilitate the practical use of RCTIs in the refrigerant processing industry while maintaining the integrity of the GST system. It essentially simplifies the invoicing and payment processes by enabling refrigerant processors to issue RCTIs directly to suppliers, provided they meet the specified criteria. This determination applies nationally and replaces the previous Goods and Services Tax: Recipient Created Tax Invoice Determination (No.1) 2003, which is repealed upon the commencement of this current determination. There is no need for additional consultation as the determination is considered minor and does not substantially change the existing law.

Key Provisions

The key provisions of the Goods and Services Tax: Recipient Created Tax Invoice Determination (No. 25) 2016 for Refrigerant Processors, as outlined in sections 7 to 10, permit a refrigerant processor who is a recipient of a taxable supply of recovered refrigerants to issue a recipient created tax invoice (RCTI) to the supplier. The refrigerant processor must establish the value of the taxable supply after the supply is made using a qualitative or quantitative process, and satisfy the other requirements specified in Clause 7 of the determination (section 7). The purpose of this determination is to facilitate the practical use of RCTIs by businesses while maintaining the integrity of the GST system (section 6). The effect of the determination is to allow a refrigerant processor to issue a RCTI to the supplier provided the requirements of the determination are satisfied, thereby simplifying invoicing and payment processes (section 8). The determination is substantially the same as the previous determination that it replaces, meaning that a refrigerant processor who satisfied the previous determination will satisfy this determination and can continue to issue RCTIs under this determination (section 9). The obligations imposed by the Act on the parties it governs include the requirement for the refrigerant processor to establish the value of the taxable supply after the supply is made using a qualitative or quantitative process (section 7). Additionally, the refrigerant processor must satisfy the other requirements set out in Clause 7 of the determination, which includes maintaining records that are sufficient to enable the Commissioner to determine whether the RCTI complies with the requirements of the determination (section 10). The Act also requires the refrigerant processor to issue the RCTI to the supplier within the specified time frame and to ensure that the RCTI contains all the necessary information, including the date of supply, a description of the supply, the value of the supply, and the GST amount (section 7). There are no specific offences, penalties, or civil/criminal consequences for breach of the determination. However, if a refrigerant processor fails to comply with the requirements of the determination, the supplier may be required to issue a tax invoice for the supply, which could result in additional administrative costs and delays in payment. The determination is considered minor or machinery in nature, and there will be no or minimal impacts for both implementation and ongoing compliance costs (section 10). The determination is compatible with human rights as it does not raise any human rights issues (section 13).

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Compliance Obligations; Delegated & Subordinate Legislation

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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.

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