EXPLANATORY STATEMENT

GST-free Supply (In-home Care) Amendment Determination 2002 (No. 1)

Summary

This Determination is made under paragraph 38-150(e) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).

The GST-free Supply (In-home Care) Determination 2001 (the In-home Care Determination) made GST free, from 1 January 2001, a supply of in-home care, that is, child care provided in the home of a child, by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister relating to that care but is not approved as an approved child care service under the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act). The In-home Care Determination inadvertently failed to address the GST status of a supply of in-home care by one such a supplier during the period  from 1 July 2000 to 31 December 2000.

The purpose of this Determination is to amend the commencement provision of  the In-home Care Determination, from 1 January 2001 to 1 July 2000 .  As a result of the amendment, a supply of in-home care during the period from 1 July 2000 to 31 December 2000 by a Commonwealth funded supplier that is not approved for the purposes of family assistance law will also be GST-free.

This Determination has the effect of removing liability for GST of suppliers of Commonwealth funded in-home care that are not approved for the purposes of family assistance law in relation to a supply during the period from 1 July 2000 to 31 December 2000.  This Determination therefore does not result in the imposition of liabilities on any person in respect of anything done or omitted to be done before the date of its notification and it does not affect the right of any person so as to disadvantage that person.

Explanation of the clauses

Name of Determination

Clause 1 states the name of this Determination.

Commencement

Clause 2 states that this Determination commences on gazettal.

Amendment of GST-free Supply (In-home Care) Determination 2001

Clause 3 states that the In-home Care Determination is amended as specified in Schedule 1 of this Determination.

Schedule 1 - Amendment

Section 2 of the In-home Care Determination  specifies the commencement date of that determination to be 1 January 2001.  That commencement date results in making GST-free a supply, from 1 January 2001, of in-home care by a Commonwealth funded supplier that is not approved for the purposes of family assistance law.

Item 1 of Schedule 1 substitutes a new section 2 of the In-home Care Determination.  The amendment changes the commencement date of the In-home Care Determination to 1 July 2000 to ensure that a supply of in-home care by such a supplier during the period from 1 July 2000 to 31 December 2000 is also GST-free.