The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
GSTR 2001/7 | Goods and services tax: meaning of GST turnover, including the effect of section 188-25 on projected GST turnover | The Addendum updates Goods and Services Tax Ruling GSTR 2001/7, including to reflect amendments made by theTax and Superannuation Laws Amendment (2016 Measures No.1) Act 2016. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
TD 96/33 | Income tax: what is the standard indexation rate determined by the Commissioner that applies to a financial year for the purposes of calculating the Reasonable Benefits Limits (RBLs) stated in Subdivision A of Division 14 of Part III of the Income Tax Assessment Act 1936? | TD 96/33 was withdrawn with effect from 6 March 2019. This entry corrects the gazetted entry for this withdrawal which was published on 6 March 2019 (C2019G00224, Notice of Rulings, Notice of Addendum, Notice of Withdrawals), in which the Determination was incorrectly identified as TD 1966/33. |
TD 2013/13 | Income tax: is a payment by a complying superannuation fund (first fund) to another complying superannuation fund of a superannuation lump sum arising from the full commutation of a superannuation income stream paid to a person as a beneficiary of a deceased member of the first fund, a ‘roll-over superannuation benefit’ for the purpose of section 306-10 of the Income Tax Assessment Act 1997? | TD 2013/13 is withdrawn with effect from 13 March 2019. |
Overview
The Commissioner of Taxation has issued updates and withdrawals to several tax rulings, as detailed in the Gazette dated 2019. One such ruling is GSTR 2001/7, which has been updated to incorporate changes made by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016. This Act was enacted to address issues related to the interpretation and application of the Goods and Services Tax (GST), particularly in relation to the meaning of GST turnover and its implications under section 188-25. The objective of this ruling is to provide clarity on how projected GST turnover is calculated and its effect on businesses. Additionally, the Commissioner has withdrawn several rulings, including TD 96/33 and TD 2013/13, which previously addressed the standard indexation rate for calculating Reasonable Benefits Limits and the treatment of superannuation lump sums, respectively. These withdrawals reflect ongoing refinements in tax law interpretations and practices.
Scope and Application
The notice pertains to rulings issued by the Commissioner of Taxation, which are integral for the interpretation and application of various aspects of Australian taxation laws. The Goods and Services Tax Ruling GSTR 2001/7, updated by the Addendum, applies to entities involved in the supply of goods and services, providing clarity on the meaning of GST turnover and the impact of section 188-25 on projected GST turnover. This ruling affects businesses and entities engaged in taxable transactions, and its application is national, aligning with the Commonwealth's jurisdiction over GST. The Addendum ensures that the ruling reflects legislative changes, particularly those introduced by the Tax and Superannuation Laws Amendment (2016 Measures No.1) Act 2016, thereby maintaining the relevance and accuracy of GST-related interpretations. The withdrawal of Determination TD 96/33, effective from 6 March 2019, signifies the cessation of its applicability in calculating the standard indexation rate for Reasonable Benefits Limits, impacting entities previously guided by its provisions. Additionally, the withdrawal of TD 2013/13 from 13 March 2019 removes its guidance on the characterisation of certain superannuation payments as roll-over superannuation benefits, impacting individuals and entities dealing with superannuation fund transactions. These rulings and their updates are crucial for ensuring compliance and accurate application of tax laws across various sectors and entities within Australia.
Key Provisions
The notice of the Addendum to Goods and Services Tax Ruling GSTR 2001/7 (GSTR 2001/7) outlines the updated definition of GST turnover, including the impact of section 188-25 on projected GST turnover. This ruling reflects amendments made by the Tax and Superannuation Laws Amendment (2016 Measures No.1) Act 2016. Specifically, section 188-25 of the Act provides for the estimation of GST turnover in certain circumstances, which is essential for determining an entity's eligibility for certain GST concessions. The updated ruling provides clarity on how projected GST turnover should be calculated and applied, ensuring taxpayers have a consistent understanding of their obligations under the GST regime.
The obligations imposed by GSTR 2001/7 on taxpayers include accurately determining their GST turnover, including projected GST turnover where applicable, and ensuring compliance with the provisions of the Act. This includes maintaining records and documentation that support the turnover calculations. For entities with fluctuating turnovers or those that have recently commenced operations, this ruling is particularly relevant in ensuring they meet the criteria for the available GST concessions. Failure to correctly apply these provisions may result in misclassification of turnover, which could lead to incorrect GST reporting and potential penalties.
In terms of consequences for non-compliance, the Act does not specify a particular offence related to GST turnover calculations. However, inaccuracies in reporting can result in penalties under the Taxation Administration Act 1953, including general penalties for incorrect statements and specific penalties for serious or repeated non-compliance. The penalties for incorrect statements can include fines of up to $2,220 for individuals and $11,100 for entities, along with additional penalties for ongoing non-compliance. It is crucial for taxpayers to seek professional advice to ensure their compliance with these provisions and avoid potential penalties.