Notice of Erratum

Overview

The Commissioner of Taxation has issued an erratum to Goods and Services Tax Ruling GSTR 2001/8, which was originally enacted in 2001. This ruling provides clarification and guidance on the apportionment of the consideration for supplies that include both taxable and non-taxable components. The erratum was introduced to correct inaccuracies in an addendum issued on 19 March 2014, and it applies from that date onwards. The policy objective of this ruling, as with many others, is to provide certainty and consistency in the application of the Goods and Services Tax (GST) law to taxpayers, ensuring they understand their obligations and rights under the GST regime. The erratum was issued by the Commissioner of Taxation, Chris Jordan, and the ruling is available for reference at branches of the Australian Taxation Office or online.

Scope and Application

The Erratum to GSTR 2001/8 issued by the Commissioner of Taxation pertains to the apportionment of the consideration for a supply that includes both taxable and non-taxable parts. The amendment applies to any entity or individual that makes such supplies, thereby impacting businesses and individuals who engage in transactions that include both taxable and non-taxable components. This ruling is relevant across Australia, given that it is a Commonwealth-issued guideline. There are no stated exclusions or exemptions within the scope of this Erratum, meaning it applies universally to those affected by the original ruling. The application of this Erratum is not extended or restricted by any subordinate instruments but serves to clarify and correct an existing ruling.

Key Provisions

The main operative sections of this legislation pertain specifically to the correction of an addendum to Goods and Services Tax Ruling GSTR 2001/8 (section 1). This ruling provides guidance on how to apportion the consideration for a supply that includes both taxable and non-taxable parts. The Erratum issued on 19 March 2014 corrects certain aspects of the addendum, ensuring that the guidance provided is accurate and up-to-date. This correction applies from the date of the Erratum, which is 19 March 2014 (section 2). The obligations and requirements imposed by this Act are primarily on taxpayers who need to correctly apportion the consideration for supplies that include both taxable and non-taxable components. The corrected Erratum ensures that taxpayers have access to the most accurate and current guidance on this matter. It is imperative for taxpayers to refer to this Erratum when determining the appropriate allocation of consideration for such supplies. By doing so, they can ensure compliance with the relevant tax laws and avoid potential disputes with the Australian Taxation Office (ATO) (section 3). The Act does not explicitly state any new offences, penalties, or civil/criminal consequences for breach related to this Erratum. However, any failure to correctly apportion the consideration for a supply that includes both taxable and non-taxable parts, as guided by the corrected Erratum, could result in the ATO taking action against the taxpayer. This may include the imposition of penalties for non-compliance, additional taxes, or interest on the unpaid tax amounts. The specific penalties for non-compliance with tax laws are determined by the Commissioner of Taxation and can vary depending on the nature and extent of the breach (section 4). Overall, the key provisions of this legislation focus on correcting the addendum to GSTR 2001/8 to provide accurate and up-to-date guidance for taxpayers. It is essential for taxpayers to refer to the Erratum when apportioning the consideration for supplies that include both taxable and non-taxable components to ensure compliance with the relevant tax laws and avoid potential penalties or consequences.