Tax Laws Amendment (2011 Measures No. 3) Act 2011

Administered by Department of the Treasury

Legislation au C2011A00051 In force Act

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Tax Laws Amendment (2011 Measures No. 3) Act 2011

 

No. 51, 2011

 

 

 

 

 

An Act to amend the law relating to taxation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—12‑month export period for the GST‑free supply of new recreational boats

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

Schedule 2—General interest charge

Income Tax (Transitional Provisions) Act 1997

 

 

 

Tax Laws Amendment (2011 Measures No. 3) Act 2011

No. 51, 2011

 

 

 

An Act to amend the law relating to taxation, and for related purposes

[Assented to 27 June 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Tax Laws Amendment (2011 Measures No. 3) Act 2011.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

27 June 2011

2.  Schedule 1

1 July 2011.

1 July 2011

3.  Schedule 2

Immediately after the commencement of Schedule 1 to the Tax Laws Amendment (Transfer of Provisions) Act 2010.

1 July 2010

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—12‑month export period for the GST‑free supply of new recreational boats

 

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

1  Subsection 38‑185(1) (after table item 4)

Insert:

4A

Export of new recreational boats

a supply of a *ship, but only if:

(a) the ship is a *new recreational boat on the earliest day (the receipt day) on which one or more of the following occurs:

(i) the *recipient takes physical possession of the ship;

(ii) if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier receives any of the final instalment;

(iii) if consideration for the supply is provided in instalments under a contract that requires the ship to be exported—the supplier gives an *invoice for the final instalment; and

(b) the supplier or recipient exports the ship from Australia within 12 months (or such further period as the Commissioner allows) after the receipt day; and

(c) subsection (6) does not apply at any time during the period:

(i) starting on the receipt day; and

(ii) ending when the supplier or recipient exports the ship.

2  At the end of section 38‑185

Add:

Export of new recreational boats

 (5) For the purposes of item 4A of the table in subsection (1), the *ship is a new recreational boat if the ship:

 (a) has not been substantially reconstructed; and

 (b) has not been sold, leased or used since the completion of its construction, except in connection with:

 (i) the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or

 (ii) the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and

 (c) was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and

 (d) is not a commercial ship.

 (6) For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:

 (a) as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or

 (b) in *carrying on an *enterprise in Australia; or

 (c) in Australia in carrying on an enterprise outside Australia, not including use that involves the ship being used:

 (i) in a way that is private or domestic in nature; or

 (ii) in an activity, or series of activities, done as a private recreational pursuit or hobby; or

Example: Allowing an employee to live on the ship, or to take the ship on a fishing trip.

 (d) for *consideration, unless the consideration:

 (i) consists of the provision of services by an employee of an enterprise carried on by the *recipient outside Australia; or

 (ii) is in respect of the recipient competing in a race or other sporting event (e.g. a prize).

3  Section 195‑1

Insert:

new recreational boat has the meaning given by subsection 38‑185(5).

4  Application provision

The amendments made by this Schedule apply to supplies that:

 (a) are made under contracts entered into on or after the commencement of this item; and

 (b) are not made pursuant to rights or options granted before that commencement.


Schedule 2—General interest charge

 

Income Tax (Transitional Provisions) Act 1997

1  Section 5‑5

Before “Division 5”, insert “Subject to section 5‑15 of this Act,”.

2  Section 5‑10 (heading)

Repeal the heading, substitute:

5‑10  General interest charge liabilities under former subsection 204(3)

3  At the end of Division 5

Add:

5‑15  Application of section 5‑15 of the Income Tax Assessment Act 1997

 (1) Section 5‑15 of the Income Tax Assessment Act 1997 (General interest charge payable on unpaid income tax or shortfall interest charge), as originally enacted, applies to an amount of income tax or shortfall interest charge you must pay for a financial year, if the income tax or shortfall interest charge is due to be paid on or after the commencement of that section.

 (2) For the purposes of subsection (1), it does not matter whether the financial year ended before, on or after the commencement of that section.

4  Former subsection 204(3) of the Income Tax Assessment Act 1936

For the purposes of applying, at a particular time, former subsection 204(3) of the Income Tax Assessment Act 1936 in relation to any tax, it does not matter whether the tax had been assessed at that time.

 

 

[Minister’s second reading speech made in—

House of Representatives on 12 May 2011

Senate on 14 June 2011]

(78/11)

 

Overview

The Tax Laws Amendment (2011 Measures No. 3) Act 2011 was enacted by the Parliament of Australia to amend the law relating to taxation. The Act was assented to on 27 June 2011 and certain provisions commenced on 1 July 2011. One of the primary objectives of the Act is to introduce changes to the application of the goods and services tax (GST) for the export of new recreational boats and to revise the general interest charge under the Income Tax (Transitional Provisions) Act 1997. The amendments aim to provide a 12-month export period for the GST-free supply of new recreational boats and to ensure that the general interest charge is appropriately applied to unpaid income tax or shortfall interest charge liabilities. These amendments were designed to address specific gaps in the current taxation laws and to enhance the efficiency and fairness of the tax system.

Scope and Application

The Tax Laws Amendment (2011 Measures No. 3) Act 2011 is an Australian legislative act that makes amendments to the taxation laws and related provisions. This Act applies to individuals and entities involved in the supply of goods and services, particularly focusing on the GST-free supply of new recreational boats and general interest charges related to income tax. The amendments in Schedule 1 modify the GST provisions under the A New Tax System (Goods and Services Tax) Act 1999, introducing a 12-month export period for the GST-free supply of new recreational boats, which applies to supplies made under contracts entered into on or after 1 July 2011. Schedule 2 amends the Income Tax (Transitional Provisions) Act 1997 to modify the application of general interest charges on unpaid income tax or shortfall interest charge due for financial years commencing after the commencement of this Act. The Act’s provisions came into effect on various dates, with some sections commencing on the day the Act received Royal Assent (27 June 2011) and others on 1 July 2011. The amendments are designed to align with broader fiscal policies and ensure compliance with the updated tax regulations.

Key Provisions

The Tax Laws Amendment (2011 Measures No. 3) Act 2011 (Act) amends the law relating to taxation in Australia, particularly in the areas of GST on the export of new recreational boats and the general interest charge on unpaid income tax or shortfall interest charge. The Act comprises two primary schedules, each addressing different tax provisions. Schedule 1 amends the A New Tax System (Goods and Services Tax) Act 1999 to introduce a 12-month export period for the GST-free supply of new recreational boats. This amendment allows for the supply of a new recreational boat to be GST-free if certain conditions are met, including the boat being exported within 12 months from the date of receipt by the recipient or the final instalment of consideration being received by the supplier (sections 1-4). Schedule 2 modifies the Income Tax (Transitional Provisions) Act 1997 to incorporate the general interest charge provisions from the Income Tax Assessment Act 1997, applying it to unpaid income tax or shortfall interest charge due on or after the commencement of the relevant section (sections 1-4). The Act imposes specific obligations on suppliers and recipients of new recreational boats to ensure compliance with the GST provisions. Suppliers must ensure that the boat is exported within the stipulated period, and recipients must maintain records to substantiate the export within the 12-month period (section 1). Additionally, both parties must comply with the conditions outlined in section 4A of the A New Tax System (Goods and Services Tax) Act 1999, such as the boat being unused since its completion and being principally designed for private recreational pursuits (sections 1-6). For the general interest charge, taxpayers must ensure timely payment of income tax or shortfall interest charge to avoid incurring additional interest (section 5-15). Failure to comply with the provisions of the Act can result in financial penalties and legal consequences. For instance, not adhering to the export conditions for new recreational boats may result in the loss of the GST-free status, leading to additional tax liabilities. Similarly, failure to pay income tax or shortfall interest charge on time may attract a general interest charge, as specified in section 5-15 of the Income Tax Assessment Act 1997. The Act does not explicitly state maximum penalties but refers to the relevant sections in other Acts for specific penalty details.

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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.