Outstanding recommendations for Goods and Services Tax

As announced in the 2009-10 Budget, the following legislative measures form part of the Board of Taxation review of the legal framework for the administration of the goods and services tax (GST).

The start date for these measures will be the first quarterly tax period after royal assent, or, where appropriate, a later quarterly tax period after royal assent.

Recommendation	Explanation
4 - adjustments for change in use	The GST law should be amended to provide that higher thresholds, together with fewer and shorter adjustment periods, should apply for adjustments (for example, two years for acquisitions less than $100,000, five years for those over $100,000, and ten years for real property). Where possible, the existing provisions should be consolidated within the GST law and aligned with other relevant rules elsewhere in the tax system. Adjustments for private use should be explicitly aligned with the percentage of private use for income tax purposes. Adjustments for input taxed use should only occur where the change in use is significant (for example, greater than 10% change in use).
5 - adjustments for cessation of registration	Taxpayers should not be required to make adjustments in relation to goods in the event that they deregister, provided the goods are effectively exported and used in the non-Australian enterprise. Technical amendments should be made to the provisions relating to attribution and entitlement upon cessation of registration to ensure consistent and appropriate treatment of all taxpayers.
7 - Technical amendment - adjustments	Ensure consistency and certainty in the use of the terms 'apply' and 'application' in the adjustment provisions.
8 - Adjustments for pre-registration acquisitions	Allow an entitlement for an adjustment to the extent of the remaining economic value for things acquired before an entity was registered for GST. The amendment should not apply to adjustments that are already available.
33 - Reverse charge mechanism	GST-free concessions for the supply of going concerns and farm land supplied for farming should be removed and replaced with a reverse charge mechanism. The reverse charge mechanism should also be available for a wider range of supplies of going concerns.
34 - GST-free farm land supplied for farming	Consider whether the GST-free treatment of farm land supplied for farming to unregistered recipients should continue.
35 - General law partnerships	Clarify the treatment of general law partnerships, including in relation to matters such as partner-to-partnership transactions or changes in the membership of a partnership.
36 - Tax law partnerships	Clarify the treatment of tax law partnerships, including in relation to matters arising when a tax law partnership is formed or dissolved and when it makes a supply or an acquisition.
37 - Bare trusts	Remove doubt surrounding the GST liabilities and entitlements of bare trusts.
45 - Payment of refunds of overpaid GST	Clarify that the Commissioner has a discretion to refund the GST where appropriate.

Media release

For more information, refer to Media release No 042 issued on 12 May 2010 by the Assistant Treasurer.

More information Budget 2011-12 Budget 2009-10