Exempting taxes, fees and charges from the GST

In the 2010-11 Budget, the government announced it would amend the GST law to replace the current mechanism for exempting Australian taxes, fees and charges with a principles-based legislative exemption.

GST law currently specifies that Australian taxes, fees and charges are exempt from goods and services tax (GST) if they are included in a determination made by the Treasurer. This measure will allow the GST treatment of an Australian tax, fee or charge to be determined against legislative principles.

This measure will take effect from 1 July 2011. However, the current determination listing exempt taxes, fees and charges will continue to apply until 1 July 2012.

Media release

For more information, refer to the Assistant Treasurer's media release No. 004/2011 issued on 11 January 2011.

Legislation and supporting material

On 27 June 2011, the Tax Laws Amendment (2011 Measures No. 2) Act 2011 received royal assent. The associated Explanatory Memorandum is also available.

Regulations for the purposes of Division 81 of the GST Act were contained in A New Tax System (Goods and Services Tax) Amendment Regulations 2011 (No. 2). These regulations passed on 30 June 2011 and also apply from 1 July 2011.

More information For more information refer to the exposure draft legislation and Explanatory Memorandum. Exposure draft regulations relating to Division 81 were released for comment. For more information refer to Payments to government agencies under Division 81.