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  • ESST transitional period ending soon

    Electronic sales suppression tools (ESSTs) have been banned since 4 October 2018. People who possess an ESST have until 3 April 2019 to potentially avoid committing an offence or becoming liable to an administrative penalty.

    An ESST can allow income to be misrepresented and under-reported by:

    • deleting transactions from electronic record-keeping systems
    • changing transactions to reduce the amount of a sale
    • misrepresenting a sales record, for example by allowing GST taxable sales to be re-categorised as GST non-taxable sales
    • falsifying point of sale records.

    It is an offence to produce, supply, possess, or incorrectly keep tax records using an ESST, or knowingly assist others to do so. Penalties up to 5,000 penalty units (currently $1,050,000 as of publication date) can apply.

    If your clients possess an ESST and acquired it before 7:30pm 9 May 2017, remind them they need to contact us by 3 April 2019 to discuss what action they will need to take. For any clients who have used an ESST to mispresent or under-report income, we strongly encourage them to make a voluntary disclosure.

    In either case, your clients will need to contact their point of sale (POS) system provider to remove the ESST.

    If your clients are concerned their POS system may have an ESST, they can check with their POS system provider.

    See also:

    Last modified: 11 Mar 2019QC 58193