Explanatory Statement

Issued by authority of the Treasurer

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

Section 177-15 of the A New Tax System (Goods and Services Tax) Act 1999 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the amending Regulations is to amend the A New Tax System (Goods and Services Tax) Regulations 1999 (the Principal Regulations) to specify:

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the registration turnover threshold for all entities other than non-profit bodies as $75,000; and

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the registration turnover threshold for non-profit bodies as $150,000.

These changes are part of a package of measures to assist small business and reduce compliance costs announced on 8 May 2007 as part of the 2007-08 Budget.

Subsection 23-15(1) of the Act provides that the registration turnover threshold at which all entities other than non-profit bodies are required to register for GST is $50,000, or such higher amount as the regulations specify. The amending Regulations specify the higher amount of $75,000.

Subsection 23-15(2) of the Act provides that the registration turnover threshold at which non-profit bodies are required to register for GST is $100,000, or such higher amount as the regulations specify. The amending Regulations specify the higher amount of $150,000.

This provides smaller entities and non-profit bodies with the choice either of being unregistered and free from GST obligations or of registering voluntarily and benefiting from the reporting concessions provided to voluntary registrants.

The Regulations commenced on 1 July 2007.

Consultation was not undertaken, as the amending Regulations are of a mechanical nature and do not substantially alter the previous arrangements.