Supplementary Explanatory MemorandumAmendments to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The request for amendment to the A New Tax System (Goods and Services Tax Transition) Act 1999 to give certainty and ensure practical application of the GST to prepaid funerals. The amendment will:
- ensure that section 11 estimates will not apply to prepaid funerals;
- make agreements for prepaid funerals entered into prior to 1December 1999 and paid in full prior to 1 December 1999 GST-free; and
- make any consideration paid before 1 July 2005, or an earlier review date, if one applies to the prepaid funeral agreement, free from GST where the agreement was entered into prior to 1December 1999.
Date of effect: 8 July 1999.
Proposal announced: Not announced.
Financial impact: Negligible.
Compliance cost impact: Reduces compliance costs for the funeral industry.
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