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

Chapter 2 - The basic rules  

Part 2-7 - Returns, payments and refunds  

Division 35 - Refunds  

35-5   Entitlement to refund  


If the * assessed net amount for a tax period is less than zero, the Commissioner must, on behalf of the Commonwealth, pay that amount (expressed as a positive amount) to you.
Note 1:

See Division 3A of Part IIB of the Taxation Administration Act 1953 for the rules about how the Commissioner must pay you. Division 3 of Part IIB allows the Commissioner to apply the amount owing as a credit against tax debts that you owe to the Commonwealth.

Note 2:

Interest is payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983 if the Commissioner is late in refunding the amount.


However, if:

(a) the Commissioner amends the * assessment of your * net amount ; and

(b) your * assessed net amount before the amendment was less than zero; and

(c) the amount that, because of the assessment, was:

(i) paid; or

(ii) applied under the Taxation Administration Act 1953 ;
exceeded the amount (including a nil amount) that would have been payable or applicable had your assessed net amount always been the later assessed net amount;

the amount of the excess is to be treated as if:

(d) the excess were an assessed net amount for the tax period; and

(e) that assessed net amount were an amount greater than zero and equal to the amount of the excess; and

(f) despite Division 33 , that assessed net amount became payable, and due for payment, by you at the time when the amount was paid or applied.


Treating the excess as if it were an assessed net amount has the effect of applying the collection and recovery rules in Part 3-10 and Divisions 268 and 269 in Schedule 1 to the Taxation Administration Act 1953 , such as a liability to pay the general interest charge under section 105-80 in that Schedule.


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