International Law

GST exemption review

By David Jacobson

The Assistant Treasurer has released exposure draft legislation to reform the mechanism for exempting Australian taxes, fees and charges from the Goods and Services Tax (GST) for public consultation.

The key features of the amendments to Division 81 include:

?Replacing the current mechanism for exempting Australian taxes, fees and charges from the GST with a principles-based legislative exemption
?Allowing government entities to self assess the GST treatment of an Australian tax, fee or charge, rather than having to have it listed in a Determination
?Providing for the GST treatment of a specific Australian tax, fee or charge, or an Australian tax, fee or charge of a kind to be specified by regulation.

The changes will come into effect from 1 July 2011. In order to allow for a smooth transition to the new mechanism, Australian taxes, fees and charges will continue to be exempt under the A New Tax System (Goods and Services Tax) (Exempt taxes, fees and charges) Determination 2011 (No.1) until 1 July 2012.

Consultation closes on Friday, 11 February 2011.

Full post as published by Australian Regulatory Compliance Review on January 11, 2011 (boomark / email).