Sussan Ley (Farrer, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

I am pleased to speak on the Tax Laws Amendment (2009 GST Administration Measures) Bill 2009. This bill was introduced into the House on 25 November 2009 and implements some of the 46 recommendations made by the Board of Taxation from its review of the legal framework for the administration of the GST. I would like to say at the beginning that the coalition is supporting the passage of this bill through the House and the other place as it continues, substantially, a legislative program that was set in place by the last government.

There are six schedules in the bill and I will only briefly address each one. Schedule 1 implements recommendation 20 of the board’s report by introducing a four-year time limit for taxpayers to claim input tax credits and fuel tax credits. Schedule 1 will require taxpayers to claim any input tax credit or fuel tax credit within four years of the date that the credits are attributable. It was considered reasonable that beyond four years such claims probably should not be made. Schedule 1 also contains some exception to the four-year time limit to provide for the circumstances where the GST liability of a taxpayer changes. The amendments in schedule 1 take effect from budget night 2009.

Schedule 2 implements recommendation 31 of the board’s report by allowing residents of Australia’s external territories to claim refunds of GST and wine equalisation tax under the Tourist Refund Scheme if the goods are exported to the external territories after they are acquired. The changes in schedule 2 will apply to acquisitions that take place from 1 July 2010.

Schedule 3 implements recommendation 40 of the board’s report by allowing intermediaries that are not recognised by the common law as agents to act as principals for GST purposes and use the simplified accounting provisions. These amendments will apply to those who facilitate acquisitions and supplies between parties but who do not actually make the supply. Business would welcome that. Those changes do cut down on what would otherwise be some quite convoluted arrangements for the accounting and record-keeping provisions. The changes in schedule 3 will apply to acquisitions that take place from 1 July 2010.

Schedule 4 implements recommendation 41 of the board’s report by clarifying the uncertainty in the law regarding the application of GST to gambling operators who make GST-free supplies. The amendments ensure that the GST treatment of GST-free gambling supplies is consistent with other GST-free supplies. The amendments reflect the way that the Commissioner of Taxation currently administers the law. The changes in schedule 4 will apply from the first quarter after this bill receives royal assent.

Schedule 5 implements recommendation 44 of the board’s report by clarifying the law to specify that overclaimed refunds are due and payable on the same date that the overclaim is made. Schedule 5 ensures that there is a consistent treatment of the overclaimed refund to match the underpaid liability. And schedule 6 implements recommendation 46 of the board’s report by removing the inconsistent outcomes that arise when supplies are made to associate entities.

As I said at the outset, the coalition supports the measures in this bill, and I commend the bill to the House.

See this speech in context