Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Hansard source

I thank the members for Farrer and Blair for their contributions on the Tax Laws Amendment (2009 GST Administration Measures) Bill 2009. The amendments in this bill implement a number of government measures developed in response to the recommendations of the Board of Taxation in its review of GST administration, as the member for Blair said. The measures seek to reduce compliance costs, to streamline and improve the operation of the GST administration provisions and to remove anomalies.

The measure imposing a four-year limit on import tax credit and fuel tax credit claims contained in schedule 1 to the bill removes an anomaly in the current indirect tax law. These amendments ensure that, like all other indirect tax liabilities and entitlements, GST input tax credits and fuel tax credits cannot be claimed after four years. It contains appropriate exceptions to avoid disadvantaging taxpayers where there may be liabilities imposed outside this four-year period or where they are otherwise unable to claim credits in time and notify the Commissioner of Taxation.

Amendments in schedule 2 extend the current Tourist Refund Scheme to ensure that residents of Australian external territories such as Norfolk, Cocos (Keeling) and Christmas islands can claim refunds of GST or GST and wine equalisation tax under the scheme for unaccompanied baggage as well as accompanied baggage. This allows Australian external territory residents to purchase bulky goods in Australia, export them home and make a claim for a refund of GST or wine equalisation tax. The amendments to the domestic agency provisions in schedule 3 allow those who facilitate supplies and acquisitions but who are not common law agents to use accounting procedures in the subdivision 153-B of the GST act. These procedures are simpler for many intermediaries to use than the current procedures.

Schedule 4 clarifies the GST law relating to monetary prizes payable on GST-free bets including those bets accepted from entities outside Australia. The continued use of a global approach reduces compliance costs of gambling operators compared with the standard rules. Schedule 5, which deals with the GST, the luxury car tax and the fuel tax refunds and payment provisions, ensures that overpaid refunds are due and payable from the date of the overpayment and that they are subject to the general interest charge from the date of overpayment. This ensures consistent treatment between those taxpayers who incorrectly determine their liability to pay GST or other indirect taxes and taxpayers who incorrectly determine their entitlement to a refund.

Schedule 6 improves certainty and clarifies the application of the GST, the luxury car tax and the fuel tax laws for taxpayers. This measure deals with the interaction of the GST associates provisions ensuring that supplies between associates for no consideration are treated under GST law as if the supply was for consideration. This removes anomalous outcomes where a supply may be treated differently for GST purposes depending on whether it is for consideration or not. This measure also improves certainty and clarifies the application of the GST law for associated entities. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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