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

I am pleased to speak on the Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010. The bill was introduced into the House on 10 February 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. Legislation implementing some other recommendations from the Board of Taxation’s review, the Tax Laws Amendment (2009 GST Administration Measures) Bill 2009, passed through the House in an earlier sitting week this year. As I did with the earlier bill, I would like to say at the outset that the coalition will be supporting the passage of this bill through the House and the other place.

Schedule 1 implements recommendation 6 of the board’s report by amending the law to provide for adjustments when payments are made between a payer and a third party. The amendments will mean that, where an entity makes a payment to a third-party consumer, both entities will be able to apply adjustments to reflect the actual amount received and the actual amount paid. This change ensures that the correct amount of GST is remitted by the supplying entity and by the third-party consumer. The amendments in Schedule 1 take effect from 1 July 2010.

Schedule 2 implements recommendation 10 of the board’s report by clarifying the law regarding the attribution of input tax credits to tax periods. Schedule 2 clarifies the law to reflect the Commissioner of Taxation’s current approach. The changes in Schedule 2 will also apply from 1 July 2010. The coalition supports the measures of this bill and I commend the bill to the House.

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