Alan Griffin (Bruce, Australian Labor Party, Minister for Veterans' Affairs) Share this | Hansard source

In summing up, firstly I would like to thank those members who participated in this debate on the Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010. The amendments in the bill implement several government measures developed in response to the recommendations of the Board of Taxation in its review of GST administration. The review identified ways to reduce compliance costs, streamline and improve the operation of the GST and remove anomalies.

Schedule 1 addresses concerns raised in submissions to the Board of Taxation’s review of the legal framework for the administration of the GST. Concern was expressed that the adjustment provisions failed to reflect the commercial reality of transactions by not considering related payments to third parties that effectively alter the consideration provided for the supply. The amendments address these concerns by ensuring that adjustments are required in situations in which a payment is made which indirectly alters the price paid or received by the parties for the thing supplied.

Schedule 2 addresses taxpayer concerns about the operation of the present GST law. The amendment clarifies the GST input tax credit attribution rules so that it is clear that it is always possible for taxpayers to claim input tax credits in the current tax period rather than needing to amend prior returns. I commend this bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

See this speech in context