Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Hansard source

Firstly I would like to thank those members who have contributed to this debate. The Treasury Laws Amendment (GST Integrity) Bill 2017 amends the GST law to give effect to changes that were announced on 31 March 2017 by the Minister for Revenue and Financial Services, the Hon. Kelly O'Dwyer MP, and which apply from 1 April 2017.

The bill provides that entities buying gold, silver and platinum that have been supplied as a taxable supply for GST purposes will be required to apply a reverse charge. This means that the purchasers of these goods will remit the GST to the ATO instead of the seller. The bill further clarifies that precious metals are not second-hand goods. The bill is targeted to address the mischief of tax avoidance and fraud and contains provisions and protections to ensure that the effect on business activity is minimised. By making these changes to the GST treatment of precious metals the government is securing additional funding for states and territories, which provide the crucial services, such as hospitals and schools, that Australians rely on. I commend this bill to the House.

Question agreed to.

Bill read a second time.

See this speech in context