GST Point-in-Time Service Updates

Thursday 6 July 2017 @ 11.25 a.m.

The GST Point-in-Time Service has been updated to include the latest amendments in the the following Acts:

  • Treasury Laws Amendment (2017 Measures No. 2) Act 2017 (No. 55 of 2017);

  • Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Act 2017 (No. 57 of 2017);

  • Treasury Laws Amendment (Major Bank Levy) Act 2017 (No. 64 of 2017);

  • Treasury Laws Amendment (GST Integrity) Act 2017 (No. 76 of 2017); and

  • Treasury Laws Amendment (GST Low Value Goods) Act 2017 (No. 77 of 2017)

Act 55 of 2017

The amendments in Schedule 1 make changes to measures enacted through the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 to support the integrity of the measures and ensure the law operates as intended.

The amendments relate to the following measures that were included in that Act:

  • the transfer balance cap;
  • changes to the concessional contribution rules;
  • changes to the non-concessional contribution rules;
  • objective of superannuation;
  • changes to the transition to retirement income stream rules;
  • capital gains tax relief for superannuation funds; and
  • streamlining of administrative processes.

Act 57 of 2017

Schedule 1 to this Act will amend the Taxation Administration Act 1953 to modify the foreign resident capital gains withholding payments regime to:

  • increase the withholding rate to 12.5 per cent; and
  • reduce the withholding threshold to $750,000.

Act 64 of 2017

The Major Bank Levy Act 2017 (Major Bank Levy Act) will introduce a levy on authorised deposit-taking institutions (ADIs) with total liabilities of greater than $100 billion. The levy is imposed at a rate of 0.015 per cent on certain liabilities of the ADI that are reported to the Australian Prudential Regulation Authority (APRA) on a quarterly basis under a reporting standard.

Schedule 1 to the Treasury Laws Amendment (Major Bank Levy) Act 2017 amends the Australian Prudential Regulation Authority Act 1998, the Financial Sector (Collection of Data) Act 2001, the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to specify certain administrative features relating to the major bank levy, including the requirement that the levy is payable to the Commissioner of Taxation (Commissioner) quarterly.

Act 76 of 2017

This Act amends the A New Tax System (Goods and Services Tax) Act 1999 to address exploitation of the goods and services tax (GST) law as it relates to precious metals. The amendments introduce a reverse charge for business to business transactions between suppliers and purchasers of gold, silver and platinum to remove the opportunity for a supplier to avoid paying GST to the Commissioner of Taxation by liquidating. The amendments also clarify the law to ensure that entities cannot exploit the special GST treatment for second-hand goods to claim input tax credits by changing the form of a precious metal they acquire.

Act 77 of 2017

Schedule 1 to this Act amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure that goods and services tax (GST) is payable on certain supplies of low value goods that are purchased by consumers and are imported into Australia.

The amendments make supplies of goods valued at $1,000 or less at the time of sale connected with the indirect tax zone if the goods that are supplied are offshore low value goods. This ensures that such supplies are subject to GST, consistent with equivalent supplies made within Australia.

The amendments made by Acts 55, 57, 64, 76 and 77 of 2017 have been updated in the Point-in-Time GST Service current to 6 July 2017. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.