Exemption of taxes, fees and charges from the GST - Exposure Draft Regulations
The Assistant Treasurer, Bill Shorten, is proposing new regulations to specify which taxes, fees and charges will still be subject to the Goods and Services Tax (GST).
The Government introduced legislation into Parliament on 26 March 2011 to replace the current 680 page 'Determination' listing Australian taxes, fees and charges that are exempt from GST, with a principles-based legislative exemption with effect from 1 July 2011.
"The new regulations prescribe a number of fees and charges that will still attract GST to ensure the treatment of those fees and charges is not changed under the new principles-based legislation, which will come into effect from 1 July," Mr Shorten said.
The Government announced in the 2010-11 Budget that it would amend the law to replace the current mechanism for exempting Australian taxes, fees and charges under Division 81 of the GST Act with a principles-based legislative exemption with effect from 1 July 2011.
The legislation gives effect to the agreement between the Commonwealth, States and Territories over the treatment of government taxes, fees and charges that was entered into when the GST was introduced.
Under the agreement, regulatory charges that do not relate to particular goods and services are exempt from GST. These regulatory charges include fees and charges levied on specific industries and used to finance particular regulatory or other activities as well licences, permits and certifications required to undertake an activity.
However, supplies of goods and services by government related entities are generally intended to be taxable, which is why these draft regulations have also been introduced.
"I encourage stakeholders to make submissions to the Government on the exposure draft regulations. These regulations will safeguard revenue and provide certainty for stakeholders," Mr Shorten said.
More information is at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=2012