Commonwealth Numbered Acts

TAX LAWS AMENDMENT (SMALL BUSINESS MEASURES) ACT 2004 NO. 134, 2004 - SCHEDULE 3

A New Tax System (Goods and Services Tax) Act 1999

1 Paragraph 48-85(3)(b)

After " ^* annual tax period", insert ", or an ^* instalment tax period,".

2 Subsection 129-20(1)

After "subsection 151-55(1)", insert "or 162-85(1)".

3 Subsection 129-20(1) (note)

Omit "subsection 151-55(1)", substitute "subsections 151-55(1) and 162-85(1)".

4 Paragraph 138-10(1)(b)

After "subsection 151-55(1)", insert "or 162-85(1)".

5 Subsections 162-15(2), (3) and (4)

Repeal the subsections, substitute:

(2)

Your election takes effect from:

(a) the start of the earliest tax period for which, on the day on which you make your election, your ^* GST return is not yet due; or
(b) the start of such other tax period as the Commissioner allows, in accordance with a request you make in the ^* approved form.

Note: Refusing a request to allow your election to take effect from the start of another tax period is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953 ).

6 Section 162-30

Repeal the section, substitute:

162-30 Duration of your election

General rule

(1)

Your election ceases to have effect if:

(a) you revoke it, by notifying the Commissioner in the ^* approved form; or
(b) the Commissioner disallows it under subsection (3); or
(c) on 31 July in a ^* financial year, your ^* annual turnover exceeds the ^* instalment turnover threshold; or
(d) during the first tax period applying to you in a financial year, you are in a ^* net refund position; or
(e) in a case where you are the ^* representative member of a ^* GST group—the membership of the GST group changes.

Your election also ceases to have effect at the end of your concluding tax period under section 27-40, or at the end of a tax period applying to you to which subsection 162-85(1) applies.

Revocation

(2)

A revocation of your election is taken to have had, or has, effect:

(a) if you notify the Commissioner on or before 28 October in a ^* financial year—from the start of that financial year; or
(b) if you notify the Commissioner after 28 October in a financial year—from the start of the next financial year.

Disallowance

(3)

The Commissioner may disallow your election if, and only if, the Commissioner is satisfied that you have failed to comply with one or more of your obligations under a ^* taxation law.

Note: Disallowing your election is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953 ).

(4)

A disallowance of your election is taken to have had effect:

(a) if the Commissioner notifies you of the disallowance during the ^* financial year in which your election first took effect—from the start of the tax period in which it first took effect; or
(b) if the Commissioner notifies you of the disallowance on or before 28 October during a later financial year—from the start of that later financial year; or
(c) if the Commissioner notifies you of the disallowance after 28 October during a later financial year—from the start of the financial year immediately following that later financial year.

Exceeding the instalment turnover threshold

(5)

If paragraph (1)(c) applies, your election is taken to have ceased to have effect from the start of the ^* financial year referred to in that paragraph.

Being in a net refund position

(6)

If paragraph (1)(d) applies, your election is taken to have ceased to have effect from the start of the ^* financial year referred to in that paragraph.

7 Subsection 162-50(2)

Omit "the", substitute "any".

Taxation Administration Act 1953

8 Subsection 62(2) (table item 37B)

Repeal the item, substitute:

9 Subsection 62(2) (after table item 37C)

Insert:

10 Application

The amendments made by this Schedule apply in relation to net amounts for tax periods starting on or after 1 July 2005.