Issued by authority of the Minister for Revenue and Assistant Treasurer

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

A New Tax System (Goods and Services Tax) Amendment Regulations 2007 (No. 1)

Section 177-15 of the A New Tax System (Goods and Services Tax) Act 1999 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the amending Regulations is to amend the A New Tax System (Goods and Services Tax) Regulations 1999 (the Principal Regulations) to specify the maximum value of acquisitions for which a tax invoice is not required as $75 (excluding goods and services tax (GST)).

Tis changes is part of a package of measures to assist small business and reduce compliance costs announced on 8 May 2007 as part of the 2007-08 Budget.

Subsection 29-80(1) of the Act provides that it is not necessary to hold a tax invoice to claim an input tax credit for a creditable acquisition relating to a taxable supply with a value not exceeding $50 (excluding GST), or such higher amount as the regulations specify. Subsection 29-80(1) also provides that the requirement to issue a tax invoice at the request of a purchaser does not apply in relation to these supplies. The amending Regulations specify the higher amount of $75 (excluding GST).

This allows businesses to obtain input tax credits for these minor expenses without needing to obtain a tax invoice.

Consultation was not undertaken, as the amending Regulations are of a mechanical nature and do not substantially alter the previous arrangements.

The Regulations commenced on 1 July 2007.