GST update

42 changes to the administration of GST! Are you aware of them?

In the 2009 budget, it was announced that 42 of the 47 recommendations arising from the recent Board of Taxation review into GST will be implemented, effective from 1 July 2010.

Many of the changes are minor or administrative in nature, however, there are a number of key changes which will affect many taxpayers. Some of the highlights are:

• Sales of Going Concerns - GST Free treatment abolished! Implementation of reverse charge
• Overhaul of the Grouping rules! - Requirements to be "simplified"
• Widening of the reverse charge provisions
• Simplification of the change in creditable purpose rules (do you lease out a residential property which was built for sale?)
• Representatives or incapacitated entities are liable for the GST debts from the date of appointment (effective from 1 July 2009)
• The 'Four Year Cap' on retrospective claims has been strengthened in respect of retrospective claims (and opportunities for manufacturer/holdback payment refunds have been reduced)
• Internal freight of goods within Australia to be included in taxable value of imports/exports 
• Financial Acquisition Threshold - changes to the frequency for performing the 'FAT' test
• Harmonisation of Tax and GST ruling systems
• Option to treat a mixed supply as a wholly taxable supply
• Consultations on the financial supply provisions and margin scheme have also been announced. Watch this space

Click here to see the consultation paper issued by the Treasury on the proposed changes.


For more information on how the Budget GST changes might affect your organisation, contact your regular Grant Thornton adviser our indirect tax specialist Krish Patel via the details below.

Krish Patel
Partner - Tax
T +61 2 8297 2400
E krish.patel@au.gt.com