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GST Compliance
Background
A New Tax System (Goods and Services Tax) Act 1999, [ANTS(GST) Act 1999], provides that the Commonwealth will be subject to the GST and that the Commonwealth departments will participate in the GST collection system. As you are no doubt aware, the New Tax System will commence on 1 July 2000 and the GST will be at a rate of 10% on the taxable supplies of goods and services. In this matter we refer you to the various publications put out by the Australian Tax Office, phone 136 140, or visit their website at http://www.ato.gov.au.
The Department of Agriculture, Fisheries and Forestry [DAFF] is currently preparing for and implementing systems and procedures to record and account for GST whilst at the same time ensuring compliance with the change brought about by ANTS. DAFF is registered as one entity for Australian Business Number (ABN) and GST purposes and as such has only one ABN. DAFF's ABN number is 24 113 085 695. Your organisation is on record as an industry body, recipient organisation, or a levy payer to this Department (DAFF). Levies and Revenue Service (LRS) {formerly called the Levies Management Unit} is currently upgrading its systems to cater for the effects of the GST. The following information is provided as a guide only; you should seek professional advice from the Australian Tax Office for technical aspects of the GST legislation and its implementation.
GST treatment of levies and charges
DAFF recently sought the Treasurer's concurrence to have levies and charges administered by LRS exempted from GST. The Treasurer has now issued a determination under section 81 of the ANTS(GST) Act 1999. Full details of the determination can be obtained from the Treasury website: http://www.treasury.gov.au or contact the Levies and Revenue Service, freecall 1800 020 619.
What does this mean?
It means that all levies and charges administered by L&RS are to be exclusive of GST. To calculate levy payable (where levy is based on price or value) you must use the GST exclusive price or value. If you quote prices inclusive of GST, it will be necessary to multiply this by 10/11 to find the GST exclusive price and then apply the appropriate levy rate. For levies based on a weight or a per head basis or where prices are quoted excluding GST, there should be no difficulty simply applying the appropriate levy rate. The basic effect is for that reason no change to present collection arrangements.
Other GST matters
Australian Business Number (ABN)
As soon as you have been allotted your ABN, please advise us of it so that we may update our records. You may do this by writing it on your next return or by writing to us at the above address.
DAFF's ABN number is 24 113 085 695
Please contact DAFF by e-mail, or phone 02 6272 3083, if you have any concerns or general questions about the GST and DAFF.
If you require return forms or have any general questions about levies please contact the Levies & Revenue Service by:
Writing to:
The Director
Levies Revenue Service
Locked Bag 4488
Kingston ACT 2604
Telephone: Central office (in Canberra) 1800 020 619 (toll free)
Fax: Central Office (in Canberra) 02 6272 5695
Visit our website
Or by contacting your nearest LRS Regional Office
Queensland
Telephone: 1800 647 801 (toll free)
Fax: 07 3831 4324
Victoria and Tasmania
Telephone: 1800 683 839 (toll free)
Fax: 03 9322 5500
New South Wales and ACT
Telephone: 1800 625 103 (toll free)
Fax: 02 9325 6677
South Australia and NT
Telephone:1800 814 961
Fax: 08 8341 0734
Western Australia
Telephone:1800 895 506
Fax: 08 9334 1677
Appendix A
Prices for Supplies after 1 July 2000
In considering the pricing of the supplies that you make on or after 1 July 2000, you need to take into account the introduction of the 10 per cent GST, the abolition of the various taxes, such as Commonwealth wholesale tax (WST) and some State taxes, and measures that will reduce fuel costs for certain types of transport.
The Australian Competition and Consumer Commission (ACCC) has been given special powers by the Government to oversight price changes during the transition to the New Tax System. There are penalties for price exploitation of up to $10 million for corporations, and $500,000 for individuals.
On 9 March 2000 the ACCC released new guidelines. These guidelines, which replace those issued in July 1999, are available at the ACCC's new website (http://www.accc.gov.au/content/index.phtml/itemId/142). They require that where the WST and other indirect taxes are abolished together with the addition of GST results in a net benefit, that benefit must be passed on immediately in your prices. Therefore we do not expect prices to rise by the full 10 per cent as all suppliers are required to pass on net cost reductions, and we expect many prices to fall.
Australian Business Number (ABN)
If you carry on an enterprise in Australia, you may apply to the ATO for an ABN which, if granted by the ATO, will be entered on the Australian Business Register. You will require an ABN in order to register for GST and other elements of The New Tax System. Your ABN will also be used as a new single identifier in dealings with the ATO (eg GST, Fringe Benefits Tax and PAYG), and for future dealings with agencies on a broad range of other issues.
To ensure that you obtain an ABN before the commencement of The New Tax System on 1 July 2000, you must lodge an application with the ATO by 31 May 2000.
No ABN withholding
Under the PAYG legislation, suppliers will need to quote their ABN before we pay them for the supply. If an ABN is not provided, we will, except in certain limited circumstances, withhold 48.5 per cent of the payment involved and remit it to the ATO, as required by the legislation.
To ensure that moneys are not withheld, we suggest that you register for an ABN. It would be useful to consult the ATO to obtain more information on this issue.
GST registration
If you are carrying on an enterprise and your turnover is in excess of $50,000 ($100,000 for non-profit bodies) you must register for the GST. If your turnover is less than this amount, you may register for the GST.
If you register for the GST, you can claim input tax credits for the GST paid on your creditable acquisitions. However, you also need to remit to the ATO one-eleventh of the proceeds you receive on your taxable supplies.
You can register for an ABN and for the GST, you can claim input tax credits for the GST on the one form. To ensure that you are registered for the GST before the commencement of The New Tax System on 1 July 2000, you must lodge an application with the ATO by 31 May 2000.
Tax Invoices
A 'tax invoice' is a critical element of the GST. Suppliers registered for GST must provide tax invoices to purchasers within 28 days of being requested to do so if the value of the supply is $50 or more. Purchasers must receive and retain the tax invoice to be able to claim an input tax credit (which is equivalent to the amount of the GST paid on the supply).
To ensure that we are able to claim an input tax credit when we purchase goods from you, we will require a tax invoice to be produced and supplied to us, provided you are registered, or required to be registered for the GST. The tax invoice must contain certain information to be a valid tax invioce, such as the ABN of the supplier.
Assistance in relation to The New Tax System
If you require further information on The New Tax System, please call the ATO on 13 24 78 or visit the Office's website at http://www.ato.gov.au.
If you require further information about pricing please contact the ACCC on 1300 302 502 or visit their new website at http://www.accc.gov.au. The ACCC's revised pricing guidelines (issued on 9 March 2000) are available at this website. Contact details for the Commonwealth's GST Start-up Assistance Office are as follows:
GST Business Assist Helpline: 13 30 88
Website address: http://www.gststartup.gov.au