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Legal Framework for the Administration of the GST

On 12 May 2009, the Assistant Treasurer announced the release of the Board of Taxation’s report  on its review of the legal framework of the administration of the GST. The release of the report was welcomed by the Chairman of the Board of Taxation, Mr Richard Warburton AO. While overall the Board found that the GST is operating effectively, there are some aspects of the tax that impose unnecessarily high compliance costs on taxpayers. The Board put forward 46 recommendations, most of which have been supported by Government. In response to the Board’s recommendation, on 12 May 2009 the Assistant Treasurer announced that he has asked the Board to undertake a review of the application of GST to cross‑border transactions. Further information on this new review and the terms of reference can be found on the Review of GST Cross‑Border page. The Board’s report on its review of the legal framework for the administration of the GST is available for download. Printed versions of the report are available by email request sent to taxboard@treasury.gov.au or by phoning the Board of Taxation Secretariat on 02 6263 4366.

Background

On 11 June 2008 the Assistant Treasurer announced that he had asked the Board of Taxation to undertake a review of the legal framework for the administration of the GST. The press release from the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs announcing the Board’s review and detailing the terms of reference  for the review is available from the Assistant Treasurer’s website. This review replaced the Board’s previous review of the application of the self-assessment principles to other taxes administered by the Taxation Commissioner. In addition, the Board was asked to consider the implications of any possible changes to GST administration provisions for other indirect taxes that currently share common tax administration provisions in the Tax Administration Act or the GST Act. The focus of the review were:

In pursuing the terms of reference, the Board  was asked that its consultations and recommendations focus on the legal framework for the administration of the GST as set out in the Tax Administration Act and GST Act. The Board’s review did not extend to the rate of the GST or the scope and extent of what goods and services are subject to the GST. The Board appointed a working group of its members comprising Eric Mayne (Chairman), Chris Jordan AO, Curt Rendall and Dick Warburton AO to oversee the Board’s review. The Board was asked to consult with stakeholders including small and large businesses, professional bodies and State and Territory Governments. The Board was asked to provide a final report to the Government by the end of December 2008. On 18 July 2008, the Board of Taxation released its issues paper on the Review of the legal framework for the administration of the GST. The Chairman of the Board of Taxation announced the release of the issues paper via a press release. The Board developed the issues paper to facilitate public consultation. The Board held extensive consultation with stakeholders in August 2008. Consultation meetings were held in Sydney, Brisbane, Melbourne, Darwin, Perth and Albury. The Board requested written submissions on the review of the legal framework for the administration of the GST by 15 September 2008. All submissions received were acknowledged. The Board completed its review of the legal framework for the administration of the GST and provided its report to the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs in December 2008. In preparing its report the Board took into account the various submissions to the review, discussions with stakeholders and the consultants’ evaluations. Further information on this review can be obtained from the Board of Taxation Secretariat on 02 6263 4366.

Submissions received

SubmitterDownload
Association of Heads of Australian University Colleges and Halls Inc97KB
Australand Holdings Limited79KB
Australian Bankers' Association Inc774KB
Australian Finance Conference455KB
Australian Financial Markets Association141KB
Australian Petroleum Production & Exploration Association Limited138KB
Australian Securitisation Forum433KB
Challenger Financial Group2MB
Commonwealth Bank of Australia293KB
Corporate Tax Association143KB
CPA Australia1MB
EasyGSTrefunds248KB
Ernst & Young251KB
Federal Chamber of Automotive Industries292KB
Freehills121KB
GMA Tax (submission 1)61KB
GMA Tax (submission 2)62KB
Greenwoods and Freehills Pty Ltd5MB
Housing Industry Association49KB
Insolvency Practitioners Association of Australia (submission 1)54KB
Insolvency Practitioners Association of Australia (submission 2)120KB
Insurance Council of Australia2MB
Investment & Financial Services Association Ltd1MB
KPMG224KB
Kraal, Diane2MB
Local Government Association of Queensland Inc434KB
Millar, Rebecca673KB
Minerals Council of Australia696KB
Minter Ellison797KB
National Association of Retail Grocers of Australia Pty Ltd21KB
National Institute of Accountants1012KB
Northern Beaches Practitioner Tax Discussion Group81KB
PricewaterhouseCoopers5MB
Property Council of Australia2MB
Software Developers Consultative Group181KB
Taxation Institute of Australia206KB
The Institute of Chartered Accountants in Australia550KB
Tuor, Martin28KB
Woolworths Ltd496KB

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