On 18 January 2011, the Assistant Treasurer released for public consultation exposure draft legislation to harmonise the self actuating system for goods and services tax (GST), wine equalisation tax (WET), luxury car tax (LCT) and fuel tax credits with the income tax system of self assessment.
In response to submissions, the Government announced in the 2011-12 Budget that the start date for the measure would be deferred to allow for further consultations.
The revised draft legislation seeks to address some of the issues arising from public consultation.
The amendments contained in the draft legislation will:
- harmonise the self actuating system for GST, LCT, WET and fuel tax credits with the income tax system of self assessment through the establishment of a set of generic assessment provisions;
- allow for the four year period of review to be refreshed in respect to particulars that have been amended;
- allow the Commissioner to make a determination allowing a taxpayer to correct errors from a preceding business activity statement on their current business activity statement; and
- clarify that LCT and WET are included in the calculation of the net amount.
These proposals will give effect to recommendations 19, 21 and 42 of the Board of Taxation's Review of the Legal Framework for the Administration of the Goods and Services Tax.