Inserts for
Refunding excess GST

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  			
2.  Schedule ??	The day this Act receives the Royal Assent.		
3.  			
Schedule ??—Refunding excess GST
  
A New Tax System (Goods and Services Tax) Act 1999
1  Subsection 17‑5(1) (note)
Repeal the note, substitute:
Note 1:	For the basic rules on what is attributable to a particular period, see Division 29.
Note 2:	For further rules if you have excess GST for the period, see Division 36.
2  Subsection 35‑5(1) (note 1)
Omit “, and section 105‑65 in Schedule 1 to,”.
3  Section 35‑99 (note)
Repeal the note.
4  At the end of Part 2‑7
Add:
Division 36—Excess GST
36‑1  What this Division is about
Amounts of any excess GST you have will usually not be refunded if you have passed on those amounts.
36‑5  Working out if your excess GST can be refunded
	(1)	This section applies if, apart from subsection (2), your *assessed net amount for a tax period takes into account an amount of GST that exceeds what is payable.
Note:	This section applies whether or not you have paid, or been refunded, the assessed net amount.
Example 1:	Storm Co reports a negative net amount of $4,000 made up of GST of $10,000 less input tax credits of $14,000. In fact, Storm Co’s GST should have been $8,000 making its negative net amount $6,000. Storm Co has excess GST of $2,000.
Example 2:	Snow Enterprises reports and pays a net amount of $2,400 made up of GST of $3,200 less input tax credits of $800. In fact, Snow Enterprises has incorrectly included an amount of $400 for a supply that should have been treated as GST‑free, making its net amount $2,000. Snow Enterprises has excess GST of $400.
	(2)	For the purposes of this Act, the excess GST is taken to have always been payable except for:
	(a)	so much of the excess GST as you have not passed on to any other entity; and
	(b)	if:
	(i)	you have passed on some or all of the excess GST to another entity; and
	(ii)	that entity is neither *registered nor *required to be registered;
		so much of that passed‑on amount for which that entity has been reimbursed.
Note 1:	Only excess GST covered by paragraph (a) or (b) can be considered for working out a refund under section 155‑75 in Schedule 1 to the Taxation Administration Act 1953.
Note 2:	If the excess GST has been passed on to a registered entity (or an entity required to be registered), that entity can treat the excess GST as being payable for working out the amount of its input tax credits under section 11‑25.
	(3)	For the purposes of subsection (2):
	(a)	some or all of the excess GST may pass on to another entity even if:
	(i)	a *tax invoice is not issued to or by that other entity; or
	(ii)	a tax invoice issued to or by that other entity relates to that excess GST, but does not contain enough information to enable that excess GST to be clearly ascertained; and
	(b)	if:
	(i)	a tax invoice is issued to or by another entity; and
	(ii)	it contains enough information to enable some or all of the excess GST to be clearly ascertained;
		the tax invoice is prima facie evidence of that part of the excess GST having passed on to that other entity.
5  Section 51‑60 (note 1)
Omit “, and section 105‑65 in Schedule 1 to,”.
6  Section 54‑65 (note 1)
Omit “, and section 105‑65 in Schedule 1 to,”.
Income Tax Assessment Act 1936
7  Subsection 98A(2) (note)
Omit “, and section 105‑65 in Schedule 1 to,”.
8  Subsection 98B(4) (note)
Omit “, and section 105‑65 in Schedule 1 to,”.
Taxation Administration Act 1953
9  Section 105‑65 in Schedule 1
Repeal the section.
10  Application of amendments
The amendments made by this Schedule apply in relation to working out your net amount for a tax period starting on or after 17 August 2012.