Accounting and Record Keeping All Commonwealth entities, including those departments and agencies conducting commercial activities such as selling publications and other goods to the public, will need to examine their accounting and record keeping systems to ensure that they will be in a position to claim their input tax credits on the relevant monthly or quarterly basis. Some departments and agencies will need to consider the GST implications of taxes and other fees that they charge. However the Act gives the Federal Treasurer power to make a determination that the payment of the tax is not consideration. Therefore departments and agencies may need to examine the taxes and other fees they charge in order to determine which ones could be included in a determination by the Treasurer. The general rule is that GST is only payable on a supply of goods or services to the extent that it is made after 1 July 2000.
Sales tax continues to apply for assessable dealings up until that date.
Whether or not GST is payable on a contract will depend on the time of supply and that will be determined by applying the legislative provisions to the facts of the particular situation. The GST legislation provides for transitional rules in relation to contracts for the supply of goods and services which span 1 July 2000. The GST treatment of such supplies depends on the date of the contract, whether the agreement is reviewable or non-reviewable for the purposes of the legislation, and the nature and time of supply Reviewable Contracts A contract is reviewable if it provides a review opportunity . This is where a contract allows for a change in the consideration, directly or indirectly, because of the imposition of the GST, or an opportunity to conduct a general review, renegotiation or alteration of the consideration. If the purchaser of the supply under a reviewable contract is entitled to full input tax credits for that supply, and the contract was entered into prior to 8 July 1999 then supplies under the contract will be GST-free until the earlier of the first review date or 1 July 2005.