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Legislative Instrument

Goods and Services Tax: Simplified GST Accounting Methods Determination (No. 28) 2015

I, James O'Halloran, Deputy Commissioner of Taxation, make this determination under subsection 123-5(1) of the A New Tax System (Goods and Services Tax) Act 1999.

James O'Halloran
Deputy Commissioner of Taxation

Dated: 15 September 2015

Name of Determination

     1.  This determination is the A New Tax System (Goods and Services Tax) Act 1999 Simplified GST Accounting Methods Determination (No. 28) 2015.

Commencement

     2.      This determination commences on the day after registration.

Repeal of previous instrument

     3.      The following determination is repealed on the commencement of this determination:

           * A New Tax System (Goods and Services Tax) Act 1999 Simplified GST Accounting Methods Determination (No. 1) 2004 (the previous instrument) - F2005B02065, registered on 26/08/2005 is repealed on the commencement of this determination.

Determination (Who is covered by this Determination)

     4.      This determination applies to:

           * an entity that was previously determined in the previous instrument as being able to use the simplified accounting method; or

           * an entity that was not determined in the previous instrument, provided it satisfies all the requirements of this instrument.

Classes of entities that may choose to use the simplified accounting method

   5. A government entity may choose to use the simplified accounting method specified in clause 6 to calculate its net amount, in so far as the net amount relates to supplies and acquisitions made through a sub-entity of the government entity, if:

     (a)          the government entity is a retailer; and

     (b)          the government entity is registered; and

         (c)           through the sub-entity, the government entity sells both taxable and GST‑free food at the same premises in the course or furtherance of carrying on the government entity's enterprise; and

         (d)          the sub-entity's main activity is selling food and it mainly sells the food in an unchanged form; and

         (e)          the sub-entity's annual turnover would not exceed $2 million (if it were calculated as though the sub-entity were a separate entity); and

         (f)            the sub-entity is located in a prison or other institution where people are lawfully detained; and

     (g)          the sub-entity does not have point-of-sale equipment that can:

            (i)          identify and record each separate supply as being GST-free or taxable; and

            (ii)          identify and record the total amount of its GST-free sales and the total amount of its sales.

     The government entity's notice of its choice must specify the sub‑entities for which the government entity chooses to use the simplified accounting method.

Simplified Accounting Method

   6. The simplified accounting method is, in working out the government entity's net amount, either:

         (a)           the GST payable by the government entity on the taxable supplies made through each sub-entity to which its choice applies