Document ID: chunk:federal_register_of_legislation:C2025C00126:section:5:p15
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 5 (pt 15/33)
Character Range: 568141–570796

86—Valuable metals

86‑1  What this Division is about
      The GST on taxable supplies of goods consisting wholly or partly of valuable metal can be "reverse charged" to the recipients.

86‑5  "Reverse charge" on supplies of goods consisting of valuable metal
 (1) The GST on a *taxable supply of goods is payable by the *recipient of the supply, and is not payable by the supplier, if:
 (a) the goods consist wholly or partly of *valuable metal; and
 (b) the recipient is *registered or *required to be registered; and
 (c) either:
 (i) at the time of the supply, the market value of the goods does not exceed the *valuable metal threshold; or
 (ii) the supplier and the recipient agree, in writing, that the GST on the supply be payable by the recipient.
 (2) Subsection (1) does not apply to a *taxable supply of goods if the supply is in a class of supplies determined under subsection (3).

Determination
 (3) For the purposes of subsection (2), the Commissioner may, by legislative instrument, determine that subsection (1) does not apply to a specified class of supplies.
 (4) In making a determination under subsection (3), the Commissioner may have regard to the following:
 (a) the likelihood that *recipients and suppliers of that class of supply will otherwise comply with their obligations under the *GST law, and the risk of GST not being paid on *taxable supplies in that class if recipients do not pay the GST;
 (b) the costs for recipients and suppliers of that class of supplies to comply with subsection (1);
 (c) any other relevant matters.

Effect of this section on other sections
 (5) This section has effect despite sections 9‑40 (which is about liability for the GST), 48‑40, 51‑30 and 83‑5 (which are about who is liable for GST).

86‑10  The valuable metal threshold
 (1) The market value of goods consisting wholly or partly of *valuable metal exceeds the valuable metal threshold at a time if, at that time:
 (a) unless paragraph (b) applies—the market value of the goods exceeds the market value of the valuable metal in the goods by at least the specified percentage (see subsection (4)); or
 (b) if the goods consist of goods (separate goods), each of which:
 (i) consist wholly or partly of valuable metal; and
 (ii) can be separately supplied;
  the market value of each of the separate goods exceeds the market value of the valuable metal in those particular separate goods by at least the specified percentage.

Market value of goods and valuable metal
 (2) For the purposes of subsection (1), the market value of goods or *valuable metal in goods:
 (a) is to be worked out disregarding any amount of GST:
 (i) that is