An Act to implement A New Tax System by making transitional provisions for the start of the goods and services tax, and for related purposes

Part 1—Introduction

1 Short title [see Note 1]

This Act may be cited as the A New Tax System (Goods and Services Tax Transition) Act 1999.

2 Commencement [see Note 1]

(1) This Act commences, or is taken to have commenced:

(a) after all the Acts listed in subsection (2) have received the Royal Assent; and

(b) on the day after the last day on which any of those Acts received the Royal Assent.

(2) These are the Acts:

(a) the A New Tax System (Goods and Services Tax) Act 1999;

(b) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999;

(d) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999;

(e) the A New Tax System (Goods and Services Tax Administration) Act 1999.

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4 Overview

The following provisions deal with the transition from sales tax to GST, as well as other matters relating to the start of the GST.

This Act should be read in conjunction with the GST law and the sales tax law.

5 Definitions

(1) In this Act:

GST Act means the A New Tax System (Goods and Services Tax) Act 1999.

(2) Other expressions in this Act have the same meaning as in the GST Act.

(3) However, the table lists expressions that have the same meaning as in another Act.

Expressions with same meaning
Item	This expression...	has the same meaning as in...
1	assessable dealing	Sales Tax Assessment Act 1992
2	assessable goods	Sales Tax Assessment Act 1992
3	borne tax	Sales Tax Assessment Act 1992
3AA	eligible short‑term lease	Sales Tax Assessment Act 1992
3A	hire purchase agreement	Income Tax Assessment Act 1997
4	motor vehicle	Income Tax Assessment Act 1997
5	passed on	Sales Tax Assessment Act 1992
6	sales tax	Sales Tax Assessment Act 1992
7	sales tax law	Sales Tax Assessment Act 1992
8	trading stock	Income Tax Assessment Act 1997

6 Time of supply or acquisition

(1) This section sets out how to determine when a supply or acquisition is made for the purposes of this Act.

Note: Many of the rules in this Act rely on this concept.

(2) A supply or acquisition of goods is made:

(a) when the goods are removed; or

(b) if the goods are not to be removed—when the goods are made available to the recipient; or

(c) if the goods are removed before it is certain that a supply will be made (for example, if the goods are given or taken on approval, sale or return, or similar terms)—when it becomes certain that a supply has been made.

Note: Subsection 20(8) provides a rule stating when motor vehicles and other goods covered by subsection 20(1) are taken to be removed.

(3) A supply or acquisition of real property is made when the property is made available to the recipient.

(4) A supply or acquisition of services is made when the services are performed.

Note: However, section 12 provides a different rule for progressive and periodic contracts.

(5) A supply or acquisition of any other thing is made when the thing is performed or done.

Note: However, section 12 provides a different rule for progressive and periodic contracts.

6A Trading periods spanning midnight on 30 June 2000

(1) Despite section 6, if:

(a) an entity has chosen to apply this section; and

(b) the entity makes a supply that, under section 6, would be taken to be made on 1 July 2000 but before:

(i) 6 am on that day; or

(ii) if the entity has chosen to stop the application of this section at an earlier time on that day—the time so chosen; and

(c) the part of the entity’s enterprise through which the supply is made was open for business both immediately before 1 July 2000 and immediately after 30 June 2000; and

(d) that part of the entity’s enterprise remains open for business during 1 July 2000 until at least the time at which, under section 6, the supply would be taken to be made;

the supply, and the acquisition made by the recipient of the supply, is taken, for the purposes of this Act, to be made immediately before 1 July 2000.

(2) If an entity makes a supply to which subsection (1) applies, then, in relation to that supply:

(a) section 12 has effect as if the reference in paragraph 12(1)(b) to a period that begins before 1 July 2000 and ends on or after 1 July 2000 were a reference to a period that begins before the end of the transition trading period and ends on or after the end of the transition trading period; and

(b) Part 4 has effect as if references to having goods on hand at the start of 1 July 2000 were references to having goods on hand immediately after the end of the transition trading period; and

(c) subsection 16(3A) has effect as if the reference to the amount of sales tax borne changing after 1 July 2000 were a reference to that amount changing after the end of the transition trading period; and

(d) paragraph 17(1)(b) has effect as if the reference to applying the goods on or after 1 July 2000 were a reference to applying the goods after the end of the transition trading period; and

(e) paragraph 17(3)(b) has effect as if the reference to ceasing to be registered on or after 1 July 2000 were a reference to ceasing to be registered after the end of the transition trading period; and

(f) section 24 has effect as if:

(i) the reference to making gambling supplies before 1 July 2000 were a reference to making gambling supplies before the end of the transition trading period; and

(ii) the reference to a gambling event happening on or after 1 July 2000 were a reference to a gambling event happening on or after the end of the transition trading period; and

(iii) the references to gambling events that happened before 1 July 2000 were references to gambling events that happened before the end of the transition trading period; and

(g) section 24A has effect as if the references to vouchers supplied before, not redeemed before, or supplied after, 1 July 2000 were references to vouchers supplied before, not redeemed before, or supplied after, the end of the transition trading period (as the case requires).

(3) This section does not apply if, but for this section, the supply would be input taxed.

(4) In this section:

transition trading period means the period ending:

(a) at the first time after 30 June 2000 that the part of the entity’s enterprise through which the supply in question was made was not open for business; or

(b) at:

(i) 6 am on 1 July 2000; or

(ii) if the entity has chosen to stop the application of this section at an earlier time on that day—the time so chosen;

whichever occurs sooner.

Part 2—Start of GST

7 Start of GST

(1) GST is only payable on a supply or importation to the extent that it is made on or after 1 July 2000.

Note: GST may not apply to supplies during trading periods spanning midnight on 30 June 2000: see section 6A.

(2) An entitlement to an input tax credit only arises on an acquisition or importation to the extent that it is made on or after 1 July 2000.

Note: There are special rules about input tax credits for motor vehicles etc.: see section 20.

8 Effect on sales tax

(1) No sales tax is payable on an assessable dealing to the extent that a supply or importation in respect of the dealing is made on or after 1 July 2000.

Note 1: If sales tax has been paid, a credit will arise for the amount overpaid, to the extent that the claimant has not passed it on: see CR1 in Table 3 in Schedule 1 to the Sales Tax Assessment Act 1992.

Note 2: For the end of sales tax generally, see the A New Tax System (End of Sales Tax) Act 1999.

Note 3: Sales tax may still apply to supplies during trading periods spanning midnight on 30 June 2000: see section 6A.

(2) Despite the A New Tax System (End of Sales Tax) Act 1999, if:

(a) all or part of a supply or importation in respect of an assessable dealing is made before that Act commences (even if it is also made before this Act commences); and

(b) the time of the dealing is on or after 1 July 2000;

for the purpose of determining the extent (if any) to which sales tax is payable on the dealing, the time of the dealing is taken to be immediately before that Act commences.

9 GST registration before 1 July 2000

(1) Parts 2‑5 and 4‑5 of the GST Act, and any other provisions of the GST law so far as they relate to registration, apply on and after the day determined by the Commissioner (even if that day is before the commencement of the GST Act).

Note: From that day, you may apply to be registered if you are entitled to do so under section 23‑10 of the GST Act.

(2) However, you are not required to be registered before 1 June 2000.

Example: On 1 May 2000, you start carrying on a business whose annual turnover meets the registration turnover threshold. Although you would normally be required to apply within 21 days, you can apply anytime before 1 June 2000. But if instead you start carrying on a business on 20 May, you have until 10 June (21 days later) to apply to be registered.

10 Invoice or consideration before 1 July 2000

If, before 1 July 2000:

(a) any consideration is received in connection with a supply, or provided in connection with an acquisition, that you will make on or after that day; or

(b) an invoice is issued relating to a supply or acquisition that you will make on or after that day;

for the purposes of determining the tax period to which GST or input tax credits are attributable, the consideration is taken to have been received or provided, or invoice taken to have been issued, during your first tax period after that day.

Note: Division 29 of the GST Act contains rules about attributing GST and input tax credits to tax periods.

11 Supply of rights exercisable on or after 1 July 2000

(1) A supply of a right that has been or is granted on or after 2 December 1998 (other than a supply of a right granted on or after 1 July 2000) is taken to be a supply made on or after 1 July 2000 if, and to the extent that, the right could reasonably be expected to be exercised on or after 1 July 2000.

(1A) However, this section does not apply to:

(a) a supply to which section 12 applies; or

(b) a supply of a right that is an option to purchase, under a hire purchase agreement, goods hired under that agreement; or

(i) the value of the right was included in the price of the software; and

(ii) the right to use the software is for an indefinite period.

(1B) This section does not apply to:

(a) a supply of a long-term lease made before 1 July 2000; or

(b) a supply of a voucher made before 1 July 2000 if, on redemption of the voucher, the holder of the voucher is entitled to supplies up to a monetary value stated on the voucher.

(2) The Commissioner may make a written ruling determining methods for working out the extent to which a right could reasonably be expected to be exercised on or after 1 July 2000 where that extent is not readily ascertainable.

(3) This section does not affect the operation of section 13.

(4) If this section has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.

Part 3—Agreements spanning 1 July 2000

12 Progressive or periodic supplies

(1) This section applies if:

(a) you make a supply under an agreement, or an enactment, that provides (expressly or impliedly) that the thing supplied is to be supplied:

(i) for a period; or

(ii) progressively over a period;

whether or not at regular intervals; and

(b) that period begins before 1 July 2000 and ends on or after 1 July 2000.

Note: Section 11 does not apply to supplies covered by this section: see paragraph 11(1A)(a).

(1A) However, this section does not apply to a supply of a warranty (whether express, implied or required by law) that relates to goods or a service, if the value of the warranty was included in the price of the goods or service.

(2) For the purposes of this Act, the supply is taken to be made continuously and uniformly throughout that period.

(3) For the purposes of this section, a supply by way of lease, hire or similar arrangement is taken to be a supply for the period of the lease, hire or arrangement.

(4) This section does not apply to a supply of a long-term lease made before 1 July 2000.

(5) In this section:

warranty, in relation to goods or a service, means an undertaking or obligation in relation to:

(a) the quality, performance or characteristics of the goods or service; or

(b) the provision of services that are or may at any time be required in respect of the goods or service; or

given or made in connection with the supply of the goods or service.

(6) If this section has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.

13 Existing agreements: no opportunity to review

(1) This section applies if:

(a) a written agreement specifically identifies a supply and identifies the consideration in money, or a way of working out the consideration in money, for the supply; and

(b) the agreement was made before the day on which this Act received the Royal Assent.

(2) The supply is GST‑free to the extent that it is made before the earlier of the following:

(a) 1 July 2005;

(b) if a review opportunity arises on or after the day of Royal Assent—when that opportunity arises.

(3) If all of the consideration was paid before 2 December 1998, the supply is also GST‑free to the extent it is made on or after 1 July 2005 but before a review opportunity has arisen as mentioned in paragraph (2)(b).

(4) However, if the recipient of the supply would not be entitled to a full input tax credit for it, treat the references in paragraphs (1)(b) and (2)(b) to the day of Royal Assent as references instead to 2 December 1998.

(4A) For the purposes of this section, a Commonwealth entity is to be treated as if it were entitled or not entitled to a full input tax credit (whichever is relevant) if it would be so entitled or not entitled if it were an entity other than a Commonwealth entity.

(5) In this section:

review opportunity, for an agreement to which this section applies, means an opportunity that arises under the agreement:

(a) for the supplier under the agreement (acting either alone or with the agreement of one or more of the other parties to the agreement) to change the consideration directly or indirectly because of the imposition of GST; or

(b) for the supplier under the agreement (acting either alone or with the agreement of one or more of the other parties to the agreement) to conduct, on or after 1 July 2000, a general review, renegotiation or alteration of the consideration; or

(c) for the supplier under the agreement (acting either alone or with the agreement of one or more of the other parties to the agreement) to conduct, before 1 July 2000, a general review, renegotiation or alteration of the consideration that takes account of the imposition of the GST.

14 Rights granted for life

(1) This section applies if:

(a) you supply services or any other things (other than goods or real property) under an agreement or enactment; and

(b) the agreement or enactment provides (expressly or impliedly) that a right is to be granted or exercisable for the rest of an individual’s life; and

(2) To the extent that the supply is constituted by the supply of the right, so much of the supply as is made before 1 July 2000 is instead taken, for the purposes of this Act, to be made on 1 July 2000.

(3) However, in the case of an agreement entered into before 2 December 1998 that is also covered by section 13:

(a) subsections 13(2) and (3) do not apply; and

(b) instead, the supply is GST‑free to the extent that the consideration for the supply is paid before the earlier of the following:

(i) 1 July 2005;

(ii) if a review opportunity as mentioned in paragraph 13(2)(b) arises—when that opportunity arises.

(4) If:

(a) an agreement is for the supply of a life membership; and

(b) the entity to which the supply is made would be entitled to a full input tax credit for it;

subsection (3) has effect as if the reference to 2 December 1998 were a reference to 8 July 1999.

(5) For the purposes of this section, a Commonwealth entity is to be treated as if it were entitled or not entitled to a full input tax credit (whichever is relevant) if it would be so entitled or not entitled if it were an entity other than a Commonwealth entity.

(6) If this section has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.

15 Funeral agreements

(1) If, before 1 July 2000, you enter, or have entered, into an agreement for a supply consisting of the provision of a funeral (or a right to the provision of a funeral):

(a) section 11 and this Part (apart from this section) do not apply; and

(b) the supply of any right under the agreement relating to the provision of a funeral is taken to be a supply made on or after 1 July 2000 only if the funeral is provided on or after that day.

(2) If you entered into the agreement before 1 December 1999 and the funeral is provided on or after 1 July 2000, the supply is GST‑free to the extent that the consideration for the supply is paid before 1 July 2005.

Part 4—Stock on hand on 1 July 2000

16 Special GST credit for sales tax paid on stock

(1) You are entitled to a special credit for GST purposes if:

(a) you are registered as at 1 July 2000; and

(b) you have on hand, at the start of 1 July 2000, goods you acquired or imported that are held for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business.

Note: In some cases relating to alcoholic beverages, subsections 16A(3) and 16B(3) prevent special credits arising.

(2) However, this section does not apply to the following:

(a) second‑hand goods, unless:

(i) you imported them; and

(ii) nobody was entitled to quote under the Sales Tax Assessment Act 1992 for the importation; and

(iii) you did not hold the goods, at any time prior to 1 July 2000, for a purpose other than for sale or exchange in the ordinary course of business.

(b) goods mentioned in subsection 15A(1) (alcoholic beverages) of the Sales Tax (Exemptions and Classifications) Act 1992, if those goods are opened stock;

(3) The amount of the special credit is equal to the amount of sales tax that you have borne in respect of the goods.

Note: In some cases relating to alcoholic beverages, subsections 16A(2) and 16B(2) reduce the amounts of special credits.

(3A) However, if the amount of sales tax you have borne in respect of the goods changes after 1 July 2000, the amount of the special credit changes accordingly.

(4) The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice. However, you are not entitled to it unless you separately identify it in a GST return that you lodge for a tax period that ends before 7 January 2001.

(4A) If the amount of the special credit changes under subsection (3A) after you lodged that return, you must lodge with the Commissioner an amended GST return for that tax period. You must lodge it on or before the 21st day of the month following the end of the tax period in which the change happens.

(5) The Commissioner may make a written ruling determining methods for working out the amount of sales tax that you have borne in respect of specified goods in cases where that amount is not readily ascertainable.

Note: Goods may be specified by name, by inclusion in a specified class or in any other way.

16A Special GST credit for certain alcoholic beverages on which duty has increased

(1) This section applies to goods if:

(a) you are entitled to a special credit under section 16 in respect of the goods (or would be so entitled apart from subsection (3) of this section); and

(b) they are goods mentioned in subsection 15A(1) (alcoholic beverages) of the Sales Tax (Exemptions and Classifications) Act 1992; and

(i) an amount of excise duty or customs duty (the old duty amount) in respect of the goods was paid before 1 July 2000; or

(ii) the goods were delivered into home consumption before 1 July 2000 under a permission given under subsection 61C(1) of the Excise Act 1901 or granted under subsection 69(3) of the Customs Act 1901, and an amount of excise duty or customs duty (the old duty amount) was or is payable in respect of the goods; and

(d) were excise duty or customs duty (whichever is applicable) instead to become payable on the goods immediately after 1 July 2000, the amount of that duty (the new duty amount) would be greater than the old duty amount.

(2) The amount of the special credit in respect of the goods is reduced by an amount equal to the difference between the new duty amount and the old duty amount.

(3) However, there is no special credit in respect of the goods if the difference between the new duty amount and the old duty amount equals or exceeds what would (apart from this section) be the amount of the special credit.

16AB Special GST credit for certain alcoholic beverages on which duty has decreased

(1) This section applies to goods if:

(a) you are entitled to a special credit under section 16 in respect of the goods; and

(b) they are goods mentioned in subsection 15A(1) (alcoholic beverages) of the Sales Tax (Exemptions and Classifications) Act 1992; and

(i) an amount of excise duty or customs duty (the old duty amount) in respect of the goods was paid before 1 July 2000; or

(2) The amount of the special credit in respect of the goods is increased by an amount equal to the difference between the old duty amount and the new duty amount.

16B Special GST credit for certain alcoholic beverages on which duty would not previously have been paid

(1) This section applies to goods if:

(a) you are entitled to a special credit under section 16 in respect of the goods (or would be so entitled apart from subsection (3) of this section); and

(b) they are goods mentioned in subsection 15A(1) (alcoholic beverages) of the Sales Tax (Exemptions and Classifications) Act 1992; and

(i) excisable goods (within the meaning of the Excise Act 1901); or

(ii) goods of a kind in respect of which customs duty was imposed by the Parliament, or goods the subject of a Customs Tariff or Customs Tariff proposed in the Parliament; and

(d) at the start of 1 July 2000, the goods became goods of a kind referred to in subparagraph (c)(i) or (ii).

(2) The amount of the special credit in respect of the goods is reduced by an amount (the new duty amount) equal to what would be the excise duty or customs duty (whichever is applicable) in respect of the goods if that duty were to become payable immediately after 1 July 2000.

(3) However, there is no special credit in respect of the goods if the new duty amount equals or exceeds what would (apart from this section) be the amount of the special credit.

(4) To avoid doubt, goods that are subject to a “free” rate of duty, or which, under a Customs Tariff proposed in the Parliament, would be subject to a “free” rate of duty, are not goods of a kind referred to in subparagraph (1)(c)(ii).

16C Special petroleum credits

(1) You are entitled to a special petroleum credit if:

(a) you are registered as at 1 July 2000; and

(b) you have on hand, at the start of 1 July 2000, goods you acquired or imported that are held for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business; and

(d) either:

(i) an amount of excise duty or customs duty (the old duty amount) in respect of the goods was paid before 1 July 2000; or

(e) were excise duty or customs duty (whichever is applicable) instead to become payable on the goods after 1 July 2000, the amount of that duty (the new duty amount) would be less than the old duty amount.

(2) The amount of the special petroleum credit in respect of the goods is an amount equal to the difference between the old duty amount and the new duty amount.

(3) The Commissioner must, on behalf of the Commonwealth, pay the special petroleum credit to you or, as provided in the regulations, to another person on your behalf. The payment must be made within the period and in the manner specified in the regulations.

17 Stock later applied for private or domestic purpose

(1) If:

(a) you have on hand, at the start of 1 July 2000, assessable goods that are held for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business; and

(b) on or after 1 July 2000, you apply the goods to any extent for a private or domestic purpose; and

you are taken, for the purposes of the GST law, to have made a taxable supply that is attributable to the tax period during which you apply the goods.

(2) The value of the supply is the market value of the goods (to the extent that they are applied for that purpose) when they were applied.

(3) If:

(a) you have on hand, at the start of 1 July 2000, assessable goods that are held for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business; and

(b) on or after 1 July 2000, you cease to be registered; and

you are taken, for the purposes of the GST law, to have made a taxable supply that is attributable to the tax period that was in progress immediately before the cessation.

(4) The value of the supply is the market value of the goods as at the time of the cessation.

18 Second‑hand goods

(1) Division 66 of the GST Act applies to second‑hand goods you acquired before 1 July 2000 only if:

(a) you held them at the start of that day for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business; and

(b) you had not previously held them for any other purpose.

(1A) However, if:

(a) because of this section, you are entitled to an input tax credit for an acquisition of second-hand goods; and

(b) the *consideration for the acquisition was $300 or less;

the input tax credit is treated as though it were an input tax credit attributable to any one tax period of your choice.

(2) This section does not apply to second‑hand goods in respect of which you are entitled to a special credit under section 16.

Part 5—Special transitional rules

19 Construction agreements made before 1 July 2000

(1) This section applies to the extent that a supply of goods or real property is the construction, major reconstruction, manufacture or extension of a building or of a civil engineering work by the supplier, and the goods or real property are:

(a) supplied in accordance with a written agreement made before 1 July 2000; and

(b) made available to the recipient on or after 1 July 2000.

(2) The value of all work and materials permanently incorporated in or affixed on the site of the building or civil engineering work in accordance with the agreement must be determined, as at the start of 1 July 2000.

(3) GST is only payable on the supply to the extent that the price of the supply (less the amount of any GST payable on the supply) exceeds the value determined under subsection (2).

Note: Division 29 of the GST Act and section 10 of this Act contain rules about attributing the GST to tax periods.

(4) This section only applies to the extent that the value mentioned in subsection (2) is determined:

(a) in a manner specified by the Commissioner; and

(b) on or before the end of the supplier’s first tax period after 1 July 2000, or a later day allowed by the Commissioner.

(5) If section 13 applies to the agreement, treat the references to 1 July 2000 in subsections (2) and (4) of this section and in section 10 as references instead to the earlier of the following:

(a) 1 July 2005;

(b) the time when a review opportunity as mentioned in paragraph 13(2)(b) first arises.

19A Sales of motor vehicles held under operating leases since 2 December 1998

(1) If, in relation to a supply of a motor vehicle, all of the following conditions are met, the supplier of the vehicle is entitled to a special credit equal to 1/11 of the price of the supply:

(a) the supply is the first sale of the motor vehicle to take place on or after 1 July 2000;

(b) the supplier was, immediately before the sale, the lessor of the motor vehicle under an operating lease;

(d) the motor vehicle has been the subject of sales tax.

(2) The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice.

(3) In this section:

operating lease means a lease under which the lessor effectively retains substantially all risks and benefits incidental to the ownership of the motor vehicle.

19B Sales etc. of cars held on 1 July 2000 for the purpose of rental

Entitlement to special credit

(1) If, in relation to a supply of a car, all of the following conditions are met, the entity referred to in subsection (6) is entitled to a special credit under this section in relation to the supply:

(a) the supply takes place, or took place:

(i) on or after 1 July 2000; and

(ii) before 1 July 2002;

(b) the entity held the car at the start of 1 July 2000;

(d) during the entire period at the start of 1 July 2000 until the entity ceases to hold the car:

(i) the entity held the car, for the purposes of supply by way of rental, in the course or furtherance of an enterprise; and

(ii) the car was covered by the appropriate compulsory third party insurance under subsection (4);

(e) the car has been the subject of sales tax.

(2) For the purposes of paragraph (1)(c), a sale of the car to the entity at the end of a period during which the entity was the lessee of the car is not treated as a sale of the car.

(3) For the purposes of subsection (1), a supply of the car to an insurer in settlement of a claim under an insurance policy is treated as a sale of the car.

(4) For the purposes of subparagraph (1)(d)(ii), the appropriate compulsory third party insurance for the car is:

(a) in any case—compulsory third party insurance for which the premium was calculated on the basis that the car was for supply by the entity by way of rental in the course or furtherance of the enterprise referred to in subparagraph (1)(d)(i); or

(b) if:

(i) the car is not required, by the law of the State or Territory in which it is registered, to be covered by compulsory third party insurance of that kind; but

(ii) there is another State or Territory in which it would be required to be covered by compulsory third party insurance of that kind if it were registered in that State or Territory;

the kind of compulsory third party insurance by which the car is required, by the law of the State or Territory in which it is registered, to be covered.

(5) This section does not apply to a supply in relation to which any entity is entitled to a special credit under section 19A.

Who is entitled to the special credit

(6) The entity entitled to the special credit is the entity that held the car for supply by way of rental (whether or not the entity made the sale referred to in paragraph (1)(c)).

Amount of the special credit

(7) The amount of the special credit in relation to the supply is an amount equal to 1/11 of the price of the supply.

(8) However, if the car was covered by an eligible short‑term lease, the amount of the special credit is an amount equal to:

where:

exempt percentage is the exempt percentage specified in an agreement under subsection 15A(2) of the Sales Tax Assessment Act 1992 that was in force on 30 June 2000 and that applies to the eligible short‑term lease in question.

original special credit is the amount that would (but for this subsection) be the amount of the special credit.

Special rules for working out the price of the supply

(9) If:

(a) the entity entitled to the special credit was so entitled as the lessee of the car; and

(b) the entity is unable to find out the price at which the car was sold;

the price of the supply is taken to be an amount worked out in the way determined in writing by the Commissioner.

(10) If the supply of the car is part of another supply, the price of the supply of the car is an amount equal to the part of the price of the other supply that represents the supply of the car.

(11) If the supply of the car is a supply to an insurer in settlement of a claim under an insurance policy, the price of the supply is taken to be the sum of:

(a) if the entity entitled to the special credit receives one or more payments from the insurer in settlement of the claim—the amount of the payment, or the sum of the amounts of all of the payments, as the case may be; and

(b) if the entity entitled to the special credit receives one or more supplies from the insurer in settlement of the claim—the value of the supply, or the total value of all of the supplies, as the case may be.

When the special credit can be claimed

(12) The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice ending:

(a) on or after the day on which the Taxation Laws Amendment Act (No. 3) 2002 received the Royal Assent; and

(b) on or before 7 January 2003, or such later day as the Commissioner determines in writing.

Definitions etc.

(13) In this section:

car has the meaning given by subsection 995‑1(1) of the ITAA 1997.

held has the meaning given by subsection 995‑1(1) of the ITAA 1997 for the purposes of Division 28 of that Act.

registered: a car is registered in a State or Territory if it is registered, under the law of the State or Territory, to be driven on a public road in the State or Territory.

(14) A reference in this section to a supply of a car by way of rental does not include:

(a) a supply that involves passengers being transported by or on behalf of the supplier; or

(b) a supply of a car to an entity that acquires the car for the purposes of supply by way of rental in the course or furtherance of an enterprise.

20 Phasing in input tax credits for motor vehicles etc.

(1) This section applies to the acquisition by way of purchase (including hire purchase), or importation, of:

(a) a motor vehicle; or

(b) a detachable trailer designed to be towed by a prime mover of a kind prescribed in the regulations; or

(c) a body for a motor vehicle, including an insulated body, tank‑body, or other body designed for transporting goods of particular kinds.

(2) You are not entitled to an input tax credit on the acquisition or importation if the acquisition or importation is made before 23 May 2001.

(3A) If:

(a) you are a member of a GST group; and

(b) you make an acquisition from another member of that group; and

paragraph 48‑40(2)(a) of the GST Act does not apply to the supply to which the acquisition relates.

Note: Paragraph 48‑40(2)(a) of the GST Act prevents supplies between members of a GST group being treated as taxable supplies.

(4) This section does not apply in any of the following cases:

(a) you acquire or import the motor vehicle, trailer or body to hold as trading stock, unless it is held for hire;

(b) the motor vehicle, trailer or body is second‑hand;

(c) no dealing in respect of the acquisition or importation would be taxable under the sales tax law (assuming sales tax had not been ended by the A New Tax System (End of Sales Tax) Act 1999 and by section 8 of this Act);

(d) you are an insurer and, in settling a claim, you acquire the motor vehicle, trailer or body to replace an insured motor vehicle, trailer or body.

(4A) Paragraph (4)(c) does not apply to a dealing in respect of the acquisition or importation if the acquisition or importation is made with the intention of granting an eligible short‑term lease in respect of the motor vehicle, trailer or body.

(4B) Subsection (2) does not apply if you make the acquisition or importation before 23 May 2001 with the intention of granting an eligible short‑term lease. However, the amount of any input tax credit you are entitled to on the acquisition or importation is reduced by an amount equal to:

where:

exempt percentage is the exempt percentage specified in the agreement under subsection 15A(2) of the Sales Tax Assessment Act 1992 that applies to the eligible short‑term lease in question.

original input tax credit is the amount that would (but for this section) be the amount of the input tax credit on the acquisition or importation.

(4C) Agreements may be made under subsection 15A(2) of the Sales Tax Assessment Act 1992, on or after 1 July 2000 but before 23 May 2001, as if:

(a) sales tax had not been ended by the A New Tax System (End of Sales Tax) Act 1999 and by section 8 of this Act; and

(b) the reference in subsection 15A(2) of the Sales Tax Assessment Act 1992 to a use of goods to satisfy one or more exemption Items were a reference to a use of goods that would have satisfied one or more exemption Items.

(5) If you are not entitled to an input tax credit on an acquisition because of this section, sections 21-15 and 21-20 of the GST Act do not apply to you in relation to that acquisition.

(7) If an input tax credit to which you are entitled is reduced under subsection (4B), then, for the purposes of applying section 21‑15 or 21‑20 of the GST Act (where relevant), the amount of any adjustment under that section is reduced by the same proportion (before any application of Division 136 of that Act).

(8) For the purposes of applying subsection 6(2) to determine when an acquisition to which this section applies is made, the goods in question are not taken to be removed until the goods are physically removed:

(a) by the entity acquiring the goods; or

(b) if the entity acquires the goods for supply by way of lease—by that entity or the lessee of the goods.

(9) Subsection (8) does not by implication affect the application of subsection 6(2) to acquisitions to which this section does not apply.

(10) For the purposes of this section, an importation takes place when it becomes a taxable importation.

21 Acupuncture, naturopathy and herbal medicine

(1) Paragraph 38‑10(1)(b) of the GST Act does not apply in relation to a supply of a service of:

(a) acupuncture; or

(b) naturopathy; or

if the service is performed before 1 July 2003.

(2) However, such a service of acupuncture, naturopathy or herbal medicine performed before 1 July 2003 is not GST‑free if the supplier of the service does not meet the requirements (if any) in regulations made for the purposes of this subsection in relation to a supplier of an acupuncture, naturopathy or herbal medicine service, as the case requires.

(3) The requirements may relate to one or more of the following:

(a) educational qualifications;

(b) membership of a professional body;

22 Insured event before 1 July 2000

(1) The settlement of an insurance claim does not give rise to any adjustment, and is not a taxable supply, under Division 78 of the GST Act to the extent that the event giving rise to the claim happened before 1 July 2000.

(2) However, if:

(a) the claim relates to an insurance policy covering a period that started before 1 July 2000 and ends after that day; and

(b) it cannot be ascertained whether the event giving rise to the claim happened before 1 July 2000;

subsection (1) does not apply, and the settlement does not give rise to any adjustment, and is not a taxable supply, under Division 78 of the GST Act if the claim was made before 1 July 2000.

23 Input tax credits relating to compulsory third party schemes

(1) You are not entitled to an input tax credit for:

(a) a premium, contribution or similar payment made under, or a levy paid in connection with, a compulsory third party scheme before 1 July 2003; or

(b) a premium paid, before 1 July 2003, on an insurance policy issued under a compulsory third party scheme.

(1A) If, because of subsection (1), you are not entitled to an input tax credit for an acquisition you make, section 29‑70 of the GST Act (which is about tax invoices) does not apply in relation to the supply to which the acquisition relates.

(2) A compulsory third party scheme is:

(a) a statutory compensation scheme; or

(b) a scheme or arrangement, established by an Australian law, under which insurance policies are issued;

that is specified in the regulations, or that is of a kind specified in the regulations.

24 Gambling

(1) If you make a gambling supply before 1 July 2000 relating to a gambling event that happens on or after 1 July 2000, the gambling supply is instead taken to have been made on 1 July 2000 and is attributable to your first tax period after that day.

(2) In applying section 126‑10 of the GST Act to work out your global GST amount, disregard:

(a) all monetary prizes you are liable to pay at any time on the outcome of gambling events that happened before 1 July 2000; and

(b) all amounts of money you are liable to pay, of a kind referred to in paragraph (b) of the definition of total monetary prizes in subsection 126‑10(1), to the extent that they relate to gambling events that happened before 1 July 2000.

24A Unredeemed vouchers

Section 100-15 of the GST Act applies to vouchers supplied before 1 July 2000, and not redeemed before that day, in the same way that it applies to vouchers supplied after that day.

24B Commissioner may make determinations relating to rounding

(1) The Commissioner may determine in writing a way in which amounts of GST for taxable supplies recorded on invoices may be rounded for the purposes of:

(a) subsection 9‑90(1) of the GST Act; and

(b) subparagraph 9‑90(2)(a)(ii) of the GST Act; and

(2) However, the determination only applies:

(a) to the entity specified in the determination; and

(b) to taxable supplies attributable under the GST Act to tax periods that end on or before the day specified in the determination.

(3) The entity may round amounts of GST, for the purposes of the provisions referred to in paragraphs (1)(a), (b) and (c):

(a) in the way specified in the determination; or

(b) in the way specified in the provisions referred to in those paragraphs.

(4) The day specified under paragraph (2)(b) must not be later than 30 June 2002.

(5) An entity may apply to the Commissioner in writing for a determination under this section.

Note: Refusing an application for a determination under this section, and making determinations under this section, are reviewable GST transitional decisions (see Division 7 of Part VI of the Taxation Administration Act 1953).

(6) If one or more taxable supplies, none of which are recorded on an invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.

24C Supplies from certain coin‑operated devices may be input taxed

(1) A supply of tangible personal property or a service from a mechanical coin‑operated device is input taxed if:

(a) the maximum consideration for the supply is $1 and is paid by depositing up to 2 coins in the device; and

(b) the device accepts only one denomination of coin and does not give change; and

(d) the supply is made before 1 July 2005; and

(e) the supply is not a gambling supply; and

(f) you choose to have all of your supplies made from the device on or after 1 July 2000 treated as input taxed.

Note: If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11‑15 and 15‑10 of the GST Act).

(2) However, if you revoke the choice, you can no longer choose to have all of your supplies from the device treated as input taxed.

Part 6—Regulations

25 Regulations

(1) The Governor‑General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) In particular, regulations may be made for other transitional measures relating to the end of sales tax, the start of GST, or the transition from sales tax to GST.

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
A New Tax System (Goods and Services Tax Transition) Act 1999	57, 1999	8 July 1999	9 July 1999
A New Tax System (Indirect Tax and Consequential Amendments) Act 1999	176, 1999	22 Dec 1999	Schedule 6 (items 1‑12): (a)	—
A New Tax System (Indirect Tax and Consequential Amendments) Act (No. 2) 1999	177, 1999	22 Dec 1999	Schedule 2: (b)	—
Indirect Tax Legislation Amendment Act 2000	92, 2000	30 June 2000	Schedule 6 (item 7), Schedule 8 (items 6, 7) and Schedule 11 (items 13A, 14-16, 16A-16E): (c) Schedule 10 (items 1A, 1B): (c) Schedule 10A (items 2‑4): Royal Assent (c)	Ss. 2(2), (4) (am. by 156, 2000, Sch. 7 (items 16, 17))
as amended by
Taxation Laws Amendment Act (No. 8) 2000	156, 2000	21 Dec 2000	Schedule 7 (items 16, 17): (ca)	—
Taxation Laws Amendment Act (No. 8) 2000	156, 2000	21 Dec 2000	Schedule 1 (items 17, 18): Royal Assent (d) Schedule 6 (item 41): 1 July 2000 (d)	Sch. 1 (item 18)
Taxation Laws Amendment Act (No. 3) 2001	73, 2001	30 June 2001	Schedule 1 (items 69-78): 23 May 2001 Schedule 2 (items 48-52): 1 Jan 2001 Schedule 3 (items 34-36): 1 Apr 2001 Remainder: Royal Assent	Sch. 1 (item 78)
Taxation Laws Amendment Act (No. 3) 2002	97, 2002	10 Nov 2002	Schedule 1 (item 7): Royal Assent	—

Provision affected	How affected
S. 5....................	am. No. 176, 1999; No. 92, 2000
Note to s. 6(2) ............	ad. No. 73, 2001
S. 6A...................	ad. No. 92, 2000
Note to s. 7(1).............	ad. No. 92, 2000
Note 3 to s. 8(1)...........	ad. No. 92, 2000
S. 11...................	am. Nos. 176 and 177, 1999; No. 92, 2000
S. 12...................	am. No. 177, 1999
Note to s. 12(1)............	ad. No. 92, 2000
S. 13...................	am. No. 176, 1999
S. 14...................	am. Nos. 176 and 177, 1999
S. 15...................	rs. No. 177, 1999
	am. No. 92, 2000
S. 16...................	am. No. 176 and 177, 1999
Note to s. 16(1)............	ad. No. 177, 1999
Note to s. 16(3)............	ad. No. 177, 1999
S. 16A..................	ad. No. 177, 1999
S. 16AB.................	ad. No. 92, 2000
S. 16B..................	ad. No. 177, 1999
	am. No. 92, 2000
S. 16C..................	ad. No. 177, 1999
S. 18...................	am. No. 177, 1999
S. 19...................	am. No. 156, 2000
S. 19A..................	ad. No. 176, 1999
S. 19B..................	ad. No. 97, 2002
S. 20...................	am. Nos. 176 and 177, 1999; No. 92, 2000; No. 73, 2001
S. 22...................	am. No. 177, 1999
S. 23...................	rs. Nos. 176 and 177, 1999
	am. No. 92, 2000
S. 23A..................	ad. No. 177, 1999
	rep. No. 92, 2000
S. 24A..................	ad. No. 177, 1999
S. 24B..................	ad. No. 92, 2000
S. 24C..................	ad. No. 156, 2000