Due to Australia’s federation system of government, any changes to either the base or rate of GST requires the unanimous support of the federal and all six state governments. With the exception of the expansion of GST to inbound ‘business to consumer’ intangible supplies and low value goods, there has been practically no changes to the base on which GST is applied and there has been no change to the GST rate, set at 10%, since GST was implemented in 2000.
While the COVID-19 pandemic has not resulted in any immediate changes to Australia’s GST regime, the relative stability and efficiency of GST as a revenue raiser has led to growing calls for Australia’s relatively low rate of GST to be raised and for GST to be imposed on exempt and zero-rated supplies such as fresh food, education, health and certain financial supplies.
The expectation is that any GST reform would lead to the removal of inefficient and volatile taxes such as state stamp duties and payroll taxes and may also lead to income tax rate reductions. However, various options are currently being debated and it is likely that any reform will not be implemented in the short-term.
At the height of the COVID-19 pandemic, the Australian Taxation Office (ATO) paused much of its review and audit activities and diverted its resources towards the urgent delivery of significant economic stimulus measures.
As the bulk of the stimulus measures have now been rolled out, the ATO has announced that it will be recommencing its GST-related review and audit activities. Predominantly, these reviews are focussing on ensuring that the ATO has ‘justified trust’ in the people, processes and technology that businesses are using to comply with their GST obligations.
Source – RSM Global
AUSTRALIA – Update 11th May
The Australian Taxation Office (ATO) has issued a notice on the deferred GST scheme, which may assist importers during the COVID-19 period, including that applications of deferred GST may be backdated to 1 April 2020.
If you’re importing goods into Australia, using the deferred goods and services tax (GST) scheme may assist your business during the COVID-19 (novel coronavirus) period by helping with cash flow.
The deferred GST scheme means deferring payment of GST on imports until the first activity statement is lodged after the goods are imported. We are offering to backdate applications of deferred GST to 1 April 2020.
This means, if you apply in May or June this change will take effect from 1 April 2020. You will need to lodge the monthly activity statements for April, May and June 2020. Usually this change must take place in the first month of the relevant quarter. GST monthly reporting gives you quicker access to any GST refunds you are entitled to.
Source Credit – Orbitax
AUSTRALIA – Update 5th May
Your NFP organisation may have had contracts cancelled or had to cancel sales or refund purchases due to the impact of COVID-19. As a result you may have to adjust GST.
Common examples of when to adjust GST include:
If you adjust GST:
Make your adjustment:
Source Credit – ATO
AUSTRALIA – Update 28th April
The Australian Taxation Office (ATO) has issued a notice on the deferred GST scheme, which may assist importers during the COVID-19 period.
If you’re importing goods into Australia, using the deferred GST scheme may assist your business during the COVID-19 period.
If you are an importer, you may apply to use the deferred GST scheme, which defers the GST payable on imports until the first activity statement lodged after the goods are imported.
To get the most benefit take action in April.
If you move from quarterly to monthly GST reporting during April, you should be able to access the deferred GST scheme for imports shortly after lodging a successful GST deferral application. However, if you delay your request until May or June then GST deferral can’t start until 1 July.
GST monthly reporting will also give you quicker access to any GST refunds you are entitled to.
To access the deferred GST scheme, follow these steps:
If you are successful you should be notified within 24 hours.
Note: It may take three days before Australian Border Force’s (ABF) systems recognises and processes imports through the deferred GST scheme.
Source Credit – Orbitax
AUSTRALIA – Update 24th April
The Australian Taxation Office (ATO) has updated its website with essential information about tax and superannuation changes that have now become law following the passage of the Government’s Economic Support Package through the Parliament.
Commissioner of Taxation Chris Jordan acknowledged that many people are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19 and that the ATO is standing by ready to help where it can.
Mr Jordan also reminded the community of other options available to assist businesses impacted by COVID-19 in addition to the new measures announced by the Government.. Options available to assist businesses impacted by COVID-19 include:
Source Credit – Orbitax
AUSTRALIA – Update 24th April
With the COVID-19 pandemic causing chaotic economic conditions, Australian importers have been encouraged to consider the ATO’s GST deferral scheme.
The Australian Taxation Office (ATO) offers a scheme for domestic importers whereby instead of paying GST on taxable imports upfront, you can defer payment until the first activity statement is lodged after the goods are imported.
To participate in the scheme, an importer must:
Source Credit – Trenchless
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