Treasury to proceed with previously announced measures to restrict GST refunds

Yesterday the Treasurer announced that it would be proceeding with the previously announced measures to restrict GST refunds. The previous measures were introduced into the House of Representatives on 26 June 2013 as the Tax Laws Amendment (2013 Measures No.4) Bill 2013. The Bill proposed to repeal s 105-65 of Schedule 1 to the TAA and introduce Division 142 into the GST Act. Due to the federal election being called the Bill lapsed.

Importantly, the Treasurer has also announced that amendments to the measures will address the recent finding in Naidoo and Commissioner of Taxation [2013] AATA 443 that the Tribunal does not have jurisdiction to consider refund matters.

The start date for the proposed legislation is 17 August 2012, which was the same start date in the Bill introduced into Parliament. Save for the amendment to address the Naidoo case, one would expect the legislation to be in a similar form.

Earlier this year I completed a paper entitled “Refunds of overpaid GST: from s 105-65 to Division 142 – where did we come from, how did we get here and where are we going?” which takes a detailed look at the troubled history of s 105-65 and also provides an analysis of the proposed provisions in Division 142. My paper can be accessed here.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s