Legislative developments – 2011 – GST financial supply provisions

Summary

  • In the 2010-11 Budget, the government announced its intention to amend the financial supply provisions of the GST law to clarify the legislation as well as reduce compliance and administrative costs, particularly for small business
  • The measures increase the financial acquisitions threshold input tax credit test from $50,000 to $150,000, allow small businesses that account on a cash basis to access full input tax credits upfront when they enter into hire-purchase arrangements, exclude bank deposit accounts from the current special rules for borrowings
  • The changes come into effect from 1 July 2012

Links to documents

Legislation

Exposure draft legislation

  1. Australian Finance Conference
  2. Institute of Chartered Accountants in Australia
  3. The Tax Institute

Consultation process

  1. Abacus – Australian Mutuals
  2. Australia Port
  3. Australian Bankers’ Association/Investment & Financial Services Association
  4. Australian Finance Conference
  5. Australian Institute of Superannuation Trustees
  6. Australian Securitisation Forum
  7. CPA Australia
  8. Indue Ltd
  9. Rice Warner Actuaries & Australian Income Protection
  10. Taxation Institute of Australia
  11. The Association of Superannuation Funds of Australia Ltd
  12. The Australian Financial Markets Association
  13. The Institute of Chartered Accountants in Australia

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