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

• Tax Laws Amendment (2011 Measures No.9) Act 2012
• Explanatory Memorandum

Exposure draft legislation

• Exposure Draft legislation – issued 13 January 2012
• Draft Explanatory Memorandum – issued 13 January 2012

• Exposure Draft bill – issued 18 August 2011
• Explanatory Memorandum to draft bill
• Submissions on Exposure Draft

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

Consultation process

• Summary of Consultation process
• Discussion Paper – Implementation of the recommendations of Treasury’s review of the GST financial supply provisions – 30 June 2010
• Consultation Paper – Review of the GST Financial Supply Provisions – 12 May 2009
• Submissions on Consultation Paper

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