12 Jun 09 Submission: GST aspects of CPRS (Consequential Amendments) Bill 2009On 5 June 2009, the Taxation Institute lodged a submission with the Senate Economics Committee in relation to the GST issues arising from the proposed amendments contained in Schedule 2 to the Carbon Pollution Reduction Scheme (Consequential Amendments) Bill 2009. The proposal is to treat trading in emissions units as taxable for GST and the input taxation of dealings in certain derivatives creates costs to industry which are expected to be passed on to consumers. It is considered that there is a better model for the imposition of GST which will reduce the end costs to consumers of the CPRS. That model is GST free treatment for all dealings in emissions units and derivatives based on emissions units.
For a copy of the submission, go here