08 Jun 11
Allowing small businesses in a net refund position to access the GST instalment system
On 7 June 2011 the Treasury released a consultation paper, entitled "Allowing Small Businesses in a Net Refund Position to Access the GST Instalment System", on the detailed design of a measure to amend the GST law to ensure it achieves the intended policy objective in relation to the GST instalment system and small businesses in a net refund position.
In the 2011-2012 Budget the Government announced that it will extend the current GST instalment system to allow access for small businesses that are in a net refund position. The GST Act will be amended to extend access to the GST instalment system to small businesses in a net refund position by providing these businesses with an instalment amount each quarter of zero. This means that any refunds due to the taxpayer (or tax liability, should their position change) will be paid annually following their annual return.
The closing date for submissions is Wednesday, 6 July 2011.