19 Apr 11 GST exempt taxes, fees and charges - Exposure Draft regulations
In media release No 2011/058, issued 19 April 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of an Exposure Draft of new regulations to specify which taxes, fees and charges will continue to be subject to GST.
The Assistant Treasurer said that the Government introduced legislation into Parliament on 26 March 2011 to replace the current 680 page Determination listing Australian taxes, fees and charges that are exempt from GST, with a principles-based legislative exemption with effect from 1 July 2011 - see Schedule 4 to Tax Laws Amendment (2011 Measures No 2) Bill 2011.
"The new regulations prescribe a number of fees and charges that will still attract GST to ensure the treatment of those fees and charges is not changed under the new principles-based legislation, which will come into effect from 1 July," Mr Shorten said.
The legislation gives effect to the agreement between the Commonwealth, States and Territories over the treatment of government taxes, fees and charges that was entered into when the GST was introduced.
Under the agreement, regulatory charges that do not relate to particular goods and services are exempt from GST. These regulatory charges include fees and charges levied on specific industries and used to finance particular regulatory or other activities as well licences, permits and certifications required to undertake an activity.
However, supplies of goods and services by government related entities are generally intended to be taxable, which is why these draft regulations have also been introduced. "I encourage stakeholders to make submissions to the Government on the exposure draft regulations. These regulations will safeguard revenue and provide certainty for stakeholders," Mr Shorten said.