In media release No 2011/030, issued 15 February 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of a discussion paper about reforms to how the GST is applied to cross-border transactions.
The Government announced the changes in the 2010-11 Budget following the Board of Taxation's review of the application of GST to cross-border transactions.
The consultation paper provides further information on the announced changes that will:
- Limit the "connection with Australia rules" in certain circumstances
- Expand the reverse charge rules to goods
- Extend GST-free status to supplies made to a non-resident but provided to registered entities in Australia
- Remove the requirement for a non-resident to register for GST when they are not making any taxable supplies in Australia.
The changes will apply from 1 July 2012.
Submissions are due by Thursday, 31 March 2011.
Submissions received in response to the Board of Taxation's review of the application of GST to cross-border transactions are available here