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1998-1999-2000
THE
PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
PRIMARY INDUSTRIES (EXCISE) LEVIES (GST
CONSEQUENTIAL AMENDMENTS) BILL
2000
EXPLANATORY
MEMORANDUM
(Circulated by authority of
the Minister for Agriculture, Fisheries and Forestry,
the Hon Warren Truss,
MP)
ISBN 0 642 42834 4
PRIMARY INDUSTRIES (EXCISE) LEVIES (GST
CONSEQUENTIAL AMENDMENTS) BILL 2000
GENERAL
OUTLINE
The proposed amendments to the Primary Industries (Excise) Levies Act
1999 will exclude the Goods and Services Tax (GST) from the base for
calculating the Deer Velvet and Goat Fibre levies.
Date of
effect: 1 July 2000.
Financial impact: Nil. The amendment prevents a distortion
that would otherwise occur.
Compliance cost impact:
Negligible. Suppliers will be aware of the GST component of sale prices as a
consequence of meeting their GST obligations.
NOTES ON
CLAUSES
Clause 1 – Short Title
This clause
provides for the Act to be called the Primary Industries (Excise) Levies (GST
Consequential Amendments) Act 2000.
This clause provides for the Act to commence immediately after the
commencement of the
A New Tax System (Goods and Services Tax) Act
1999.
Clause 3 – Schedule(s)
This clause provides
that the Acts referred to in the Schedules are amended as set out in the
Schedules and the other items in the Schedules have effect according to their
terms.
SCHEDULE 1 - AMENDMENT OF THE PRIMARY INDUSTRIES (EXCISE)
LEVIES ACT
Item 1 – Amendment to Primary Industries
(Excise) Levies Act 1999: Schedule 8 – Deer Velvet
Levy
Outline of Item
1.1 This Item explains the amendment to the Deer Velvet Levy as a consequence
of the introduction of GST. The amendment will be inserted in
Schedule 1 to this Bill.
Context of
Reform
1.2 Liability for the Deer Velvet Levy is based on the sale price of deer
velvet. From 1 July 2000 supplies of deer velvet will be subject to GST, other
than those exported by the supplier (which will be GST-free). The sale price of
deer velvet will include a GST component. This amendment will exclude the GST
component from the base for calculating the Deer Velvet Levy.
Detailed
explanation of the amendment
1.3 The Deer Velvet Levy is imposed at a prescribed rate (currently 5%) on the sale value of deer velvet. Schedule 8, clause 1 of the Primary Industries (Excise) Levies Act 1999 defines the sale value of deer velvet as the ‘price paid for the deer velvet’.
1.4 Section 9-75 of the GST Act defines ‘price’ as a GST inclusive amount. Consistent with this meaning, subsection 177-12(1) attributes a GST inclusive meaning to references to ‘price’ in other Commonwealth Acts. In the absence of any contrary intention, the reference to ‘price’ in Schedule 8, clause 1 of the Primary Industries (Excise) Levies Act 1999 would have adopted a GST inclusive meaning.
1.5 An amendment of Schedule 8, Section 1 of the Primary Industries (Excise) Levies Act 1999 will expressly provide that the ‘price’ of deer velvet for the purpose of calculating the Deer Velvet Levy is to exclude the ‘net GST’ included in the price. It will override the meaning attributed to ‘price’ by subsection 177-12(1) of the GST Act.
1.6 Net GST is defined in section 195-1 of the GST Act as the
amount of GST net of any increasing adjustments or decreasing adjustments that
relate to the supply. Increasing adjustments reflect increased GST liability
(e.g. if the sale consideration is adjusted upwards) and decreasing adjustments
reflect reduced GST liability (e.g. if there is a subsequent reduction in the
sale consideration).
Item 2 – Amendment to Primary Industries
(Excise) Levies Act 1999: Schedule 11 – Goat Fibre
Levy
Outline of Item
2.1 This Item explains the amendment to the Goat Fibre Levy as a consequence
of the introduction of GST. The amendment will be inserted in
Schedule 1 to this Bill.
Context of
Reform
2.2 Liability for the Goat Fibre Levy is based on the amount paid or sale
price of goat fibre. From 1 July 2000 supplies of goat fibre will be subject to
GST, other than those exported by the supplier (which will be GST-free). The
sale price of goat fibre will include a GST component. This amendment will
exclude the GST component from the base for calculating the Goat Fibre Levy.
Detailed explanation of the amendment
2.3 The Goat Fibre Levy is imposed at a prescribed rate (currently 1.5%) on the sale value of goat fibre. Schedule 11, clause 1 of the Primary Industries (Excise) Levies Act 1999 defines the sale value of goat fibre as the ‘amount paid’ for or the ‘sale price’ of the goat fibre.
2.4 Section 9-75 of the GST Act defines ‘price’ as a GST inclusive amount. Consistent with this meaning, subsection 177-12(1) attributes a GST inclusive meaning to references to ‘price’ in other Commonwealth Acts. In the absence of any contrary intention, the reference to ‘price’ in Schedule 11, clause 1 of the Primary Industries (Excise) Levies Act 1999 would have adopted a GST inclusive meaning.
2.5 An amendment of Schedule 11, clause 1 of the Primary Industries (Excise) Levies Act 1999 will expressly provide that the ‘amount paid’ or ‘price’ of goat fibre for the purpose of calculating the Goat Fibre Levy is to exclude the ‘net GST’ included in the price or amount. It will override the meaning attributed to ‘price’ by Subsection 177-12(1) of the GST Act.
2.6 Net GST is defined in Section 195-1 of the GST Act as the
amount of GST net of any increasing adjustments or decreasing adjustments that
relate to the supply. Increasing adjustments reflect increased GST liability
(e.g. if the sale consideration is adjusted upwards) and decreasing adjustments
reflect reduced GST liability (e.g. if there is a subsequent reduction in the
sale consideration).
APPLICATION PROVISION
2.7 The amendments will apply from 1 July 2000, concurrent with the commencement of GST. (Clause 2)