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2006 amendment corrects legislation that aligns provisional tax payments with GST payment dates and enables taxpayers to change their GST taxable periods.

Sections 15C and 15D of the Goods and Services Tax Act 1985

Two amendments have been made to correct legislation already enacted to align provisional tax payments with GST payment dates.

These changes enable taxpayers to change from accounting for GST on a six-monthly or two-monthly basis to a monthly basis or from accounting for GST on a monthly basis to a two-monthly basis. The amending legislation also provides for when changes in taxable periods take effect from.

Background

The recently enacted changes in the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act to align provisional tax payments with GST due dates did not replicate the current policy of allowing GST-registered taxpayers to change their taxable periods.

Application date

These amendments apply from the 2008-09 income year, if the taxpayer derives assessable income in that year, or in all other situations the changes apply to taxable periods beginning on or after 1 April 2008.

Key features

Two amendments have been made to the GST Act 1985. The first amends section 15C to enable taxpayers who account for GST on a six-monthly or two-monthly basis to change to accounting for GST on a monthly basis. The amendment also enables taxpayers who account for GST on a monthly basis to change to a two-monthly basis.

The second amends section 15D(1)(a) to ensure that the provisions determining when a change in GST taxable period takes effect from (section 15C) apply when a taxpayer changes from a six-monthly to two-monthly basis or where a taxpayer is required to change to a monthly basis because their taxable supplies exceeded the $4 million threshold.