Issued
2005

Local authority GST deadline extended

2005 Order in Council allows eight local authorities further time to change from a payments basis to an invoice basis of accounting for GST.

The Goods and Services Tax (Local Authorities Accounting on Payments Basis) Order 2005, made on 13 June 2005, allows eight local authorities further time to change from a payments basis to an invoice basis of accounting for GST. It provides for the Far North, Gisborne, Kaipara, Opotiki, Ruapehu, Waitomo, Western Bay of Plenty and Whakatane District Councils to continue to account for GST on a payments basis until 30 June 2009.

The Order replaces an earlier Order in Council, the Goods and Services Tax (Local Authorities Accounting on Payments Basis) Order 2001 (SR 2001/85), and allows the eight listed local authorities a further four years to resolve transitional problems associated with the shift to invoice basis accounting.

From 1 July 2001, the Goods and Services Tax Act 1985 required all local authorities to account for GST on an invoice basis rather than the payments basis, unless otherwise provided for under an Order in Council. Notice of the Order was made on 16 June 2005 in the New Zealand Gazette. The Order comes into force on 1 July 2005.

Goods and Services Tax (Local Authorities Accounting on Payments Basis) Order 2005 (2005/155)