ATO discussion paper: GST on collectables and antiques

The Australian Taxation Office (ATO) has released a discussion paper on determining when collectables and antiques that contain gold, silver or platinum are accepted as ‘incidental valuable metal goods’, and are therefore second-hand goods for goods and services tax (GST) purposes. The paper follows the passing of amending law – Treasury Laws Amendment (GST Integrity) Act 2017 (Cth) – to clarify that, from 1 April 2017, goods, to the extent that they consist of a valuable metal, are generally not eligible to be treated as second-hand goods. And, are therefore not eligible to attract input tax credits.

Collection models for GST on low value imported goods

The Productivity Commission (the Commission) has released a discussion paper on collection models for the application of GST on low value imported goods. The Commission has been tasked with considering the effectiveness of recent legislative amendments to impose GST on low value imported goods (from 1 July 2018) and specifically, whether other models for collecting GST in relation to such offshore supplies might be suitable, including evaluation of the effects of models on Australian small businesses and consumers. Submissions on the discussion paper were due by 30 August 2017. The Commission expects to provide its final report to the Government by 31 October 2017. 

New legislative determinations

The following legislative determinations have been issued in the last month:

  • Goods and Services Tax: Waiver of Tax Invoice Requirement (Corporate Card Statements) Legislative Instrument 2017. The instrument grants a concession to reduce compliance costs for entities claiming input tax credits for creditable acquisitions by permitting the holder of certain corporate cards to claim an input tax credit without holding a tax invoice.
  • Draft SAM 2017/D1 Goods and Services Tax: Simplified Accounting Methods Determination for Food Retailers – Business Norms, Stock Purchases and Snapshot Methods, which proposes to provide eligible food retailers with the choice to use a simplified accounting method (SAM) to help work out their net amount by estimating GST-free sales and GST-free acquisitions of trading stock.