Monday, 21 June 2010
Tax Laws Amendment (2010 GST Administration Measures No. 3) Bill 2010
I thank those members who participated in the debate on the Tax Laws Amendment (2010 GST Administration Measures No. 3) Bill 2010. The amendments in schedule 1, dealing with the GST and cross-border transport provisions, will ensure that the transport of goods by transport subcontractors within Australia that forms part of the international transport of those goods by another entity to or from Australia is GST free in specific circumstances. The amendments will also provide GST-free treatment for loading, handling and other services in certain circumstances that facilitate the international transport of goods. This measure will improve certainty and clarify the application of the GST law for businesses involved in the domestic transport of exported and imported goods.
The amendments contained in schedule 2 of the bill will ensure that global roaming by visitors to Australia remains GST free, consistent with Australia’s treaty obligations under the International Telecommunications Regulations—the so-called Melbourne agreement. The amendments exempt from GST supplies of global-roaming services provided to subscribers of non-resident telecommunications suppliers while the subscribers are visiting Australia. This includes both the use of an Australian telecommunications supplier’s network by a non-resident telecommunications supplier and the supply of global-roaming facilities by the non-resident telecommunications supplier to its subscribers.
The amendments contained in schedule 3 of the bill will ensure that the underlying policy objective of the recently enacted measure provided for GST adjustments for third-party payments is met in situations in which the relevant parties in the supply chain are members of the same GST group, GST religious group or GST joint venture. The underlying policy objective is that the appropriate amount of GST is collected and that the appropriate amount of input tax credits are claimed in situations where there are payments between parties in a supply chain which indirectly alter the price received or paid by the parties for the things supplied. I commend this bill to the House.
Question agreed to.
Bill read a second time.
Message from the Governor-General recommending appropriation announced.