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GST
 法律：GST Act 1999
 There are 3 types of supplies that can be made: a taxable supply, a GST-free supply and an input
taxed supply.
 S. 7-1 GST and input tax credits
(1) GST is payable on taxable supplies and taxable importations;
(2) Entitlements to input tax credits arise on creditable acquisitions and creditable importations.

A. Taxable supply
Under s. 9-5, a taxable supply arises if:
1. there is a supply; and
supply of G&S, provision of advice or information, grant of real property (s. 9-10)
But the supply of money is not a supply.
2. the supply is made for consideration; and
Consideration: any payment in connection with a supply (s. 9-15)

例外情况 Exception to the general rule if Div72 applies – that is, where:
(a) a supply is made to an associate (关联方) for no consideration or for consideration that is less than
the GST inclusive market value of the supply, and
(b) the associate is not registered or required to be registered and does not acquire the thing supplied
solely for a creditable purpose.
后果：虽然没有收钱，但是需要向 ATO 交正常价格 1/11 或 market value 1/10 的 GST
Example: Peter is registered for GST and makes wooden toys. During the tax period, he gives some of
his toys to his sister Jenny so that she can use them as Christmas presents for her children. These toys
normally retail for $500 including GST. As Jenny is using the toys for private purposes (not creditable
purpose) and she is an associate, Peter will be liable for GST of $45.45 (1/11 of $500) under Division 72.
3. the supply is made in the course of an enterprise that the taxpayer carries on; and
S. 9-20: enterprise = business
Not to be an enterprise: An activity as an employee or hobby.
4. the supply is connected with Australia; and
Includes importation, excludes exports.
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5. the supplier (taxpayer) is registered, or required to be registered for GST.

S. 23-5:

Threshold: s. 23-15: $75,000 per annum 营利组织, $150,000 p.a. for non-profit bodies
If not registered, can’t add GST or claim input tax credits.

An entity has GST turnover that meets the threshold if:

(a) its current (current month + pervious 11 months) GST turnover is ≥ threshold; and the
Commissioner is not satisfied that its projected GST turnover is below the threshold, or
(b) its projected (current month + the next 11 months) GST turnover is at or above the threshold
(Div188).
GST-exclusive value of taxable supplies
S. 188-15: GST turnover is the sum of the
Value of GST-free supplies

A supply is not a taxable supply if it is a GST-free or input taxed supply.

Consequences of making a taxable supply (s 9-40):

-- GST is payable on the supply; and
-- there is an entitlement to an input tax credit for anything acquired to make the supply.

B. GST-free supplies
Specifically listed in Div38:
1. Basic food (not processed food)
2. Health goods and health services
3. Educational material and services
4. Child care services
5. Goods exported from Australia – must be exported within 60 days of the earlier of: (a) the day of
consideration (payment), and (b) the day the invoice is given
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6. Supplies of transport services to or from Australia

7. Non-commercial activities by charitable institutions
8. Supplies by inwards duty-free shops
9. supplies of a going concern (s. 38-325, 双方书面同意，购买所有维持持续经营的要素，卖方一
直到双方交易前都在维持正常经营)

Consequences of making a GST-free supply (s. 38-1):

-- no GST is payable on the supply; and
-- there is an entitlement to an input tax credit for anything acquired to make the supply.

C. Input Taxed Supplies

Division 40: Input taxed supplies include the following:
1. financial supplies such as making loans, securities;
note: professional fee is not a financial supply, eg. Loan establishment fee
2. the supply of residential (not commercial, 非商业) premises for residential rent, eg, renting a flat to a
tenant;
3. the sale, or supply under a long-term lease (generally for at least 50 years), of existing residential
premises (not if they are new, 非新房).
Consequences of making an input taxed supply (s. 40-1):
- no GST is payable on the supply;
- there is no entitlement to an input tax credit for anything acquired or imported to make the
supply.
D. Taxable importations
1) Division 13: GST is payable on most goods (but not services) imported into Australia - taxable
importations

GST-free goods
Non-taxable importations input-taxed goods
customs value of $1,000 or less.

2) GST generally payable by the importer (s. 13-20) =10% * (customs value + transport and insurance costs
+ customs duty)
3) GST payable at the same time and in the same manner as customs duty.
4) Importer (registered for GST) may get an input tax credit (s. 15-20) for the GST on importation if the
importation constitutes a creditable importation.
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E. Input tax credits

S. 11-1: a taxpayer is entitled to an input tax credit for their creditable acquisitions and creditable
importation.
1. Creditable acquisition
Under s. 11-5 A taxpayer makes a creditable acquisition if:
1) they acquire anything solely or partly for a creditable purpose;
2) the supply is a taxable supply;
3) they provide, or should provide, consideration for the supply; and
4) they are registered, or required to be registered, for GST.
2. Creditable purpose
s. 11-15 creditable purpose = carrying on an enterprise = carrying on a business
s. 11-15(2), an acquisition is not for a creditable purpose
用途是为了 making input-taxed supplies. Eg. 给出租的房子装热水系统
is of a private or domestic nature
3. Denied input tax credits
Division 69 不能 deduct 的 expense, 也不能 claim input tax credit
 Penalties: s. 26-5, ITAA97
 Relative’s travel expenses: s. 26-30, ITAA97
 Entertainment expenses: Division 32, ITAA97
4. Input Tax Credits
s. 11-25 The amount of the input tax credit is the amount of GST paid on the thing acquired – so no
credit if GST-free or input taxed supplies.
Generally, input tax credit = price x 1/11
This amount may be reduced if the acquisition is only partly creditable, i.e., is partly used for private
purpose.
 S. 7-5 Net amounts
1. GST Payable
Value of a taxable supply = 10/11 x price
GST = 10% of the value of a taxable supply; or 1/11 x price
2. Net Amount of GST = GST payable – input tax credit
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Tax Avoidance

Tax evasion: Using some illegitimate means of reducing tax:

 non-disclosure of income;
 claiming of deductions where no expense was incurred;
 falsification of records.

Mitigating Risks in Tax Planning – apply for a private ruling.

Tax treatment of minors – Division 6AA of ITAA36

Applies to “unearned income” of minors – trust income, dividends, royalties and rent.
1. Prescribed persons (s.102AC):
1) a person less than 18 year of age on the last day of the year; and
2) the person who is not engaged in full-time work on the last day of the year, or for at least three
months during the year.
2. Eligible taxable income: all income of a prescribed person unless is “excepted assessable income”
covered in s.102AE.
3. Excepted assessable income (s.102AE):
 Employment income;
 Business income;
 Income from investment of certain property (including when held in trust), eg damages relating
to personal injury or disease, workers’ compensation, property in a public fund;
 Income from a trust created under a will.
Excepted assessable income is taxed at ordinary tax rates.
4. Eligible taxable income (ETI) rates for resident minors
Eligible taxable income Tax rate
$416 or less Nil
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$417~ $1307 68% of the excess over $416

$1308 or more 47% for all