Commonwealth: A New Tax System (Goods and Services Tax) Act 1999 (Cth)

A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 Compilation No. 94 Compilation date: 15 February 2025 Includes amendments: Act No. 8, 2025 This compilation is in 2 volumes Volume 1: sections 1‑1 to 113‑5 Volume 2: sections 114‑1 to 195‑1 Schedules Endnotes Each volume has its own contents About this compilation This compilation This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 15 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Chapter 1—Introduction Part 1‑1—Preliminary Division 1—Preliminary 1‑1 Short title 1‑2 Commencement 1‑3 Commonwealth‑State financial relations 1‑4 States and Territories are bound by the GST law Part 1‑2—Using this Act Division 2—Overview of the GST legislation 2‑1 What this Act is about 2‑5 The basic rules (Chapter 2) 2‑10 The exemptions (Chapter 3) 2‑15 The special rules (Chapter 4) 2‑20 Miscellaneous (Chapter 5) 2‑25 Interpretative provisions (Chapter 6) 2‑30 Administration, collection and recovery provisions in the Taxation Administration Act 1953 Division 3—Defined terms 3‑1 When defined terms are identified 3‑5 When terms are not identified 3‑10 Identifying the defined term in a definition Division 4—Status of Guides and other non‑operative material 4‑1 Non‑operative material 4‑5 Explanatory sections 4‑10 Other material Chapter 2—The basic rules Division 5—Introduction 5‑1 What this Chapter is about 5‑5 The structure of this Chapter Part 2‑1—The central provisions Division 7—The central provisions 7‑1 GST and input tax credits 7‑5 Net amounts 7‑10 Tax periods 7‑15 Payments and refunds Part 2‑2—Supplies and acquisitions Division 9—Taxable supplies 9‑1 What this Division is about Subdivision 9‑A—What are taxable supplies? 9‑5 Taxable supplies 9‑10 Meaning of supply 9‑15 Consideration 9‑17 Certain payments and other things not consideration 9‑20 Enterprises 9‑25 Supplies connected with the indirect tax zone 9‑26 Supplies by non‑residents that are not connected with the indirect tax zone 9‑27 When enterprises are carried on in the indirect tax zone 9‑30 Supplies that are GST‑free or input taxed 9‑39 Special rules relating to taxable supplies Subdivision 9‑B—Who is liable for GST on taxable supplies? 9‑40 Liability for GST on taxable supplies 9‑69 Special rules relating to liability for GST on taxable supplies Subdivision 9‑C—How much GST is payable on taxable supplies? 9‑70 The amount of GST on taxable supplies 9‑75 The value of taxable supplies 9‑80 The value of taxable supplies that are partly GST‑free or input taxed 9‑85 Value of taxable supplies to be expressed in Australian currency 9‑90 Rounding of amounts of GST 9‑99 Special rules relating to the amount of GST on taxable supplies Division 11—Creditable acquisitions 11‑1 What this Division is about 11‑5 What is a creditable acquisition? 11‑10 Meaning of acquisition 11‑15 Meaning of creditable purpose 11‑20 Who is entitled to input tax credits for creditable acquisitions? 11‑25 How much are the input tax credits for creditable acquisitions? 11‑30 Acquisitions that are partly creditable 11‑99 Special rules relating to acquisitions Part 2‑3—Importations Division 13—Taxable importations 13‑1 What this Division is about 13‑5 What are taxable importations? 13‑10 Meaning of non‑taxable importation 13‑15 Who is liable for GST on taxable importations? 13‑20 How much GST is payable on taxable importations? 13‑25 The value of taxable importations that are partly non‑taxable importations 13‑99 Special rules relating to taxable importations Division 15—Creditable importations 15‑1 What this Division is about 15‑5 What are creditable importations? 15‑10 Meaning of creditable purpose 15‑15 Who is entitled to input tax credits for creditable importations? 15‑20 How much are the input tax credits for creditable importations? 15‑25 Importations that are partly creditable 15‑99 Special rules relating to creditable importations Part 2‑4—Net amounts and adjustments Division 17—Net amounts and adjustments 17‑1 What this Division is about 17‑5 Net amounts 17‑10 Adjustments 17‑20 Determinations relating to how to work out net amounts 17‑99 Special rules relating to net amounts or adjustments Division 19—Adjustment events 19‑1 What this Division is about 19‑5 Explanation of the effect of adjustment events Subdivision 19‑A—Adjustment events 19‑10 Adjustment events Subdivision 19‑B—Adjustments for supplies 19‑40 Where adjustments for supplies arise 19‑45 Previously attributed GST amounts 19‑50 Increasing adjustments for supplies 19‑55 Decreasing adjustments for supplies Subdivision 19‑C—Adjustments for acquisitions 19‑70 Where adjustments for acquisitions arise 19‑75 Previously attributed input tax credit amounts 19‑80 Increasing adjustments for acquisitions 19‑85 Decreasing adjustments for acquisitions 19‑99 Special rules relating to adjustment events Division 21—Bad debts 21‑1 What this Division is about 21‑5 Writing off bad debts (taxable supplies) 21‑10 Recovering amounts previously written off (taxable supplies) 21‑15 Bad debts written off (creditable acquisitions) 21‑20 Recovering amounts previously written off (creditable acquisitions) 21‑99 Special rules relating to adjustments for bad debts Part 2‑5—Registration Division 23—Who is required to be registered and who may be registered 23‑1 Explanation of Division 23‑5 Who is required to be registered 23‑10 Who may be registered 23‑15 The registration turnover threshold 23‑20 Not registered for 4 years 23‑99 Special rules relating to who is required to be registered or who may be registered Division 25—How you become registered, and how your registration can be cancelled Subdivision 25‑A—How you become registered 25‑1 When you must apply for registration 25‑5 When the Commissioner must register you 25‑10 The date of effect of your registration 25‑15 Effect of backdating your registration 25‑49 Special rules relating to registration Subdivision 25‑B—How your registration can be cancelled 25‑50 When you must apply for cancellation of registration 25‑55 When the Commissioner must cancel registration 25‑57 When the Commissioner may cancel your registration 25‑60 The date of effect of your cancellation 25‑65 Effect of backdating your cancellation of registration 25‑99 Special rules relating to cancellation of registration Part 2‑6—Tax periods Division 27—How to work out the tax periods that apply to you 27‑1 What this Division is about 27‑5 General rule—3 month tax periods 27‑10 Election of one month tax periods 27‑15 Determination of one month tax periods 27‑20 Withdrawing elections of one month tax periods 27‑22 Revoking elections of one month tax periods 27‑25 Revoking determinations of one month tax periods 27‑30 Tax periods determined by the Commissioner to take account of changes in tax periods 27‑35 Changing the days on which your tax periods end 27‑37 Special determination of tax periods on request 27‑38 Revoking special determination of tax periods 27‑39 Tax periods of incapacitated entities 27‑40 An entity's concluding tax period 27‑99 Special rules relating to tax periods Division 29—What is attributable to tax periods 29‑1 What this Division is about Subdivision 29‑A—The attribution rules 29‑5 Attributing the GST on your taxable supplies 29‑10 Attributing the input tax credits for your creditable acquisitions 29‑15 Attributing the input tax credits for your creditable importations 29‑20 Attributing your adjustments 29‑25 Commissioner may determine particular attribution rules 29‑39 Special rules relating to attribution rules Subdivision 29‑B—Accounting on a cash basis 29‑40 Choosing to account on a cash basis 29‑45 Permission to account on a cash basis 29‑50 Ceasing to account on a cash basis 29‑69 Special rules relating to accounting on a cash basis Subdivision 29‑C—Tax invoices and adjustment notes 29‑70 Tax invoices 29‑75 Adjustment notes 29‑80 Tax invoices and adjustment notes not required for low value transactions 29‑99 Special rules relating to tax invoices and adjustment notes Part 2‑7—Returns, payments and refunds Division 31—GST returns 31‑1 What this Division is about 31‑5 Who must give GST returns 31‑8 When GST returns must be given—quarterly tax periods 31‑10 When GST returns must be given—other tax periods 31‑15 The form and contents of GST returns 31‑20 Additional GST returns 31‑25 Electronic lodgment of GST returns 31‑99 Special rules relating to GST returns Division 33—Payments of GST 33‑1 What this Division is about 33‑3 When payments of assessed net amounts must be made—quarterly tax periods 33‑5 When payments of assessed net amounts must be made—other tax periods 33‑10 How payment of assessed net amounts are made 33‑15 Payments of assessed GST on importations 33‑99 Special rules relating to payments of GST Division 35—Refunds 35‑1 What this Division is about 35‑5 Entitlement to refund 35‑10 When entitlement arises 35‑99 Special rules relating to refunds Part 2‑8—Checklist of special rules Division 37—Checklist of special rules 37‑1 Checklist of special rules Chapter 3—The exemptions Part 3‑1—Supplies that are not taxable supplies Division 38—GST‑free supplies 38‑1 What this Division is about Subdivision 38‑A—Food 38‑2 Food 38‑3 Food that is not GST‑free 38‑4 Meaning of food 38‑5 Premises used in supplying food 38‑6 Packaging of food Subdivision 38‑B—Health 38‑7 Medical services 38‑10 Other health services 38‑15 Other government funded health services 38‑20 Hospital treatment 38‑25 Residential care etc. 38‑30 Home care etc. 38‑35 Flexible care 38‑38 Disability support provided to NDIS participants 38‑40 Specialist disability services 38‑45 Medical aids and appliances 38‑47 Other GST‑free health goods 38‑50 Drugs and medicinal preparations etc. 38‑55 Private health insurance etc. 38‑60 Third party procured GST‑free health supplies Subdivision 38‑C—Education 38‑85 Education courses 38‑90 Excursions or field trips 38‑95 Course materials 38‑97 Lease etc. of curriculum related goods 38‑100 Supplies that are not GST‑free 38‑105 Accommodation at boarding schools etc. 38‑110 Recognition of prior learning etc. Subdivision 38‑D—Child care 38‑145 Child care—approved child care services under the family assistance law 38‑150 Other child care 38‑155 Supplies directly related to child care that is GST‑free Subdivision 38‑E—Exports and other cross‑border supplies 38‑185 Exports of goods 38‑187 Lease etc. of goods for use outside the indirect tax zone 38‑188 Tooling used by non‑residents to manufacture goods for export 38‑190 Supplies of things, other than goods or real property, for consumption outside the indirect tax zone 38‑191 Supplies relating to the repair etc. of goods under warranty Subdivision 38‑F—Religious services 38‑220 Religious services Subdivision 38‑G—Activities of charities etc. 38‑250 Nominal consideration etc. 38‑255 Second‑hand goods 38‑260 Supplies of retirement village accommodation etc. 38‑270 Raffles and bingo conducted by charities etc. Subdivision 38‑I—Water, sewerage and drainage 38‑285 Water 38‑290 Sewerage and sewerage‑like services 38‑295 Emptying of septic tanks 38‑300 Drainage Subdivision 38‑J—Supplies of going concerns 38‑325 Supply of a going concern Subdivision 38‑K—Transport and related matters 38‑355 Supplies of transport and related matters 38‑360 Travel agents arranging overseas supplies Subdivision 38‑L—Precious metals 38‑385 Supplies of precious metals Subdivision 38‑M—Supplies through inwards duty free shops 38‑415 Supplies through inwards duty free shops Subdivision 38‑N—Grants of land by governments 38‑445 Grants of freehold and similar interests by governments 38‑450 Leases preceding grants of freehold and similar interests by governments Subdivision 38‑O—Farm land 38‑475 Subdivided farm land 38‑480 Farm land supplied for farming Subdivision 38‑P—Cars for use by disabled people 38‑505 Disabled veterans 38‑510 Other disabled people Subdivision 38‑Q—International mail 38‑540 International mail Subdivision 38‑R—Telecommunication supplies made under arrangements for global roaming in the indirect tax zone 38‑570 Telecommunication supplies made under arrangements for global roaming in the indirect tax zone Subdivision 38‑S—Eligible emissions units 38‑590 Eligible emissions units Subdivision 38‑T—Inbound intangible consumer supplies 38‑610 Inbound intangible consumer supplies Division 40—Input taxed supplies 40‑1 What this Division is about Subdivision 40‑A—Financial supplies 40‑5 Financial supplies Subdivision 40‑B—Residential rent 40‑35 Residential rent Subdivision 40‑C—Residential premises 40‑65 Sales of residential premises 40‑70 Supplies of residential premises by way of long‑term lease 40‑75 Meaning of new residential premises Subdivision 40‑D—Precious metals 40‑100 Precious metals Subdivision 40‑E—School tuckshops and canteens 40‑130 School tuckshops and canteens Subdivision 40‑F—Fund‑raising events conducted by charities etc. 40‑160 Fund‑raising events conducted by charities etc. 40‑165 Meaning of fund‑raising event Subdivision 40‑G—Inbound intangible consumer supplies 40‑180 Inbound intangible consumer supplies Part 3‑2—Non‑taxable importations Division 42—Non‑taxable importations 42‑1 What this Division is about 42‑5 Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995 42‑10 Goods returned to the indirect tax zone in an unaltered condition 42‑15 Supplies of low value goods Chapter 4—The special rules Division 45—Introduction 45‑1 What this Chapter is about 45‑5 The effect of special rules Part 4‑1—Special rules mainly about particular ways entities are organised Division 48—GST groups 48‑1 What this Division is about Subdivision 48‑A—Formation and membership of GST groups 48‑5 Formation of GST groups 48‑7 Membership of GST groups 48‑10 Membership requirements of a GST group 48‑15 Relationship of companies and non‑companies in a GST group Subdivision 48‑B—Consequences of GST groups 48‑40 Who is liable for GST 48‑45 Who is entitled to input tax credits 48‑50 Adjustments 48‑51 Consequences of being a member of a GST group for part of a tax period 48‑52 Consequences for a representative member of membership change during a tax period 48‑53 Consequences of changing a representative member during a tax period 48‑55 GST groups treated as single entities for certain purposes 48‑57 Tax invoices that are required to identify recipients 48‑60 GST returns Subdivision 48‑C—Administrative matters 48‑70 Changing the membership etc. of GST groups 48‑71 Approval of early day of effect of forming, changing etc. GST groups 48‑73 Tax periods of GST groups with incapacitated members 48‑75 Effect of representative member becoming an incapacitated entity Subdivision 48‑D—Ceasing to be a member of a GST group 48‑110 Adjustments after you cease to be a member of a GST group 48‑115 Changes in extent of creditable purpose after you cease to be a member of a GST group Division 49—GST religious groups 49‑1 What this Division is about Subdivision 49‑A—Approval of GST religious groups 49‑5 Approval of GST religious groups 49‑10 Membership requirements of a GST religious group Subdivision 49‑B—Consequences of approval of GST religious groups 49‑30 Supplies between members of GST religious groups 49‑35 Acquisitions between members of GST religious groups 49‑40 Adjustment events 49‑45 Changes in the extent of creditable purpose 49‑50 GST religious groups treated as single entities for certain purposes Subdivision 49‑C—Administrative matters 49‑70 Changing the membership etc. of GST religious groups 49‑75 Revoking the approval of GST religious groups 49‑80 Notification by principal members 49‑85 Date of effect of approvals and revocations 49‑90 Notification by the Commissioner Division 50—GST treatment of religious practitioners Guide to Division 50 50‑1 What this Division is about 50‑5 GST treatment of religious practitioners Division 51—GST joint ventures 51‑1 What this Division is about Subdivision 51‑A—Formation of and participation in GST joint ventures 51‑5 Formation of GST joint ventures 51‑7 Participants in GST joint ventures 51‑10 Participation requirements of a GST joint venture Subdivision 51‑B—Consequences of GST joint ventures 51‑30 Who is liable for GST 51‑35 Who is entitled to input tax credits 51‑40 Adjustments 51‑45 Additional net amounts relating to GST joint ventures 51‑50 GST returns relating to GST joint ventures 51‑52 Consolidation of GST returns relating to GST joint ventures 51‑55 Payments of GST relating to GST joint ventures 51‑60 Refunds relating to GST joint ventures Subdivision 51‑C—Administrative matters 51‑70 Changing the participants etc. of GST joint ventures 51‑75 Approval of early day of effect of forming, changing etc. GST joint ventures Subdivision 51‑D—Ceasing to be a participant in, or an operator of, a GST joint venture 51‑110 Adjustments after you cease to be a participant in a GST joint venture 51‑115 Changes in extent of creditable purpose after you cease to be a member of a GST joint venture Division 54—GST branches 54‑1 What this Division is about Subdivision 54‑A—Registration of GST branches 54‑5 Registration of GST branches 54‑10 The date of effect of registration of a GST branch 54‑15 GST branch registration number Subdivision 54‑B—Consequences of registration of GST branches 54‑40 Additional net amounts relating to GST branches 54‑45 Net amounts of parent entities 54‑50 Tax invoices and adjustment notes 54‑55 GST returns relating to GST branches 54‑60 Payments of GST relating to GST branches 54‑65 Refunds relating to GST branches Subdivision 54‑C—Cancellation of registration of GST branches 54‑70 When an entity must apply for cancellation of registration of a GST branch 54‑75 When the Commissioner must cancel registration of a GST branch 54‑80 The date of effect of cancellation of registration of a GST branch 54‑85 Application of Subdivision 25‑B 54‑90 Effect on GST branches of cancelling the entity's registration Division 57—Resident agents acting for non‑residents 57‑1 What this Division is about 57‑5 Who is liable for GST 57‑7 Agreement to apply this Division to all supplies through a resident agent 57‑10 Who is entitled to input tax credits 57‑15 Adjustments 57‑20 Resident agents are required to be registered 57‑25 Cancellation of registration of a resident agent 57‑30 Notice of cessation of agency 57‑35 Tax periods of resident agents 57‑40 GST returns for non‑residents 57‑45 Resident agents giving GST returns 57‑50 Non‑residents that belong to GST groups Division 58—Representatives of incapacitated entities 58‑1 What this Division is about 58‑5 General principle for the relationship between incapacitated entities and their representatives 58‑10 Circumstances in which representatives have GST‑related liabilities and entitlements 58‑15 Adjustments for bad debts 58‑20 Representatives are required to be registered 58‑25 Cancellation of registration of a representative 58‑30 Notice of cessation of representation 58‑35 Tax periods of representatives 58‑40 Effect on attribution rules of not accounting on a cash basis 58‑45 GST returns for representatives of incapacitated entities 58‑50 Representatives to give GST returns for incapacitated entities 58‑55 Incapacitated entities not required to give GST returns in some cases 58‑60 Representative to notify Commissioner of certain liabilities etc. 58‑65 Money available to meet representative's liabilities 58‑70 Protection for actions of representative 58‑95 Division does not apply to the extent that the representative is a creditor of the incapacitated entity Division 60—Pre‑establishment costs 60‑1 What this Division is about 60‑5 Input tax credit for acquisitions and importations before establishment 60‑10 Registration etc. not needed for input tax credits 60‑15 Pre‑establishment acquisitions and importations 60‑20 Creditable purpose 60‑25 Attributing the input tax credit for pre‑establishment acquisitions 60‑30 Attributing the input tax credit for pre‑establishment importations 60‑35 Application of Division 129 Division 63—Non‑profit sub‑entities 63‑1 What this Division is about 63‑5 Entities that may choose to apply this Division 63‑10 Period for which a choice has effect 63‑15 Consequences of choosing to apply this Division 63‑20 Non‑profit sub‑entities may register 63‑25 Registration turnover threshold for non‑profit sub‑entities 63‑27 Application of particular provisions relating to charities etc. 63‑30 When non‑profit sub‑entities must apply for cancellation of registration 63‑35 When the Commissioner must cancel registration of non‑profit sub‑entities 63‑40 Effect on adjustments of becoming a non‑profit sub‑entity 63‑45 Effect on adjustments of ceasing to be a non‑profit sub‑entity 63‑50 Membership requirements of GST groups Part 4‑2—Special rules mainly about supplies and acquisitions Division 66—Second‑hand goods 66‑1 What this Division is about Subdivision 66‑A—Input tax credits for acquiring second‑hand goods 66‑5 Creditable acquisitions of second‑hand goods 66‑10 Amounts of input tax credits for creditable acquisitions of second‑hand goods 66‑15 Attributing input tax credits for creditable acquisitions of second‑hand goods 66‑17 Records of creditable acquisitions of second‑hand goods Subdivision 66‑B—Acquisitions of second‑hand goods that are divided for re‑supply 66‑40 Acquisitions of second‑hand goods that can be used to offset GST on future re‑supplies 66‑45 Future re‑supplies that are not taxable supplies 66‑50 Future re‑supplies on which GST is reduced 66‑55 Records of acquisitions of second‑hand goods to which this Subdivision applied 66‑60 Input tax credits for acquiring second‑hand goods the supply of which is not fully taxable 66‑65 Total Subdivision 66‑B credit amounts and Subdivision 66‑B GST amounts 66‑70 Commissioner may determine rules for applying this Subdivision Division 69—Non‑deductible expenses 69‑1 What this Division is about Subdivision 69‑A—Non‑deductible expenses generally 69‑5 Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations 69‑10 Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars Subdivision 69‑B—Elections for GST purposes relating to meal entertainment and entertainment facilities 69‑15 What this Subdivision is about 69‑20 Effect of elections on net amounts 69‑25 Election to use the 50/50 split method for meal entertainment 69‑30 Election to use the 12 week register method for meal entertainment 69‑35 Election to use the 50/50 split method for entertainment facilities 69‑40 When elections take effect 69‑45 When elections cease to have effect 69‑50 Adjustment events relating to elections 69‑55 Adjustment notes not required Division 70—Financial supplies (reduced credit acquisitions) 70‑1 What this Division is about 70‑5 Acquisitions that attract the reduced credit 70‑10 Extended meaning of creditable purpose 70‑15 How much are the reduced input tax credits? 70‑20 Extent of creditable purpose 70‑25 Sale of reduced credit acquisitions (Division 132) Division 71—Fringe benefits provided by input taxed suppliers 71‑1 What this Division is about 71‑5 Acquisitions by input taxed suppliers to provide fringe benefits 71‑10 Importations by input taxed suppliers to provide fringe benefits Division 72—Associates 72‑1 What this Division is about Subdivision 72‑A—Supplies without consideration 72‑5 Taxable supplies without consideration 72‑10 The value of taxable supplies without consideration 72‑15 Attributing the GST to tax periods 72‑20 Supplies and acquisitions that would otherwise be sales etc. 72‑25 Supplies that would otherwise be GST‑free, input taxed or financial supplies Subdivision 72‑B—Acquisitions without consideration 72‑40 Creditable acquisitions without consideration 72‑45 The amount of the input tax credit 72‑50 Attributing the input tax credit to tax periods Subdivision 72‑C—Supplies for inadequate consideration 72‑70 The value of taxable supplies for inadequate consideration Subdivision 72‑D—Application of this Division to certain sub‑entities 72‑90 GST branches 72‑92 Non‑profit sub‑entities 72‑95 Commonwealth government entities 72‑100 State or Territory government entities Division 75—Sale of freehold interests etc. 75‑1 What this Division is about 75‑5 Applying the margin scheme 75‑10 The amount of GST on taxable supplies 75‑11 Margins for supplies of real property in particular circumstances 75‑12 Working out margins to take into account failure to pay full consideration 75‑13 Working out margins to take into account supplies to associates 75‑14 Consideration for acquisition of real property not to include cost of improvements etc. 75‑15 Subdivided real property 75‑16 Margins for supplies of real property acquired through several acquisitions 75‑20 Supplies under a margin scheme do not give rise to creditable acquisitions 75‑22 Increasing adjustment relating to input tax credit entitlement 75‑25 Adjustments relating to bad debts 75‑27 Decreasing adjustment for later payment of consideration 75‑30 Tax invoices not required for supplies of real property under the margin scheme 75‑35 Approved valuations Division 78—Insurance 78‑1 What this Division is about Subdivision 78‑A—Insurers 78‑5 GST on insurance premiums is exclusive of stamp duty 78‑10 Decreasing adjustments for settlements of insurance claims 78‑15 How to work out the decreasing adjustments 78‑18 Increasing adjustments for payments of excess under insurance policies 78‑20 Settlements of insurance claims do not give rise to creditable acquisitions 78‑25 Supplies in settlement of claims are not taxable supplies 78‑30 Acquisitions by insurers in the course of settling claims under non‑taxable policies 78‑35 Taxable supplies relating to rights of subrogation 78‑40 Adjustment events relating to decreasing adjustments under this Division 78‑42 Adjustment events relating to increasing adjustments under section 78‑18 Subdivision 78‑B—Insured entities etc. 78‑45 Settlements of insurance claims do not give rise to taxable supplies 78‑50 Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed 78‑55 Payments of excess under insurance policies are not consideration for supplies 78‑60 Supplies of goods to insurers in the course of settling claims Subdivision 78‑C—Third parties 78‑65 Payments etc. to third parties by insurers 78‑70 Payments etc. to third parties by insured entities 78‑75 Creditable acquisitions relating to rights of subrogation Subdivision 78‑D—Insured entities that are not registered etc. 78‑80 Net amounts 78‑85 GST returns 78‑90 Payments of GST Subdivision 78‑E—Statutory compensation schemes 78‑95 GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty 78‑100 Settlements of claims for compensation under statutory compensation schemes 78‑105 Meaning of statutory compensation scheme Subdivision 78‑F—Miscellaneous 78‑110 Effect of judgments and court orders 78‑115 Exclusion of certain Commonwealth, State or Territory insurance schemes 78‑118 Portfolio transfers 78‑120 HIH rescue package Division 79—Compulsory third party schemes 79‑1 What this Division is about Subdivision 79‑A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies 79‑5 Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where premium selection test is satisfied 79‑10 Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied 79‑15 Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement 79‑20 Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies 79‑25 Meaning of CTP hybrid payment or supply 79‑30 Application of Division 78 Subdivision 79‑C—Other payments and supplies under compulsory third party schemes 79‑35 Meaning of CTP compensation or ancillary payment or supply etc. 79‑40 GST on CTP premiums is exclusive of stamp duty 79‑45 Exclusion of certain compulsory third party schemes 79‑50 Decreasing adjustments for CTP compensation or ancillary payments or supplies 79‑55 Increasing adjustments for payments of excess etc. under compulsory third party schemes 79‑60 Effect of settlements and payments under compulsory third party schemes 79‑65 Taxable supplies relating to recovery by operators of compulsory third party schemes 79‑70 Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes 79‑75 Adjustment events relating to increasing adjustments under section 79‑55 79‑80 Payments of excess under compulsory third party schemes are not consideration for supplies 79‑85 Supplies of goods to operators in the course of settling claims 79‑90 Effect of judgments and court orders Subdivision 79‑D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction 79‑95 How to work out decreasing adjustments using the applicable average input tax credit fraction 79‑100 Meaning of average input tax credit fraction Division 80—Settlement sharing arrangements 80‑1 What this Division is about Subdivision 80‑A—Insurance policy settlement sharing arrangements 80‑5 Meaning of insurance policy settlement sharing arrangement etc. 80‑10 Effect of becoming parties to industry deeds or entering into settlement sharing arrangements 80‑15 Effect of contributing operator's payment 80‑20 Managing operator's payments or supplies 80‑25 Contributing operator's payment 80‑30 Managing operator's increasing adjustment where contributing operator's payment 80‑35 Adjustment events relating to managing operator's payment or supply Subdivision 80‑B—Nominal defendant settlement sharing arrangements 80‑40 Meaning of nominal defendant settlement sharing arrangement etc. 80‑45 Nominal defendant settlement sharing arrangements to which this Subdivision applies 80‑50 Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements 80‑55 Effect of contributing operator's payment 80‑60 Managing operator's payment or supply 80‑65 Contributing operator's payment 80‑70 Managing operator's increasing adjustment where contributing operator's payment 80‑75 Adjustment events relating to managing operator's payment or supply Subdivision 80‑C—Hybrid settlement sharing arrangements 80‑80 Meaning of hybrid settlement sharing arrangement etc. 80‑85 Subdivision 80‑A to apply to hybrid settlement sharing arrangement, subject to exceptions 80‑90 Subdivision 80‑B to apply to payments or supplies by managing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement 80‑95 Subdivision 80‑B to apply to payments or supplies by contributing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement Division 81—Payments of taxes, fees and charges 81‑1 What this Division is about 81‑5 Effect of payment of tax 81‑10 Effect of payment of certain fees and charges 81‑15 Other fees and charges that do not constitute consideration 81‑20 Division has effect despite sections 9‑15 and 9‑17 81‑25 Retrospective application of regulations Division 82—Supplies in return for rights to develop land 82‑1 What this Division is about 82‑5 Supplies of rights to develop land do not constitute consideration in certain cases 82‑10 Supplies by Australian government agencies of rights to develop land are not for consideration Division 83—Non‑residents making supplies connected with the indirect tax zone 83‑1 What this Division is about 83‑5 "Reverse charge" on supplies made by non‑residents 83‑10 Recipients who are members of GST groups 83‑15 Recipients who are participants in GST joint ventures 83‑20 The amount of GST on "reverse charged" supplies made by non‑residents 83‑25 When non‑residents must apply for registration 83‑30 When the Commissioner must register non‑residents 83‑35 Tax invoices not required for "reverse charged" supplies made by non‑residents Division 84—Offshore supplies Subdivision 84‑A—Offshore supplies that are taxable supplies, and "reverse charged", under this Subdivision 84‑1 What this Subdivision is about 84‑5 Offshore supplies that are taxable supplies under this Subdivision 84‑10 "Reverse charge" on offshore supplies 84‑12 The amount of GST on offshore supplies that are "reverse charged" 84‑13 The amount of input tax credits relating to offshore supplies 84‑14 Supplies relating to employee share ownership schemes 84‑15 Transfers etc. between branches of the same entity 84‑20 The price of taxable supplies of offshore intangibles without, or for inadequate, consideration 84‑25 Tax periods for supplies from associates that are not connected with the indirect tax zone 84‑30 Adjustments for acquisitions made solely for a creditable purpose Subdivision 84‑B—Inbound intangible consumer supplies 84‑45 What this Subdivision is about 84‑50 No tax invoices or adjustment notes for inbound intangible consumer supplies 84‑55 Operator of electronic distribution platform treated as supplier 84‑60 Extension of section 84‑55 to certain other supplies through an electronic distribution platform 84‑65 Meaning of inbound intangible consumer supply 84‑70 Meaning of electronic distribution platform Subdivision 84‑C—Offshore supplies of low value goods 84‑73 What this Subdivision is about 84‑75 Supplies of low value goods that are connected with the indirect tax zone 84‑77 Meaning of offshore supply of low value goods 84‑79 Meaning of supply of low value goods 84‑81 Who makes an offshore supply of low value goods 84‑83 Exception—when supplier reasonably believes there will be a taxable importation 84‑85 Exception—when there is also a taxable importation 84‑87 No tax invoices or adjustment notes for offshore supplies of low value goods 84‑89 Notifying amounts of GST to recipients of offshore supplies of low value goods 84‑91 The amount of GST on offshore supplies of low value goods made by redeliverers 84‑93 Suppliers of offshore supplies of low value goods to ensure tax information is included in customs documents Subdivision 84‑D—Consumers of offshore supplies 84‑95 What this Subdivision is about 84‑100 When entities are treated as not being Australian consumers 84‑105 When entities are treated as not being consumers Division 85—Telecommunication supplies 85‑1 What this Division is about 85‑5 When telecommunication supplies are connected with the indirect tax zone 85‑10 Meaning of telecommunication supply Division 86—Valuable metals 86‑1 What this Division is about 86‑5 "Reverse charge" on supplies of goods consisting of valuable metal 86‑10 The valuable metal threshold 86‑15 Recipients who are members of GST groups 86‑20 Recipients who are participants in GST joint ventures 86‑25 The amount of GST on "reverse charged" supplies of goods consisting of valuable metal Division 87—Long‑term accommodation in commercial residential premises 87‑1 What this Division is about 87‑5 Commercial residential premises that are predominantly for long‑term accommodation 87‑10 Commercial residential premises that are not predominantly for long‑term accommodation 87‑15 Meaning of commercial accommodation 87‑20 Meaning of long‑term accommodation etc. 87‑25 Suppliers may choose not to apply this Division Division 90—Company amalgamations 90‑1 What this Division is about 90‑5 Supplies not taxable—amalgamated company registered or required to be registered 90‑10 Value of taxable supplies—amalgamated company not registered or required to be registered 90‑15 Acquisitions not creditable—amalgamated company registered or required to be registered 90‑20 Liability after amalgamation for GST on amalgamating company's supplies 90‑25 Entitlement after amalgamation to input tax credits for amalgamating company's acquisitions 90‑30 Adjustments 90‑35 Amalgamating companies accounting on a cash basis Division 93—Time limit on entitlements to input tax credits 93‑1 What this Division is about 93‑5 Time limit on entitlements to input tax credits 93‑10 Exceptions to time limit on entitlements to input tax credits 93‑15 GST no longer able to be taken into account Division 96—Supplies partly connected with the indirect tax zone 96‑1 What this Division is about 96‑5 Supplies that are only partly connected with the indirect tax zone 96‑10 The value of the taxable components of supplies that are only partly connected with the indirect tax zone Division 99—Deposits as security 99‑1 What this Division is about 99‑5 Giving a deposit as security does not constitute consideration 99‑10 Attributing the GST relating to deposits that are forfeited etc. Division 100—Vouchers 100‑1 What this Division is about 100‑5 Supplies of vouchers with a stated monetary value 100‑10 Redemption of vouchers 100‑12 Consideration on redemption of vouchers 100‑15 Increasing adjustments for unredeemed vouchers 100‑18 Arrangement for supply of voucher 100‑20 Vouchers supplied to non‑residents and redeemed by others in the indirect tax zone 100‑25 Meaning of voucher etc. Division 102—Cancelled lay‑by sales 102‑1 What this Division is about 102‑5 Cancelled lay‑by sales 102‑10 Attributing GST and input tax credits Division 105—Supplies in satisfaction of debts 105‑1 What this Division is about 105‑5 Supplies by creditors in satisfaction of debts may be taxable supplies 105‑10 Net amounts 105‑15 GST returns 105‑20 Payments of GST Division 108—Valuation of taxable supplies of goods in bond 108‑1 What this Division is about 108‑5 Taxable supplies of goods in bond etc. Division 110—Tax‑related transactions 110‑1 What this Division is about Subdivision 110‑A—Income tax‑related transactions 110‑5 Transfers of tax losses and net capital losses 110‑15 Supplies under operation of consolidated group regime 110‑20 Tax sharing agreements—entering into agreement etc. 110‑25 Tax sharing agreements—leaving group clear of group liability 110‑30 Tax funding agreements Subdivision 110‑B—Other tax‑related transactions 110‑60 Indirect tax sharing agreements—entering into agreement etc. 110‑65 Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability Division 111—Reimbursement of employees etc. 111‑1 What this Division is about 111‑5 Creditable acquisitions relating to reimbursements 111‑10 Amounts of input tax credits relating to reimbursements 111‑15 Tax invoices relating to reimbursements 111‑18 Application of Division to volunteers working for charities etc. 111‑20 Application of Division to recipients of certain withholding payments 111‑25 Employers paying expenses of employees etc. 111‑30 Reimbursements etc. of former or future employees etc. Division 113—PAYG voluntary agreements 113‑1 What this Division is about 113‑5 Supply of work or services not a taxable supply An Act about a goods and services tax to implement A New Tax System, and for related purposes Chapter 1—Introduction Part 1‑1—Preliminary Division 1—Preliminary 1‑1 Short title This Act may be cited as the A New Tax System (Goods and Services Tax) Act 1999. 1‑2 Commencement (1) This Act commences on 1 July 2000. 1‑3 Commonwealth‑State financial relations The Parliament acknowledges that the Commonwealth: (a) will introduce legislation to provide that the revenue from the GST will be granted to the States, the Australian Capital Territory and the Northern Territory; and (b) will maintain the rate and base of the GST in accordance with the Agreement on Principles for the Reform of Commonwealth‑State Financial Relations endorsed at the Special Premiers' Conference in Canberra on 13 November 1998. 1‑4 States and Territories are bound by the GST law The *GST law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence. Part 1‑2—Using this Act Division 2—Overview of the GST legislation 2‑1 What this Act is about This Act is about the GST. It begins (in Chapter 2) with the basic rules about the GST, and then sets out in Chapter 3 the exemptions from the GST and in Chapter 4 the special rules that can apply in particular cases. It concludes with definitions and other interpretative material. Note: The GST is imposed by 6 Acts, the most important of which are: (a) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999; and (b) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999; and (c) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999. 2‑5 The basic rules (Chapter 2) Chapter 2 has the basic rules for the GST, including:  when and how the GST arises, and who is liable to pay it;  when and how input tax credits arise, and who is entitled to them;  how to work out payments and refunds of GST;  when and how the payments and refunds are to be made. 2‑10 The exemptions (Chapter 3) Chapter 3 sets out the supplies and importations that are GST‑free or input taxed. 2‑15 The special rules (Chapter 4) Chapter 4 has special rules which, in particular cases, have the effect of modifying the basic rules in Chapter 2. Note: There is a checklist of special rules at the end of Chapter 2 (in Part 2‑8). 2‑20 Miscellaneous (Chapter 5) Chapter 5 deals with miscellaneous matters. 2‑25 Interpretative provisions (Chapter 6) Chapter 6 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act. 2‑30 Administration, collection and recovery provisions in the Taxation Administration Act 1953 Schedule 1 to the Taxation Administration Act 1953 contains provisions relating to the administration of the GST, and to collection and recovery of amounts of GST. Division 3—Defined terms 3‑1 When defined terms are identified (1) Many of the terms used in the law relating to the GST are defined. (2) Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in "*enterprise". The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 195‑1. 3‑5 When terms are not identified (1) Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked. (2) Terms are not asterisked in the non‑operative material contained in this Act. Note: The non‑operative material is described in Division 4. (3) The following basic terms used throughout the Act are not identified with an asterisk. Common definitions that are not asterisked Item This term: 1 acquisition 2 amount 3 Commissioner 4 entity 5 goods 6 GST 7 import 8 indirect tax zone 9 individual 10 input tax credit 11 supply 12 tax period 13 thing 14 you 3‑10 Identifying the defined term in a definition Within a definition, the defined term is identified by bold italics. Division 4—Status of Guides and other non‑operative material 4‑1 Non‑operative material In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them. This other material falls into 2 main categories. 4‑5 Explanatory sections One category is the explanatory section in many Divisions. Under the section heading "What this Division is about", a short explanation of the Division appears in boxed text. Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 182‑10. 4‑10 Other material The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them. Chapter 2—The basic rules Division 5—Introduction 5‑1 What this Chapter is about This Chapter sets out the basic rules for the GST. In particular, these rules will tell you: • where liability for GST arises; • where entitlements to input tax credits arise; • how the amounts of GST and input tax credits are combined to work out the amount payable by you or to you; • when and how that amount is to be paid. 5‑5 The structure of this Chapter The diagram on the next page shows how the basic rules in this Chapter relate to each other. It also shows their relationship with: • the exemptions (Chapter 3)—these provisions exempt from the GST what would otherwise be taxable; and • the special rules (Chapter 4)—these provisions modify the basic rules in particular situations, often in quite limited ways. Part 2‑1—The central provisions Division 7—The central provisions 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. For taxable supplies and creditable acquisitions, see Part 2‑2. For taxable importations and creditable importations, see Part 2‑3. 7‑5 Net amounts Amounts of GST and amounts of input tax credits are set off against each other to produce a *net amount for a tax period (which may be altered to take account of *adjustments). For net amounts (including adjustments to net amounts), see Part 2‑4. 7‑10 Tax periods Every entity that is *registered, or *required to be registered, has tax periods applying to it. For registration, see Part 2‑5. For tax periods, see Part 2‑6. 7‑15 Payments and refunds The amount *assessed as being the *net amount for a tax period is the amount that the entity must pay to the Commonwealth, or the Commonwealth must refund to the entity, in respect of the period. For payments and refunds (and GST returns), see Part 2‑7. Note 1: For assessment of net amounts, see Division 155 in Schedule 1 to the Taxation Administration Act 1953. Note 2: Refunds may be set off against your other liabilities (if any) under laws administered by the Commissioner. Part 2‑2—Supplies and acquisitions Division 9—Taxable supplies Table of Subdivisions 9‑A What are taxable supplies? 9‑B Who is liable for GST on taxable supplies? 9‑C How much GST is payable on taxable supplies? 9‑1 What this Division is about GST is payable on taxable supplies. This Division defines taxable supplies, states who is liable for the GST, and describes how to work out the GST on supplies. Subdivision 9‑A—What are taxable supplies? 9‑5 Taxable supplies You make a taxable supply if: (a) you make the supply for *consideration; and (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and (c) the supply is *connected with the indirect tax zone; and (d) you are *registered, or *required to be registered. However, the supply is not a *taxable supply to the extent that it is *GST‑free or *input taxed. 9‑10 Meaning of supply (1) A supply is any form of supply whatsoever. (2) Without limiting subsection (1), supply includes any of these: (a) a supply of goods; (b) a supply of services; (c) a provision of advice or information; (d) a grant, assignment or surrender of *real property; (e) a creation, grant, transfer, assignment or surrender of any right; (f) a *financial supply; (g) an entry into, or release from, an obligation: (i) to do anything; or (ii) to refrain from an act; or (iii) to tolerate an act or situation; (h) any combination of any 2 or more of the matters referred to in paragraphs (a) to (g). (3) It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply. (3A) For the avoidance of doubt, the delivery of: (a) livestock for slaughtering or processing into *food; or (b) game for processing into *food; under an arrangement under which the entity making the delivery only relinquishes title after food has been produced, is the supply of the livestock or game (regardless of when the entity relinquishes title). The supply does not take place on or after the subsequent relinquishment of title. (4) However, supply does not include: (a) a supply of *money unless the money is provided as *consideration for a supply that is a supply of money or *digital currency; or (b) a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money. 9‑15 Consideration (1) Consideration includes: (a) any payment, or any act or forbearance, in connection with a supply of anything; and (b) any payment, or any act or forbearance, in response to or for the inducement of a supply of anything. (2) It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply. (2A) It does not matter: (a) whether the payment, act or forbearance was in compliance with an order of a court, or of a tribunal or other body that has the power to make orders; or (b) whether the payment, act or forbearance was in compliance with a settlement relating to proceedings before a court, or before a tribunal or other body that has the power to make orders. (2B) For the avoidance of doubt, the fact that the supplier is an entity of which the *recipient of the supply is a member, or that the supplier is an entity that only makes supplies to its members, does not prevent the payment, act or forbearance from being consideration. 9‑17 Certain payments and other things not consideration (1) If a right or option to acquire a thing is granted, then: (a) the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or (b) if there is no such additional consideration—there is no consideration for the supply. (2) Making a gift to a non‑profit body is not the provision of consideration. (3) A payment is not the provision of consideration if: (a) the payment is made by a *government related entity to another government related entity for making a supply; and (b) the payment is: (i) covered by an appropriation under an *Australian law; or (ii) made under the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time; or (iii) made under another agreement entered into to implement the National Health Reform Agreement; and (c) the payment is calculated on the basis that the sum of: (i) the payment (including the amounts of any other such payments) relating to the supply; and (ii) anything (including any payment for any act or forbearance) that the other government related entity receives from another entity in connection with, or in response to, or for the inducement of, the supply, or for any other related supply; does not exceed the supplier's anticipated or actual costs of making those supplies. (4) A payment is not the provision of consideration if the payment is made by a *government related entity to another government related entity and the payment is of a kind specified in regulations made for the purposes of this subsection. (5) This section applies despite section 9‑15. 9‑20 Enterprises (1) An enterprise is an activity, or series of activities, done: (a) in the form of a *business; or (b) in the form of an adventure or concern in the nature of trade; or (c) on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or (d) by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30‑B of the *ITAA 1997 and to which deductible gifts can be made; or (da) by a trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or (e) by a charity; or (g) by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or (h) by a trustee of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN. (2) However, enterprise does not include an activity, or series of activities, done: (a) by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or Note: Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services. (b) as a private recreational pursuit or hobby; or (c) by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or (d) as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12‑45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies). (3) For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities: (a) being in the form of a *business within the meaning of paragraph (1)(a); or (b) being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b). (4) This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table. Withholding payments covered Item Provision Subject matter 1 Section 12‑35 Payment to employee 2 Section 12‑40 Payment to company director 3 Section 12‑45 Payment to office holder 4 Section 12‑60 Payment under labour hire arrangement, or specified by regulations 9‑25 Supplies connected with the indirect tax zone Supplies of goods wholly within the indirect tax zone (1) A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply. Supplies of goods from the indirect tax zone (2) A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone. Supplies of goods to the indirect tax zone (3) A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone. (3A) A supply of goods that is an *offshore supply of low value goods is connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84‑C. Supplies of real property (4) A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone. Supplies of anything else (5) A supply of anything other than goods or *real property is connected with the indirect tax zone if: (a) the thing is done in the indirect tax zone; or (b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or (c) all of the following apply: (i) neither paragraph (a) nor (b) applies in respect of the thing; (ii) the thing is a right or option to acquire another thing; (iii) the supply of the other thing would be connected with the indirect tax zone; or (d) the *recipient of the supply is an *Australian consumer. Example: A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c). Note: A supply that is connected with the indirect tax zone under this subsection might be GST‑free if it is consumed outside the indirect tax zone: see section 38‑190. For more rules about supplies that are GST‑free, see Division 38. Supplies of goods involving installation or assembly services (6) If a supply of goods (other than a *luxury car) (the actual supply) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way: (a) the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone; (b) the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods. Note 1: The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9‑26 applies. Note 2: The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13. Note 3: For the price of the separate supplies, see subsection 9‑75(4). Meaning of Australian consumer (7) An entity is an Australian consumer of a supply made to the entity if: (a) the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of Australia in the *ITAA 1997 includes the external Territories); and (b) the entity: (i) is not *registered; or (ii) if the entity is registered—the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on. Note: Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84‑100. 9‑26 Supplies by non‑residents that are not connected with the indirect tax zone (1) A supply is not connected with the indirect tax zone if: (a) the supplier is a *non‑resident; and (b) the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and (c) the supply is covered by an item in this table: Offshore supplies that are not connected with the indirect tax zone Item Topic These supplies are not connected with the indirect tax zone … 1 Inbound intangible supply a supply of anything other than goods or *real property if: (a) the thing is done in the indirect tax zone; and (b) the *recipient is an *Australian‑based business recipient of the supply. 2 Intangible supply between non‑residents a supply of anything other than goods or *real property if: (a) the thing is done in the indirect tax zone; and (b) the *recipient is a *non‑resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone. 3 Supply between non‑residents of leased goods a supply by way of transfer of ownership of leased goods if: (a) the *recipient is a *non‑resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and (b) the lessee: (i) made a *taxable importation of the goods before the supply was made; and (ii) continues to lease the goods on substantially similar terms and conditions after the supply is made. 4 Supply by way of continued lease of goods from item 3 a supply made by way of lease if: (a) the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and (b) the lease is the lease referred to in subparagraph (ii) of that paragraph. Note: This subsection does not apply to supplies made by a non‑resident through a resident agent if they have agreed it is not to apply: see section 57‑7. (2) An entity is an Australian‑based business recipient of a supply made to the entity if: (a) the entity is *registered; and (b) an *enterprise of the entity is *carried on in the indirect tax zone; and (c) the entity's acquisition of the t