1. GST Measures
Item
21
29
40
Measure Title and
Description
Proceed with previously
announced measure to
restrict GST refunds –
proceed with announcements.
Restrict refunds of overpaid
GST. Amendments will address
a recent AAT finding it doesn‟t
have jurisdiction to consider
refund matters.
Low value import threshold –
set threshold by regulation –
do not proceed.
Does not proceed with the
separation of the low value
import threshold for customs
duty and GST purposes as the
Government has not yet
considered the business case on
the low value import threshold.
GST – Government response
to Board of Taxation report:
GST administration –
changes in use adjustments.
Amends the GST change of use
Status / Date of
Effect
Proceed with
amendment, with
effect from 17 August
2012.
Not proceeding
Grant Thornton Comments
The GST law will be amended to clarify that the Commissioner has a discretion to
refund overpaid GST where appropriate.
This measure will substantially change how taxpayers claim such refunds. The
process will now be one that invites much tighter scrutiny of such refund claims
from the ATO, and may potentially be biased towards the ATO at the expense of
taxpayers who may have made simple mistakes in calculating their GST net amounts.
The perceived inability to obtain a refund of overpaid GST may encourage taxpayers
to shy away from adopting a conservative approach to their GST obligations.
Australia‟s threshold is relatively (by world standards) high $1,000, and arguably
favours the shift to online shopping by consumers.
We consider this threshold should be lowered to support Australian retailers who
have been struggling to compete with overseas competitors.
Further consultation
required. Proposed
start date based on
Royal Assent.
What the retail sector, if not the broader economy needs are measures that restore
confidence to consumers and puts disposable income in their pockets. Frankly,
lowering the GST threshold for online purchases doesn‟t put money into consumers‟
pockets; it simply redistributes it to the Government. But it would at least have
meant local retailers would feel the playing field is somewhat level.
Adjustments are sometimes necessary to ensure the correct amount of tax is paid,
and the correct amount of input tax credits claimed when there are changing
circumstances around a transaction.
This measure will ensure that making adjustments does not impose an excessive
compliance burden on taxpayers and will assist in reducing compliance costs.

2. 2
41
provisions to provide higher
thresholds, and fewer and
shorter adjustment periods.
GST – Government response
to Board of Taxation report:
GST administration – review
treatment of vouchers.
Further consultation
required. Proposed
start date based on
Royal Assent.
Reviews the GST treatment of
vouchers having regard to
international developments.
42
48
GST – Government response
to Board of Taxation report:
GST administration – review
multi-party transactions.
Provides further examination of
the treatment of multi-party
transactions in order to
eliminate unrecoverable tax,
having regard to overseas work
in this area.
GST – cross border
transactions – ‘connected
with Australia’ rules.
Reduces the number of nonresidents who are unnecessarily
drawn into Australia‟s GST
Supplies of face value vouchers are not taxable. Supplies on redemption of the
voucher are subject to the general rules for taxable supplies with the consideration
being the amount for which the voucher is redeemed, or, if fully redeemed, the face
value of the voucher plus any additional consideration.
The current rules for vouchers do not keep pace with the variety of vouchers that are
available in the marketplace and the GST treatment of vouchers is a complex area.
Further consultation
required. Proposed
start date based on
Royal Assent.
Further consultation
required. Proposed
start date based on
Royal Assent.
The Government will undertake the review with a view to developing a simpler
system with lower compliance costs.
The GST treatment of multi-party transactions can be complex. This review will
focus on how the GST Act can be potentially amended to better address multi-party
transactions.
The collection of GST on cross-border transactions can be inefficient due to the
difficulties associated with enforcing GST compliance on a non-resident outside
Australia‟s jurisdiction.
It had been proposed that the “connected with Australia” tests be relaxed to reduce
the number of non-resident entities required to be registered.

3. 3
54
system, improving
competitiveness of Australian
suppliers.
GST – Government response
to Board of Taxation report:
GST administration – preregistration adjustments.
55
Allows an entitlement for an
adjustment to the extent of the
remaining economic value for
things acquired before an entity
was registered for GST.
GST – Government response
to Board of Taxation report:
GST administration – reverse
charge for going concerns
and farm land and supplies of
farmland for farming.
56
Replaces the GST free
concessions for the supply of
going concerns and farm land
supplied for farming with a
reverse charge mechanism.
GST – Government response
to Board of Taxation report:
GST administration –
adjustments on cessation of
registration.
Further consultation
required. Proposed
start date based on
Royal Assent.
This measure will allow an entitlement for an adjustment to the extent of the
remaining economic value for things acquired before an entity was registered for
GST. The amendment should not apply to adjustments that are already available.
Further consultation
required. Proposed
start date based on
Royal Assent.
GST-free concessions for the supply of going concerns and farm land supplied for
farming should be removed and replaced with a reverse charge mechanism. The
reverse charge mechanism should also be available for a wider range of supplies of
going concerns.
Currently, the sale of farm land, or the sale of an operating enterprise, may be GSTfree (under the farm land and going concern exemptions).
It had been proposed that these transactions be treated as taxable supplies, but with
the GST being “reverse charged” so that it is payable by the purchaser.
Further consultation
required. Proposed
start date based on
Royal Assent.
Currently, increasing adjustments are required to recoup input tax credits on goods
held by an entity when that entity ceases operating in Australia and deregisters. This
adjustment is still required where there is no change in ownership but the goods are
effectively exported because they leave Australia to be used in the entity‟s operations
outside Australia. However, if the goods were sold for export, no adjustment would
be required.

4. 4
Removes requirement for GST
registered entities to make
adjustments in the event that
they deregister, provided the
goods are effectively exported
and used in the non-Australian
enterprise.
79
80
81
GST – Government response
to Board of Taxation report:
GST administration –
simplify grouping rules.
Broadens and simplifies the
GST grouping membership
rules and enables holding
companies to be entitled to
register and group for GST
purposes.
GST – Government response
to Board of Taxation report:
GST administration – clarify
treatment of general law
partnerships.
Clarifies the treatment of general
law GST partnerships.
GST – Government response
to Board of Taxation report:
Currently, there is no mechanism to cease registration without an adjustment so that
enterprises which have ceased operating in Australia may choose not to cancel their
registration, resulting in unnecessary compliance and administration costs.
This measure will allow enterprises which are no longer required to be registered to
cancel their registration without being required to make an adjustment in respect of
goods they have transferred to their operations that are carried on outside Australia.
Further consultation
required. Proposed
start date based on
Royal Assent.
The current GST grouping rules are complex and potentially exclude some entities
that should be eligible to join a GST group.
Further consultation
required. Proposed
start date based on
Royal Assent.
Under the GST Act, partnerships are treated as separate GST entities even though
they are not a legal entity (unlike a company). This can give rise to GST complexities.
Further consultation
required. Proposed
This measure will ensure consistency and certainty in the use of the terms 'apply' and
'application' in the adjustment provisions.
It had been proposed that the grouping rules be simplified, and that the rules also be
extended to cover entities that may be currently excluded.
It had been proposed that the GST Act be amended to clarify the treatment of
general law partnerships.

5. 5
GST administration –
technical amendments to
adjustment provisions.
82
90
91
Amends the GST law to ensure
consistency and certainty in the
use of the terms „apply‟ and
„application‟ in the adjustment
provisions.
GST – Government response
to Board of Taxation report:
GST administration –
clarifying GST treatment of
bare trust.
start date based on
Royal Assent.
Further consultation
required. Proposed
start date based on
Royal Assent.
The Commissioner has taken the view that dealings in relation to real property held
by a trustee of a bare trust are concerned to be undertaken by the beneficiary or
beneficiaries of the trust where the beneficiary or beneficiaries carry on an enterprise
with the asset.
This measure will clarify the operation of the GST law to bare trusts to provide
greater certainty for affected taxpayers.
Clarifies the GST treatment of
bare trusts.
GST – Government response
to Board of Taxation report:
GST administration –
shortfall interest charge.
Further consultation
required. Proposed
start date based on
Royal Assent.
Applies the shortfall interest
charge to GST and other taxes
reported on the BAS.
GST – Government response
to Board of Taxation report:
GST administration – cash
and accrual accounting.
The Board of Taxation recommended that a shortfall interest charge should apply to
the GST and other taxes reported on the BAS, including luxury car tax, wine
equalisation tax and fuel tax credits. On 12 May 2009, the Government announced
that it supported in principle a shortfall interest charge applying to the GST and
other BAS-reported taxes, but that it would defer further consideration of the
recommendation until fiscal conditions allow.
Further consultation
required. Proposed
start date based on
Royal Assent.
The Board of Taxation recommended that the Government should consider the
merits of all transactions above a certain value (and meeting other criteria) being
accounted for using accruals accounting. On 12 May 2009, the Government
announced its support for considering the merits of all transactions above a certain
value (and meeting other criteria) being accounted for using accruals accounting.
Proposes the Government

6. 6
92
consider the merits of all
transactions above a certain
value (and meeting other
criteria) be accounted for using
accrual accounting.
GST – government response
to Board of Taxation report:
GST administration – clarify
treatment of tax law
partnerships.
Further consultation
required. Proposed
start date based on
Royal Assent.
Clarifies the GST treatment of
tax law partnerships, including
where a tax law partnership is
formed or dissolved and when it
makes a supply or an acquisition.
The Commissioner is able to deem that entities in joint receipt of income are in a tax
law partnership, even if they are not a general law partnership.
This may be relevant for taxpayers who are co-owners of property that jointly receive
rental income. This can result in GST complexities.
It had been proposed that the GST Act be amended to clarify the GST treatment of
tax law partnerships.
Research and Development Tax Measures
Item
Measure
3
A plan for Australian jobs research and development tax
incentive – better targeting.
25
Denies access to the R&D tax
incentive for large companies
with incomes of $20 billion or
more.
Research and development
tax incentive – quarterly
Status / Date of
Effect
Proceed as
announced, with
effect from 1 July
2013.
Grant Thornton Comment
The limitation placed on Research and Development claims to groups with turnover
of less than $20 billion will save close to $1 billion over forward estimate periods.
This will target the major banks and large miners who have often claimed large
projects as eligible R&D activities.
We do not prepare any R&D claims for companies who fit this description so this
measure is not of great concern for us.
Further consultation
required. Proposed
We consider this is a good measure for our clients. Eligible entities can be paid the
refundable tax offset before the end of the income year that they are doing eligible

7. 7
credits.
Allows the R&D refundable tax
offset to be provided in
quarterly instalments.
start date is 1 January
2014.
R&D.
Quarterly credits would make R&D more accessible to small companies, better
supporting innovative companies in their early stages of growth.