The Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 was introduced in the House of Reps on Wed 10.2.2016. It proposes the following amendments:

  • Extending GST to digital products and other imported services – Schedule 1 amends the GST Act to ensure that digital products and other imported services supplied to Australian consumers by foreign entities are subject to GST in a similar way to equivalent supplies made by Australian entities. The Bill would amend the GST Act so that GST is applied to digital products and services imported by Australian consumers. The Government will require overseas vendors to collect and remit GST on the sale to Australian consumers of digital products and services. Overseas vendors selling digital products or other services, such as “apps” and downloads of digital content, will be required to register, collect and remit GST on their sales to Australian consumers. DATE OF EFFECT: applies in determining net amounts for tax periods starting on or after 1 July 2017. For supplies made over a period spanning this date, the amendments apply to that portion of the supply made after 1 July 2017. THIS BILL is giving effect to the proposal announced by the Treasurer on 12 May 2015 as part of the 2015-16 Federal Budget. [EM p4]
  • GST treatment of cross-border transactions between businesses – Schedule 2 of the Bill would amend the GST Act to relieve non-residents from responsibility to charge GST and give responsibility, rather, to ‘Australian-based business recipients’ who will have to pay GST under the Division 84 ‘reverse charge’ provisions (which operate only when the Commonwealth would otherwise lose revenue). DATE OF EFFECT: applies to taxable supplies in determining net amounts for tax periods that commence from the second quarterly tax period starting after Sch 2 receives Royal Assent. THIS BILL is giving effect to the measure originally announced by the former Government, in the 2010-11 Budget, following recommendations that were made by the Board of Taxation. The present Government then announced, on 14 December 2013, it would proceed with the measure. [EM, p5 & 6]


[APH website] [EM for Bill] [TT Article on Digital Supplies] [TT Article on cross-border supplies] [LTN 26, 10/2/16]