30 March 2024

Overpaid GST
28 March 2014

Today the Tax Laws Amendment (2014 Measures No.1) Bill 2014 was introduced into the House of Representatives. The Bill proposes to repeal the current regime dealing with refunds of GST found in s 105-65 of Schedule 1 to the TAA and replace it with a totally new regime in Division 142 in the GST Act.

Division 142 effectively creates a deeming regime, whereby overpaid GST that has been passed on to another entity is taken to have always been payable until that other entity is reimbursed for the passed on GST. Taxpayers can self assess their entitlement to GST refunds, where the GST has not been passed on or the GST has been reimbursed. The Commissioner retains a discretion to pay refunds, but it is expected to have a narrow operation.

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