In relation to the GST Consultation Paper, Property Council members support streamlining the operation of the GST and improving the effectiveness of the provisions and make the following comments:
1) we support the 4 yr time limit provisions providing:
a. Treasury consider replacing the concept of “immediate consequence” with a more appropriate concept, such as "relates directly";
b. if the concept of “immediate consequence” is to be retained, it should be clarified with wording and examples in the EM and legislation to avoid confusion and disputes;
c. the exception in proposed section 93-5(2)(a) to the four year rule for input tax credit claims should arise regardless of whether the four year period has already expired, so long as the immediate consequence test (or alternative test) is satisfied (this is to avoid windfall revenue that punishes taxpayers);
d. a supplier is entitled to a decreasing adjustment in certain circumstances outlined in the submission to ensure suppliers are not
e. burdened with tax in a revenue neutral transaction; and
f. the provisions clarify that a taxpayer can attribute input tax credits in later periods.
2) we support the agency provisions providing:
a. they will apply in the context of “billing and paying agents” as intended under the EM to ensure there is no confusion and dispute;
b. they are extended to apply to subdivision 153-A circumstances to alleviate compliance issues involving property managers, billing agents or paying agents.
The Property Council also note that it is supportive of the current interaction of associate provisions, however, given the timeframe for consultation, there has not been adequate time to fully assess these provisions in detail.