{"id":"F2025L00929","name":"A New Tax System (Goods and Services Tax) (Choosing to Account on a Cash Basis – Representatives of Incapacitated Entities) Determination 2025","slug":"a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442921,"registerId":"F2025L00929-fast-fetch-1775957837173","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"A New Tax System (Goods and Services Tax) (Choosing to Account on a Cash Basis – Representatives of Incapacitated Entities) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)   \n\n \n\nA New Tax System (Goods and Services Tax) (Choosing to Account on a Cash Basis – Representatives of Incapacitated Entities) Determination 2025\n\nI, Larissa Evans, Acting Deputy Commissioner of Taxation, make the following instrument.\n\nDated 4 August 2025\n\nLarissa Evans\n\nActing Deputy Commissioner of Taxation\n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Schedules\n\n6  Kind of enterprise for which an entity may choose to account on a cash basis\n\nSchedule 1—Repeals\n\nGoods and Services Tax: Choosing to Account on a Cash Basis Determination (No 39) 2015 - representatives of incapacitated entities\n\n \n\n \n\n1  Name\n\n  This instrument is the A New Tax System (Goods and Services Tax) (Choosing to Account on a Cash Basis – Representatives of Incapacitated Entities) Determination 2025.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under paragraph 29-40(1)(c) of the Act.\n\n4  Definitions\n\nNote: A number of expressions used in this instrument are defined in section 195-1 of the Act, including the following:\n\n(a) account on a cash basis;\n\n(b) incapacitated entity;\n\n(c) representative.\n\n  In this instrument:\n\nAct means the A New Tax System (Goods and Services Tax) Act 1999.\n\n5  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n6  Kind of enterprise for which an entity may choose to account on a cash basis\n\n  An enterprise that was carried on by an incapacitated entity, before it became incapacitated, is an enterprise in respect of which a representative of the incapacitated entity may choose to account on a cash basis.\n\n\n\n\nSchedule 1—Repeals\n\nGoods and Services Tax: Choosing to Account on a Cash Basis Determination (No 39) 2015 - representatives of incapacitated entities\n\n1  The whole of the instrument\n\nRepeal the instrument\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument maintains the same narrow scope as its predecessor. It simply re-enacts the existing permission for representatives of incapacitated entities to use cash basis accounting, without expanding the categories of eligible entities or altering the underlying policy."},"complexity_factors":["Very short instrument — only 6 substantive sections plus a repeal schedule","Only 1 defined term ('Act') in the instrument itself; other terms are imported by reference from the parent GST Act","Single operative provision (section 6) with straightforward conditional logic","No nested exceptions or complex cross-referencing beyond the standard reference to the enabling Act","Essentially a re-enactment/update of existing policy (repealing and replacing Determination No. 39 of 2015)"],"plain_english_summary":"This is a tax rule that lets certain people manage GST (Goods and Services Tax) in a simpler way when taking over a business from someone who can no longer run it themselves.\n\n**What it does:**\nNormally, businesses must report GST when they issue invoices, even if they haven't been paid yet. This is called \"accrual basis\" accounting. However, some businesses can choose \"cash basis\" accounting instead — meaning they only report GST when money actually changes hands.\n\nThis determination says that if someone becomes legally unable to run their business (an \"incapacitated entity\" — for example, due to bankruptcy, mental incapacity, or death), the person appointed to take over (the \"representative\") can use cash basis accounting for that business.\n\n**Who it affects:**\n- **Representatives** — people appointed to manage businesses when the owner becomes incapacitated (such as bankruptcy trustees, administrators, or executors of deceased estates)\n- **The businesses themselves** — enterprises that were being run by someone who has become incapacitated\n\n**Why it matters:**\nTaking over a business in distress is complicated. Cash basis accounting reduces administrative burden because the representative only needs to track actual money received or paid, not unpaid invoices. This makes it easier to wind up or manage the business affairs of someone who can no longer do so themselves.\n\n**What else it does:**\nThis new 2025 determination replaces an older 2015 rule (Determination No. 39) that covered the same ground."}},"importantCases":[],"_links":{"self":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap","history":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap/history","analysis":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap/analysis","conflicts":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap/conflicts","importantCases":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap/important-cases","documents":"/api/acts/a-new-tax-system-goods-and-services-tax-choosing-to-account-on-a-cash-basis-representatives-of-incap/documents"}}