{"id":"C2005A00001","name":"A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005","slug":"a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"1 of 2005","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7829,"registerId":"commonwealth-C2005A00001-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nA New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005\n\n \n\nNo. 1, 2005\n\n \n\n \n\n \n\n \n\n \n\nAn Act to implement A New Tax System by imposing the tax payable under the GST law, so far as that tax is imposed on recipients of taxable supplies and is a duty of customs\n\n \n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Imposition\n\n4 Rate\n\n5 Act does not impose a tax on property of a State\n\n \n\n![](image.001.png)\n\n \n\n \n\nA New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005\n\nNo. 1, 2005\n\n \n\n \n\n \n\nAn Act to implement A New Tax System by imposing the tax payable under the GST law, so far as that tax is imposed on recipients of taxable supplies and is a duty of customs\n\n[Assented to 18 February 2005]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005.\n\n2  Commencement\n\n  This Act commences on 1 July 2005.\n\n3  Imposition\n\n (1) The tax that is payable under the GST law is imposed by this section under the name of goods and services tax (GST).\n\n (2) This section imposes GST only so far as that tax:\n\n (a) would be imposed on the recipient of a taxable supply; and\n\n (b) is a duty of customs within the meaning of section 55 of the Constitution.\n\n (3) In this section, GST law, recipient and taxable supply have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n4  Rate\n\n  The rate of goods and services tax payable under the GST law (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999) is 10%.\n\n5  Act does not impose a tax on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n\n (2) Property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 8 December 2004\n\nSenate on 9 December 2004]\n\n(253/04)\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly scoped to its original constitutional purpose. It was always intended as a narrow, technical companion Act to ensure GST on recipients could validly be imposed as a customs duty under section 55 of the Constitution. The scope has not expanded beyond this specific constitutional mechanism."},"complexity_factors":["Extremely short: only 5 sections spanning approximately 1 page","No defined terms in the Act itself—all definitions imported by reference to the A New Tax System (Goods and Services Tax) Act 1999","Simple conditional structure: single operative section (section 3) with two straightforward conditions in subsection (2)","No nested exceptions or complex cross-referencing beyond the single reference to the 1999 GST Act","Single rate provision with no tiers, thresholds, or calculations","Constitutional safeguard (section 5) is a standard, simple exclusion"],"plain_english_summary":"**What this law does:**\n\nThis is a short, technical law that formally creates a specific type of GST (Goods and Services Tax) charge. It applies when:\n- Someone **receives** goods or services (rather than the seller charging them directly), **and**\n- That charge counts as a **duty of customs** under the Constitution (meaning it relates to imports/exports and customs control).\n\n**Who it affects:**\n\nPrimarily businesses and individuals who import goods or receive certain taxable supplies where the GST is treated as a customs duty. Most everyday consumers won't deal with this directly—it's mainly for customs and tax administration purposes.\n\n**Why it matters:**\n\nAustralia's Constitution has special rules about how taxes can be imposed. Section 55 says customs duties must be in separate laws from other taxes. This Act exists purely to satisfy that constitutional requirement. It \"piggybacks\" on the main GST law from 1999 but creates a separate legal basis for the customs-related portion of GST charged to recipients.\n\n**Key points:**\n- Sets the GST rate at **10%**\n- Only applies where GST is a **duty of customs** (constitutional term for import-related taxes)\n- Protects **state property** from being taxed under this Act\n- Started on **1 July 2005**"},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Act is narrowly drafted to achieve a single technical purpose: to treat GST that would be payable by recipients as a duty of customs so it can be collected at the border, and to fix the GST rate at 10% while preserving the constitutional exemption for State property. It does not broaden the GST system beyond that original, implementation‑focused purpose; substantive GST rules and definitions remain in the main GST Act and are imported by reference (s3(3))."},"complexity_factors":["Very short: 5 sections only","Simple conditional logic in s3(2) (two conjunctive conditions: recipient-based and duty of customs)","Three external cross‑references: A New Tax System (Goods and Services Tax) Act 1999 (definitions), Constitution s55 (duty of customs), Constitution s114 (definition of State property)","No bespoke definitions inside the Act (imports definitions from GST Act)","No nested exceptions or multiple tiers of conditionality","Administrative effect depends on external instruments and agency procedures (customs/Australian Taxation Office), adding practical but not legislative complexity"],"plain_english_summary":"**What this law does, in plain terms**\n\n- This Act makes the goods and services tax (GST) a tax that can be collected as a duty at the border (a \"duty of customs\").  In practice it treats GST that would be payable by the recipient of a taxable supply as a customs duty so it can be collected through customs processes (see section 3(2)).\n- It sets the GST rate at 10% (section 4).\n- It does not authorise taxing property that belongs to an Australian State (section 5).  The phrase \"property of any kind belonging to a State\" uses the constitutional meaning in section 114 of the Constitution (section 5(2)).\n- The Act uses the same definitions of \"GST law\", \"recipient\" and \"taxable supply\" as in the A New Tax System (Goods and Services Tax) Act 1999 (section 3(3)).\n\n**Who this affects**\n\n- Importers, overseas suppliers and Australian recipients of imported taxable supplies where GST would otherwise be payable by the recipient under the GST law. Those recipients are the people for whom the tax is treated as a customs duty and who can be required to pay it at the border (s3(2)).\n- Businesses registered for GST are affected indirectly because they remain subject to the GST law's input tax credit rules (definitions are imported by s3(3)).\n- State governments are explicitly excluded from having their property taxed under this Act (s5).\n\n**How it works mechanically (step‑by‑step)**\n\n1. The GST that is payable under the general GST law is treated, for the purposes covered by this Act, as imposed under the name \"GST\" (s3(1)).\n2. That treatment applies only to GST that (a) would be imposed on the recipient of a taxable supply, and (b) is a duty of customs as contemplated by section 55 of the Constitution (s3(2)).\n3. The rate for that GST is fixed at 10% (s4).\n4. Any GST obligations, entitlements to input tax credits, and other substantive rules remain those in the main GST Act because the definitions are imported by reference (s3(3)).\n\n**Stated purpose and a practical test of its effects**\n\n- The Act's stated purpose is to implement the GST regime by making certain GST liabilities collectible as customs duties. The practical effect is to permit collection of recipient‑based GST at importation through customs processes rather than (or in addition to) other collection mechanisms.\n\nCosts, incentives, trade‑offs and implementation issues to note\n\n- Who pays: The legal incidence is on the recipient of the taxable supply (s3(2)(a)). Practically, importers or their agents typically pay GST at the border and may recover it later under GST law (subject to input tax credit rules).\n- Cash‑flow and compliance: Collecting recipient‑based GST at the border shifts timing — recipients/importers may need to pay GST up front when goods enter Australia, creating short‑term cash‑flow costs. Businesses with input tax credit entitlements recover GST under the GST Act, but only after complying with GST registration and reporting rules (s3(3)).\n- Administrative burden: This makes customs authorities the collection point for certain GST liabilities. That concentrates enforcement and collection in border processes; it may reduce evasion on imports but increases customs administrative responsibilities.\n- Interaction with private contracts and markets: The Act does not change the substantive GST rules about who ultimately bears the economic cost (those are in the GST Act). It changes the collection mechanism, which can affect pricing and working capital for importers and buyers of imported goods.\n- Discretion and bureaucracy: The Act itself contains no novel discretionary powers; it relies on existing customs collection mechanisms and the GST Act for substantive rules. Implementation complexity depends on the administrative systems of customs and the ATO.\n- Constitutional and legal limits: The Act deliberately limits the scope to GST that qualifies as a \"duty of customs\" under section 55 of the Constitution (s3(2)(b)) and preserves the constitutional exemption for State property (s5). That narrows the tax's reach to areas where it can validly operate as a customs duty.\n\n**Key sections to glance at**\n- Section 3: imposes GST as a customs duty in the specified circumstances (recipient‑based, constitutional duty of customs).\n- Section 4: fixes the GST rate at 10%.\n- Section 5: exempts State property from taxation under the Act.\n\n**Bottom line**: The Act does not rewrite the GST system. It is a narrow, technical measure that classifies recipient‑based GST as a customs duty for importation and collection purposes, fixes the rate at 10%, and preserves the constitutional exemption for State property (ss3–5)."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005","history":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005/history","analysis":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005/analysis","conflicts":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005/conflicts","importantCases":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005/important-cases","documents":"/api/acts/a-new-tax-system-goods-and-services-tax-imposition-recipients-customs-act-2005/documents"}}