{"id":"F2023L00353","name":"A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Novated Lease Arrangement) Determination 2023","slug":"a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441786,"registerId":"F2023L00353-fast-fetch-1775956997981","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): Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Novated Lease Arrangement) Determination 2023","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\nA New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Novated Lease Arrangement) Determination 2023\n\nI, Ben Kelly, Deputy Commissioner of Taxation, make the following determination.\n\nDated  7 March 2023\n\nBen Kelly\n\nDeputy Commissioner of Taxation\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Schedules\n\n6  Waiver of the requirement to hold a tax invoice\n\n7  Document information requirements\n\nSchedule 1—Repeals\n\nA New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Full or Split Full Novated Lease Arrangement) Legislative Instrument 2013\n\n \n\n1  Name\n\n  This instrument is the A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Novated Lease Arrangement) Determination 2023.\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 On the day the 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 subsection 29-10(3) of the Act.\n\n4  Definitions\n\nNote: A number of expressions used in this instrument are defined in the Act, including the following:\n\n(a)        ABN;\n\n(b)        creditable acquisition;\n\n(c)        input tax credit.\n\n  In this determination:\n\nAct means the A New Tax System (Goods and Services Tax) Act 1999.\n\nnovation means a tripartite arrangement (or deed of novation) where an employer, their employee, and a finance company agree to transfer to the employer all or some of the employee’s rights and obligations under an existing lease agreement between the employee and the finance company. It results in the recission of the original lease between the employee and the finance company, and the creation of a new lease between the employer and the finance company on the same terms.\n\nfull novation means a transfer of all the rights and obligations in a lease agreement. As a result, the employer takes over all the rights and obligations held by their employee under the original lease.\n\nsplit full novation means a variation on the full novation where an employee retains a residual payment obligation, and the remainder of their rights and obligations under the lease agreement are transferred to their employer.\n\n5  Schedules\n\n  Each instrument that is specified in a Schedule to this determination is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this determination has effect according to its terms.\n\n6  Waiver of the requirement to hold a tax invoice\n\n  For the purposes of attributing an input tax credit for a creditable acquisition to a tax period, an employer is not required to hold a tax invoice under subsection 29‑10(3) of the Act if:\n\n (a) the employer makes a creditable acquisition by way of a lease of a motor vehicle under a full novation or a split full novation arrangement;\n\n (b) the acquisition is not covered by Division 111 of the Act; and\n\n (c) at the time the employer gives a GST return to the Commissioner for the tax period to which the input tax credit (or any part of the input tax credit) on the acquisition would otherwise be attributable, the employer holds a document that is:\n\n (i) a tripartite agreement (or deed of novation) between the employer, their employee, and the finance company for the creditable acquisition by way of a lease of the motor vehicle that meets the requirements in subsection 7(1); and\n\n (ii) a tax invoice issued to their employee for the acquisition by way of a lease of the motor vehicle by the employee prior to the novation that meets the requirements in subsection 7(2).\n\n7  Document information requirements\n\n (1) The requirements referred to in subparagraph 6(c)(i) are that the document contains enough information to enable the following to be clearly ascertained:\n\n (a) the employer’s identity or ABN as the recipient of the supply of the motor vehicle under the lease;\n\n (b) a description of the motor vehicle being leased; and\n\n (c) that the employer has taken over all or part of their employee’s rights and obligations under the original lease of the motor vehicle.\n\n (2) The requirements referred to in subparagraph 6(c)(ii) are that the document meets the requirements in paragraphs 29-70(1)(a) and 29-70(1)(c) of the Act, other than subparagraph 29-70(1)(c)(ii).  \n\n\nSchedule 1—Repeals\n\nA New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Full or Split Full Novated Lease Arrangement) Legislative Instrument 2013\n\n1  The whole of the instrument\n\nRepeal the instrument.\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument repeals the 2013 waiver (Schedule 1) and sets out a waiver for employers acquiring motor vehicles under full or split full novation on substantially the same terms: waiver conditional on holding the novation deed and the original invoice, and excluding acquisitions covered by Division 111. The text does not show a material expansion or narrowing of scope compared with that objective."},"complexity_factors":["Cross-references to the GST Act (authority under subsection 29-10(3)) increase legal integration complexity (see s.3 and s.6).","Multiple conditions to satisfy the waiver: type of novation (full or split full), exclusion if Division 111 applies, and timing tied to the employer’s GST return (s.6(a)–(c)).","Document-content requirements for the novation deed (s.7(1)) and the original tax invoice (s.7(2)), including reliance on paragraphs 29-70(1)(a) and 29-70(1)(c) of the Act (with one subparagraph excluded).","Defined terms (novation, full novation, split full novation) determine scope and may require factual assessment of the parties’ arrangement (s.4).","Repeal of the 2013 instrument (Schedule 1) creates an administrative change that may require taxpayers and advisers to confirm continuity or differences in application.","Compliance burden on employers to retain and produce specified documents at the time of lodging the GST return (s.6(c) and s.7)."],"plain_english_summary":"This determination lets an employer claim an input tax credit for leasing a motor vehicle acquired under a full or split full novation without holding a separate tax invoice, provided the employer lodges the relevant GST return and holds (a) the tripartite novation deed showing the employer assumed all or part of the employee’s lease rights, and (b) the original tax invoice issued to the employee that meets specified Act requirements. It affects employers, employees and finance companies by changing which documents must be retained to support a GST claim."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument maintains the same scope as its 2013 predecessor. It continues to address the specific narrow issue of GST tax invoice requirements for novated motor vehicle leases. The 2023 version appears to be a straightforward re-enactment or consolidation of the 2013 instrument, with no expansion into new types of arrangements or additional waivers. The repeal and replacement suggests administrative updating rather than scope creep."},"complexity_factors":["Short instrument: only 7 substantive sections plus a repeal schedule","Minimal defined terms: only 3 definitions ('Act', 'novation', 'full novation', 'split full novation') plus references to existing Act definitions","Single operative provision (section 6) with straightforward conditional structure (three cumulative conditions: (a), (b), and (c))","Clear cross-references to the parent Act (A New Tax System (Goods and Services Tax) Act 1999) for technical concepts like 'input tax credit', 'creditable acquisition', and tax invoice requirements","Simple document requirements in section 7 with specific but unambiguous criteria (identity/ABN, vehicle description, confirmation of rights transfer)","No nested exceptions or complex conditional logic — the exclusion in 6(b) for Division 111 is a straightforward carve-out","Repeals only one previous instrument (the 2013 version), maintaining legislative continuity without complex transitional provisions"],"plain_english_summary":"This determination lets employers claim GST input tax credits for motor vehicles acquired under novated leases even when the tax invoice is in the employee’s name, removing the usual requirement that the invoice be made out to the employer and simplifying GST treatment of employer‑assumed lease payments.\n\nTo qualify, employers must hold the novation agreement and the original tax invoice issued before novation. It applies to full or split‑full novations and excludes arrangements covered by Division 111 (reimbursements)."}},"importantCases":[],"_links":{"self":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh","history":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh/history","analysis":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh/analysis","conflicts":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh/conflicts","importantCases":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh/important-cases","documents":"/api/acts/a-new-tax-system-goods-and-services-tax-waiver-of-tax-invoice-requirement-acquisition-of-a-motor-veh/documents"}}