Commonwealth legislation

A New Tax System (Goods and Services Tax) Act 1999 Choosing to Account on a Cash Basis Determination (No. 1) 2000 - representatives of incapacitated entities

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

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This determination allows representatives of incapacitated entities (such as trustees for bankrupt individuals or liquidators for insolvent companies) to use cash basis accounting for GST when managing businesses previously run by those entities.

Under normal GST rules, businesses must account for tax when they issue invoices (accruals basis). However, some entities can choose to account only when money actually changes hands (cash basis)—which helps with cash flow.

What this does:

It specifically permits people managing the affairs of an "incapacitated entity" (someone who cannot manage their own financial affairs due to bankruptcy, liquidation, or administration) to elect cash basis accounting for the enterprise they are now running.
This ensures GST is only paid to the ATO when the representative actually receives payment from customers, rather than when invoices are issued—critical during insolvency when cash flow is uncertain.

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Current sections

Direct links to the current provisions in A New Tax System (Goods and Services Tax) Act 1999 Choosing to Account on a Cash Basis Determination (No. 1) 2000 - representatives of incapacitated entities.

A NEW TAX SYSTEM (GOODS AND SERVICES TAX

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999

DETERMINATION

Under paragraph 29-40(1)(c) of the A New Tax System (Goods and Services Tax) Act 1999,

I make the following determination:

Citation

1. This determination may be cited as the A New Tax System (Goods and Services Tax) Act 1999 Choosing to Account on a Cash Basis Determination (No. 1) 2000 – representatives of incapacitated entities.

Commencement

(a) This determination commences on the date on which it is issued.

(b) This determination does not revoke or vary any previous determination made by the Commissioner.

Enterprises of the kind which may choose to account for GST on a cash basis

3. An enterprise previously carried on by an incapacitated entity is an enterprise of a kind in respect of which a representative of that incapacitated entity may choose to account for GST on a cash basis.

Definition

4. Expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.

Dated this 20th day of December 2000

Signed by Tracey Mellick

Assistant Commissioner

Goods and Services Tax Program

Delegate of the Commissioner

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

A NEW TAX SYSTEM (GOODS AND SERVICES TAX A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999