A New Tax System (Goods and Services Tax) (Extension of Time to Issue an Adjustment Note – Electricity Distributors and Public Utility Providers) Determination 2025

This instrument sets specific time limits for two classes of suppliers to issue a GST adjustment note after they become aware of an adjustment, and repeals three prior determinations that previously regulated similar time extensions. Mechanically, it:

• Prescribes that an electricity distributor must give an adjustment note for a taxable supply of electricity distribution services to an electricity retailer within 98 days of becoming aware of the adjustment (s 6).
• Prescribes that a public utility provider must give an adjustment note for a taxable supply of utility services to a recipient by the earlier of 98 days from becoming aware of the adjustment and the day on which the next invoice would normally be issued to that recipient (s 7(1)-(2)).
• Confirms that if a recipient (including an electricity retailer) requests an adjustment note, the supplier must give it in accordance with paragraph 29-75(2)(a) of the Act, by way of a Note accompanying both ss 6 and 7.
• Repeals three previous determinations listed in Schedule 1: the Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 35) 2015, (No. 36) 2015 and (No. 37) 2015 (Schedule 1).
• Commences the whole instrument the day after registration (s 2(1)).
• Is made under subsection 29-75(3) of the A New Tax System (Goods and Services Tax) Act 1999 (s 3).

The instrument therefore substitutes a uniform 98-day extension for the two named supplier categories, and for public utility providers allows an alternative, earlier deadline tied to the recipient’s ordinary billing cycle. It also removes the three older determinations identified in Schedule 1, so the new deadlines apply instead of those instruments.

The instrument supplies short definitional language for the immediate terms it uses: it defines electricity distributor, electricity distribution services, public utility provider and utility service for the purposes of this instrument (s 4). It also notes that a number of expressions used in the instrument are defined in section 195-1 of the Act, specifically listing adjustment, adjustment note, entity, recipient, taxable supply and tax invoice (s 4 Note). The authority to make these time extensions is expressly linked to the Commissioner’s power in subsection 29-75(3) of the Act (s 3).

Mechanically, therefore, the instrument shifts the timing rule for issuing adjustment notes in two supplier categories to a 98-day default, introduces an invoice-cycle offset for public utility providers, and repeals earlier instrument-based extensions. The instrument does not itself state penalties, nor does it specify how “becomes aware” or “normally” are to be operationally interpreted; those phrases are the triggers for the statutory timing rules (ss 6-7). The instrument also retains the existing obligation to issue an adjustment note on request under the Act (note to ss 6 and 7).

The instrument is brief and revolves around a small set of interlocking concepts drawn from the GST framework in the Act and tailored for electricity and similar utility markets. The principal concepts in the instrument are:

• Adjustment note: The instrument repeatedly directs suppliers to issue an “adjustment note” when an adjustment arises. The instrument does not redefine “adjustment note”; it relies on the Act’s definition listed among the expressions referenced in the s 4 Note. The instrument therefore modifies only the time within which that statutorily defined document must be issued for specified supplies (s 4 Note; ss 6-7).

• Trigger: “Becomes aware of an adjustment” is the event that starts the prescribed timing periods in both ss 6 and 7. The instrument uses that phrase as the temporal trigger for the supplier’s duty to issue the adjustment note (ss 6; 7(2)(a)). The instrument does not explicitly define when an entity “becomes aware”; it embeds the phrase without a local gloss.

• Time-limited extension: The instrument provides a specific number of days, 98 days, as the maximum extension allowed from the trigger event for issuing the adjustment note for both electricity distributors (s 6) and public utility providers (s 7(2)(a)). For public utility providers an alternative earlier deadline tied to the normal invoicing cycle applies (s 7(2)(b)).

• Supplier classes: The instrument distinguishes two supplier classes:

  • Electricity distributor, defined here as an entity that owns and operates an electricity distribution network through which it transports electricity to end-use customers (s 4).
  • Public utility provider, defined here as a retailer that sells electricity or gas to end-users for domestic or business purposes (s 4). The instrument further defines “utility service” as the provision of gas, electricity and associated ancillary supplies by a public utility provider (s 4).

• Interaction with Act obligations on request: The instrument expressly reiterates that if a recipient requests an adjustment note, the supplier must give it in accordance with paragraph 29-75(2)(a) of the Act. That note appears immediately after the rules in both ss 6 and 7, signalling that the Act’s request-based obligation remains active alongside the time extension (notes to ss 6 and 7).

• Repeal and consolidation: Schedule 1 repeals three earlier instruments that previously governed extensions of time for issuing adjustment notes (Schedule 1). The practical concept is that the new instrument supplants those determinations.

The instrument directly imposes obligations on two defined supplier groups and, indirectly, affects their usual recipients and related processes. The source text identifies affected parties as follows:

• Electricity distributors (directly): The instrument defines “electricity distributor” as an entity that owns and operates an electricity distribution network through which it transports electricity to end-use customers (s 4). Section 6 requires an electricity distributor to issue an adjustment note relating to a taxable supply of electricity distribution services to an electricity retailer within 98 days of becoming aware of an adjustment. The instrument therefore directly affects entities that meet the definition in s 4 and that make taxable supplies of electricity distribution services to electricity retailers (s 6).

• Public utility providers (directly): The instrument defines “public utility provider” as a retailer that sells electricity or gas to end-users for domestic or business purposes, and “utility service” as the provision of gas, electricity and associated ancillary supplies by a public utility provider (s 4). Section 7 places a timing obligation on public utility providers to issue adjustment notes to recipients by the earlier of 98 days from awareness and the day the next invoice would normally be issued.

• Recipients, including electricity retailers and end-users (indirectly): The recipients of the adjustment notes are the parties entitled to receive the adjustment note: electricity retailers are specifically named as the recipient of adjustment notes for electricity distributors (s 6), and “recipient” as a concept is used more broadly for public utility providers (s 7(1)). The instrument also reminds readers that if a recipient requests an adjustment note, the supplier must give it under paragraph 29-75(2)(a) of the Act (notes to ss 6 and 7). Recipients therefore gain certainty about the maximum lag between supplier awareness and being issued an adjustment note, but they may also be affected by the alignment to invoice cycles where relevant (s 7(2)(b)).

• Administrators and advisers (indirectly): The Commissioner of Taxation is the named maker (signature) and the instrument is made under subsection 29-75(3) of the Act (s 3). The instrument therefore sits in the administrative layer of the GST regime and will be applied by the Commissioner’s administration. Tax practitioners, accountants, compliance officers and billing system operators for affected suppliers must adapt operational processes to meet the prescribed timing (ss 6-7).

This instrument creates time-limited duties for two classes of suppliers and preserves existing rights under the Act to request adjustment notes. The key duties and rights are set out in the operative provisions and accompanying notes.

Duties:

• Electricity distributors must issue an adjustment note for a taxable supply of electricity distribution services to an electricity retailer within 98 days of becoming aware of an adjustment (s 6). That is a mandatory duty framed in the present tense (“must issue”), indicating a requirement rather than a permitted timeframe.

• Public utility providers must issue an adjustment note for a taxable supply of utility services to a recipient by the earlier of two days: 98 days from when the public utility provider becomes aware of the adjustment; or the day on which the next invoice would normally be issued by the public utility provider to the recipient (s 7(1)-(2)). This creates a conditional duty where the normal invoicing cycle can shorten the time available.

• The instrument explicitly reiterates the request-triggered obligation from the Act: if a recipient (including an electricity retailer) requests an adjustment note, the supplier must give it in accordance with paragraph 29-75(2)(a) of the Act (notes to ss 6 and 7). The instrument therefore does not extinguish or delay the supplier’s obligation to supply an adjustment note on request; it coexists with the prescriptive timing framework.

Rights and operational points for recipients:

• Recipients retain the right to request an adjustment note under paragraph 29-75(2)(a) of the Act; the instrument notes this right but does not alter its content (notes to ss 6 and 7).

• Recipients will receive adjustment notes no later than the times prescribed by ss 6 and 7. For public utility providers, a recipient who expects an invoice before 98 days will receive the adjustment note by that earlier date if that is the supplier’s normal invoicing practice (s 7(2)(b)).

Administrative duties and limits:

• The instrument places the duty to track when the supplier “becomes aware” of adjustments on the supplier. The instrument uses “becomes aware” as the trigger and does not supply a definition of that phrase; the supplier is therefore responsible for determining and documenting when awareness occurs for each adjustment event (ss 6-7).

The instrument is silent about specific penalties, infringement notices, or civil consequences for failure to issue adjustment notes within the prescribed timeframes. Its text instead operates within the Commissioner’s power under the Act and cross-references the Act for related obligations. The relevant source-grounded points are:

• No penalty provisions in the instrument: The instrument prescribes timing obligations (ss 6-7) but contains no provisions imposing pecuniary penalties, administrative fines or other sanctions for failing to comply. Where enforcement consequences arise would therefore be matter of the Act or of the Commissioner’s administrative and compliance practices rather than this instrument.

• Authority rooted in the Act: The instrument is made under subsection 29-75(3) of the Act (s 3). Any enforcement or remedial consequences for failing to comply with adjustment note obligations are therefore matters for the Act and the Commissioner’s exercise of powers under the Act, not the instrument’s text. The instrument’s notes refer to paragraph 29-75(2)(a) for the request-based obligation; any enforcement remedies in respect of breaches of that paragraph likewise reside in the Act and its enforcement architecture.

• Administrative reliance on recorded dates: Because the timing obligations are measured from when the supplier “becomes aware of the adjustment,” the evidential and compliance assessment in any enforcement action will centre on the supplier’s record of when awareness occurred. The instrument itself does not set out evidentiary standards for establishing that date, nor does it provide guidance on disputes about competing claims of awareness. Consequently, enforcement action would require assessing supplier records and practices against the statutory phrase “becomes aware” and any relevant Act provisions or administrative guidance.

• Interaction with request-based duty: The instrument explicitly recognises that if a recipient requests an adjustment note the supplier must give it in accordance with paragraph 29-75(2)(a) of the Act (notes to ss 6 and 7). Any failure to provide an adjustment note on request engages the Act’s obligations and any applicable enforcement regime under the Act rather than any new sanction in this instrument.

• Repeal of prior determinations: Schedule 1 repeals three previous determinations (Schedule 1). If compliance activity was previously framed against those instruments, enforcement under those instruments ceases to be appropriate; the new instrument’s timing rules now define the applicable standard. The instrument does not provide transitional enforcement provisions; it simply repeals the earlier instruments.

The instrument is an administrative instrument made under the GST Act and is expressly framed to work within the Act’s definitions and existing duties. The source text sets out specific cross-references and implicit interactions:

• Made under subsection 29-75(3) of the Act: The instrument’s authority is drawn from subsection 29-75(3) (s 3). That subsection is the statutory source the Commissioner uses to set time limits for issuing adjustment notes. The instrument therefore operates as an exercise of delegated power under the Act and must be read and applied in that statutory context.

• Cross-reference to paragraph 29-75(2)(a): The instrument’s notes to ss 6 and 7 remind readers that if a recipient requests an adjustment note the supplier must give it in accordance with paragraph 29-75(2)(a) of the Act. The instrument does not alter that Act-based entitlement or supplier obligation. The instrument therefore supplements, rather than replaces, the Act’s request-based adjustment-note mechanism.

• Reliance on Act definitions and omission of some definitions: Section 4 explicitly notes that a number of expressions used in the instrument are defined in section 195-1 of the Act, and lists adjustment, adjustment note, entity, recipient, taxable supply and tax invoice (s 4 Note). The instrument supplies local definitions for electricity distributor, electricity distribution services, public utility provider and utility service (s 4). Other definitions and the legal consequences of adjustment notes, adjustments and taxable supplies remain governed by the Act and must be interpreted in context with the instrument.

• Supersedes previous instruments: Schedule 1 repeals three earlier determinations that governed extensions of time to issue adjustment notes. Those repeals mean the legal environment for issuing adjustment notes is now governed by the Act plus this instrument rather than those prior instruments. The instrument does not purport to amend the Act itself; it replaces prior delegated instruments under the same statutory head of power.

• No express interaction with taxation penalty or administrative regimes: The instrument contains no express links to tax penalty provisions, interest rules or administrative penalties that might apply under other provisions of the Act. Those interactions will need to be determined by reference to the Act in circumstances where an adjustment note is not issued within the prescribed period.

The instrument contains its own limited amendment record in Schedule 1 and in the commencement provision. The source-grounded items are:

• Repeals specified instruments in Schedule 1: The instrument repeals in full three named prior determinations:

  • Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 35) 2015 (item 1 in Schedule 1).
  • Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 36) 2015 (item 2).
  • Goods and Services Tax: Extension of Time to Issue An Adjustment Note Determination (No. 37) 2015 - Supplies made by electricity distributors to electricity retailers (item 3). Each repeal is expressed as “Repeal the instrument” for the whole of that instrument (Schedule 1).

• Commencement timing: The whole instrument commences the day after it is registered (s 2(1)). The instrument also includes the standard note that the commencement table relates only to the provisions as originally made and will not be amended in the instrument text to reflect later amendments (s 2 Note).

• Single instrument replaces multiple earlier determinations: The three prior determinations are explicitly repealed; the effect is consolidation or re-specification of extension rules into this current instrument. The instrument does not include an itemised amendment to any Act; it amends the administrative landscape by repeal and replacement.

• No further amendments recorded in the instrument: There are no other amendment entries or marginal notes indicating prior amendments to this instrument within the text provided. The instrument itself is the operative version.

• No transitional provisions recorded: The instrument does not include express transitional provisions that save or phase in the new rules for existing adjustments or ongoing billing cycles. The instrument commences the day after registration and repeals prior determinations immediately by Schedule 1; absent other text, the repeals and new rules will apply from that commencement date (s 2(1); Schedule 1).

• No delegation changes or sub-amendments: The instrument does not change the underlying Act or the Commissioner’s power to make subsequent determinations. It is an exercise of the stated statutory power and not a statutory amendment instrument in the sense of changing primary legislation (s 3).

Practitioners should note that the source text shows a tidy, single-step amendment history: the three older determinations are repealed by Schedule 1 and replaced in effect by this instrument’s timing rules. The instrument itself contains the full record of its own commencement and the repeals it effects.

The instrument’s text contains no cases, court decisions, or litigation annotations. The source provides no litigation history, precedents, or references to disputes. The explicit items in the source that bear on litigation-related matters are limited to:

• No cases or tribunal decisions are cited: The instrument contains no citation to judicial authority or to any litigation involving the instrument or the earlier determinations it repeals.

• Repeal of prior determinations: Schedule 1 repeals three prior determinations that previously governed time extensions for adjustment notes. The instrument does not state whether those prior determinations had been litigated or whether litigation informed the new instrument. The repeal is expressed as a legislative administrative action rather than a judicial response.

• Potential dispute points identifiable from the instrument: While the instrument contains no litigation history, the text does create, by its own terms, a small number of interpretive issues that could give rise to disputes if contested in audit or litigation. Those issues include:

  • The operative trigger “becomes aware of the adjustment” is not defined in the instrument. Any dispute over the date of awareness would likely require reference to the Act, administrative guidance, contemporaneous records, and possibly fact-specific adjudication.
  • For public utility providers the alternative deadline uses the phrase “the day on which the next invoice would normally be issued by the public utility provider to the recipient” (s 7(2)(b)). The term “normally” introduces potential factual disagreement about normal invoicing cycles and what constitutes the next invoice for irregular billing arrangements.
  • The instrument repeals prior determinations without transitional clauses. Parties could potentially dispute whether a particular adjustment that arose before commencement is governed by the prior determinations or the new instrument, depending on administrative practice and the Act’s general transitional rules.

• Procedural and administrative recourse: The instrument itself does not state what administrative review rights or appeal mechanisms apply to disputes arising out of failure to issue an adjustment note. Those rights are matters for the Act and for general taxation dispute mechanisms, not for the instrument’s text.

In short, the source contains no litigation history. It does, however, contain phrases and structural features that give rise to predictable factual disputes , notably around the timing trigger “becomes aware” and the invoicing-cycle qualifier “normally” , such disputes would be resolved by reference to the Act, evidence, and any administrative guidance or practice that the Commissioner issues.

The instrument appears straightforward, but its text embeds several practical traps and interpretive points that parties should note. These “gotchas” are grounded in the instrument’s language.

1. “Becomes aware” is the trigger but is not defined in the instrument:

   • Both ss 6 and 7 measure the 98-day timing from when the supplier “becomes aware of the adjustment”. The instrument’s s 4 Note lists a number of Act definitions it relies on, but “becomes aware” is not among them (s 4 Note; ss 6-7). The absence of a local definition means suppliers must rely on the Act, their records, and administrative guidance to determine when awareness occurs. That timing will be pivotal in any compliance assessment (ss 6-7).

2. Different timing rules for electricity distributors and public utility providers:

   • Electricity distributors face a fixed 98-day deadline (s 6).
   • Public utility providers have a shorter ceiling if their next normal invoice falls sooner (s 7(2)(b)). If a public utility provider issues frequent invoices, the practical time a supplier has to issue an adjustment note may be much less than 98 days. Practitioners must therefore map invoicing cycles precisely for each recipient to calculate obligations (s 7).

3. “Normally” in the invoicing-cycle clause is imprecise:

   • Section 7(2)(b) uses the phrase “the day on which the next invoice would normally be issued by the public utility provider to the recipient”. The word “normally” can generate fact-sensitive disputes about what counts as normal invoicing practice and whether a particular scheduling anomaly changes the relevant date. Suppliers should document their invoicing policies and any exceptions (s 7(2)(b)).

4. Repeal of prior instruments removes their content without local transitional text:

   • Schedule 1 repeals three prior determinations (Schedule 1). The instrument contains no transitional saving clause explaining how adjustments that arose before commencement are to be treated. Entities that previously relied on the now-repealed instruments will need to reconcile whether specific adjustments fall under the old regime or the new one, in light of the instrument’s commencement the day after registration (s 2(1); Schedule 1).

5. The instrument does not specify enforcement consequences:

   • The instrument prescribes duties but contains no penalty regime of its own. Suppliers may therefore face enforcement outcomes under the Act for non-compliance, but the instrument provides no express guidance on administrative penalties, interest or remediation. Suppliers should therefore be cautious and keep contemporaneous records showing when they became aware of adjustments (s 3; notes).

Compliance requires mapping the instrument’s duties to operational processes, record-keeping, and internal controls. The following steps are practical, instrument-grounded actions for affected suppliers and their advisers, with references to the relevant provisions.

1. Confirm whether your entity falls within the instrument’s definitions:

   • Determine whether you qualify as an electricity distributor or a public utility provider as those terms are defined in s 4 of the instrument. The duties apply only to entities meeting these definitions.

2. Map the supply relationships covered:

   • Electricity distributors must issue adjustment notes relating to taxable supplies of electricity distribution services to electricity retailers (s 6). Public utility providers must issue adjustment notes relating to taxable supplies of utility services to recipients (s 7(1)). Identify which supplies and recipients in your contracts fall within these categories.

3. Establish a robust date-of-awareness capture process:

   • Because both ss 6 and 7 measure the timing from when the supplier “becomes aware of the adjustment”, implement a consistent procedure for recording the date on which each adjustment is discovered or recognised. Ensure the record includes the factual basis for awareness, a timestamp, and the responsible staff member.

4. Align invoicing and adjustment-note workflows:

   • For public utility providers, the deadline is the earlier of 98 days or the day the next invoice would normally be issued to the recipient (s 7(2)). Map normal invoicing cycles for each recipient and configure your billing systems to trigger issuance of adjustment notes either when the next invoice is generated or within the 98-day maximum, whichever is earlier.

5. Configure systems to produce adjustment notes within the prescribed windows:

   • Implement automation or procedures that generate and deliver adjustment notes to recipients within the required timeframes: within 98 days for electricity distributors (s 6), and by the earlier of 98 days or the next normal invoice date for public utility providers (s 7). Where feasible, prioritise the recipient-request pathway if a request occurs, to comply with paragraph 29-75(2)(a) as noted in the instrument.

6. Maintain a request-handling protocol: