A New Tax System (Goods and Services Tax Imposition—General) Act 1999

What This Law Does

This Act is one of the foundational pieces of legislation that legally establishes the Goods and Services Tax (GST) in Australia — the 10% tax added to the price of most goods and services you buy.

Who It Affects

Practically every Australian — consumers, businesses, and government entities — since GST applies to most commercial transactions in the country.

Key Points in Plain English

• It officially creates GST: Without this Act, the government wouldn't have the legal authority to collect the tax. Australia's Constitution requires taxes to be formally imposed by an Act of Parliament.
• The rate is locked in at 10%: This Act sets the GST rate at 10%, which is why changing the GST rate requires an Act of Parliament — it can't just be done by regulation or government decision alone.
• It has boundaries: The Act is carefully worded to avoid stepping on other constitutional (the foundational law of Australia) provisions about customs duties (taxes on imports) and excise duties (taxes on domestically produced goods like fuel and alcohol) — those are handled under separate laws.
• States are protected: The Act cannot impose GST on property owned by State governments. This reflects a constitutional rule (section 114) that prevents the Commonwealth from taxing State property.
• It started on 1 July 2000: This is when GST came into effect in Australia.