A New Tax System (Goods and Services Tax) Regulations 2019

This is the A New Tax System (Goods and Services Tax) Regulations 2019, a detailed set of rules that flesh out how Australia's GST (Goods and Services Tax) actually works in practice. Think of it as the 'instruction manual' that sits underneath the main GST Act.

What it does:

• Sets dollar thresholds — Businesses must register for GST if their turnover is $75,000 or more ($150,000 for non-profit bodies). You don't need a tax invoice for supplies under $75.

• Deferred GST on imports — Approved businesses can defer paying GST on imported goods until the 21st day of the following month, rather than paying upfront at the border. This requires registration, monthly tax periods, and sometimes a bank guarantee.

• Defines GST-free supplies — Lists specific things that escape GST, including certain medical aids (wound dressings, hearing loops, stoma products), food additives with nutritional value, and residential aged care services.

• Financial supplies rules — Banking and financial services are generally 'input taxed' (no GST charged, but no credits claimed). This regulation spells out exactly what counts as a financial supply (accounts, loans, securities, derivatives, digital currency) and what doesn't (professional advice, insurance broking, debt collection).

• Reduced input tax credits — Banks and insurers can claim back 75% of the GST they pay on certain business costs (like IT systems, transaction processing, legal services), even though they can't claim credits on their main financial supplies.