A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023

The instrument relies on and defines a small set of concepts for the limited waiver it creates.

Property manager. The instrument defines property manager as an entity that has entered into an arrangement with another entity (the principal) under which the property manager manages real property on the principal’s behalf and, in performing that service, may do any or all of the following in respect of the real property: make or facilitate supplies to third parties (including by issuing invoices relating to, or receiving consideration for, such supplies); and make or facilitate acquisitions from third parties (including by providing consideration for such acquisitions) (s 4(1)). The definition expressly states that the arrangement need not be recorded in writing and that the entity can be a property manager whether or not it is the principal’s agent (s 4(1) To avoid doubt (a) and (b)).

Tax invoice requirement waiver. The central concept is a statutory waiver of the requirement to hold a tax invoice for attribution of an input tax credit. This waiver is narrow: it applies only where the acquisition is a creditable acquisition made by way of a supply that was made through the supplier’s property manager, and where the recipient holds a property manager‑issued document meeting the requirements of s 7 at the time the recipient gives the GST return for the relevant tax period (s 6).

Document standard. Section 7 ties the qualifying document to specific provisions of the principal statute. It requires that the document meet paragraphs 29‑70(1)(a) and 29‑70(1)(c) of the Act, other than subparagraph 29‑70(1)(c)(i), and additionally requires the document contain enough information to enable the identity and ABN of the supplier’s property manager to be clearly ascertained (s 7). The instrument itself does not reproduce paragraphs 29‑70(1)(a) or (c), nor does it state the content of the excluded subparagraph, instead incorporating those statutory elements by reference.

Defined expressions from the Act. The instrument records that a number of expressions it uses are defined in the Act, including ABN, creditable acquisition, input tax credit and recipient (s 4(1) Note). Thus the waiver is framed to operate alongside, and subject to, those statutory definitions and their substantive tests in the Act.

Authority and temporal operation. The instrument is made under subsection 29‑10(3) of the Act (s 3). The commencement table specifies that the whole of the instrument commences on the day after registration (s 2). Schedule 1 repeals the earlier 2013 instrument on the same topic.

These concepts combine to make a narrowly circumscribed substitution: when a supply is made through a supplier’s property manager, that property manager’s document can, if it meets the statutory-linked requirements and is held at the time the relevant GST return is given, stand in place of a supplier-issued tax invoice for the purpose of attributing input tax credits (s 6, s 7).

Primary parties affected

• Recipients who claim input tax credits. The waiver directly affects any recipient seeking to attribute an input tax credit to a tax period where the acquisition was made by way of a supply that was made through a supplier’s property manager. If the recipient satisfies the conditions in s 6, the statutory tax invoice requirement is not necessary for that attribution (s 6).

• Property managers. The instrument places the property manager in a practical evidentiary role. A property manager who issues a document that meets the requirements in s 7 can enable recipients to attribute input tax credits without holding a supplier‑issued tax invoice (s 6(b)(i), s 7). The property manager’s identity and ABN must be ascertainable on the document (s 7(b)).

• Suppliers. Suppliers whose supplies are made through property managers are indirectly affected because their input tax credit counterparties may rely on property manager documents rather than supplier-issued tax invoices for attribution. The instrument does not alter who is the legal supplier under the Act. The supplier’s choice to channel supplies through a property manager will determine whether the waiver is available.

Secondary parties and intermediaries

• Accountants and tax advisers. They must adjust advice and compliance procedures to reflect that a property manager‑issued document can substitute for a tax invoice in the specified circumstances. They will need to validate that documents meet the s 7 requirements at the time a GST return is lodged.

• Compliance officers and auditors. Internal controls must be adapted to check for the presence and content of property manager documents, the timing requirement for holding them when returns are given, and the underlying fact that the supply was made through the supplier’s property manager (s 6).

• The Commissioner. The Commissioner’s interactions with taxpayers will include verifying whether the statutory conditions were met and whether the document satisfies the required standards tied to paragraphs 29‑70(1)(a) and (c) of the Act (s 3, s 7).

Who pays, who records, who decides

• Who pays: The waiver does not shift monetary payment obligations between supplier, property manager and recipient. It changes documentary proof required for recipients’ attribution of input tax credits. The practical cost shifted is recordkeeping and verification work required to ensure that a property manager‑issued document meets s 7 at the time of lodgement.

• Who records: Recipients must hold the property manager document at the time the GST return is given and must retain it as part of their records supporting the input tax credit attribution. Property managers may need to maintain issuance and ABN identification records to enable recipients to rely on the waiver.

• Who decides: The Commissioner determines compliance with the Act. The instrument is made under subsection 29‑10(3) of the Act (s 3), and the Commissioner will, in administering the law, determine whether the facts satisfy the waiver conditions where disputes arise.

Distribution of benefits and burdens

• Concentrated benefits: Recipients that receive supplies through property managers and can obtain documents meeting the s 7 standard benefit directly by not needing supplier tax invoices to attribute input tax credits.

• Diffuse costs: Many small recipients, suppliers or property managers may face modest administrative costs in updating processes to ensure documents meet the new document standard and that identity and ABN of the property manager are clearly on the document. Where arrangements are informal because the definition permits no written agreement, costs may arise from establishing evidentiary records.

All of the above flows directly from the instrument’s operative provisions and definitions (s 4, s 6, s 7, s 3).

Duties on recipients

• Duty to hold a qualifying document when lodging the relevant GST return. The recipient must hold a document for the creditable acquisition that was issued by the supplier’s property manager at the time the recipient gives the GST return for the tax period to which the input tax credit would otherwise be attributable. This is an express timing condition in s 6(b)(i) and (ii).

• Duty to ensure the document meets the instrument’s information requirements. The recipient must ensure that the property manager document satisfies the requirements in s 7, namely the incorporated paragraphs from the Act and the requirement that the document enable the identity and ABN of the supplier’s property manager to be clearly ascertained (s 7).

• Duty to ensure the acquisition is a creditable acquisition. The instrument’s waiver operates only for a creditable acquisition. The instrument notes that expressions such as “creditable acquisition” and “input tax credit” are defined in the Act (s 4(1) Note). Recipients must therefore continue to meet all substantive statutory tests in the Act for entitlement to input tax credits.

Duties on property managers and suppliers

• Property managers who issue documents that recipients will rely on must ensure those documents contain the information required by s 7, including that the identity and ABN of the supplier’s property manager can be clearly ascertained. The instrument does not impose a statutory obligation to issue such documents, but issuance is the operational mechanism that enables recipients to rely on the waiver (s 6(b)(i), s 7).

• Suppliers retain their existing rights and obligations under the Act. The instrument does not reassign supplier liability or change the legal identity of the supplier. The instrument only waives a particular document holding requirement in circumstances where the supplier’s property manager has issued a qualifying document (s 6).

Rights and limits

• Recipient right to rely on waiver. If the statutory conditions are satisfied, the recipient is not required to hold a tax invoice for the purpose of attributing the input tax credit to the tax period, and may therefore attribute the input tax credit relying on the property manager document (s 6).

• Limitation in scope. The waiver applies solely to the statutory tax invoice requirement for attribution. It does not amend or replace other requirements in the Act. The instrument explicitly ties its operation to definitions and requirements in the Act (s 4(1) Note; s 7). The instrument is made under subsection 29‑10(3) of the Act (s 3), which is the enabling power.

Procedural and evidential interplay

• Timing. The recipient’s entitlement to use the waiver is tied to the moment the GST return is given. If the qualifying document is not held when the return is lodged, the waiver condition in s 6(b) is not met.

• Evidence of the arrangement. The instrument allows that the property manager arrangement need not be in writing and that the entity may be a property manager whether or not it is an agent (s 4(1) To avoid doubt (a) and (b)). This produces an evidential consequence: absence of a written agency or management agreement does not prevent the entity from being a property manager for the instrument’s purposes, but it may make proof of the arrangement factual and contested.

All duties and rights flow from the text of the instrument and its incorporation of relevant Act provisions (s 4, s 6, s 7, s 3).

Absence of new penalties in the instrument

• The instrument itself does not prescribe any new criminal or civil penalties. It operates as a waiver mechanism under the Act. There are no penalty provisions contained in the text of the instrument. Schedule 1 repeals the earlier 2013 instrument; it does not introduce sanction provisions (Schedule 1).

Enforcement under the Act

• Administrative enforcement and denial of entitlement. The Commissioner will enforce entitlement to input tax credits under the Act. The instrument makes explicit that the waiver is of the requirement to hold a tax invoice for the purpose of attributing an input tax credit, but it does not affect other statutory tests or the Commissioner’s ability to deny a credit in accordance with the Act’s enforcement machinery. The instrument is made under subsection 29‑10(3) of the Act (s 3), and recipients remain subject to the Act’s compliance, audit and adjustment processes.

• Potential grounds for dispute. Where a recipient claims an input tax credit on the basis of a property manager document, the Commissioner may query whether the acquisition was a creditable acquisition, whether the supply was made through the supplier’s property manager, whether the document was issued by the supplier’s property manager, and whether the document met the s 7 requirements at the time the GST return was given. These are factual and documentary inquiries within the Act’s administrative framework.

Operational enforcement implications

• Timing enforcement point. The requirement that the recipient hold the qualifying document at the time the GST return is given establishes a firm enforcement point. If a recipient lodges a return without having the document, the waiver condition in s 6(b) is not met. This creates a clear compliance trigger that can be tested against recordkeeping.

• Proof risk where arrangements are informal. The definition of property manager expressly permits arrangements that are not recorded in writing and that may not be agency relationships (s 4(1) To avoid doubt (a) and (b)). This can increase the scope for factual disputes about whether the supply was made through the supplier’s property manager, which is a material fact for the waiver. The Commissioner’s enquiries during audits or reviews will focus on those facts.

Practical consequence

• No immunity from penalties under the Act. Because the instrument does not create standalone exemptions from other Act obligations, a recipient that relies on the waiver but fails to meet other statutory conditions may still face adjustments, assessments, penalties or interest under the Act. The instrument’s waiver affects only the tax invoice requirement for attribution where its conditions are met.

All enforcement implications must be read in the context of the instrument’s narrow scope and the continuing primacy of the Act for substantive tests and sanctions (s 3, s 4, s 6, s 7).

Dependence on the principal statute

• The instrument operates as subordinate legislation under the A New Tax System (Goods and Services Tax) Act 1999. It is made under subsection 29‑10(3) of that Act (s 3) and explicitly incorporates certain requirements from the Act by reference (s 7). The instrument therefore functions within the Act’s statutory architecture and cannot alter substantive definitions or other operative provisions of the Act.

Incorporation by reference

• Document requirements are incorporated from the Act. Section 7 requires that the property manager document meet the requirements of paragraphs 29‑70(1)(a) and 29‑70(1)(c) of the Act, other than subparagraph 29‑70(1)(c)(i). The instrument therefore relies on the content of those statutory paragraphs for its documentary standard. The instrument does not itself reproduce those paragraphs and does not change their meaning, save for the specific exclusion noted.

Interaction with definitions in the Act

• The instrument notes that several expressions it uses are defined in the Act, including ABN, creditable acquisition, input tax credit and recipient (s 4(1) Note). Those definitions and their substantive tests remain applicable. The waiver does not alter who qualifies as a recipient, what constitutes a creditable acquisition, or the elements of an input tax credit beyond the tax invoice requirement for attribution.

Effect on supplier‑property manager relationships

• The instrument clarifies that an entity can be treated as a property manager whether or not the entity is the principal’s agent and whether or not the arrangement is written (s 4(1) To avoid doubt (a) and (b)). This interacts with law of agency and contract only in evidential ways. The instrument does not redefine agency law; it permits the waiver to operate even where agency is absent or where arrangements are informal. That may produce interplay between evidentiary standards in contract or agency law and the administrative fact‑finding under the Act.

Subordinate legislative status and repeal

• This instrument is subordinate legislation and repeals the earlier 2013 legislative instrument on the same subject in full (Schedule 1). The repeal removes the earlier instrument’s operational effect and replaces it with the terms of the current instrument. Any interaction between the Act and the old instrument ceases as of the repeal effected by this instrument.

Limits to what the instrument changes

• The waiver is limited to the tax invoice requirement for attribution. It does not change other statutory obligations, for example those relating to who is treated as supplier for other GST purposes, the substantive entitlement to an input tax credit, or the Act’s penalty and assessment regimes. Those interlocking provisions in the Act continue to govern the wider relationship between taxpayer conduct and legal outcomes.

In sum, the instrument sits inside the Act’s framework, borrows documentary standards from specific Act paragraphs, and leaves intact the Act’s substantive provisions and enforcement mechanisms. Its interaction with other laws is principally by incorporation, evidential interface and the permissive definition of “property manager” with its evidentiary consequences (s 3, s 4, s 7, Schedule 1).

Commencement

• The instrument contains a commencement table that identifies the whole of the instrument as commencing on the day after the instrument is registered (s 2, commencement table). The instrument notes the commencement table refers only to provisions as originally made and that the table will not be updated to reflect later amendments.

Authority for making and scope

• The instrument is made under subsection 29‑10(3) of the Act (s 3). That is the statutory authority cited for the waiver power exercised by the instrument.

Repeal of prior instrument

• Schedule 1 of the determination expressly repeals the whole of the A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Legislative Instrument 2013 (Schedule 1). The Schedule contains a single item: repeal the instrument in full. That is the only express inter‑instrument amendment contained in the text.

No other amendments recorded

• The instrument does not amend the text of the Act. It amends or repeals only the earlier legislative instrument from 2013 through Schedule 1. No other subordinate or primary legislation is amended by the text of this instrument. Section 5 notes that instruments specified in a Schedule to the determination are amended or repealed as set out, and any other item in a Schedule has effect according to its terms; in this instrument the Schedule effect is the single repeal (s 5, Schedule 1).

No recorded subsequent amendments in the text

• The instrument’s printed text contains a note that the commencement table relates only to the provisions as originally made and will not be amended to deal with later amendments. That indicates that the instrument as presented contains its initial timing and repeal settings, and does not itself record any later amending events.

Practical point for practitioners

• For anyone reconciling historical instruments, the Schedule 1 repeal is the central amendment history item. There is no other amendment or transitional provision included in the instrument to reconcile with earlier material, beyond the single repeal and the commencement timing set out in the table (s 2, Schedule 1).

All of the above follows from the instrument’s commencement table, authority clause, Schedule 1 repeal and s 5 provision that schedules operate as listed (s 2, s 3, s 5, Schedule 1).

No litigation record contained in the instrument

• The instrument itself contains no recital of, reference to, or list of judicial decisions. It names no cases and does not include a litigation history. The text contains only the legislative provisions and the repeal of a prior instrument. There are therefore no court decisions cited in, or incorporated by, the instrument.

Areas where litigation might later arise, from the instrument’s structure

• Factual characterisation of “made through the supplier’s property manager.” The waiver is conditioned on the acquisition being of a thing by way of a supply that was made through the supplier’s property manager (s 6(a)). Because the instrument permits a property manager arrangement to be oral or informal, and permits the property manager to be an agent or not (s 4(1) To avoid doubt (a) and (b)), factual disputes could arise about whether a particular supply was in fact made through a property manager. Litigation could therefore revolve around fact‑finding about the nature and structure of the relationship between supplier and property manager.

• Adequacy of the document under s 7. Section 7 pulls in paragraphs 29‑70(1)(a) and (c) of the Act, excluding subparagraph 29‑70(1)(c)(i), and requires that the property manager’s document enable the identity and ABN of the supplier’s property manager to be clearly ascertained. Disputes may focus on whether a given document meets those statutory paragraphs as incorporated, and on the sufficiency of the identity and ABN information provided. These are documentary questions that may ultimately be litigated in cases where the Commissioner denies an input tax credit and the taxpayer challenges that denial.

• Timing of possession. Section 6(b) conditions the waiver on the recipient holding the qualifying document at the time the GST return for the relevant tax period is given. Questions could arise about when the document was in fact in the taxpayer’s possession, and whether the taxpayer’s conduct satisfies that timing test.

Limitations on what the instrument itself suggests

• The instrument does not itself describe or predict litigation outcomes. It provides no guidance on dispute resolution or the Commissioner’s administrative practice beyond the statutory criteria. Any litigation history will therefore arise from disputes under the Act and its administration, not from the text of the instrument itself.

For now, the instrument contains no litigation history. The potential dispute vectors identified above derive from its definitional and evidentiary structure and are grounded in the instrument’s text: the threshold factual test of supply made through a property manager (s 6(a)); the absence of a requirement that the arrangement be written (s 4(1) To avoid doubt (a)); the incorporation of paragraph requirements from the Act into the document standard (s 7); and the timing requirement tied to return lodgement (s 6(b)).

Timing requirement is strict. The waiver applies only where the recipient holds the qualifying property manager document at the time the recipient gives the GST return for the tax period to which the input tax credit would otherwise be attributable (s 6(b)). If the document arrives after the return is given, the waiver condition is not met. Relying on late receipt will not satisfy s 6(b) and may result in denial of attribution unless other Act provisions permit an adjustment.

Document must be issued by the supplier’s property manager. Section 6(b)(i) requires the document be issued by the supplier’s property manager. A document issued by the supplier itself, or by a third party other than the supplier’s property manager, will not meet s 6(b)(i) even if it contains similar information. Verification that the issuer is in fact the supplier’s property manager is therefore crucial.

Property manager identity and ABN must be clear. Section 7(b) requires the document to contain enough information to enable the identity and ABN of the supplier’s property manager to be clearly ascertained. Documents that omit or obscure the property manager’s ABN, or use abbreviations or ambiguous trade names without clear linking information, risk non‑compliance with s 7(b).

Incorporation of Act paragraphs with an exclusion. Section 7(a) requires the document meet paragraphs 29‑70(1)(a) and 29‑70(1)(c) of the Act, other than subparagraph 29‑70(1)(c)(i). Because the instrument incorporates those paragraphs by reference rather than spelling them out, practitioners must check the Act’s text to confirm what those paragraphs require and which particular element is excluded. Assuming a particular paragraph’s content without checking the Act risks a compliance gap.

Arrangement need not be in writing, agent status not required. The definition of property manager explicitly states the arrangement does not need to be recorded in writing and that the entity can be a property manager whether or not it is the agent of the principal (s 4(1) To avoid doubt (a) and (b)). While this makes the waiver flexible, it creates an evidentiary pitfall: absence of a written management or agency agreement can make it harder to demonstrate the factual predicate that the supply was made through the supplier’s property manager if the Commissioner challenges the claim.

Waiver limited to attribution, not substantive entitlement. The instrument waives the tax invoice holding requirement for attributing an input tax credit to a tax period. It does not alter the substantive tests for entitlement to an input tax credit, nor does it change other recordkeeping or tax law obligations set out in the Act. Recipients must still satisfy all other statutory criteria for a creditable acquisition and input tax credit as defined in the Act (s 4(1) Note).

Potential shift in administrative responsibility. Because the waiver permits recipients to rely on property manager documents instead of supplier tax invoices, suppliers may grow accustomed to delegating invoice issuance and recordkeeping to property managers. That can create operational risk if property managers fail to issue compliant documents, or if their ABN details change and records are not updated. The instrument does not create an obligation on suppliers to ensure property managers issue qualifying documents.

Repeal of earlier instrument. The Schedule repeals the 2013 instrument in full. Practitioners must not rely on the terms of the repealed instrument and should ensure compliance with the current instrument’s wording (Schedule 1).

No express transitional provisions. The instrument contains no transitional rules addressing how to treat supplies or documents issued before commencement. The commencement table states the whole instrument commences on the day after registration (s 2). If taxpayers rely on transitional practice or legacy documents, they should confirm whether those documents meet the current s 7 standards at the relevant lodgement time.

Each of these “gotchas” is anchored in the instrument’s operative text: the timing and issuer conditions (s 6); the document content requirements and incorporation of Act paragraphs with an exclusion (s 7); the property manager definition’s evidentiary features (s 4); and the repeal of the 2013 instrument (Schedule 1).

Step 1: Identify whether the acquisition qualifies. Confirm that the acquisition is a creditable acquisition and that the supply was made through the supplier’s property manager, as required by s 6(a). The instrument permits the property manager arrangement to be informal and permits the entity to be a property manager whether or not it is the agent (s 4(1) To avoid doubt (a) and (b)). Where arrangements are informal, assemble factual evidence of the management relationship and the property manager’s role in making or facilitating supplies.

Step 2: Obtain the qualifying document from the supplier’s property manager. Ensure the document is issued by the supplier’s property manager, as required by s 6(b)(i). If the document is issued by the supplier or another party, it will not meet s 6(b)(i). Ask the property manager to issue a document specifically referencing the supply and showing the property manager’s identity and ABN.

Step 3: Verify the document meets the s 7 requirements. The document must meet paragraphs 29‑70(1)(a) and 29‑70(1)(c) of the Act, other than subparagraph 29‑70(1)(c)(i), and must contain enough information to enable the identity and ABN of the supplier’s property manager to be clearly ascertained (s 7). Because the instrument incorporates those Act paragraphs by reference, practitioners must consult the Act to confirm the particulars of paragraphs 29‑70(1)(a) and 29‑70(1)(c) and understand what is excluded by the subparagraph qualification.

Step 4: Check timing before lodging the GST return. Ensure the recipient holds the qualifying document at the time the GST return for the tax period to which the input tax credit would otherwise be attributable is given (s 6(b)). If the document is not in hand at lodgement, the waiver will not apply for that attribution and the recipient may need a supplier tax invoice or rely on other Act provisions.

Step 5: Retain records and internal audit trail. Maintain the property manager document and supporting evidence that the supply was made through the supplier’s property manager. Given that the instrument allows arrangements not to be in writing, maintain contemporaneous internal records demonstrating how the supply was effected, correspondence with the property manager, and any payment routing that shows the property manager’s role.

Step 6: Coordinate with property managers and suppliers. Where possible, agree standard documentation and procedures with property managers to ensure consistent issuance of documents that meet s 7. Request explicit inclusion of the property manager’s ABN and business name on documents and seek confirmations that the document issuer is acting as the supplier’s property manager.

Step 7: Update accounting and compliance procedures. Adjust accounts‑payable workflows to verify, upon receipt of a property manager document, that it meets the s 7 standard before using it as the basis for attributing input tax credits in the period in which a GST return will be lodged. Train staff to verify the document issuer, ABN and timing requirements.

Step 8: Consider contingencies for missing or deficient documents. Establish a remedy protocol in case a qualifying document is not received or is deficient. That may include seeking a supplier tax invoice, obtaining a corrected document from the property manager, or delaying attribution until a later tax period when the document is available and the recipient is able to attribute the input tax credit in compliance with the Act.

Step 9: Specialist advice for borderline cases. Where the facts about whether a supply was made through a property manager are unclear, or where documents are ambiguous about issuer identity or ABN, consider obtaining specialist tax advice. The instrument allows arrangements that are not written and that are not agency relationships, which can create factual complexity (s 4(1) To avoid doubt (a) and (b)).

Step 10: Reconcile with historical practices and the repealed instrument. The earlier 2013 instrument is repealed by Schedule 1. Do not rely on legacy templates or procedures from the repealed instrument without checking that they meet the current instrument’s requirements (Schedule 1).

These steps are directly tied to the instrument’s operative provisions: identifying the qualifying factual scenario (s 6(a)), ensuring issuer and timing (s 6(b)(i) and (ii)), ensuring the document content meets the s 7 standard (s 7), and acknowledging the definitional notes in s 4 about key terms drawn from the Act (s 4(1) Note).