NO.090

Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial

Relations, the Commonwealth has referred to the Ministerial Council a number of minor

proposals to improve the operation of the A New Tax System (Goods and Services Tax) Act

1999 (GST Act) and related legislation. These proposals meet technical problems

identified by the Australian Taxation Office by tax practitioners, industry

representatives and some States and Territories.

The proposals contain no substantive policy issues but will increase administrative

simplicity and compliance. Areas in which changes are proposed are the treatment of

financial services, the role of representatives of incapacitated entities, re-importations

and temporary importations. Other proposals seek to finetune the interaction of the fringe

benefits tax and the GST.

After approval by the Ministerial Council the proposals will be introduced in the

October sittings.

14 September 2000

Contact: David Alexander (Tax Reform Legislative Unit)

02 6277 7340