Broadening the GST to digital products

This week, The Tax Institute lodged its submission in relation to the tax integrity measure that will extend the application of GST to digital products and other services imported by Australian consumers. This measure was announced in the 2015-16 Federal Budget and will apply from 1 July 2017.

While cast as an integrity measure, the effect of the new provisions will be to broaden the GST net to capture supplies (other than goods or real property) made to Australian consumers by non-residents, marking a significant change to a core concept (‘supplies connected with Australia') in the GST law. The Tax Institute has already engaged extensively with Treasury and the ATO to ensure that this new legislation properly achieves its policy intent. A copy of our submission is available on our website.

Also, this week, the ATO released its Corporate Plan for 2015-2019. This document sets out the ATO's ‘purpose, priorities and improved performance measures'. At the same time, the ATO has also issued its Every Year Counts products. These products are new and refer to specific taxpayer groups including individuals and small business taxpayers, and outline what's planned for 2015-16. There is a product specific to Tax and BAS agents members may wish to view.

Stephanie Caredes CTA is a Tax Counsel of The Tax Institute.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.


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