Common use of ADMINISTRATION OF THE GST Clause in Contracts

ADMINISTRATION OF THE GST. Management of the GST Rate 31. After the introduction of the GST, a proposal to vary the 10 per cent rate of the GST will require: (i) the unanimous support of the State and Territory Governments; (ii) the endorsement by the Commonwealth Government of the day; and (iii) the passage of relevant legislation by both Houses of the Commonwealth Parliament. 32. Subject to clauses 34, 35 and 36 of this Agreement, after the introduction of the GST, any proposal to vary the GST base will require: (i) the unanimous support of the State and Territory Governments; (ii) the endorsement by the Commonwealth Government of the day; and (iii) the passage of relevant legislation by both Houses of the Commonwealth Parliament. 33. All future changes to the GST base should be consistent with: (i) the maintenance of the integrity of the tax base; (ii) simplicity of administration; and (iii) minimising compliance costs for taxpayers. 34. A proposal to vary the GST base by way of a Ministerial determination under the GST Act and the GST Transition Act will require the unanimous agreement of the Ministerial Council established under clause 40. The Ministerial Council will develop practical arrangements to ensure timely consideration of proposed Ministerial determinations. 35. During the first 12 months following the implementation of the GST, the Commonwealth Government will retain the discretion to make changes unilaterally to the GST base where such changes: (i) are of an administrative nature (as defined in Appendix E to this Agreement); (ii) are necessary to facilitate the implementation of the new tax; and (iii) have regard to the need to protect the revenue of the States and Territories. 36. From July 2001, changes to the GST base of an administrative nature (as defined in Appendix E) would require the majority support of the Commonwealth, the States and the Territories.

ADMINISTRATION OF THE GST. Management of the GST Rate 31. After the introduction of the GST, a proposal to vary the 10 per cent rate of the GST will require: (i) the unanimous support of the State and Territory Governments; (ii) the endorsement by the Commonwealth Government of the day; and (iii) the passage of relevant legislation by both Houses of the Commonwealth Parliament. 32. Subject to clauses 34, 35 and 36 of this Agreement, after the introduction of the GST, any proposal to vary the GST base will require: (i) the unanimous support of the State and Territory Governments;; Intergovernmental Agreement on the Reform of Schedule 1 (ii) the endorsement by the Commonwealth Government of the day; and (iii) the passage of relevant legislation by both Houses of the Commonwealth Parliament. 33. All future changes to the GST base should be consistent with: (i) the maintenance of the integrity of the tax base; (ii) simplicity of administration; and (iii) minimising compliance costs for taxpayers. 34. A proposal to vary the GST base by way of a Ministerial determination under the GST Act and the GST Transition Act will require the unanimous agreement of the Ministerial Council established under clause 40. The Ministerial Council will develop practical arrangements to ensure timely consideration of proposed Ministerial determinations. 35. During the first 12 months following the implementation of the GST, the Commonwealth Government will retain the discretion to make changes unilaterally to the GST base where such changes: (i) are of an administrative nature (as defined in Appendix E to this Agreement); (ii) are necessary to facilitate the implementation of the new tax; and (iii) have regard to the need to protect the revenue of the States and Territories. 36. From July 2001, changes to the GST base of an administrative nature (as defined in Appendix E) would require the majority support of the Commonwealth, the States and the Territories.