Appendix 5 - PricewaterhouseCoopers/ ITSA amendments

Appendix 5 - PricewaterhouseCoopers/ ITSA amendments

PricewaterhouseCoopers, on behalf of the Interactive Travel Services Association (ITSA), proposed to use the words in the proposed subsection 9-24(5)(c) as the basis of a new special 'connected with Australia' rule that only applies in certain circumstances. They noted that there is a precedent in GST law for this.

They proposed that the special rule not apply if:

  1. the supplier makes the relevant supply through and enterprise it carries on outside Australia, and
  2. the supplier is not registered (or otherwise required to be registered) for GST purposes.

ITSA/PWC gave the following example of how the new special rule might be enacted:

New Special Rule

  1. (1) "A supply of anything other than goods and real property is connected with Australia if all of the following apply:
    1. (i) neither paragraph (a) nor (b) of subsection 29-25(5) applies in respect of the supply of the thing;
    2. (ii) the thing is a right or option to acquire another thing;
    3. (iii) the supply of the other thing would be connected with Australia."
  2. (2) However, subsection (1) will not apply if:
    1. (a) the supplier makes the supply through an enterprise that is not carried on in Australia; and
    2. (b) the supplier is not registered or otherwise required to be registered for GST purposes.

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