1. C S U 1

2. 2 A New Tax System is the name given to the range of new tax reforms due to commence on 1 July 2000. Major elements of ANTS include; – Pay As You Go (PAYG), and – GST.

3. C S U 3

4. 4 PAYG is simply a new withholding tax system. It applies from 1 July 2000. It is intended to replace: -PAYE (Pay As You Earn system); -PPS (Prescribed Payments System); -RPS (Reportable Payments System); -Provisional Tax; -Company instalments system.

5. C S U 5

6. 6 GST is a broadly based consumption tax, which aims to tax “private final consumption” expenditure on most goods and services. It applies from 1 July 2000

7. C S U 7 GST eliminates: -Wholesale Sales Tax from 1 July 2000 -Bed taxes from 1 July 2000; -FID from 1 July 2001 -Stamp Duty on marketable securities from 1 July 2001; BAD Tax 1 July 2005; Abolition of remaining business stamp duties deferred indefinitely.

8. C S U 8 GST applies to “taxable supplies”, ie; supplies of goods and services, connected with Australia, by a registered person, in the course of furtherance of an enterprise, for a consideration; A supply is not a taxable supply if it is “GST- free” or “input taxed”.

9. C S U 9 GST is: -applied to domestic consumption of most goods and services, -collected at every stage of production, and therefore -paid by final consumer.

10. C S U 10 As an offset to the GST, Personal Income Tax rates change from 1 July 2000 Annual Salary Rate $0 - $6,000 0% $6,001 - $20,00017% $20,001 - $50,00030% $50,001 - $60,00042% $60,001 + 47%

11. C S U 11

12. C S U 12 Taxable supplies -10% GST on sales, and -full credit for GST paid on inputs. Types of GST supply Input taxed supplies -0% GST on sales, but -no credit for GST paid on inputs.

13. C S U 13 Types of GST supply (Cont.) GST free supplies -0% GST on sales, and -full credit for GST paid on inputs. Out of scope - Intra-CSU supplies - internal trading.

14. C S U 14

15. C S U 15 Persons/organisations must register if - -they carry on a business enterprise (excluding PAYE activities, hobbies, voluntary activities), and -their annual gross turnover exceeds $50,000 or $100,000 for non profit bodies, (must register to claim input tax credits). 90% common owner enterprises may group and lodge one GST return.

16. C S U 16

17. C S U 17 Registration Treatment A registered enterprise will: -be able to claim input tax credits for goods and services purchased, and must -charge 10% GST on goods and services sold.

18. C S U 18 Registration Treatment An unregistered enterprise will: -not be able to claim input tax credits for goods and services purchased, -not charge 10% GST on goods and services sold, and -have 48.5% of gross sale amount withheld and forwarded to the ATO.

19. C S U 19

20. C S U 20 Accounting Treatment Accounting for GST is on an accruals basis where the enterprise’s annual turnover > $1M -The GST is accounted for at the earlier of the issue of a taxable invoice, or the receipt of the payment. -CSU will account for GST through 2 clearing accounts (Input Credits & GST Liability) - budget units won’t bear the cost.

21. C S U 21 Accounting Treatment (Cont.) Where the annual turnover is less than $1 million, an enterprise can choose to account for GST on a cash basis

22. C S U 22

23. C S U 23 GST Tax Periods GST paid on inputs, and collected on taxable supplies are attributable to tax periods. A tax period is either monthly or quarterly. CSU turnover exceeds $20 million pa, and will lodge GST monthly electronically. GST returns to be lodged by 21st of each month, even if net amount is $0.

24. C S U 24

25. C S U 25 The PAYG system provides for a Business Activity Statement (BAS) BAS is prepared either monthly or quarterly, depending upon the entities annual turnover, and is lodged by the 21st of the next month.

26. C S U 26 The Business Activity Statement (BAS) BAS contains the total GST to be paid or collected plus the total amount of taxes withheld under the PAYG system. One BAS return is made for the entire registered entity. It will be prepared the Department of Finance.

27. C S U 27

28. C S U 28 A Tax Invoice must: be issued by the supplier for taxable supplies greater than $50 ; and contain the entities ABN ; and set out the GST inclusive price for the supply; and

29. C S U 29 Tax Invoice (Cont.) be in the approved form; and be provided within 28 days. (A receipt may be construed as a Tax Invoice)

30. C S U 30

31. C S U 31 Education courses that are GST free pre school course primary course secondary course tertiary course Masters or Doctorial course special education course

32. C S U 32 Education courses that are GST free adult and community education course English language course for overseas students first aid or life saving course professional or trade course tertiary residential college course

33. C S U 33 GST Free Supplies (Teaching):. Local / International students, enrolled in: -undergraduate award programs -postgraduate award programs International exchange students Course materials Field Trips (excl. meals & accommodation)

34. C S U 34 Taxable Supplies (Teaching): “miscellaneous students” - (students not enrolled in award program, who undertake particular but isolated subjects) voluntary students - (students enrolled in award program, who undertake a subject in addition to award course) Sale, lease or hire of goods (incl. textbooks) Accommodation and food for field trips

35. C S U 35 GST free Supplies : Research & Consulting Services - grants must be unconditional to be GST free.

36. C S U 36 Taxable Supplies: Contract research - funding is provided by private sector on a contract basis (ATO ruling Nov. 1999) Commercialisation of intellectual property Consulting services made on a fee paying basis

37. C S U 37 GST free Supplies (Students): Administrative services directly related to supply of GST free education courses only. enrolment services examination arrangements counselling services graduation ceremonies

38. C S U 38 Taxable Supplies (Students): administrative services related to the supply of taxable education courses. Student Activities Fees (Union fees, Sports Associations, etc) Other supplies not related to GST free courses, ie services provided to external bodies.

39. C S U 39 GST free Supplies (Library): No GST on all services provided free of charge, eg Book Loans. No GST on intra university loans

40. C S U 40 Taxable Supplies (Library): Printing, photocopying, laminating Internet/Email provided to students for a fee Equipment hire and information retrieval services provided to students for a fee Library Fines

41. C S U 41 Taxable Supplies: Short term accommodation provided to non- students Prepared food supplied as part of accommodation Vending machines for telephones, photocopiers, laundry machines and food dispensers.

42. C S U 42 Input Tax Supplies: Accommodation provided in Halls of Residence to tertiary and post graduate students.

43. C S U 43 Taxable Supplies: Catering and conferencing facilities supplied to parties external to the University. Commissions received from payroll deductions (eg Health Funds, Unions and Insurance premiums). Input Tax Supplies: Student Loans and any additional charges incurred.

44. C S U 44