The financial services industry appears likely to benefit from Federal Government proposals to change the way in which it is determined which fees and charges will be subject to the Goods and Services Tax (GST).
The Assistant Treasurer, Bill Shorten, has announced the Government is proposing to implement new legislation to eliminate the current twice-yearly review of which Government taxes, fees and charges should be exempt from the payment of GST.
Shorten announced the release of a Treasury discussion paper on the issue, describing it as the delivery of an announcement made during the last Federal Budget committing to a principles-based approach.
“Introducing a principles-based model for determining which taxes, fees and charges are exempt from GST will significantly reduce administrative costs and will provide increased certainty in relation to the GST treatment of new taxes, fees and charges,” the minister said.
Shorten described the key features of the proposed legislative amendments as being the replacement of the current mechanism and allowing Government entities to self-assess the GST treatment of taxes, fees and charges.
The financial services industry is likely to be most affected by the changes with respect to company dealings with the major regulatory agencies.
