The government has announced substantive amendments to the
Australian GST cross border rules with effect from 1 July 2012.
These amendments are likely to be largely positive for businesses
by reducing the numbers of non-residents in the GST system and
limiting the circumstances where Australian suppliers need to
charge GST to nonresidents. However, these benefits appear to be at
the cost of some of the flexibility in the current rules and the
proposed rules will likely create new areas of uncertainty for
taxpayers. Clients will need to review their cross border
arrangements in the light of the proposed changes.
The Federal government has announced a major overhaul of the
Australian GST cross border rules. This is likely to impact on
almost every inbound and outbound transaction. The changes are
generally designed to find a balance between protecting the GST
revenue and not imposing unnecessary costs and administration on
non-residents.
