Regulation Impact Statement – Australian Taxation Office
On 7 February 2018 the Government introduced the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018 (the Bill) to Parliament.
The Bill requires purchasers of new residential premises and new subdivisions to remit GST to the Australian Taxation Office (ATO) at the time of settlement, rather than in their next Business Activity Statement (BAS) statement, which could be several months after settlement. This change addresses the risk that some businesses in the property development industry will fail to remit GST, either through intentionally dissolving a business to avoid remitting GST or through a business not sufficiently budgeting to meet GST obligations.
A Regulation Impact Statement (RIS) was prepared and certified by the ATO and has been assessed by the Office of Best Practice Regulation as compliant with the Government’s requirements and consistent with best practice.
The ATO estimates the average annual regulatory cost of the preferred option for reform at $4.0 million per year. The OBPR agreed to this estimate.