|On June 26 2017, the Bill introducing GST integrity measures on precious metals was given Royal Assent by the Australian Parliament and has now been enforced.
Earlier in the year, a document released by the Commissioner of Taxation on the 22 February 2017 titled ‘Goods and services tax: What is excluded from being second-hand goods by paragraph (b) of the definition of that term in Division 195 of the A New Tax System (Goods and Services Tax) Act 1999’ proposed changes that may impact on second-hand dealers and pawnbrokers in the jewellery industry.
The now enforced ATO view of the law is as follows:
However, the Minister has taken into consideration of the concerns of second-hand dealers and pawnbrokers that:
Stephen Baxter of Indirectax.net is able to assist businesses who want to understand and apply the new rules. He can assist those businesses whose GST credits are already under review or have been challenged by the ATO. He can be contacted on (02) 9221 2888 or via email on email@example.com.
The JAA would also like your feedback if you see this issue might cause a serious erosion of your margins and want collective action to be taken.