The GST Advisory Panel welcomes the government’s announcement today to enact recommendations made by the Panel that will, for many businesses, deal with a range of difficulties arising in the transition to the 15% GST rate.

The recommendations follow substantial consultation with us by many businesses up and down the country who highlighted the substantial compliance costs in some cases of making systems and other changes where contracts involving periodic supplies span the 1 October date, gaps between today’s business practices and legislation that is now more than 20 years old and other issues of simple inconsistency or unfairness.

The detail of the measures released today should give businesses a reasonable level of comfort that the worst of the concerns submitted to the Panel will be addressed. I would strongly urge the government to ensure that the legislation is enacted as speedily as possible before the 1 October date.

Draft legislation is now available for consultation with Inland Revenue officials up until 16 August and can be obtained by calling the Minister of Revenue’s office on (04) 817 9728 or Inland Revenue on (04) 890 6386.

The consultation process has highlighted the need for an overhaul of the GST time of supply rules to bring them into line with business practicalities. I am pleased that the government has listened to the panel on this issue as well and has agreed to a future review of this area.

Details of the changes are contained on this site. Read the special report here.

Frank Owen
GST Advisory Panel (Chair)