When You Need to Make the GST Rate Adjustment

The GST rate change adjustment will ensure goods and services bought or sold on or before 30 September 2010 are charged and claimed at the rate of 12.5%.

You need to make the adjustment if you use the:

• payments or the hybrid basis to account for GST
• invoice basis and have purchased secondhand goods from a non-GST-registered person for your business.

You'll need to make an adjustment if you have income and expenses from before 1 October 2010 and invoices were issued and GST charged at 12.5%, but you have not received or made any payments.

If you make a sale on or before 30 September 2010 when you use the payments accounting basis

You'll charge your customer 12.5% GST.

If you receive the payment on or after 1 October you'll account for it in a later GST return at 15%. This means you'll pay 2.5% more GST than you receive.

We'll give you a 2.5% credit on your GST rate change adjustment that you'll complete as part of your GST return that includes 30 September 2010.

If you make a purchase on or before 30 September 2010 when you use the payments or hybrid accounting basis

You'll be charged 12.5% GST.

If you make the payment on or after 1 October you'll account for it in a later GST return at 15%. This means you'll have accounted for 2.5% more GST than you've paid.

You'll need to pay us 2.5% on your GST rate change adjustment that you'll complete as part of your GST return that covers 30 September 2010.

The adjustment will allow you to calculate the correct amount of GST so the correct amount is returned.

If you make a purchase of secondhand goods on or before 30 September 2010 using the invoice accounting basis

You'll be charged 12.5% GST.

You'll only need to make the adjustment if you have purchased secondhand goods from a non-GST-registered person for your business.

If you make the payment on or after 1 October you'll account for it in a later GST return at 15%. This means you'll have accounted for 2.5% more GST than you've paid.

You'll need to pay us 2.5% on your GST rate change adjustment that you'll complete as part of your GST return that covers 30 September 2010.

The adjustment will allow you to calculate the correct amount of GST so the correct amount is returned.