Local authorities get more time for GST accounting change
A recent Order in Council, the Goods and Services Tax (Local Authorities Accounting on Payments Basis), made on 7 May, allows nine local authorities four years in which to change to an invoice basis of accounting for GST. It provides for the Far North, Gisborne, Kaipara, Opotiki, Ruapehu, Waitomo, Whakatane and Western Bay of Plenty District Councils and the Northland Regional Council to continue to account for GST on a payments basis until June 2005.
From 1 July 2001, the Goods and Services Tax Act 1985 requires all local authorities to account for GST on an invoice basis rather than a payments basis. The Order allows time for these local authorities to resolve transitional issues associated the shift to invoice basis accounting.