Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)General outline and financial impact
Goods and services tax treatment of retirement villages
Residents of serviced apartments in retirement villages
Schedule 1 to this bill amends the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to ensure that supplies of certain services and accommodation to residents of serviced apartments in retirement villages are GST-free where the resident requires 'daily living activities assistance' or 'nursing services'.
Date of effect: 1 July 2000.
Proposal announced: This measure was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 004 of 13 August 2004.
Financial impact: The cost of this measure is estimated to be as follows:
| 2004-2005 | 2005-2006 | 2006-2007 | 2007-2008 |
|---|---|---|---|
| $47 million | $11 million | $12 million | $13 million |
Compliance cost impact: It is not considered that there will be a significant compliance cost impact from this measure. These amendments to the law will allow some operators to claim refunds for overpaid goods and services tax (GST).
Residents of charitable retirement villages
Schedule 1 to this bill also amends the GST Act to ensure that supplies of accommodation, accommodation related services and meals by a charitable operator of a retirement village to a resident of that retirement village are GST-free.
Date of effect: Royal Assent.
Proposal announced: This measure was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. 004 of 13 August 2004.
Financial impact: There is no significant financial impact from these amendments.
Compliance cost impact: There is not expected to be any significant compliance cost impact.