A New Tax System (Goods and Services Tax) Regulations 2019
Chapter 4
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The special rules
Part 4-1
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Special rules mainly about particular ways entities are organised
Division 48
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GST groups
Subdivision 48-A
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Formation and membership of GST groups
SECTION 48-10.04
Membership requirements for individuals
(1)
For the purposes of subparagraph 48-10(1)(a)(ii) of the Act, this section sets out the requirements that an individual must satisfy.
(2)
The individual must satisfy the requirements of subsection (3), (4) or (5).
Requirements that may be satisfied
(3)
The individual satisfies the requirements of this subsection if, for at least one company that is a member of the GST group or proposed GST group:
(a) the individual has at least a 90% stake in the company (worked out in accordance with section 190-5 of the Act as if the individual were a company); or
(b) each shareholder of the company is either the individual or a family member of the individual.
(4)
The individual satisfies the requirements of this subsection if, for at least one partnership that is a member of the GST group or proposed GST group, the partners of the partnership are:
(a) the individual and one or more family members of the individual; or
(b) family members of the individual.
(5)
The individual satisfies the requirements of this subsection if, for at least one trust that is a member of the GST group or proposed GST group:
(a) the beneficiaries of the trust include either or both of the individual and family members of the individual; and
(b) the trustee of the trust distributes income or capital of the trust only to permitted beneficiaries.
For the purposes of subparagraph 48-10(1)(a)(ii) of the Act, this section sets out the requirements that an individual must satisfy.
Note:
The individual must also satisfy other membership requirements set out in section 48-10 of the Act.
(2)
The individual must satisfy the requirements of subsection (3), (4) or (5).
Requirements that may be satisfied
(3)
The individual satisfies the requirements of this subsection if, for at least one company that is a member of the GST group or proposed GST group:
(a) the individual has at least a 90% stake in the company (worked out in accordance with section 190-5 of the Act as if the individual were a company); or
(b) each shareholder of the company is either the individual or a family member of the individual.
(4)
The individual satisfies the requirements of this subsection if, for at least one partnership that is a member of the GST group or proposed GST group, the partners of the partnership are:
(a) the individual and one or more family members of the individual; or
(b) family members of the individual.
(5)
The individual satisfies the requirements of this subsection if, for at least one trust that is a member of the GST group or proposed GST group:
(a) the beneficiaries of the trust include either or both of the individual and family members of the individual; and
(b) the trustee of the trust distributes income or capital of the trust only to permitted beneficiaries.
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