Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 (74 of 2010)

Schedule 1   GST groups and GST joint ventures

Part 1   Forming, changing and dissolving GST groups and GST joint ventures

A New Tax System (Goods and Services Tax) Act 1999

3   Section 48-5

Repeal the section, substitute:

48-5 Formation of GST groups

(1) Two or more entities may form a *GST group if:

(a) each of the entities *satisfies the membership requirements of the group; and

(b) each of the entities agrees in writing to the formation of the group; and

(c) one of those entities notifies the Commissioner, in the *approved form, of the formation of the group; and

(d) that entity is nominated, in that notice, to be the *representative member of the group; and

(e) that entity is an *Australian resident.

A group of entities that is so formed is a GST group .

(2) If 2 or more entities would *satisfy the membership requirements for the *GST group, the group need not include all those entities.

(3) The formation of the *GST group takes effect from the start of the day specified in the notice under paragraph (1)(c) (whether that day is before, on or after the day on which the entities decided to form the group).

(4) However, if the notice was given to the Commissioner after the day by which the entity nominated to be the *representative member of the group is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the formation of the *GST group takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the Commissioner under section 48-71; and

(b) if paragraph (a) does not apply - such other day as the Commissioner approves under that section.

48-7 Membership of GST groups

(1) A member of a *GST group is an entity that:

(a) formed the group under section 48-5, or was added to the group under section 48-70; and

(b) *satisfies the membership requirements of the group.

(2) However, the entity is not a member of the *GST group if the entity has, since the last time the entity became such a member:

(a) left, or been removed from, the group under section 48-70; or

(b) ceased to *satisfy the membership requirements of the group.

(3) The *representative member of a *GST group must notify the Commissioner, in the *approved form, if a *member of the group no longer *satisfies the membership requirements for the GST group.

(4) The notice must be given within 21 days after the *member no longer *satisfies the membership requirements for the *GST group.

Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.