Tax Laws Amendment (2011 Measures No. 3) Act 2011 (51 of 2011)
Schedule 1 12-month export period for the GST-free supply of new recreational boats
A New Tax System (Goods and Services Tax) Act 1999
1 Subsection 38-185(1) (after table item 4)
Insert:
|
4A |
Export of new recreational boats |
a supply of a *ship, but only if: (a) the ship is a *new recreational boat on the earliest day (the receipt day ) on which one or more of the following occurs: (i) the *recipient takes physical possession of the ship; (ii) if *consideration for the supply is provided in instalments under a contract that requires the ship to be exported - the supplier receives any of the final instalment; (iii) if consideration for the supply is provided in instalments under a contract that requires the ship to be exported - the supplier gives an *invoice for the final instalment; and (b) the supplier or recipient exports the ship from Australia within 12 months (or such further period as the Commissioner allows) after the receipt day; and (c) subsection (6) does not apply at any time during the period: (i) starting on the receipt day; and (ii) ending when the supplier or recipient exports the ship. |
2 At the end of section 38-185
Add:
Export of new recreational boats
(5) For the purposes of item 4A of the table in subsection (1), the *ship is a new recreational boat if the ship:
(a) has not been substantially reconstructed; and
(b) has not been sold, leased or used since the completion of its construction, except in connection with:
(i) the supply or acquisition of the ship as stock held for the purpose of sale or exchange in *carrying on an *enterprise; or
(ii) the supply mentioned in that item, or the acquisition of the ship by the *recipient as mentioned in that item; and
(c) was designed, and is fitted out, principally for use in activities done as private recreational pursuits or hobbies; and
(d) is not a commercial ship.
(6) For the purposes of item 4A in the table in subsection (1), this subsection applies if, apart from use of the *ship by the supplier in connection with the supply of the ship to the *recipient, the *ship is used:
(a) as security for the performance of an obligation (other than an obligation relating to the acquisition of the ship); or
(b) in *carrying on an *enterprise in Australia; or
(c) in Australia in carrying on an enterprise outside Australia, not including use that involves the ship being used:
(i) in a way that is private or domestic in nature; or
(ii) in an activity, or series of activities, done as a private recreational pursuit or hobby; or
Example: Allowing an employee to live on the ship, or to take the ship on a fishing trip.
(d) for *consideration, unless the consideration:
(i) consists of the provision of services by an employee of an enterprise carried on by the *recipient outside Australia; or
(ii) is in respect of the recipient competing in a race or other sporting event (e.g. a prize).