Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)
Schedule 1 AMENDMENTS RELATING TO STATE/TERRITORY BODIES
Part 2 SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1992
19 Before section 4
Insert in Part 2:
State/Territory bodies
First way in which a body can be a State/Territory body
"3D.(1) A body is a State/Territory body if:
(a) it is a company limited solely by shares; and
(b) all the shares in it are beneficially owned by one or more
government entities.
Note. For the definition of government entity see subsection (6). Note
that an excluded STB is not a government entity.
Second way in which a body can be a State/Territory body
"(2) A body is a State/Territory body if:
(a) it is established by State or Territory legislation; and
(b) it is not a company solely limited by shares; and
(c) the legislation provides that it must distribute all of its
profits (if any) only to one or more government entities; and
(d) if the legislation makes provision as to the way its net assets
may be distributed if it is dissolved or wound up-the provision is
that, if it is dissolved, all of its net assets (if any) must be
distributed only to one or more government entities.
Third way in which a body can be a State/Territory body
"(3) A body is a State/Territory body if:
(a) it is established by State or Territory legislation; and
(b) it is not a company solely limited by shares; and
(c) the legislation gives the power to appoint or dismiss its
governing person or body only to one or more government entities.
Fourth way in which a body can be a State/Territory body
"(4) A body is a State/Territory body if:
(a) it is established by State or Territory legislation; and
(b) it is not a company solely limited by shares; and
(c) the legislation gives the power to direct its governing person
or body as to the conduct of its affairs only to one or more
government entities.
Fifth way in which a body can be a State/Territory body
"(5) A body is a State/Territory body if:
(a) it is not a company solely limited by shares; and
(b) it is not established by State or Territory legislation; and
(c) all the legal and beneficial interests (including, but not
limited to, interests as to income, profits, dividends, capital and
distributions of capital) in it are held only by one or more
government entities; and
(d) all the rights or powers (if any) to vote, appoint or dismiss
its governing person or body and direct its governing person or body
as to the conduct of its affairs are held only by one or more
government entities.
What do excluded STB, government entity and Territory mean?
"(6) In this section:
excluded STB means a State/Territory body that:
(a) at a particular time, is prescribed as an excluded
State/Territory body in relation to that time; or
(b) is a municipal corporation or other local governing body (within
the meaning of paragraph 23(d) of the Income Tax Assessment Act 1936);
or
(c) is a public educational institution (within the meaning of
paragraph 23(e) of that Act); or
(d) is a public hospital (within the meaning of paragraph 23(ea) of
that Act);
government entity means:
(a) a State; or
(b) a Territory; or
(c) another State/Territory body that is not an excluded
State/Territory body;
Territory means the Northern Territory or the Australian Capital
Territory.
Governor, Minister and Department Head taken to be a government entity
"(7) For the purposes of subsections (3), (4) and (5), if the power
to appoint, dismiss or direct the governing body is given to, or is
held by:
(a) a Governor of a State; or
(b) a Minister of the Crown of a State; or
(c) a Minister of a Territory; or
(d) the Head of a Department of a State or a Territory; or
(e) any combination of paragraphs (a) to (d);
the power is taken to be given to, or held by, a government entity.
States and Territories to consent to State/Territory bodies being
excluded STBs
"(8) The regulations may prescribe that a State/Territory body is an
excluded STB only if all States and Territories consent to the
State/Territory body being so prescribed.".