Tax Laws Amendment (2008 Measures No. 5) Act 2008 (145 of 2008)
Schedule 1 Goods and services tax and real property
A New Tax System (Goods and Services Tax) Act 1999
4 After subsection 75-11(4)
Insert:
Margin for supply of real property acquired as a GST-free going concern or as GST-free farm land
(5) If:
(a) you acquired the interest, unit or lease in question from an entity as, or as part of:
(i) a*supply of a going concern to you that was*GST-free under Subdivision 38-J; or
(ii) a supply to you that was GST-free under Subdivision 38-O; and
(b) the entity was*registered or*required to be registered, at the time of the acquisition; and
(c) none of subsections (1) to (4) applies;
the margin for the supply you make is the amount by which the*consideration for the supply exceeds:
(d) if that entity had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:
(i) if you choose to apply an*approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or
(ii) if subparagraph (i) does not apply - the*GST inclusive market value of the interest, unit or lease as at 1 July 2000; or
(e) if that entity had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:
(i) if the entity's acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which the entity had acquired it; or
(ii) if the entity's acquisition was for consideration and subparagraph (i) does not apply - that consideration; or
(iii) if the entity's acquisition was without consideration - the GST inclusive market value of the interest, unit or lease as at the time of the acquisition; or
(f) if that entity had not been registered or required to be registered at the time of the entity's acquisition of the interest, unit or lease (and paragraph (d) does not apply):
(i) if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or
(ii) if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.
Margin for supply of real property acquired from associate
(6) If:
(a) you acquired the interest, unit or lease in question from an entity who was your*associate, and who was*registered or*required to be registered, at the time of the acquisition; and
(b) the acquisition from your associate was without*consideration; and
(c) the supply by your associate was not a*taxable supply; and
(d) your associate made the supply in the course or furtherance of an*enterprise that your associate*carried on; and
(e) none of subsections (1) to (5) applies;
the margin for the supply you make is the amount by which the consideration for the supply exceeds:
(f) if your associate had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered:
(i) if you choose to apply an*approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at 1 July 2000; or
(ii) if subparagraph (i) does not apply - the*GST inclusive market value of the interest, unit or lease as at 1 July 2000; or
(g) if your associate had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition:
(i) if your associate's acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the day on which your associate had acquired it; or
(ii) if your associate's acquisition was for consideration and subparagraph (i) does not apply - that consideration; or
(iii) if your associate's acquisition was without consideration - the GST inclusive market value of the interest, unit or lease at the time of the acquisition; or
(h) if your associate had not been registered or required to be registered at the time of your associate's acquisition of the interest, unit or lease (and paragraph (f) does not apply):
(i) if you choose to apply an approved valuation to work out the margin for the supply - an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or
(ii) if subparagraph (i) does not apply - the GST inclusive market value of the interest, unit or lease as at that day.
(6A) Paragraphs (6)(c) and (d) do not apply if the acquisition from your*associate was not by means of a supply by your associate.
(6B) To avoid doubt, you cannot be taken, for the purposes of paragraph (5)(f) or (6)(h), to be*registered or*required to be registered on a day earlier than 1 July 2000.