A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1)
(49 of 2000)
19 April 2000
Made under A New Tax System (Goods and Services Tax) Act 1999
1 Name of Regulations
These Regulations are the A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1).
2 Commencement
These Regulations commence on gazettal.
3 Amendment of A New Tax System (Goods and Services Tax) Regulations 1999
Schedule 1 amends the A New Tax System (Goods and Services Tax) Regulations 1999.
Schedule 1 Amendments
1 After Part 3-1
insert
Part 4-1 Special rules mainly about particular ways entities are organised
Division 48 GST groups
Subdivision 48-A Approval of GST groups
48-10.01 Definitions for Subdivision
In this Subdivision:
family , in relation to a person, has the meaning given by section 272-95 of Schedule 2F to the Income Tax Assessment Act 1936, as if the person were the test individual mentioned in that section.
GST group includes a proposed GST group.
48-10.02 Membership requirements for partnerships
(1) For the purposes of subparagraph 48-10 (1) (a) (ii) of the Act, this regulation sets out requirements that must be satisfied for a partnership to be a member of a GST group.
Note The partnership must also satisfy other membership requirements set out in section 48-10 of the Act.
(2) The partnership must satisfy the requirements of subregulation (3) or (4).
(3) The partnership satisfies the requirements of this subregulation if, for at least 1 company that is a member of the GST group:
(a) the partnership has at least a 90% stake in the company (worked out in accordance with section 190-5 of the Act as if the partnership were a company); or
(b) the membership of the company consists only of:
(i) for a company with 1 member - a partner in the partnership or a family member of a partner; and
(ii) for a company with more than 1 member - partners in the partnership, or family members of the partners, in a way that ensures that at least 2 partners are represented, either personally or by a family member.
(4) The partnership satisfies the requirements of this subregulation if, for at least 1 trust that is a member of the GST group, the beneficiaries include partners in the partnership, or family members of the partners, in a way that ensures that at least 2 partners are represented:
(a) either personally or by a family member; and
(b) either directly, or indirectly through 1 or more interposed trusts.
48-10.03 Membership requirements for trusts
(1) For the purposes of subparagraph 48-10 (1) (a) (ii) of the Act, this regulation sets out requirements that must be satisfied for a trust to be a member of a GST group.
Note The trust must also satisfy other membership requirements set out in section 48-10 of the Act.
(2) The trustee:
(a) must have at least a 90% stake in a company that is a member of the GST group (worked out in accordance with section 190-5 of the Act as if the trustee were a company); or
(b) must not distribute any income or capital of the trust to a beneficiary that is not a permitted beneficiary (whether or not a distribution of that kind could be lawfully made).
(3) Each of the following is a permitted beneficiary :
(a) a company that is a member of the GST group;
(b) a charitable institution, a trustee of a charitable fund, or a gift-deductible entity.
(4) A member or members of a company that is a member of the GST group, and their family members, are also permitted beneficiaries if:
(a) for a company with 1 member - the member, or a family member of the member, is a beneficiary of the trust (either directly, or indirectly through 1 or more interposed trusts); and
(b) for a company with more than 1 member - the beneficiaries of the trust include members of the company, or family members of the members, in a way that ensures that at least 2 members of the company are represented:
(i) either personally or by a family member; and
(ii) either directly, or indirectly through 1 or more interposed trusts.
(5) Partners in a partnership that is a member of the GST group, and their family members, are also permitted beneficiaries if the beneficiaries of the trust include partners, or family members of the partners, in a way that ensures that at least 2 partners are represented:
(a) either personally or by a family member; and
(b) either directly, or indirectly through 1 or more interposed trusts.
2 Dictionary, after definition of charge card
[2] Dictionary, after definition of charge card
insert
company see the Dictionary in Part 6-3 of the Act.
3 Dictionary, after definition of financial supply provider
insert
gift-deductible entity see the Dictionary in Part 6-3 of the Act.
4 Dictionary, after definition of interest
[4] Dictionary, after definition of interest
insert
member , in relation to a GST group, see the Dictionary in Part 6-3 of the Act.
5 Dictionary, after definition of financial supply provider
[5] Dictionary, after definition of money
insert
partnership see the Dictionary in Part 6-3 of the Act.