Indirect Tax Legislation Amendment Act 2000 (92 of 2000)

Schedule 1   Non-profit bodies

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

4A   After Division 48

Insert:

Division 49 - GST religious groups

Table of Subdivisions

49-A Approval of GST religious groups

49-B Consequences of approval of GST religious groups

49-C Administrative matters

49-1 What this Division is about

Some registered charitable bodies can be approved as a GST religious group. Transactions between members of the group are then excluded from the GST.

Subdivision 49-A - Approval of GST religious groups

49-5 Approval of GST religious groups

The Commissioner must approve 2 or more entities as a *GST religious group if:

(a) the entities jointly apply, in the *approved form, for approval as a GST religious group; and

(b) each of the entities *satisfies the membership requirements for that GST religious group; and

(c) the application nominates one of the entities to be the *principal member for the group; and

(d) the entity so nominated is an *Australian resident.

A group of entities that is so approved is a GST religious group .

Note: Refusing an application for approval under this section is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

49-10 Membership requirements of a GST religious group

An entity satisfies the membership requirements of a *GST religious group, or a proposed GST religious group, if:

(a) the entity is *registered; and

(b) the entity is endorsed as exempt from income tax under Subdivision 50-B of the *ITAA 1997; and

(c) all the other members of the GST religious group or proposed GST religious group are so endorsed; and

(d) the entity and all those other members are part of the same religious organisation; and

(e) the entity is not a member of any other GST religious group.

Subdivision 49-B - Consequences of approval of GST religious groups

49-30 Supplies between members of GST religious groups

(1) A supply that a *member of a *GST religious group makes to another member of the same GST religious group is treated as if it were not a *taxable supply.

(2) This section has effect despite section 9-5 (which is about what are taxable supplies).

49-35 Acquisitions between members of GST religious groups

(1) An acquisition that a *member of a *GST religious group makes from another member of the same GST religious group is treated as if it were not a *creditable acquisition.

(2) This section has effect despite section 11-5 (which is about what are creditable acquisitions).

49-40 Adjustment events

(1) An *adjustment event cannot arise in relation to:

(a) a supply that a *member of a *GST religious group makes to another member of the same GST religious group; or

(b) an acquisition that a member of a GST religious group makes from another member of the same GST religious group.

(2) This section has effect despite section 19-10 (which is about what are adjustment events).

49-45 Changes in the extent of creditable purpose

(1) An *adjustment cannot arise under Division 129 in relation to an acquisition that a *member of a *GST religious group makes from another member of the same GST religious group.

(2) This section has effect despite section 129-5 (which is about when adjustments can arise under Division 129).

49-50 GST religious groups treated as single entities for certain purposes

(1) Despite sections 49-35, 49-40 and 49-45, a *GST religious group is treated as a single entity, and not as a number of entities corresponding to the *members of the GST religious group, for the purposes of working out:

(a) whether acquisitions or importations by a member are for a *creditable purpose; and

(b) the amounts of any input tax credits to which the member is entitled; and

(c) whether the member has any *adjustments; and

(d) the amounts of any such adjustments.

(2) This section has effect despite section 11-25 (which is about the amount of input tax credits) and section 17-10 (which is about the effect of adjustments on net amounts).

Subdivision 49-C - Administrative matters

49-70 Changing the membership etc. of GST religious groups

Changes made on application

(1) The Commissioner must, if the *principal member of a *GST religious group applies to the Commissioner in the *approved form, do one or more of these (as requested in the application):

(a) approve, as an additional *member of the GST religious group, another entity that *satisfies the membership requirements for the GST religious group;

(b) revoke the approval of one of the members of the GST religious group as a member of the group;

(c) approve another member of the GST religious group to replace the applicant as the principal member of the group.

Note: Refusing an application for approval or revocation under this subsection is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

Changes made without application

(2) The Commissioner must revoke the approval of one of the *members of a *GST religious group if satisfied that the member does not *satisfy the membership requirements for the GST religious group.

Note: Revoking under this subsection an approval under this Division is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

49-75 Revoking the approval of GST religious groups

Revoking on application

(1) The Commissioner must, if the principal member of a *GST religious group applies to the Commissioner in the *approved form, revoke the approval of the group as a GST religious group.

Note: Refusing an application for revocation under this subsection is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

Revoking without application

(2) The Commissioner must revoke the approval of the *GST religious group if satisfied that none of its members, or only one of its members, *satisfies the membership requirements for that GST religious group.

Note: Revoking under this subsection the approval of a GST group is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

49-80 Notification by principal members

The principal member of a *GST religious group must notify the Commissioner of any circumstances under which the Commissioner must:

(a) revoke the approval of one of the *members of the group under subsection 49-70(2); or

(b) revoke the approval of the group under subsection 49-75(2).

The notification may (in appropriate cases) be in the form of an application under subsection 49-70(1) or 49-75(1). The notification, or application, must be given to the Commissioner within 21 days after the circumstances occurred.

49-85 Date of effect of approvals and revocations

(1) The Commissioner must decide the date of effect of any approval, or any revocation of an approval, under this Division.

(2) The date of effect may be the day of the decision, or a day before or after that day. However, it must be a day on which, for all the *members of the *GST religious group in question, a tax period begins.

Note: Deciding under this section the date of effect of any approval, or any revocation of an approval, under this Division is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

49-90 Notification by the Commissioner

The Commissioner must give notice of any decision that he or she makes under this Division:

(a) if the decision relates to the approval of 2 or more entities as a *GST religious group - to the entity nominated in the application for approval to be the *principal member of the group; or

(b) otherwise - to the principal member of the *GST religious group to which the decision relates.