A New Tax System (Goods and Services Tax) Regulations 1999 (repealed)

Part 4-1 - Special rules mainly about particular ways entities are organised  

Division 48 - GST groups  

Subdivision 48-A - Approval of GST groups  

48-10.02   Membership requirements for partnerships  

(1)    
For 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)    
If the GST group includes entities other than partnerships, the partnership must satisfy the requirements of subregulation (3), (3A), (4) or (5).

(2A)    
If the GST group consists only of partnerships:

(a) there are no further requirements for one of the partnerships; and

(b) each other partnership must satisfy the requirements of subregulation (5).

(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) shares of the company are held in such a way that:

(i) if there is 1 shareholder - the shareholder is a representative of a partner in the partnership; and

(ii) if there is more than 1 shareholder - at least 2 shareholders are representatives of different partners in the partnership.

(3A)    
The partnership satisfies the requirements of this subregulation if each partner in the partnership is:

(a) an individual who is a member of the GST group; or

(b) a family member of such an individual.

(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 at least 2 representatives of different partners in the partnership.

(5)    
The partnership (the candidate partnership ) satisfies the requirements of this subregulation if:

(a) there is a partnership (the member partnership ) that is a member of the GST group because of:

(i) paragraph (2A)(a) or subregulation (3), (3A) or (4); or

(ii) this subregulation, including the repeated application of this subregulation; and

(b) each partner in the candidate partnership is an individual, a family trust of an individual or a family company of an individual; and

(c) for each partner in the candidate partnership that is an individual, a family trust of an individual or a family company of an individual, one of the following is a partner in the member partnership:

(i) the individual;

(ii) a family trust of the individual;

(iii) a family company of the individual;

(iv) a family member of the individual;

(v) another individual for whom the first individual is a family member;

(vi) a family trust of a family member mentioned in subparagraph (iv) or the other individual mentioned in subparagraph (v);

(vii) a family company of a family member mentioned in subparagraph (iv) or the other individual mentioned in subparagraph (v); and

(d) at least 2 of the partners in the candidate partnership comply with paragraph (c) through different partners in the member partnership (whether or not they also comply through the same partner in the member partnership).

(6)    
For this regulation:

(a) a family trust of an individual is a trust that distributes income or capital of the trust only to the individual or family members of the individual (whether or not other distributions could lawfully be made); and

(b) a family company of an individual is a company each shareholder of which is either the individual or a family member of the individual.