A New Tax System (Goods and Services Tax) Regulations 1999 (repealed)

Part 4-2 - Special rules mainly about supplies and acquisitions  

Division 70 - Financial supplies (reduced credit acquisitions)  

70-5.02   Acquisitions that attract reduced input tax credits: general (Act s 70-5)  

(1)    
For subsection 70-5(1) of the Act, an acquisition mentioned in subregulation (2) that relates to making financial supplies gives rise to an entitlement to a reduced input tax credit.

(2)    
The following acquisitions (within the meaning of subsection 70-5(1) of the Act) are reduced credit acquisitions:

Item	Reduced credit acquisition
	Transaction banking and cash management services
1	The service of opening, issuing, closing, operating, maintaining, or performing a transaction in respect of an account by a financial supply facilitator, including by using the following facilities: (a)   telephone banking; (b)   Internet banking; (c)   GiroPost
2	Processing services in relation to account information for account providers, including: (a)   archives storage, retrieval and destruction services; and (b)   statement processing and bulk mailing; and (c)   processing and manipulation of information relating to accounts,     including information about transactions to which item 7 applies
3	Acquisition of transaction cards by card account providers
4	Acquisition of passbooks, deposit and withdrawal forms and cheques and chequebooks by account providers
5	Processing services in relation to account applications for account providers, including providing credit reference and credit scoring assessment
	Payment and fund transfers services
6	Supplies to which the following payment system fees relate: (a)   fees charged by the operator of a payment system to a participant     in the system; (b)   fees charged by a participant in a payment system to a third party     in relation to access to the system; (c)   fees charged between participants in a payment system
7	Processing, settling, clearing and switching transactions of the following kinds: (a)   direct credit and debit; (b)   other credit and debit transactions; (c)   charge, credit and debit card transactions; (d)   cheque; (e)   electronic funds transfer; (f)   ATM; (g)   B-pay; (h)   Internet banking; (i)   GiroPost; (j)   the SWIFT (Society for Worldwide Interbank Financial     Telecommunications) Payment Delivery System
8	Services to a third party mentioned in paragraph 6(b), including: (a)   processing of account data; and (b)   electronic payment services
	Securities transactions services
9	Arrangement, by a financial supply facilitator, of the provision, acquisition or disposal of an interest in a security, including the following: (a)   order placement and trade execution; (b)   clearance and settlement of trades; (c)   management of the issue of securities, including rights and bonus     issues; (d)   arranging flotations and privatisations; (e)   arranging mergers and acquisitions; (f)   arranging takeover bids; (g)   performing a settlement, including issue of drafts and     encashment; (h)   other securities transactions, including lodgment, withdrawal     and exchange control; (i)   underwriting, except a matter that is described in the table in     regulation 40-5.09
10	Securities and unit registry services to securities and unit issuers, including: (a)   managing portfolios of assets; and (b)   allotting of share issues; and (c)   making dividend payments; and (d)   receiving application for issue of shares; and (e)   performing a redemption or capital repayment; and (f)   placing scrip orders; and (g)   bonus issue; and (h)   scrip settlement; and (i)   client account processing; and (j)   transaction processing and recording; and (k)   handling investor inquiries
	Loans services
11	The following supplies by a financial supply facilitator: (a)   loan agency services; (b)   provision of a loan facility; (c)   mortgage broking; (d)   arranging syndicated loans; (e)   introducing and broking
12	Lenders mortgage and title insurance
12A	Lenders mortgage reinsurance
13	Loan protection insurance
14	The following loan application, management and processing services: (a)   loan origination and brokerage; (b)   settlement and discharge of loans, including document     preparation; (c)   registration of loan documents; (d)   credit reference assessment and credit scoring analysis; (e)   valuations; (f)   property title searches; (g)   registration and certification of titles; (h)   mortgage variations, including name changes; (i)   adding and deleting caveats to titles
15	The following loan management services: (a)   processing of repayments; (b)   statement preparation; (c)   filing and requisitioning of loan file records
	Credit union services
16	Supply to a credit union by: (a)   an entity that is wholly owned by 2 or more credit unions; or (b)   an entity that is wholly owned by an entity mentioned     in paragraph (a)
	Debt collection services
17	The following debt collection services: (a)   debt recovery; (b)   litigation; (c)   lodgment of documents; (d)   by financial supply facilitator, managing the recovery of sums due     by borrowers
	Asset based finance services
18	Arrangement by a financial supply facilitator of hire purchase to which item 8 in the table in regulation 40-5.09 applies
	Trade finance services
19	Trade finance transaction processing and recording
20	Trade finance remittance services
	Capital markets and financial instruments services
21	Arrangement by a financial supply facilitator of: (a)   the supply of a derivative or the currency of a foreign country, or     an agreement to buy or sell the currency; or (b)   the sale of a forward contract; or (c) the supply of digital currency, or an agreement to buy or sell digital currency
22	Transaction processing, account maintenance and report generation services provided to: (a) suppliers of derivatives; or (b) suppliers of the currency of a foreign country, or an agreement to buy or sell the currency; or (c) suppliers of digital currency, or an agreement to buy or sell digital currency
	Funds management services
23	The following investment portfolio management functions, including those functions for superannuation schemes: (a)   management of a client ' s asset portfolio; (b)   management of an investment portfolio for a trust or     superannuation fund; (c)   acting as a trustee of a trust or superannuation fund; (d)   acting as a single responsible entity; (e)   asset allocation services
24	The following administrative functions in relation to investment funds, including those functions for superannuation schemes: (a)   maintaining member and employer and trustee records and     associated accounting; (b)   processing of applications, contributions, benefits and     distributions; (c)   processing transfer between funds and trusts; (d)   production and distribution of reports, statements and forms to     members, employers and trustees; (e)   handling of inquiries and complaints made by members; (f)   archives storage, retrieval and destruction services; (g)   statement processing and bulk mailing; (h)   compliance with industry regulatory requirements, excluding     taxation and auditing services; (i)   processing and assessing claims under life insurance policies     carried out on or after 1 July 2012
	Insurance services
25	Brokerage of general or life insurance
26	The following life insurance administration services provided for a life insurer: (a)   maintaining policyholder records and associated accounting; (b)   processing of premiums and benefits; (c)   processing and assessing claims under policies; (d)   production and distribution of reports, statements and forms to     policyholders, including statement processing and bulk handling; (e)   handling of inquiries and complaints made by policyholders; (f)   archives storage, retrieval and destruction services; (g)   processing and assessing applications; (h)   compliance with industry regulatory requirements, excluding     taxation and auditing services; (i)   managing reinsurance requirements
	Services remunerated by commission and franchise fees
27	Supplies for which financial supply facilitators are paid commission by financial supply providers
28	Supplies provided by financial supply facilitators to franchisors, for which the facilitators are paid a franchise fee
	Trustee and custodial services
29	Trustee and custodial services (except safe custody of money, documents and other things), including: (a)   transfer of cash without purchase, sale or transfer of assets,     excluding cash delivery and collection from branches of     Australian ADIs; and (b)   undertaking and settling of securities transactions by a financial     supply facilitator; and (c)   collecting income and other payments; and (d)   registration of interests and rights; and (e)   proxy voting; and (f)   exercise of options and warrants; and (g)   opening and maintaining accounts with Australian ADIs; (h)   nominee services in relation to financial supplies
30	The following master custody services: (a)   maintenance of accounting records; (b)   taxation reporting; (c)   mandate monitoring; (d)   trade execution monitoring; (e)   portfolio performance analysis; (f)   risk management reporting
31	Single responsible entity services
	Supplies to recognised trust schemes
32	Supplies acquired by a recognised trust scheme, to the extent that: (a)   the supplies are acquired on or after 1 July 2012; and (b)   the supplies acquired are not:     (i) a supply by way of sale of goods or supply of real property       made by:       (A) selling a freehold interest in land; or       (B) selling a stratum unit; or       (C) granting or selling a long-term lease; or     (ii) a brokerage service covered by item 9 or 21; or     (iii) a service covered by paragraph (a), (b) or (e) of item 23; or     (iv) a service covered by paragraph (a), (b), (c), (d), (e), (f), (g)         or (i) of item 24; or     (v) a custodial service covered by item 29; or     (vi) a service covered by item 30; or     (vii) a service covered by item 33
	Monitoring services
33	Monitoring and reporting services (other than taxation and auditing services) that: (a)   are acquired on or after 1 July 2012; and (b)   are required for compliance with the Anti-Money Laundering     and Counter-Terrorism Financing Act 2006

(3)    
However, something that is used in making a reduced credit acquisition is not, for that reason, a reduced credit acquisition.

Examples for subregulation (3)

1 Information technology services used for brokerage services

2 Labour hire services used for life insurance administration services

(4)    
For this regulation:

debt interest
has the same meaning as in the Income Tax Assessment Act 1997 .

long-term lease
- see the Dictionary in Part 6-3 of the Act.

managed investment scheme
has the same meaning as in the Corporations Act 2001 .

mortgage loan
means a loan secured by a mortgage over real property.

mortgage scheme
means a managed investment scheme that has at least 50% of its non-cash assets invested in mortgage loans or in one or more other mortgage schemes.

real property
- see the Dictionary in Part 6-3 of the Act.

recognised trust scheme
means a trust that has the following features:

(a) the entity that acts in the capacity as trustee or responsibility entity of the trust, is carrying on, in its own capacity, an enterprise that includes making taxable supplies to the trust;

(b) the trust is:

(i) a managed investment scheme, or part of a managed investment scheme, other than a securitisation entity or a mortgage scheme; or

(ii) an approved deposit fund within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or

(iii) a pooled superannuation trust within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or

(iv) a public sector superannuation scheme within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or

(v) a regulated superannuation fund (other than a self managed superannuation fund) within the meaning of the Superannuation Industry (Supervision) Act 1993 .

securitisation entity
means a trust that has the following features:

(a) the trust was established for the purpose of managing some or all of the economic risk associated with assets, liabilities or investments (whether the trust assumes the risk from another person or creates the risk itself);

(b) the total value of the debt interests in the trust is at least 50% of the total value of the trust ' s assets;

(c) the trust is an insolvency-remote special purpose entity according to criteria of an internationally recognised rating agency that are applicable to the circumstances of the trust (regardless of whether the agency has determined that the trust satisfies the criteria).

stratum unit
- see the Dictionary in Part 6-3 of the Act.