A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1) (Cth)

A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1)

Statutory Rules 2000 No. 49

I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under theA New Tax System (Goods and Services Tax) Act 1999.

Dated 12 April 2000

WILLIAM DEANE

Governor-General

By His Excellency’s Command

PETER COSTELLO

Treasurer

A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1)1

Statutory Rules 2000 No. 492

made under the

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

   

Contents

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1Name of Regulations

 These Regulations are the A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 1).

2Commencement

 These Regulations commence on gazettal.

3Amendment 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 1Amendments

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(regulation 3)

[1]After Part 3-1

insert

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

Division 48GST groups

Subdivision 48-AApproval of GST groups

48-10.01Definitions 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.

48-10.02Membership 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.

  48-10.03Membership 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

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

insert

member, in relation to a GST group, see the Dictionary in Part 6‑3 of the Act.

[5]Dictionary, after definition of money

insert

partnership see the Dictionary in Part 6-3 of the Act.

Notes

1. These Regulations amend Statutory Rules 1999 No. 245.

2. Made by the Governor-General on 12 April 2000, and notified in the Commonwealth of Australia Gazette on 19 April 2000.