Commonwealth Consolidated Acts

INDIRECT TAX LEGISLATION AMENDMENT ACT 2000 - SCHEDULE 1

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

1   Subsection 9 - 30(3)

Repeal the subsection, substitute:

Supplies that would be both GST - free and input taxed

  (3)   To the extent that a supply would, apart from this subsection, be both * GST - free and * input taxed:

  (a)   the supply is GST - free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or

  (b)   the supply is input taxed and not GST - free, if that provision requires the supplier to have so chosen.

Note:   Subdivisions   40 - E (School tuckshops and canteens) and 40 - F (Fund - raising events conducted by charitable institutions etc.) require such a choice.)

1A   Section   9 - 39 (after table item   5)

Insert:

1B   Section   11 - 99 (after table item   6)

Insert:

1C   Section   17 - 99 (after table item   8)

Insert:

1D   Section   19 - 99 (before table item   1)

Insert:

2   After subsection 27 - 15(2)

Insert:

  (2A)   Paragraph   (1)(d) does not apply to an entity that meets the requirements of subsection 63 - 5(2) for choosing to apply Division   63 (whether or not the entity chooses to apply that Division).

2A   Subsection 29 - 40(2)

Omit "or any * gift - deductible entity", substitute ", any * gift - deductible entity or any * government school".

2B   Section   37 - 1 (after table item   15)

Insert:

2C   Paragraphs 38 - 250(1)(a) and (2)(a)

Omit "or a * gift - deductible entity", substitute ", a * gift - deductible entity or a * government school".

2D   Paragraph 38 - 255(a)

Omit "or a * gift - deductible entity", substitute ", a * gift - deductible entity or a * government school".

2E   Section   38 - 255

Omit "or gift - deductible entity" (wherever occurring), substitute ", gift - deductible entity or government school".

2F   Paragraph 38 - 270(a)

Omit "or a * gift - deductible entity", substitute ", a * gift - deductible entity or a * government school".

2G   Paragraph 40-130(2)(a)

Repeal the paragraph.

3   At the end of Division   40

Add:

Subdivision   40 - F -- Fund - raising events conducted by charitable institutions etc.

40 - 160   Fund - raising events conducted by charitable institutions etc.

    A supply is input taxed if:

  (a)   the supplier is a charitable institution, a trustee of a charitable fund, a * gift - deductible entity or a * government school; and

  (b)   the supply is made in connection with a * fund - raising event; and

  (c)   the supplier chooses to have all supplies that it makes in connection with the event treated as input taxed; and

  (d)   the event is referred to in the supplier's records as an event that is treated as input taxed.

40 - 165   Meaning of fund - raising event

  (1)   Any of these is a fund - raising event if it is conducted for the purpose of fund - raising and it does not form any part of a series or regular run of like or similar events:

  (a)   a fete, ball, gala show, dinner, performance or similar event;

  (b)   an event comprising sales of goods if:

  (i)   each sale is for a * consideration that does not exceed $20 or such other amount as the regulations specify; and

  (ii)   selling such goods is not a normal part of the supplier's * business;

  (c)   an event that the Commissioner decides, on an application by the supplier in writing, to be a fund - raising event.

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

  (2)   Paragraph   (1)(b) does not apply to an event that involves the sale of alcoholic beverages or tobacco products.

  (3)   The Commissioner must not make a decision under paragraph   (1)(c) unless satisfied that:

  (a)   the supplier is not in the * business of conducting such events; and

  (b)   the proceeds from conducting the event are for the direct benefit of the supplier's charitable or non - profit purposes.

  (4)   The Commissioner may determine, in writing, the frequency with which events may be held without forming any part of a series or regular run of like or similar events for the purposes of subsection   (1).

4   Subsection 48 - 10(2) (note)

Repeal the note, substitute:

Note 1:   For the membership requirements of non - profit sub - entities, see section   63 - 50.

Note 2:   For the membership requirements of a GST group of government related entities, see section   149 - 25.

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.

4B   Paragraph 63 - 5(2)(a)

Omit "or a * gift - deductible entity", substitute ", a * gift - deductible entity or a * government school".

5   At the end of Division   63

Add:

63 - 50   Membership requirements of GST groups

    A * non - profit sub - entity satisfies the membership requirements for a * GST group, or a proposed GST group, if:

  (a)   it is * registered; and

  (b)   it has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and

  (c)   it accounts on the same basis as all those other members; and

  (d)   it is not a * member of any other GST group; and

  (e)   each of the other members of the GST group or proposed GST group is either:

  (i)   the entity of which the non - profit sub - entity is a branch; or

  (ii)   another branch of that entity that is a non - profit sub - entity.

6   At the end of section   111 - 1

Add "The entitlement extends to charitable bodies and government schools reimbursing their volunteers.".

7   After section   111 - 15

Insert:

111 - 18   Application of Division to volunteers working for charitable institutions etc.

    If:

  (a)   a charitable institution, a trustee of a charitable fund, a * gift - deductible entity or a * government school reimburses an individual for an expense he or she incurs; and

  (b)   the expense is directly related to his or her activities as a volunteer of the institution, fund, gift - deductible entity or government school;

this Division applies to the institution, fund, gift - deductible entity or government school as if:

  (c)   the individual were an employee of the institution, fund, gift - deductible entity or government school; and

  (d)   his or her activities in connection with incurring the expense were activities as such an employee.

7A   Section   195 - 1 (note at the end of the definition of creditable acquisition )

After "sections", insert "49 - 35,".

8   Section   195 - 1

Insert:

"fund-raising event" has the meaning given by section   40 - 165.

8A   Section   195 - 1

Insert:

"government school" means a * school that:

  (a)   supplies any of these kinds of * education courses:

  (i)   * pre - school courses;

  (ii)   full - time * primary courses;

  (iii)   full - time * secondary courses;

    (whether or not the school supplies any other education courses); and

  (b)   is conducted by or on behalf of an * Australian government agency;

and includes a proposed school that will meet the requirements of paragraphs   (a) and (b) once it starts operation.

8B   Section   195 - 1

Insert:

"GST religious group" has the meaning given by section   49 - 5.

8C   Section   195 - 1 (definition of member )

Repeal the definition, substitute:

"member" means:

  (a)   in relation to a * GST group--an entity, a * non - profit sub - entity or a * government related entity currently approved as one of the members of the group under section   48 - 5 or paragraph 48 - 70(1)(a); or

  (b)   in relation to a * GST religious group--an entity currently approved as one of the members of the group under section   49 - 5 or paragraph 49 - 70(1)(a).

8D   Section   195 - 1

Insert:

"principal member" , for a * GST religious group, is the * member of the group nominated as mentioned in paragraph 49 - 5(c), or approved as a replacement principal member for the group under paragraph 49 - 70(1)(c).

8E   Section   195 - 1 (definition of satisfies the membership requirements )

Repeal the definition, substitute:

"satisfies the membership requirements" :

  (a)   in relation to a * GST group--has the meaning given by section   48 - 10 or 149 - 25; or

  (b)   in relation to a * GST religious group--has the meaning given by section   49 - 10.

8F   Section   195 - 1 (note at the end of the definition of taxable supply )

After "sections", insert "49 - 30,".

9   Section   195 - 1 (definition of satisfies the membership requirements )

Omit "or 149 - 25", substitute ", 63 - 50 or 149 - 25".

Taxation Administration Act 1953

10   Subsection 62(2) (after table item   18)

Insert:

10A   Subsection 62(2) (after table item   24)

Insert:

11   After subsection 70(1A)

Insert:

  (1B)   If you choose under section   40 - 160 of the GST Act to have treated as input taxed all the supplies you make in connection with a fund - raising event, you must:

  (a)   keep records that record your choice; and

  (b)   retain those records for at least 5 years after making the choice.