TAX LAWS AMENDMENT (2010 GST ADMINISTRATION MEASURES NO. 2) BILL 2010

i Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. ,

2010

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--GST groups and GST joint ventures

Part 1--Forming, changing and dissolving GST groups and

GST joint ventures

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

Taxation Administration Act 1953

Part 2--Indirect tax sharing agreements

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

Taxation Administration Act 1953

Schedule 2--Rulings

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

Excise Act 1901

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Schedule 3--Tax invoices

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

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

A Bill for an Act to amend legislation relating to

indirect tax, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2010 GST

Administration Measures No. 2) Act 2010.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. ,

2010

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

The day this Act receives the Royal Assent.

3. Schedule 2

1 July 2010.

1 July 2010

4. Schedule 3

The day this Act receives the Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

Schedule 1--GST groups and GST joint

ventures

Part 1--Forming, changing and dissolving GST

groups and GST joint ventures

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

1 Section 48-1

Omit "be approved as", substitute "form".

2 Subdivision 48-A (heading)

Repeal the heading, substitute:

Subdivision 48-A--Formation and membership of GST groups

3 Section 48-5

Repeal the section, substitute:

48-5 Formation of GST groups

(1) Two or more entities may form a

GST group if:

(a) each of the entities

satisfies the membership requirements of

the group; and

(b) each of the entities agrees in writing to the formation of the

group; and

approved form, of the formation of the group; and

(d) that entity is nominated, in that notice, to be the

representative member of the group; and

(e) that entity is an

Australian resident.

A group of entities that is so formed is a GST group.

(2) If 2 or more entities would

satisfy the membership requirements

for the

GST group, the group need not include all those entities.

(3) The formation of the

GST group takes effect from the start of the

day specified in the notice under paragraph (1)(c) (whether that day

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

4 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. ,

2010

is before, on or after the day on which the entities decided to form

the group).

(4) However, if the notice was given to the Commissioner after the day

by which the entity nominated to be the

representative member of

the group is required to give to the Commissioner a

GST return

for the tax period in which the day specified in the notice occurs,

the formation of the

GST group takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the

Commissioner under section 48-71; and

(b) if paragraph (a) does not apply--such other day as the

Commissioner approves under that section.

48-7 Membership of GST groups

(1)

member of a

GST group is an entity that:

(a) formed the group under section 48-5, or was added to the

group under section 48-70; and

(b)

satisfies the membership requirements of the group.

(2) However, the entity is not a member of the

GST group if the

entity has, since the last time the entity became such a member:

(a) left, or been removed from, the group under section 48-70; or

(b)

ceased

satisfy the membership requirements of the group.

(3)

The

representative member of a

GST group must notify the

Commissioner, in the

approved form, if a

member of the group

no longer

satisfies the membership requirements for the GST

group.

(4) The notice must be given within 21 days after the

member no

longer

satisfies the membership requirements for the

GST group.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953

provides an administrative penalty for breach of this subsection.

4 After subsection 48-10(2)

Insert:

(2A) Paragraph (1)(d) does not apply in relation to a tax period that the

Commissioner has determined under section 27-30 if the tax

period:

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(a) ends at the same time as a tax period (a corresponding tax

period) of each of the other

members of the

GST group;

and

(b) is not longer than any corresponding tax period (other than a

tax period that the Commissioner has determined under

section 27-30).

5 Subdivision 48-B (heading)

Repeal the heading, substitute:

Subdivision 48-B--Consequences of GST groups

6 Subsection 48-40(1)

Omit "payable on any

taxable supply or

taxable importation that a

member of a

GST group makes", substitute "that is payable on any

taxable supply an entity makes and that is attributable to a tax period

during which the entity is a

member of a

GST group".

7 Paragraph 48-40(1)(b)

Omit "the member" (wherever occurring), substitute "the entity".

8 After subsection 48-40(1)

Insert:

(1A) GST that is payable on any

taxable importation an entity makes

while the entity is a

member of a

GST group:

(a) is payable by the

representative member; and

(b) is not payable by the member that made it (unless the

member is the representative member).

Note:

However, each member may be jointly and severally liable to pay the

GST that is payable by the representative member (see section 444-90

in Schedule 1 to the Taxation Administration Act 1953).

9 Subsection 48-45(1)

Omit "a

member of a

GST group makes a

creditable acquisition or

creditable importation", substitute "an entity makes a

creditable

acquisition or

creditable importation the input tax credit for which is

attributable to a tax period during which the entity is a

member of a

GST group".

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

6 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. ,

2010

10 Paragraph 48-45(1)(b)

Omit "the member" (wherever occurring), substitute "the entity".

11 Subsection 48-45(2)

Omit "a

member of a

GST group", substitute "an entity".

12 Subsection 48-50(1)

Omit "that a

member of a

GST group has", substitute "that an entity

has and that is attributable to a tax period during which the entity is a

member of a

GST group".

13 Paragraph 48-50(1)(a)

Omit "that member" (wherever occurring), substitute "the entity".

14 After section 48-50

Insert:

48-51 Consequences of being a member of a GST group for part of a

tax period

(1) If you are a

member of a

GST group only for one or more parts

of a tax period:

(a) section 48-40 does not apply to the GST payable on a

taxable supply that you make, to the extent that the GST

would be attributable to a period to which subsection (2)

applies if it were a tax period applying to you; and

(b) section 48-40 does not apply to the GST payable on a

taxable importation that you make during a period to which

subsection (2) applies; and

creditable acquisition or

creditable importation that you

make, to the extent that the input tax credit would be

attributable to a period to which subsection (2) applies if it

were a tax period applying to you; and

(d) section 48-50 does not apply to an

adjustment that you have

that that would be attributable to a period to which

subsection (2) applies if it were a tax period applying to you.

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(2) This section applies to any period, during the tax period, during

which you were not a

member of that

GST group or any other

GST group.

48-52 Consequences for a representative member of membership

change during a tax period

(1) If an entity is a

member of a

GST group, of which you are the

representative member, only for one or more parts of a tax period:

(a) section 48-40 only applies to the GST payable on a

taxable

supply that the entity makes, to the extent that the GST

would be attributable to a period to which subsection (2)

applies if it were a tax period applying to the entity; and

(b) section 48-40 only applies to the GST payable on a

taxable

importation that the entity makes during a period to which

subsection (2) applies; and

creditable acquisition or

creditable importation that the

entity makes, to the extent that the input tax credit would be

attributable to a period to which subsection (2) applies if it

were a tax period applying to the entity; and

(d) section 48-50 only applies to an

adjustment that the entity

has that would be attributable to a period to which

subsection (2) applies if it were a tax period applying to the

entity.

(2) This section applies to any period, during the tax period, during

which the entity was a

member of the

GST group of which you

are the

representative member.

(3) However, if you are the

representative member of the

GST group

only for one or more parts of the tax period, this section has effect

subject to section 48-53.

(4) If an entity is a

member of different

GST groups during the same

tax period, subsections (1) and (2) apply separately in relation to

each of those groups.

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

8 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. ,

2010

48-53 Consequences of changing a representative member during a

tax period

(1) If you are the

representative member of a

GST group only for

one or more parts of a tax period, then, in relation to your capacity

as the representative member:

(a) section 48-40 only applies to the GST payable on a

taxable

supply that an entity makes, to the extent that the GST would

be attributable to a period to which subsection (2) applies if it

were a tax period applying to you; and

(b) section 48-40 only applies to the GST payable on a

taxable

importation that an entity makes during a period to which

subsection (2) applies; and

creditable acquisition or

creditable importation that an

entity makes, to the extent that the input tax credit would be

attributable to a period to which subsection (2) applies if it

were a tax period applying to you; and

(d) section 48-50 only applies to an

adjustment that an entity

has that would be attributable to a period to which

subsection (2) applies if it were a tax period applying to you.

(2) This section applies to any period, during the tax period, during

which you were the

representative member of the

GST group.

15 At the end of subsection 48-60(1)

Add:

Note:

If you were not a member of a GST group during the whole of a tax

period, you are still obliged to give a GST return for the tax period,

and (because of section 48-51) your net amount for the tax period will

take into account your liabilities and entitlements relating to the one or

more parts of the tax period during which you were not a member.

16 Section 48-70

Repeal the section, substitute:

48-70 Changing the membership etc. of GST groups

(1) The following actions may be taken, in accordance with

subsection (2), in relation to a

GST group:

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(a)

the

representative member of the group may, with the

written agreement of an entity that

satisfies the membership

requirements of the GST group, add the entity to the group;

(b) the representative member may leave the group; or

(c)

another

member of the group, nominated by the members,

who is an

Australian resident may become the new

representative member; or

(d) the representative member may remove from the group any

other member of the group; or

(e) if a member of the group is an

incapacitated entity--the

entity's

representative may remove the entity from the

group; or

(f) the representative member may dissolve the group.

(2) The action is to be taken by notice given to the Commissioner, in

the

approved form, by:

(a) if paragraph (1)(a), (d) or (f) applies--the

representative

member; or

(b) if paragraph (1)(b) or (c) applies--the new representative

member of the group; or

representative of the

incapacitated entity.

(3) The action takes effect from the start of the day specified in the

notice (whether that day is before, on or after the day on which the

notice was given to the Commissioner).

(4) However, if the notice was given to the Commissioner after the day

by which the

representative member of the group, or the entity

nominated to be the new representative member of the group, is

required to give to the Commissioner a

GST return for the tax

period in which the day specified in the notice occurs, the action

takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the

Commissioner under section 48-71; and

(b) if paragraph (a) does not apply--such other day as the

Commissioner approves under that section.

(5) Despite subsections (3) and (4), action taken under

paragraph (1)(e) cannot take effect earlier than the day on which

the

member of the group became an

incapacitated entity.

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

10 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(6)

GST group is taken to be dissolved if:

(a)

member of the group ceases to be the

representative

member of the group; and

(b) no other member of the group becomes the representative

member of the group, with effect from the day after the

previous representative member ceased to be the

representative member of the group.

(7) A notice that another

member of the

GST group has become the

representative member of the group must be given to the

Commissioner within 21 days after the other member became the

representative member.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953

provides an administrative penalty for breach of this subsection.

48-71 Approval of early day of effect of forming, changing etc. GST

groups

(1) If an entity that gives a notice to the Commissioner under

paragraph 48-5(1)(c) or subsection 48-70(2) applies, in the

approved form, to the Commissioner for approval of a day

specified in the notice, the Commissioner must:

(a) approve, for the purposes of subsection 48-5(4) or 48-70(4),

the day specified in the notice; or

(b) approve another day for that purpose.

Note:

Approving another day under paragraph (b) is a reviewable GST

decision (see Subdivision 110-F in Schedule 1 to the Taxation

Administration Act 1953).

(2) The Commissioner may revoke an approval given under

subsection (1) if the Commissioner is satisfied that the day

approved is not appropriate.

Note:

Revoking an approval under this subsection is a reviewable GST

decision (see Subdivision 110-F in Schedule 1 to the Taxation

Administration Act 1953).

(3) The Commissioner must give notice, to the entity referred to in

subsection (1), of any decision that he or she makes under this

section.

17 Section 48-72

Repeal the section.

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

18 Subsection 48-73(1) (note 2)

Repeal the note, substitute:

Note 2:

If the representative member does not make an election under this

section when a member of the group becomes an incapacitated entity,

the member's membership of the group may cease if, because of

section 27-39, the tax periods applying to it are not the same as those

applying to the other members of the group.

19 After subsection 48-73(1)

Insert:

(1A) If an entity ceases to be the

representative member of a

GST

group as a result of becoming an

incapacitated entity, the entity

may make an election under subsection (1), in relation to becoming

an incapacitated entity, as if the entity were still the representative

member of the group.

(1B) A notice under subsection (1) must be given to the Commissioner

within 21 days after the

member becomes an

incapacitated entity.

20 Sections 48-75 to 48-90

Repeal the sections, substitute:

48-75 Effect of representative member becoming an incapacitated

entity

(1)

If:

(a)

the

representative member of a

GST group becomes an

incapacitated entity; and

(b) the representative member does not cease to be a

member of

the group;

the representative member ceases to be the representative member

of the group unless all the other

members of the group are

incapacitated entities.

(2) Subsection (1) does not apply for the purposes of the representative

member making an election under subsection 48-73(1) relating to

the representative member.

(3)

The

representative member of a

GST group ceases to be the

representative member of the group if:

(a)

all

the

members of the group are

incapacitated entities; and

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

12 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(b) a member of the group who is not the representative member

ceases to be an incapacitated entity.

21 Section 51-1

Omit "have it approved as", substitute "form".

22 Subdivision 51-A (heading)

Repeal the heading, substitute:

Subdivision 51-A--Formation of and participation in GST joint

ventures

23 Section 51-5 (heading)

Repeal the heading, substitute:

51-5 Formation of GST joint ventures

24 Subsection 51-5(1)

Omit "The Commissioner must approve 2 or more entities as",

substitute "Two or more entities may become".

25 Paragraph 51-5(1)(c)

Repeal the paragraph.

26 Paragraph 51-5(1)(e)

Repeal the paragraph, substitute:

(e) each of those entities agrees in writing to the

formation of

the joint venture as a GST joint venture; and

(ea) one of those entities, or another entity, is nominated, in that

agreement, to be the

joint venture operator of the joint

venture; and

(eb) the nominated joint venture operator notifies the

Commissioner, in the

approved form, of the formation of the

joint venture as a GST joint venture; and

27 Subsection 51-5(1)

Omit "A joint venture that is so approved", substitute "Such a joint

venture".

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

28 Subsection 51-5(2) (including the note)

Repeal the subsection, substitute:

(2) Not all of the entities that are engaged in, or intend to engage in,

the joint venture need to become

participants in the

GST joint

venture.

(3)

The

formation of the

GST joint venture takes effect from the start

of the day specified in the notice under paragraph (1)(eb) (whether

that day is before, on or after the day on which the entities decided

to form the joint venture).

(4) However, if the notice was given to the Commissioner after the day

by which the entity nominated to be the

joint venture operator of

the

GST joint venture is required to give to the Commissioner a

GST return for the tax period in which the day specified in the

notice occurs, the

formation of the GST joint venture takes effect

from the start of:

(a) the day specified in the notice, if that day is approved by the

Commissioner under section 51-75; and

(b) if paragraph (a) does not apply--such other day as the

Commissioner approves under that section.

29 After section 51-5

Insert:

51-7 Participants in GST joint ventures

(1)

participant in a

GST joint venture is an entity that:

(a) became a participant in the joint venture under section 51-5

or was added to the joint venture under section 51-70; and

(b)

satisfies the participation requirements for the joint venture.

(2) However, the entity is not a participant in the

GST joint venture if

the entity has, since the last time the entity became such a

participant:

(a) left, or been removed from, the joint venture under

section 51-70; or

(b)

ceased

satisfy the participation requirements for the joint

venture.

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

14 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(3)

The

joint venture operator of a

GST joint venture must notify the

Commissioner, in the

approved form, if a

participant in the joint

venture no longer

satisfies the participation requirements for the

GST joint venture.

(4) The notice must be given within 21 days after the

participant no

longer

satisfies the participation requirements for the

GST joint

venture.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953

provides an administrative penalty for breach of this subsection.

30 Subdivision 51-B (heading)

Repeal the heading, substitute:

Subdivision 51-B--Consequences of GST joint ventures

31 Subdivision 51-C

Repeal the Subdivision, substitute:

Subdivision 51-C--Administrative matters

51-70 Changing the participants etc. of GST joint ventures

(1) The following actions may be taken in relation to a

GST joint

venture:

(a)

the

joint venture operator of the joint venture may, with the

written agreement of an entity that

satisfies the participation

requirements of the GST joint venture, add the entity to the

joint venture;

(b) the joint venture operator may:

(i) if the joint venture operator is a

participant in the joint

venture--leave the joint venture; or

(ii) remove from the joint venture a participant in the joint

venture;

venture, that satisfies the requirements of paragraphs

51-10(c) and (f) may become the joint venture operator;

(d) the joint venture operator may dissolve the joint venture;

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

by notice given to the Commissioner, in the

approved form, by the

joint venture operator, or (if subparagraph (b)(i) or paragraph (c)

applies) by the new joint venture operator of the joint venture.

(2) The action takes effect from the start of the day specified in the

notice (whether that day is before, on or after the day on which the

notice was given to the Commissioner).

(3) However, if the notice was given to the Commissioner after the day

by which the

joint venture operator of the joint venture, or the

entity nominated to be the new joint venture operator of the joint

venture, is required to give to the Commissioner a

GST return for

the tax period in which the day specified in the notice occurs, the

action takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the

Commissioner under section 51-75; and

(b) if paragraph (a) does not apply--such other day as the

Commissioner approves under that section.

(4)

GST joint venture is taken to be dissolved if:

(a) an entity ceases to be the

joint venture operator of the joint

venture, and no other entity becomes the joint venture

operator of the joint venture with effect from the day after the

previous joint venture operator ceased to be the joint venture

operator; or

(b) there are no longer 2 or more

participants in the joint

venture.

(5) A notice that another entity has become the

joint venture operator

of the

GST joint venture must be given to the Commissioner

within 21 days after the other entity became the joint venture

operator.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953

provides an administrative penalty for breach of this subsection.

51-75 Approval of early day of effect of forming, changing etc. GST

joint ventures

(1) If an entity that gives a notice to the Commissioner under

paragraph 51-5(1)(eb) or subsection 51-70(1) applies, in the

approved form, to the Commissioner for approval of a day

specified in the notice, the Commissioner must:

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

16 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(a) approve, for the purposes of subsection 51-5(4) or 51-70(3),

the day specified in the notice; or

(b) approve another day for that purpose.

Note:

Approving another day under paragraph (b) is a reviewable GST

decision (see Subdivision 110-F in Schedule 1 to the Taxation

Administration Act 1953).

(2) The Commissioner may revoke an approval given under

subsection (1) if the Commissioner is satisfied that the day

approved is not appropriate.

Note:

Revoking an approval under this subsection is a reviewable GST

decision (see Subdivision 110-F in Schedule 1 to the Taxation

Administration Act 1953).

(3) The Commissioner must give notice, to the entity referred to in

subsection (1), of any decision that he or she makes under this

section.

32 Subsection 58-10(6)

Omit "48-40(1)", substitute "48-40(1) and (1A)".

33 Paragraph 151-25(1)(c)

Omit "registered; or", substitute "registered.".

34 Paragraph 151-25(1)(d)

Repeal the paragraph.

35 Sections 151-65 and 151-70

Repeal the sections.

36 Section 195-1

Insert:

formation, in relation to a

GST joint venture, means 2 or more

entities becoming

participants in the joint venture as mentioned in

subsection 51-7(1).

37 Section 195-1 (definition of joint venture operator)

Repeal the definition, substitute:

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

joint venture operator, of a

GST joint venture, is the entity last

nominated in relation to the joint venture as mentioned in

paragraph 51-5(1)(ea) or 51-70(1)(c), but does not include an entity

that does not satisfy the requirements of paragraph 51-10(c) and

(f).

38 Section 195-1 (paragraph (a) of the definition of member)

Repeal the paragraph, substitute:

(a) in relation to a

GST group--has the meaning given by

section 48-7; or

39 Section 195-1 (definition of participant)

Repeal the definition, substitute:

participant, in relation to a

GST joint venture, has the meaning

given by section 51-7.

40 Section 195-1 (definition of representative member)

Repeal the definition, substitute:

representative member, of a

GST group, is the

member of the

group last nominated as mentioned in paragraph 48-5(1)(d) or

48-70(1)(c).

Taxation Administration Act 1953

41 Subsection 110-50(2) in Schedule 1 (table items 23 to 28)

Repeal the items, substitute:

23 approving

another

day of effect

paragraph

48-71(1)(b)

revoking an approval of a day of effect

subsection 48-71(2)

42 Subsection 110-50(2) in Schedule 1 (table items 35 to 41)

Repeal the items, substitute:

35 approving

another

day of effect

paragraph

51-75(1)(b)

revoking an approval of a day of effect

subsection 51-75(2)

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

18 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

43 Transitional provisions for GST groups

GST groups in existence before commencement

(1)

Subject to subitems (5) to (8), on the commencement of this item:

(a) a GST group that existed immediately before that

commencement is taken to continue in existence as if:

(i) it had been formed, and its formation had been notified

to the Commissioner, in accordance with section 48-5 of

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

1999 as amended by this Act; and

(ii) its formation took effect immediately after that

commencement; and

(b) the entities that were members of the group immediately

before that commencement are taken, immediately after that

commencement, to continue to be the members of the group;

and

immediately before that commencement is taken,

immediately after that commencement, to continue to be the

representative member of the group.

GST groups approved, but not in existence, before

commencement

(2)

If, before the commencement of this item, the Commissioner approved

2 or more entities as a GST group but the approval did not take effect

before that commencement, then, on the date of effect decided by the

Commissioner under section 48-85 of the A New Tax System (Goods

and Services Tax) Act 1999:

(a) the group is taken to have been formed, and its formation is

taken to have been notified to the Commissioner, in

accordance with section 48-5 of that Act as amended by this

Act; and

(b) the entities that jointly applied for that approval are taken to

be the members of the group; and

representative member of the group is taken to be the

representative member of the group.

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

GST groups applied for, but not approved, before

commencement

(3) If:

(a) before the commencement of this item, 2 or more entities

applied, in accordance with section 48-5 of the A New Tax

System (Goods and Services Tax) Act 1999, for approval of a

GST group; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 48-85 of that

Act, as a date of effect of approval of the group, a date

occurring before the date of that commencement; and

and did not refuse the application, before that

commencement;

then, on the date of effect specified in the application:

(d) the group is taken to be formed, and its formation is taken to

have been notified to the Commissioner, in accordance with

section 48-5 of that Act as amended by this Act; and

(e) the entities that jointly applied for that approval are taken to

be the members of the group; and

(f) the entity that was nominated in the application to be the

representative member of the group is taken to be the

representative member of the group.

(4) If:

(a) before the commencement of this item, 2 or more entities

applied, in accordance with section 48-5 of the A New Tax

System (Goods and Services Tax) Act 1999, for approval of a

GST group; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 48-85 of that Act,

as a date of effect of approval of the group, a date occurring

before the date of that commencement; and

and did not refuse the application, before that

commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 48-71 of that Act as amended

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

20 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

by this Act, for the Commissioner to approve that date of

effect as the day on which the formation of the GST group

took effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day:

(i) the group is taken to have been formed, and its

formation is taken to have been notified to the

Commissioner, in accordance with section 48-5 of that

Act as so amended; and

(ii) the entities that jointly applied for approval of the group

are taken to be the members of the group; and

(iii) the entity that was nominated, in the application for

approval of the group, to be the representative member

of the group is taken to be the representative member of

the group.

Changes to membership etc. of GST groups applied for, but not

approved, before commencement

(5) If:

(a) before the commencement of this item, the representative

member of a GST group applied, in accordance with

section 48-70 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to:

(i) approve another entity as an additional member of the

group; or

(ii) revoke the approval of one of the members of the group

as a member of the group; or

(iii) approve another member of the group to replace the

representative member of the group; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 48-85 of that

Act, as a date of effect of the approval or revocation, a date

occurring before the date of that commencement; and

(c)

the

Commissioner:

(i) did not give the approval, or revoke the approval, as

requested in the application; and

(ii) did not refuse the application;

before that commencement;

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

then, on and after that commencement, the group is taken to continue in

existence as if:

(d) the Commissioner has been notified, in accordance with

section 48-70 of that Act as amended by this Act, that the

corresponding action referred to in paragraph 48-70(1)(a), (b)

or (c) of that Act as so amended has been taken; and

(e) the action took effect on the date of effect specified in the

application.

(6) If:

(a) before the commencement of this item, the representative

member of a GST group applied, in accordance with

section 48-70 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to:

(i) approve another entity as an additional member of the

group; or

(ii) revoke the approval of one of the members of the group

as a member of the group; or

(iii) approve another member of the group to replace the

representative member of the group; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 48-85 of that Act,

as a date of effect of the approval or revocation, a date

occurring before the date of that commencement; and

(c)

the

Commissioner:

(i) did not give the approval, or revoke the approval, as

requested in the application; and

(ii) did not refuse the application;

before that commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 48-71 of that Act as amended

by this Act, for the Commissioner to approve that date of

effect as the day on which the approval or revocation took

effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day, the group is taken to continue in

existence as if:

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

22 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(i) the Commissioner has been notified, in accordance with

section 48-70 of that Act as so amended, that the

corresponding action referred to in paragraph

48-70(1)(a), (b) or (c) of that Act as so amended has

been taken; and

(ii) the action took effect on that day.

Revocation of approval of GST groups applied for, but revocation

not approved, before commencement

(7) If:

(a) before the commencement of this item, the representative

member of a GST group applied, in accordance with

section 48-75 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to revoke the approval

of the group as a GST group; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 48-85 of that

Act, as a date of effect of the revocation, a date occurring

before the date of that commencement; and

the application, and did not refuse the application, before that

commencement;

then, on the date of effect specified in the application, the group is taken

to be dissolved as if the Commissioner has been notified, in accordance

with section 48-70 of that Act as amended by this Act, that the action

referred to in paragraph 48-70(1)(d) of that Act as so amended has been

taken.

(8) If:

(a) before the commencement of this item, the representative

member of a GST group applied, in accordance with

section 48-75 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to revoke the approval

of the group as a GST group; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 48-85 of that Act,

as a date of effect of the revocation, a date occurring before

the date of that commencement; and

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

the application, and did not refuse the application, before that

commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 48-71 of that Act as amended

by this Act, for the Commissioner to approve that date of

effect as the day on which the revocation took effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day, the group is taken to be dissolved as

if:

(i) the Commissioner has been notified, in accordance with

section 48-70 of that Act as amended by this Act, that

the action referred to in paragraph 48-70(1)(d) of that

Act as so amended has been taken; and

(ii) the action took effect on that day.

44 Transitional provisions for GST joint ventures

GST joint ventures in existence before commencement

(1)

Subject to subitems (5) to (8), on the commencement of this item:

(a) a GST joint venture that existed immediately before that

commencement is taken to continue in existence as if:

(i) it had been formed, and its formation had been notified

to the Commissioner, in accordance with section 51-5 of

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

1999 as amended by this Act; and

(ii) its formation took effect immediately after that

commencement; and

(b) the entities that were participants in the joint venture

immediately before that commencement are taken,

immediately after that commencement, to continue to be the

participants in the joint venture; and

venture immediately before that commencement is taken,

immediately after that commencement, to continue to be the

joint venture operator of the joint venture.

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

24 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

GST joint ventures approved, but not in existence, before

commencement

(2)

If, before the commencement of this item, the Commissioner approved

2 or more entities as a GST joint venture but the approval did not take

effect before that commencement, then, on the date of effect decided by

the Commissioner under section 51-85 of the A New Tax System (Goods

and Services Tax) Act 1999:

(a) the joint venture is taken to have been formed, and its

formation is taken to have been notified to the

Commissioner, in accordance with section 51-5 of that Act as

amended by this Act; and

(b) the entities that jointly applied for that approval are taken to

be the participants in the joint venture; and

venture operator of the joint venture is taken to be the joint

venture operator of the joint venture.

GST joint ventures applied for, but not approved, before

commencement

(3) If:

(a) before the commencement of this item, 2 or more entities

applied, in accordance with section 51-5 of the A New Tax

System (Goods and Services Tax) Act 1999, for approval of a

GST joint venture; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 51-85 of that

Act, as a date of effect of approval of the joint venture, a date

occurring before the date of that commencement; and

joint venture, and did not refuse the application, before that

commencement;

then, on the date of effect specified in the application:

(d) the joint venture is taken to be formed, and its formation is

taken to have been notified to the Commissioner, in

accordance with section 51-5 of that Act as amended by this

Act; and

(e) the entities that jointly applied for that approval are taken to

be the participants in the joint venture; and

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(f) the entity that was nominated in the application to be the joint

venture operator of the joint venture is taken to be the joint

venture operator of the joint venture.

(4) If:

(a) before the commencement of this item, 2 or more entities

applied, in accordance with section 51-5 of the A New Tax

System (Goods and Services Tax) Act 1999, for approval of a

GST joint venture; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 51-85 of that Act,

as a date of effect of approval of the joint venture, a date

occurring before the date of that commencement; and

joint venture, and did not refuse the application, before that

commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 51-75 of that Act as amended

by this Act, for the Commissioner to approve that date of

effect as the day on which the formation of the GST joint

venture took effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day:

(i) the joint venture is taken to have been formed, and its

formation is taken to have been notified to the

Commissioner, in accordance with section 51-5 of that

Act as so amended; and

(ii) the entities that jointly applied for approval of the joint

venture are taken to be the participants in the joint

venture; and

(iii) the entity that was nominated, in the application for

approval of the joint venture, to be the joint venture

operator of the joint venture is taken to be the joint

venture operator of the joint venture.

Changes to participation etc. in GST joint ventures applied for,

but not approved, before commencement

(5) If:

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

26 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(a) before the commencement of this item, the joint venture

operator of a GST joint venture applied, in accordance with

section 51-70 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to:

(i) approve another entity as an additional participant in the

joint venture; or

(ii) revoke the approval of one of the participants in the

joint venture as a participant in the joint venture; or

(iii) approve another entity that satisfies the requirements of

paragraphs 51-10(c) and (f) of that Act as the joint

venture operator of the joint venture; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 51-85 of that

Act, as a date of effect of the approval or revocation, a date

occurring before the date of that commencement; and

(c)

the

Commissioner:

(i) did not give the approval, or revoke the approval, as

requested in the application; and

(ii) did not refuse the application;

before that commencement;

then, on and after that commencement, the joint venture is taken to

continue in existence as if:

(d) the Commissioner has been notified, in accordance with

section 51-70 of that Act as amended by this Act, that the

corresponding action referred to in paragraph 51-70(1)(a), (b)

or (c) of that Act as so amended has been taken; and

(e) the action took effect on the date of effect specified in the

application.

(6) If:

(a) before the commencement of this item, the joint venture

operator of a GST joint venture applied, in accordance with

section 51-70 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to:

(i) approve another entity as an additional participant in the

joint venture; or

(ii) revoke the approval of one of the participants in the

joint venture as a participant in the joint venture; or

GST groups and GST joint ventures Schedule 1

Forming, changing and dissolving GST groups and GST joint ventures Part 1

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(iii) approve another entity that satisfies the requirements of

paragraphs 51-10(c) and (f) of that Act as the joint

venture operator of the joint venture; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 51-85 of that Act,

as a date of effect of the approval or revocation, a date

occurring before the date of that commencement; and

(c)

the

Commissioner:

(i) did not give the approval, or revoke the approval, as

requested in the application; and

(ii) did not refuse the application;

before that commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 51-75 of that Act as amended

by this Act, for the Commissioner to approve that date of

effect as the day on which the approval or revocation took

effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day, the joint venture is taken to continue

in existence as if:

(i) the Commissioner has been notified, in accordance with

section 51-70 of that Act as so amended, that the

corresponding action referred to in paragraph

51-70(1)(a), (b) or (c) of that Act as so amended has

been taken; and

(ii) the action took effect on that day.

Revocation of approval of GST joint ventures applied for, but

revocation not approved, before commencement

(7) If:

(a) before the commencement of this item, the joint venture

operator of a GST joint venture applied, in accordance with

section 51-75 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to revoke the approval

of the joint venture as a GST joint venture; and

(b) the application did not contain a request (however described)

for the Commissioner to decide under section 51-85 of that

Schedule 1 GST groups and GST joint ventures

Part 1 Forming, changing and dissolving GST groups and GST joint ventures

28 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

Act, as a date of effect of the revocation, a date occurring

before the date of that commencement; and

the application, and did not refuse the application, before that

commencement;

then, on the date of effect specified in the application, the GST joint

venture is taken to be dissolved as if the Commissioner has been

notified, in accordance with section 51-70 of that Act as amended by

this Act, that the action referred to in paragraph 51-70(1)(d) of that Act

as so amended has been taken.

(8) If:

(a) before the commencement of this item, the joint venture

operator of a GST joint venture applied, in accordance with

section 51-75 of the A New Tax System (Goods and Services

Tax) Act 1999, for the Commissioner to revoke the approval

of the joint venture as a GST joint venture; and

(b) the application contained a request (however described) for

the Commissioner to decide under section 51-85 of that Act,

as a date of effect of the revocation, a date occurring before

the date of that commencement; and

the application, and did not refuse the application, before that

commencement;

then:

(d) an application is taken to have been made to the

Commissioner, under section 51-75 of that Act as amended

by this Act, for the Commissioner to approve that date of

effect as the day on which the revocation took effect; and

(e) if the Commissioner decides, under that section as so

amended, to approve that day or another day--then, on that

day or on that other day, the group is taken to be dissolved as

if:

(i) the Commissioner has been notified, in accordance with

section 51-70 of that Act as amended by this Act, that

the action referred to in paragraph 51-70(1)(d) of that

Act as so amended has been taken; and

(ii) the action took effect on that day.

45 Application

Schedule 1 GST groups and GST joint ventures

Part 2 Indirect tax sharing agreements

30 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

Part 2--Indirect tax sharing agreements

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

46 Section 9-39 (table item 5B)

Repeal the table item.

47 Section 9-39 (after table item 12)

Insert:

12A Tax-related

transactions

Division

110

48 Section 37-1 (table item 17A)

Repeal the table item.

49 Section 37-1 (after table item 35)

Insert:

35AA Tax-related

transactions

Division

110

50 Subsection 48-40(1) (note)

Omit "is" (first occurring), substitute "may be".

51 Subsection 51-30(1) (note)

Omit "is" (first occurring), substitute "may be".

52 Division 110 (heading)

Repeal the heading, substitute:

Division 110--Tax-related transactions

53 Section 110-1

After "income tax", insert "and other taxes".

54 After section 110-1

Insert:

Subdivision 110-A--Income tax-related transactions

55 At the end of Division 110

GST groups and GST joint ventures Schedule 1

Indirect tax sharing agreements Part 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

Add:

Subdivision 110-B--Other tax-related transactions

110-60 Indirect tax sharing agreements--entering into agreement

etc.

(1) This section applies if:

(a) an entity makes a supply because it enters into or becomes a

party to an agreement; and

(b)

the

agreement:

(i) satisfies the requirements of subsections 444-90(1A) to

(1E) in Schedule 1 to the Taxation Administration Act

1953 in relation to an indirect tax amount referred to in

subsection 444-90(1) in that Schedule; or

(ii) satisfies the requirements of subsections 444-80(1A) to

(1E) in Schedule 1 to the Taxation Administration Act

1953 in relation to an indirect tax amount referred to in

subsection 444-80(1) in that Schedule.

(2) The supply is not a

taxable supply to the extent that it relates to

the fact that the agreement satisfies those requirements.

(3) This section has effect despite section 9-5 (which is about what are

taxable supplies).

110-65 Indirect tax sharing agreements--leaving GST group or GST

joint venture clear of liability

(1) A supply made to a contributing member (within the meaning of

subsection 444-90(1A) in Schedule 1 to the Taxation

Administration Act 1953) of a

GST group is not a

taxable supply

if:

(a) the supply is a release from an obligation relating to a

contribution amount (within the meaning of that subsection)

relating to liabilities of the

representative member of the

group that are referred to in that subsection; and

Example: The obligation could be a contractual obligation created by the

agreement under which the contribution amount was determined.

Schedule 1 GST groups and GST joint ventures

Part 2 Indirect tax sharing agreements

32 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(b) the contributing member leaves the group in circumstances in

which subsection 444-90(1B) in that Schedule applies to the

contributing member.

(2) A supply made to a contributing participant (within the meaning of

subsection 444-80(1A) in Schedule 1 to the Taxation

Administration Act 1953) of a

GST joint venture is not a

taxable

supply if:

(a) the supply is a release from an obligation relating to a

contribution amount (within the meaning of that subsection)

relating to liabilities of the

joint venture operator of the joint

venture that are referred to in that subsection; and

Example: The obligation could be a contractual obligation created by the

agreement under which the contribution amount was determined.

(b) the contributing participant leaves the joint venture in

circumstances in which subsection 444-80(1B) in that

Schedule applies to the contributing participant.

(3) This section has effect despite section 9-5 (which is about what are

taxable supplies).

Taxation Administration Act 1953

56 Before subsection 444-80(1) in Schedule 1

Insert:

Joint and several liability

57 Subsection 444-80(1) in Schedule 1

After "any amount", insert "(an indirect tax amount)".

58 After subsection 444-80(1) in Schedule 1

Insert:

Indirect tax sharing agreements

(1A) Despite subsection (1), if:

(a)

before

the

joint venture operator for the joint venture is

required to give to the Commissioner a

GST return for a

tax

period, an agreement (the indirect tax sharing agreement)

has been entered into between:

GST groups and GST joint ventures Schedule 1

Indirect tax sharing agreements Part 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(i) the joint venture operator; and

(ii) one or more

participants in the joint venture (the

contributing participant) (other than the joint venture

operator); and

(b) a particular amount (the contribution amount) could be

determined under the indirect tax sharing agreement for each

contributing participant in relation to that tax period; and

participants under the indirect tax sharing agreement

represent a reasonable allocation among:

(i) the joint venture operator; and

(ii) the contributing participants;

of the total amount payable, under

indirect tax laws, for

which the participants in the joint venture would be jointly or

severally liable under subsection (1) in relation to that tax

period;

then:

(d) if the contributing participant leaves the joint venture before

the joint venture operator for the joint venture is required to

give to the Commissioner a GST return for that tax period,

and subsection (1B) applies--the contributing participant is

not liable under subsection (1) in relation to an indirect tax

amount relating to that tax period; or

(e) otherwise--the contributing participant's liability under

subsection (1) in relation to that tax period is not to exceed

that contribution amount.

(1B) This subsection applies if:

(a) leaving the joint venture was not part of an arrangement, a

purpose of which was to prejudice the recovery by the

Commissioner of the indirect tax amount; and

(b) before the day on which the

joint venture operator is

required to give to the Commissioner a

GST return for that

tax period, the contributing participant pays to the joint

venture operator:

(i) the contribution amount relating to that tax period; or

(ii) if the contribution amount cannot be determined at the

time of the payment--an amount that is a reasonable

estimate of the contribution amount.

Schedule 1 GST groups and GST joint ventures

Part 2 Indirect tax sharing agreements

34 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(1C) Subsection (1A) does not apply if:

(a) the indirect tax sharing agreement was entered into as part of

an arrangement; and

(b) a purpose of the arrangement was to prejudice the recovery

by the Commissioner of the indirect tax amount.

(1D) Subsection (1A) does not apply if:

(a) the Commissioner gives the

joint venture operator of the

joint venture written notice under this subsection in relation

to the indirect tax sharing agreement (whether before, when

or after an indirect tax amount to which the agreement relates

becomes payable); and

(b) the notice requires the joint venture operator to give the

Commissioner a copy of the agreement in the

approved form

within 14 days after the notice is given; and

by the time required.

(1E) Subsection (1A) does not apply if, apart from this subsection, the

requirements of subsection (1A) would be satisfied in relation to 2

or more agreements:

(a) that were entered into by the

joint venture operator; and

(b) that relate to the same tax period.

Criminal liability of participants in GST joint ventures

59 Before subsection 444-90(1) in Schedule 1

Insert:

Joint and several liability

60 Subsection 444-90(1) in Schedule 1

After "any amount", insert "(an indirect tax amount)".

61 After subsection 444-90(1) in Schedule 1

Insert:

Indirect tax sharing agreements

(1A) Despite subsection (1), if:

GST groups and GST joint ventures Schedule 1

Indirect tax sharing agreements Part 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(a)

before

the

representative member of the group is required to

give to the Commissioner a

GST return for a

tax period, an

agreement (the indirect tax sharing agreement) has been

entered into between:

(i) the representative member; and

(ii) one or more other

members of the group (the

contributing member); and

(b) a particular amount (the contribution amount) could be

determined under the indirect tax sharing agreement for each

contributing member in relation to that tax period; and

members under the indirect tax sharing agreement represent a

reasonable allocation among:

(i) the representative member; and

(ii) the contributing members;

of the total amount payable, under

indirect tax laws, for

which the members of the group would be jointly or severally

liable under subsection (1) in relation to that tax period;

then:

(d) if the contributing member leaves the group before the

representative member of the group is required to give to the

Commissioner a GST return for that tax period, and

subsection (1B) applies--the contributing member is not

liable under subsection (1) in relation to an indirect tax

amount relating to that tax period; or

(e) otherwise--the contributing member's liability under

subsection (1) in relation to that tax period is not to exceed

that contribution amount.

(1B) This subsection applies if:

(a) leaving the group was not part of an arrangement, a purpose

of which was to prejudice the recovery by the Commissioner

of the indirect tax amount; and

(b) before the day on which the

representative member is

required to give to the Commissioner a

GST return for that

tax period, the contributing member pays to the

representative member:

(i) the contribution amount relating to that tax period; or

Schedule 1 GST groups and GST joint ventures

Part 2 Indirect tax sharing agreements

36 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(ii) if the contribution amount cannot be determined at the

time of the payment--an amount that is a reasonable

estimate of the contribution amount.

(1C) Subsection (1A) does not apply if:

(a) the indirect tax sharing agreement was entered into as part of

an arrangement; and

(b) a purpose of the arrangement was to prejudice the recovery

by the Commissioner of the indirect tax amount.

(1D) Subsection (1A) does not apply if:

(a) the Commissioner gives the

representative member of the

group written notice under this subsection in relation to the

indirect tax sharing agreement (whether before, when or after

an indirect tax amount to which the agreement relates

becomes payable); and

(b) the notice requires the representative member to give the

Commissioner a copy of the agreement in the

approved form

within 14 days after the notice is given; and

by the time required.

(1E) Subsection (1A) does not apply if, apart from this subsection, the

requirements of subsection (1A) would be satisfied in relation to 2

or more agreements:

(a) that were entered into by the

representative member; and

(b) that relate to the same tax period.

Effect of prohibitions on certain arrangements

62 Before subsection 444-90(4) in Schedule 1

Insert:

Criminal liability of members of GST groups

63 Application

The amendments made by this Part apply to tax periods starting on or

after 1 July 2010.

Rulings Schedule 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

Schedule 2--Rulings

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

1 Section 2-30

Omit "and 4-15", substitute ", 4-15 and 5-5".

2 At the end of section 9-99

Add:

Note:

There are other laws that may affect the amount of GST on taxable

supplies. For example, see subsection 357-60(3) in Schedule 1 to the

Taxation Administration Act 1953 (about the effect of rulings made

under Part 5-5 in that Schedule).

3 At the end of section 11-25

Add:

Note:

The basic rule for working out the GST payable on the supply is in

Subdivision 9-C. However, the GST payable may be affected by other

provisions in:

(a) this Act (for a list of provisions, see section 9-99); and

(b) other GST laws (for example, see subsection 357-60(3) in

Schedule 1 to the Taxation Administration Act 1953 (about the

effect of rulings made under Part 5-5 in that Schedule)).

4 At the end of section 13-99

Add:

Note:

There are other laws that may affect the amount of GST on taxable

importations. For example, see subsection 357-60(3) in Schedule 1 to

the Taxation Administration Act 1953 (about the effect of rulings

made under Part 5-5 in that Schedule).

5 At the end of section 15-20

Add:

Note:

The basic rule for working out the GST payable on the importation is

in section 13-20. However, the GST payable may be affected by other

provisions in:

(a) this Act (for a list of provisions, see section 13-99); and

(b) other GST laws (for example, see subsection 357-60(3) in

Schedule 1 to the Taxation Administration Act 1953 (about the

effect of rulings made under Part 5-5 in that Schedule)).

Schedule 2 Rulings

38 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

Excise Act 1901

6 At the end of Part XII

Add:

155 Limited dispute rights because of objection against private

ruling

(1) This section applies if there has been a taxation objection under

Part IVC of the Taxation Administration Act 1953 against a private

ruling (within the meaning of the Income Tax Assessment Act

1997) that relates to:

(a) the amount or rate of duty; or

(b) the liability of goods to duty.

(2) The right of the owner to commence an action mentioned in

subsection 154(2) of this Act in relation to the goods is limited to a

right to bring an action on the grounds that neither were, nor could

have been, grounds for the taxation objection against the ruling.

Income Tax Assessment Act 1997

7 Subsection 995-1(1)

Insert:

excise duty has the meaning given by the

GST Act.

8 Subsection 995-1(1)

Insert:

excise law means:

(a)

the

Excise Act 1901; and

(b) any Act that imposes

excise duty; and

(c)

the

Taxation Administration Act 1953, so far as it relates to

any Act covered by paragraphs (a) and (b); and

(d) any other Act, so far as it relates to any Act covered by

paragraphs (a) to (c) (or to so much of that Act as is covered);

and

Rulings Schedule 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(e) regulations under any Act, so far as they relate to any Act

covered by paragraphs (a) to (d) (or to so much of that Act as

is covered).

9 Subsection 995-1(1)

Insert:

indirect tax or excise ruling means a

public ruling or a

private

ruling, to the extent that the ruling relates to:

(a)

indirect tax law (other than the

fuel tax law); or

(b)

excise law.

10 Subsection 995-1(1) (definition of indirect tax ruling)

Repeal the definition.

11 Subsection 995-1(1) (definition of private indirect tax

ruling)

Repeal the definition.

12 Subsection 995-1(1) (definition of public indirect tax

ruling)

Repeal the definition.

Taxation Administration Act 1953

13 Subsection 2(1)

Insert:

excise law has the meaning given by the Income Tax Assessment

Act 1997.

14 Subsection 2(1)

Insert:

fuel tax law has the meaning given by the Fuel Tax Act 2006.

15 Subsection 2(1)

Insert:

Schedule 2 Rulings

40 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

indirect tax law has the meaning given by the Income Tax

Assessment Act 1997.

16 Subsection 2(1)

Insert:

private indirect tax ruling means a private ruling, to the extent that

it relates to an indirect tax law (other than the fuel tax law).

17 Subsection 2(1)

Insert:

private ruling has the meaning given by section 359-5 in

Schedule 1.

18 Section 14ZQ (definition of private ruling)

Repeal the definition.

19 Section 14ZVA

Omit "against an assessment", substitute "under this Part against an

assessment, or against a decision made under an indirect tax law or an

excise law,".

20 After subsection 14ZW(1AAA)

Insert:

(1AAB) The person cannot lodge a taxation objection against a private

indirect tax ruling after the end of whichever of the following ends

last:

(a) 60 days after the ruling was made;

(b) 4 years after the end of the tax period, or after the importation

of goods, to which the ruling relates.

21 Subsection 14ZW(1A)

After "private ruling", insert "(other than a private indirect tax ruling, or

a ruling that relates to an excise law)".

22 Section 105-1 in Schedule 1

Omit:

Rulings Schedule 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(d)

the effect of relying on a ruling;

23 Section 105-60 in Schedule 1

Repeal the section.

24 After paragraph 357-55(fa) in Schedule 1

Insert:

(fb)

indirect tax;

(fc)

excise duty;

25 Paragraph 357-55(g) in Schedule 1

After "taxes", insert ", levies and duties".

26 At the end of section 357-55 in Schedule 1

Add:

;

(j)

net amount, or the administration, collection or payment of

a net amount;

(k)

wine tax credit, or the administration or payment of a wine

tax credit.

27 Subsection 357-60(1) in Schedule 1

Omit "A ruling binds", substitute "Subject to subsection (5), a ruling

binds".

28 Subsection 357-60(1) in Schedule 1 (after example 2)

Insert:

Example 3: Cathie obtains a private ruling that a type of supply she makes is

GST-free. She relies on the ruling by:

(a) giving her customers invoices that show no GST payable on the

supplies; and

(b) lodging her GST return on the basis that the supplies are

GST-free.

The Commissioner must administer the GST law in relation to Cathie

on the basis that the supplies to which the ruling relates are GST-free.

This does not apply if Cathie stops relying on the ruling, such as by

issuing tax invoices that show GST payable on the supplies: see

paragraph (1)(b).

29 At the end of section 357-60 in Schedule 1

Schedule 2 Rulings

42 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

Add:

GST rulings

(3)

The

GST payable on a

supply or importation is the amount

worked out in accordance with a ruling (if any) that:

(a) relates to the GST payable on the supply or importation; and

(b) binds the Commissioner in relation to the supplier or

importer.

Note:

The ruling will stop affecting the GST payable if the supplier or

importer stops relying on the ruling: see paragraph (1)(b).

(4) Subsection (3) does not apply for the purposes of an objection to

the ruling under section 359-60.

Indirect tax rulings

(5)

indirect tax or excise ruling (except to the extent that the

ruling relates to an

excise law) binds the Commissioner in relation

to:

(a) an entity (the representative entity) that is:

(i)

the

representative member of a

GST group; or

(ii)

the

joint venture operator of a

GST joint venture; or

(iii)

the

representative of an

incapacitated entity; and

(b) an entity (the member entity) that is:

(i)

member of the GST group; or

(ii)

participant in the GST joint venture; or

(iii) the incapacitated entity;

if, and only if, both the representative entity and the member entity

rely on the ruling by acting (or omitting to act) in accordance with

the ruling.

(6) Subsection (5) applies if:

(a) the ruling applies to the member entity; and

(b) the ruling relates to what would be:

(i) a liability of the member entity to

indirect tax; or

(ii) an entitlement of the member entity to a credit (other

than a

fuel tax credit) under an

indirect tax law; or

Rulings Schedule 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(iii)

increasing adjustment, a

decreasing adjustment, or

a luxury car tax adjustment (within the meaning of the

Luxury Car Tax Act), that the member entity has;

if the rules in the indirect tax law relating to

GST groups,

GST joint ventures or

incapacitated entities did not apply;

and

(i) if that indirect tax were payable, it would be payable by

the representative entity; or

(ii) if there was an entitlement to that credit, it would be an

entitlement of the representative entity; or

(iii) if any entity had that adjustment, it would be an

adjustment that the representative entity had.

30 Subsection 357-75(1) in Schedule 1

After "inconsistency", insert ", and do not apply to

indirect tax or

excise rulings".

31 Subsection 357-75(1) in Schedule 1 (at the end of the table

heading)

Add "(other than indirect tax or excise rulings)".

32 After subsection 357-75(1) in Schedule 1

Insert:

(1A)

If:

(a)

inconsistent

indirect tax or excise rulings apply to you; and

(b) the rulings are both

public rulings;

then, to the extent of the inconsistency, you may rely on either of

the rulings.

(1B)

If:

(a)

inconsistent

indirect tax or excise rulings apply to you; and

(b) at least one of the rulings is not a

public ruling;

then, to the extent of the inconsistency:

(i) the time it is made; and

(ii) the time (if any) specified in the ruling as being the time

from which it begins to apply; and

Schedule 2 Rulings

44 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(d) the earlier ruling is taken to cease to apply at that later time.

33 Subsection 357-75(2) in Schedule 1

Omit "the table", substitute "this section".

34 Subsections 358-10(2) and 358-20(3) in Schedule 1

After "

public ruling", insert ", other than an

indirect tax or excise

ruling,".

35 Subsection 359-25(4) in Schedule 1

After "

private ruling", insert ", other than an

indirect tax or excise

ruling,".

36 At the end of subsection 359-25(4) in Schedule 1

Add:

Note:

A private ruling that:

(a) is an indirect tax or excise ruling; and

(b) does not specify an end time;

continues to apply until it is overridden by a later indirect tax or excise

ruling: see subsection 357-75(1B).

37 Paragraph 359-30(a) in Schedule 1

Before "the beneficiaries", insert "if the ruling is not an

indirect tax or

excise ruling--".

38 Paragraph 359-30(b) in Schedule 1

Before "another trustee", insert "in any case--".

39 Paragraph 359-55(1)(b) in Schedule 1

Before "when", insert "if the ruling is not an

indirect tax or excise

ruling--".

40 Subsection 359-55(1) in Schedule 1 (note)

Omit "public".

41 Subsection 359-55(3) in Schedule 1

Omit "in the circumstances mentioned in paragraph (1)(b)".

42 At the end of section 359-55 in Schedule 1

Rulings Schedule 2

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

Add:

(5)

However,

if:

(a)

the

private ruling is an

indirect tax or excise ruling; and

(b) the revised private ruling specifies the time from which the

revision begins to apply (being a time after the time the

revision is made);

the ruling in its initial form stops applying to you at the time so

specified.

43 At the end of subsection 359-60(3) in Schedule 1

Add:

; or (c) all of the following subparagraphs apply:

(i) the ruling relates to

excise duty, or another amount,

payable in relation to the goods under an

excise law;

(ii) the Commissioner has made a decision about the excise

duty, or other amount, payable in relation to those

goods;

(iii) the decision is reviewable under an excise law.

44 Before subsection 360-5(1) in Schedule 1

Insert:

Applying for oral rulings

45 After subsection 360-5(2) in Schedule 1

Insert:

(2A) You or your

legal personal representative must not apply for

advice under this section in relation to:

(a)

indirect tax law (other than the

fuel tax law); or

(b)

excise law.

Making of oral rulings

46 Transitional provision

Interpretation

(1)

In this item:

Schedule 2 Rulings

46 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

indirect tax ruling has the meaning given by the Income Tax

Assessment Act 1997, as in force just before the commencement of this

item.

private indirect tax ruling has the meaning given by the Income Tax

Assessment Act 1997, as in force just before the commencement of this

item.

Rulings

(2)

A private indirect tax ruling that is in force just before the

commencement of this item has effect, from that commencement, as if

it had been made under Division 359 in Schedule 1 to the Taxation

Administration Act 1953, as amended by this Schedule.

(3)

An indirect tax ruling that:

(a) is in force just before the commencement of this item; and

(b) is labelled as a public ruling, or was described as a public

ruling in the Gazette in which it was published;

has effect, from that commencement, as if it had been made under

Division 358 in Schedule 1 to the Taxation Administration Act 1953, as

amended by this Schedule.

Applications for private rulings

(4)

An application for a private indirect tax ruling is taken to have been

made under Division 359 in Schedule 1 to the Taxation Administration

Act 1953, as amended by this Schedule, if:

(a) you made the application before the commencement of this

item; and

(b) just before the commencement of this item:

(i) the Commissioner had neither made the ruling nor

declined to make the ruling; and

(ii) you had not withdrawn the application.

Tax invoices Schedule 3

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

Schedule 3--Tax invoices

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

1 Subsection 29-70(1)

Repeal the subsection, substitute:

(1)

tax invoice is a document that complies with the following

requirements:

(a) it is issued by the supplier of the supply or supplies to which

the document relates, unless it is a

recipient created tax

invoice (in which case it is issued by the

recipient);

(b) it is in the

approved form;

clearly ascertained:

(i) the supplier's identity and the supplier's

ABN;

(ii) if the total

price of the supply or supplies is at least

$1,000 or such higher amount as the regulations specify,

or if the document was issued by the recipient--the

recipient's identity or the recipient's ABN;

(iii) what is supplied, including the quantity (if applicable)

and the price of what is supplied;

(iv) the extent to which each supply to which the document

relates is a

taxable supply;

(v) the date the document is issued;

(vi) the amount of GST (if any) payable in relation to each

supply to which the document relates;

(vii) if the document was issued by the recipient and GST is

payable in relation to any supply--that the GST is

payable by the supplier;

(viii) such other matters as the regulations specify;

(d) it can be clearly ascertained from the document that the

document was intended to be a tax invoice or, if it was issued

by the recipient, a recipient created tax invoice.

Note:

If the recipient is a member of a GST group, section 48-57 may relax

the requirements relating to the recipient's identity or the recipient's

ABN.

Schedule 3 Tax invoices

48 Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No.

, 2010

(1A) A document issued by an entity to another entity may be treated by

the other entity as a

tax invoice for the purposes of this Act if:

(a) it would comply with the requirements for a tax invoice but

for the fact that it does not contain certain information; and

(b) all of that information can be clearly ascertained from other

documents given by the entity to the other entity.

Note:

The requirements for a tax invoices are primarily contained in

subsection (1), but can be affected by sections 48-57 and 54-50.

(1B) However, the Commissioner may treat as a

tax invoice a particular

document that would not, apart from this subsection, be a tax

invoice.

Note:

A request to the Commissioner, to which the Commissioner agrees, to

treat a document as a tax invoice is taken to be a notification of your

entitlement to the relevant input tax credit: see subsection 105-55(2A)

in Schedule 1 to the Taxation Administration Act 1953.

2 Section 29-99 (after table item 3)

Insert:

3A GST

groups

Division

3 After section 48-55

Insert:

48-57 Tax invoices that are required to identify recipients

(1) A document issued for a supply is taken to be a tax invoice if:

(a) it would not, but for this section, be a tax invoice because it

does not contain enough information to enable the identity, or

the

ABN, of the

recipient of the supply to be clearly

ascertained; and

(b) there is no other reason why it would not be a tax invoice;

and

(c)

the

representative member of a

GST group is entitled under

section 48-45 to an input tax credit for the

creditable

acquisition relating to the supply; and

(d) the document contains enough information to enable the

identity of at least one of the following to be clearly

ascertained:

(i) the GST group;

Tax invoices Schedule 3

Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 No. , 2010

(ii) the representative member;

(iii) another entity that is or was a

member of the GST

group, if the representative member would still have

been entitled under section 48-45 to that input tax credit

if that other entity had been the recipient of the supply.

Note:

Subparagraph (d)(iii) ensures that a member of the GST group

identified in the document was a member of the group at the

relevant time for the supply in question.

(2) However, any obligation that the supplier of a

taxable supply has

under subsection 29-70(2) is an obligation to give to the

recipient

of the supply a document that would be a

tax invoice for the

supply even if subsection (1) of this section had not been enacted.

Note:

This subsection ensures that a recipient's entitlement to a tax invoice,

including (if subparagraph 29-70(1)(c)(ii) requires it) an entitlement to

a tax invoice that enables the recipient's identity or the recipient's

ABN to be clearly ascertained, is unaffected by this section.

(3) This section has effect despite section 29-70 (which is about tax

invoices).

4 Section 195-1 (definition of tax invoice)

Repeal the definition, substitute:

tax invoice has the meaning given by subsections 29-70(1) and

48-57(1), and includes a document that the Commissioner treats as

a tax invoice under subsection 29-70(1B). However, it does not

include a document that does not comply with the requirements of

section 54-50 (if applicable).

5 Application of amendments

The amendments made by this Schedule apply in relation to net

amounts for tax periods starting on or after 1 July 2010.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2010 GST ADMINISTRATION MEASURES NO. 2) BILL 2010