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Indirect Tax Legislation Amendment Bill 2000
Schedule 1 Non-profit bodies

   

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.)

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).

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 or a * gift-deductible entity; 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.

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 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 or a * gift-deductible entity 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 or gift-deductible entity;

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

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

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

8  Section 195-1

Insert:

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

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:

18A

refusing an application for a decision that an event is a fund-raising event

paragraph 40-165(1)(c)

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.