Property and Construction Industry Partnership – issues register – section 18 – time share

(a) added, (u) updated, (w) withdrawn

18.1 Is the supply of an interest in a time sharing scheme an input taxed supply?

Item 18.1 is a public ruling for the purposes of section 105-60 of schedule 1 to the Taxation Administration Act 1953

A scheme that is a time sharing scheme under the Corporations Law is also a managed investment scheme under that legislation. Interests in a managed investment scheme are securities under section 92 of the Corporations Law and therefore also securities for the purposes of the Regulations.

This means that the supply of an interest in the scheme will be a financial supply and therefore input taxed by virtue of section 40-5 of the GST Act.

This treatment however only applies from the date of gazettal of A New Tax System (Goods and Services Tax) Amendment Regulations 2000 (No. 6) 20 December 2000. Until this amending regulation the Regulations specifically excluded the supply of an interest in a time sharing scheme from being a financial supply.