Non-interpretative - Straight application of the law
There will be situations where more than one entity is supplying their interest in an animal to race.
In this case each entity needs to consider their entitlement to an ABN and GST registration. It is possible to have part of the ownership group being registered for GST and part of the ownership group not being registered for GST.
Six friends with an interest in racing, lease an animal to race. They engage a trainer to train and prepare the animal for racing. They open a joint bank account from which all expenses are paid.
The mere existence of a joint bank account and receipt of single accounts for expenses is not sufficient for the combination of friends to constitute an entity. In the absence of the other indicators of an unincorporated association or body indicators the ownership group will not be an entity.
In this case, there are six individuals, each supplying their interest in the animal to race.
A trainer has an animal ready to race. The trainer invites two individuals, Robert and Adam, to race the animal with the trainer. Each has a one-third interest in the animal. There is no formal agreement between the three parties racing the animal. Robert and Adam have no agreement or other arrangement between them. They are billed separately by the trainer for their share of expenses.
For GST purposes there are three entities supplying their individual interests in the animal to race. The trainer, Robert and Adam are supplying their individual interests in the animal to race.