Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 (74 of 2010)

Schedule 1   GST groups and GST joint ventures

Part 2   Indirect tax sharing agreements

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

55   At the end of Division 110

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.

(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 section9 - 5 (which is about what are taxable supplies).