Goods and Services Tax Ruling
GSTR 2004/1A7 - Addendum
Goods and services tax: reduced credit acquisitions
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This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends GSTR 2004/1 in order to refer to the decision in Commissioner of Taxation v. MBI Properties Pty Ltd  HCA 49; 2014 ATC 20-474; (2014) 92 ATR 241 and clarify, at paragraph 742, that acquisitions a recognised trust scheme makes by way of lease can in certain cases include acquisitions made under a lease granted before 1 July 2012. This clarification is relevant to the application of item 32 of the table in sub-regulation 70-5.02(2) to the A New Tax System (Goods and Services Tax) Regulations 1999, which sets out what supplies acquired by a recognised trust scheme, are reduced credit acquisitions.
GSTR 2004/1 is amended as follows:
Omit the last dot point; Substitute:
- real property by way of lease (other than a long-term lease) or licence where the lease or licence is granted on or after 1 July 2012;
- real property by way of lease (other than a long-term lease) where the lease was granted before 1 July 2012, and the lessor observes the obligation to provide the recognised trust scheme with use of the real property under the lease, on or after 1 July 2012.[100A]
Omit the footnote; substitute:
103 See Goods and Services Tax Determination GSTD 2013/3 Goods and services tax: does item 32 of the table in subregulation 70-5.02(2) of the A New Tax System (Goods and Services Tax) Regulations 1999 apply to some extent in respect of an acquisition for a single fee by a managed investment fund that is a recognised trust scheme from a Responsible Entity?
Omit 'GSTD 2013/D1'; substitute 'GSTD 2013/3'.
- Commissioner of Taxation v. MBI Properties Pty Ltd  HCA 49; 2014 ATC 20-474; (2014) 92 ATR 241
This Addendum applies on and from 1 July 2012.
Commissioner of Taxation
3 June 2015
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At paragraph  of its decision in Commissioner of Taxation v. MBI Properties Pty Ltd  HCA 49; 2014 ATC 20-474; (2014) 92 ATR 241, the High Court recognised that a lease of real property involved a supply being made when the lease was granted and a further supply which occurred progressively throughout the lease term as a result of the lessor observing the obligation to provide the lessee quiet enjoyment under the lease. While that conclusion was reached in the context of section 40-35 it also applies to supplies of real property by way of lease beyond residential premises.
financial acquisitions threshold
financial supply facilitator
financial supply provider
GST permanent establishment
GST supplies and acquisitions
input taxed supplies
reduced input tax credits
reduced credit acquisition