Miscellaneous Taxation Ruling

MT 2006/1A2 - Addendum

The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number


This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends MT 2006/1, in order to refer to aspects of the decision in Commissioner of Taxation v. MBI Properties Pty Ltd [2014] HCA 49; 2014 ATC 20-474, that concern the definition of an enterprise in paragraph 9-20(1)(c) of the A New Tax System (Goods and Services Tax) Act 1999.

MT 2006/1 is amended as follows:

1. Paragraph 6

Omit 'A New Tax System (Australian Business Number) Act 1999 (ABN Act)'; substitute 'ABN Act'.

2. Paragraph 70

Omit 'of the ABN Act'.

3. Paragraph 57

After 'Body Corporate Villa'; insert a comma.

4. Paragraph 240

Omit 'Income Tax'; substitute 'Taxation'.

5. Paragraph 306

After the paragraph; insert:

306A. In Commissioner of Taxation v. MBI Properties Pty Ltd [2014] HCA 49; 2014 ATC 20-474 (MBI Case) at [37], the High Court noted that in observing and continuing to observe the obligation to provide quiet enjoyment under a lease, a lessor is appropriately regarded as engaging in an activity done on a regular or continuous basis in the form of a lease. The High Court noted further that, whether or not the lessor might also be engaged in some other form of enterprise, it makes a supply of the use and occupation of leased premises in the course of carrying on an enterprise as defined in paragraph 9-20(1)(c) of the GST Act. In this context, consistent with the High Court decision in the MBI Case, the reference to a lessor is not considered to be limited to the entity that grants a lease in the premises, and includes an entity that acquires premises subject to an existing lease.

6. Legislative references


Administration Decisions (Judicial Review) Act 1977 5(1)(b)


ANTS(ABN)A 1999 16
ANTS(GST)A 1999 9-20(1)
Administrative Decisions (Judicial Review) Act 1977 5(1)(b)

7. Case references


Commissioner of Taxation v. MBI Properties Pty Ltd [2014] HCA 49; 2014 ATC 20-474

This Addendum applies on and from 3 December 2014.

Commissioner of Taxation
25 February 2015


You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).


ATO references:
NO 1-6AXKJ55

ISSN: 1443-5160