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

Schedule 1   GST groups and GST joint ventures

Part 1   Forming, changing and dissolving GST groups and GST joint ventures

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

16   Section 48-70

Repeal the section, substitute:

48-70 Changing the membership etc. of GST groups

(1) The following actions may be taken, in accordance with subsection (2), in relation to a *GST group:

(a) the *representative member of the group may, with the written agreement of an entity that *satisfies the membership requirements of the GST group, add the entity to the group;

(b) the representative member may leave the group; or

(c) another *member of the group, nominated by the members, who is an *Australian resident may become the new representative member; or

(d) the representative member may remove from the group any other member of the group; or

(e) if a member of the group is an *incapacitated entity - the entity's *representative may remove the entity from the group; or

(f) the representative member may dissolve the group.

(2) The action is to be taken by notice given to the Commissioner, in the *approved form, by:

(a) if paragraph (1)(a), (d) or (f) applies - the *representative member; or

(b) if paragraph (1)(b) or (c) applies - the new representative member of the group; or

(c) if paragraph (1)(e) applies - the *representative of the *incapacitated entity.

(3) The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).

(4) However, if the notice was given to the Commissioner after the day by which the *representative member of the group, or the entity nominated to be the new representative member of the group, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:

(a) the day specified in the notice, if that day is approved by the Commissioner under section 48-71; and

(b) if paragraph (a) does not apply - such other day as the Commissioner approves under that section.

(5) Despite subsections (3) and (4), action taken under paragraph (1)(e) cannot take effect earlier than the day on which the *member of the group became an *incapacitated entity.

(6) A *GST group is taken to be dissolved if:

(a) a *member of the group ceases to be the *representative member of the group; and

(b) no other member of the group becomes the representative member of the group, with effect from the day after the previous representative member ceased to be the representative member of the group.

(7) A notice that another *member of the *GST group has become the *representative member of the group must be given to the Commissioner within 21 days after the other member became the representative member.

Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

48-71 Approval of early day of effect of forming, changing etc. GST groups

(1) If an entity that gives a notice to the Commissioner under paragraph 48-5(1)(c) or subsection 48-70(2) applies, in the *approved form, to the Commissioner for approval of a day specified in the notice, the Commissioner must:

(a) approve, for the purposes of subsection 48-5(4) or 48-70(4), the day specified in the notice; or

(b) approve another day for those purposes.

Note: Approving another day under paragraph (b) is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).

(2) The Commissioner may revoke an approval given under subsection (1) if the Commissioner is satisfied that the day approved is not appropriate.

Note: Revoking an approval under this subsection is a reviewable GST decision (see Subdivision 110-F in Schedule 1 to the Taxation Administration Act 1953).

(3) The Commissioner must give notice, to the entity referred to in subsection (1), of any decision that he or she makes under this section.