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

Part 3 - Agreements spanning 1 July 2000  

Division 1 - General  

14   Rights granted for life  

This section applies if:

(a) you supply services or any other things (other than goods or real property) under an agreement or enactment; and

(b) the agreement or enactment provides (expressly or impliedly) that a right is to be granted or exercisable for the rest of an individual's life; and

(c) the right is granted or first exercisable before 1 July 2000.


To the extent that the supply is constituted by the supply of the right, so much of the supply as is made before 1 July 2000 is instead taken, for the purposes of this Act, to be made on 1 July 2000.

However, in the case of an agreement entered into before 2 December 1998 that is also covered by section 13 :

(a) subsections 13(2) and (3) do not apply; and

(b) instead, the supply is GST-free to the extent that the consideration for the supply is paid before the earlier of the following:

(i) 1 July 2005;

(ii) if a review opportunity as mentioned in paragraph 13(2)(b) arises - when that opportunity arises.



(a) an agreement is for the supply of a life membership; and

(b) the entity to which the supply is made would be entitled to a full input tax credit for it;

subsection (3) has effect as if the reference to 2 December 1998 were a reference to 8 July 1999.


For the purposes of this section, an untaxable Commonwealth entity is to be treated as if it were entitled or not entitled to a full input tax credit (whichever is relevant) if it would be so entitled or not entitled if it were an entity other than an untaxable Commonwealth entity.


If this section has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.


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