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Edited version of your private ruling
Authorisation Number: 1012532584768
Ruling
Subject: Government initiative
Question
Are you a member of an NRAS Consortium?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
Year ending 30 June 2016
Year ending 30 June 2017
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You are a director of a newly formed company.
You are applying for the NRAS funding for a development.
The venture involved the establishment of a separate entity.
The purpose of this arrangement is to take part in the NRAS scheme.
Reasons for decision
Under subsection 380-10(1) of the Income Tax Assessment Act 1997 (ITAA 1997), a member of an NRAS consortium is entitled to a tax offset for an income year if certain conditions are satisfied.
An NRAS consortium is a consortium, joint venture or non-entity joint venture established by a contractual arrangement that facilitates the leasing of approved rental dwellings under NRAS.
'Consortium' is not defined by the ITAA 1997, so its ordinary meaning must be considered. The Macquarie Dictionary (third edition) defines consortium as:
…an association or union…
And further defines 'association' and 'union' as:
Association:
…an organisation of people with a common purpose and having a formal structure…
Union:
…a number of persons, societies, states, or the like, joined together or associated for some common purpose…
In this case, it is accepted you are a member of an NRAS Consortium.