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Edited version of private advice
Authorisation Number: 1051677414164
Date of advice: 19 May 2020
Ruling
Subject: GST and meaning of 'Commonwealth, a State or Territory'
Question:
Is a supply of land by the entity a supply of land by the Commonwealth, a State or Territory for the purposes of Subdivision 38-N and Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).
Answer
Yes
Consistent with the Commissioners view in Goods and Services tax ruling, GSTR 2006/4, Goods and services tax: meaning of 'Commonwealth, a State or a Territory' (GSTR 2006/4) we consider that the supply of land by entity is a supply of land by the Commonwealth, a State or Territory for the purposes of Subdivision 38-N and Division 75 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).
Relevant facts and circumstances
The entity was established under an Act as a body corporate with perpetual succession.
The following features are provided in reference below to the Act.
There are no corporates or shareholders. The entity is the one and only Authority formed pursuant to the section.
The entity's activities and affairs are controlled by the State:
· the board of directors is appointed by the State.
· a director's remuneration is determined by the State and is paid out of the entity's funds.
· the Board's power to appoint the chief executive officer is subject to the State's approval.
· the State's approval must be obtained for business transactions where the entity's liability exceeds certain monetary limits.
· the State may give written directions to the entity in relation to the performance of its functions or in relation to a particular matter, and the entity must give effect to such directions.
· the entity's board must consult with the State before it enters into a course of action that amounts to a major initiative, or is likely to be of significant public interest.
· the entity must keep the State informed of its operation, financial performance and position, and provide relevant reports of the above to the State.
· the State is entitled to request information and retain copies of documents from the entity.
· the entity's board must prepare and submit its strategy development plan and a statement of corporate intent to the State.
· the entity must fulfill certain reporting requirements.
· all dividends and surplus funds are treated in a particular way.
The entity must have its financial report audited by the Auditor General and obtain an auditor's report.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Subdivision 38-N
A New Tax System (Goods and Services Tax) Act 1999 Division 75