Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX TRANSITION) ACT 1999 - SECT 14

  (1)   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.

  (2)   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.

  (3)   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.

  (4)   If:

  (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.

  (5)   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 .

  (6)   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.