Commonwealth Consolidated Acts Commonwealth Consolidated Acts
A New Tax System (Goods and Services Tax) Act 1999
1 Subsections 29 - 40(2) and (2A)
Repeal the subsections.
2 Saving provision
(1) If:
(a) you made a choice under subsection 29 - 40(2) of the A New Tax System (Goods and Services Tax) Act 1999 ; and
(b) the choice was in force immediately before the start of the first tax period applying to you that is a tax period referred to in item 16 of this Schedule;
the choice continues in force after the start of that tax period as if it had been made under section 157 - 5 of that Act as amended by this Act.
(2) However, this item does not apply, and the choice ceases to be in force from the start of that tax period, if the choice could not have been made after the start of that tax period because of subsection 157 - 5(3) of that Act as amended by this Act.
3 Subsections 29 - 50(5) and (6)
Repeal the subsections (including the example).
4 At the end of Subdivision 29 - B
Add:
29 - 69 Special rules relating to accounting on a cash basis
Chapter 4 contains special rules relating to accounting on a cash basis, as follows:
Checklist of special rules | ||
Item | For this case ... | See: |
1 | Accounting basis of charitable institutions etc. | Division 157 |
5 Section 37 - 1 (before table item 1)
Insert:
1AA | Accounting basis of charitable institutions etc. | Division 157 |
6 At the end of section 38 - 250
Add:
(4) Subsections (1) and (2) do not apply to a supply by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the supplier is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a * government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a * gift - deductible purpose of the supplier.
Note: This subsection denies GST - free status under this section to supplies by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST - free under this section if they relate to the principal purpose of the fund, authority or institution.
7 At the end of section 38 - 255
Add:
(3) Subsection (1) does not apply to a supply by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the supplier is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a * government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a * gift - deductible purpose of the supplier.
Note: This subsection denies GST - free status under this section to supplies by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST - free under this section if they relate to the principal purpose of the fund, authority or institution.
8 Paragraph 38 - 260(a)
Omit "a charitable institution, or a trustee", substitute "an * endorsed charitable institution, or an * endorsed trustee".
9 At the end of section 38 - 270
Add:
(3) Subsection (1) does not apply to a supply by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the supplier is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a * government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a * gift - deductible purpose of the supplier.
Note: This subsection denies GST - free status under this section to supplies by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be GST - free under this section if they relate to the principal purpose of the fund, authority or institution.
10 At the end of section 40 - 160
Add:
(3) Subsection (1) does not apply to a supply by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the supplier is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a * government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a * gift - deductible purpose of the supplier.
Note: This subsection denies input taxed status under this section to supplies by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be input taxed under this section if they relate to the principal purpose of the fund, authority or institution.
11 Paragraph 63 - 5(2)(a)
Repeal the paragraph, substitute:
(a) a charitable institution, a trustee of a charitable fund or a * government school; or
(aa) a * gift - deductible entity that is a non - profit body; or
12 At the end of section 111 - 18
Add:
(3) Subsection (1) does not apply in relation to a reimbursement by a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the entity is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a * government school; or
(iii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the expense relates is a * gift - deductible purpose of the entity.
Note: This subsection excludes from this section reimbursements by certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, reimbursements can be covered by this section if they relate to the principal purpose of the fund, authority or institution.
13 At the end of section 129 - 45
Add:
(3) Subsection (1) does not apply in relation to a thing that you supply to a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless:
(a) the entity is:
(i) a charitable institution or a trustee of a charitable fund; or
(ii) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997; or
(b) each purpose to which the supply relates is a * gift - deductible purpose of the entity.
Note: This subsection excludes from this section supplies to certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be covered by this section if they relate to the principal purpose of the fund, authority or institution.
14 After Division 156
Insert:
Division 157 -- Accounting basis of charitable institutions etc.
157 - 1 What this Division is about
The choice available to a charitable institution, trustee of a charitable fund, gift - deductible entity or government school to account on a cash basis is not restricted as it is for other entities, but other restrictions may apply.
157 - 5 Charitable institutions etc. choosing to account on a cash basis
(1) A charitable institution, a trustee of a charitable fund, a * gift - deductible entity or a * government school may choose to * account on a cash basis, with effect from the first day of the tax period that the institution, trustee or entity chooses.
(2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an * endorsed charitable institution or an * endorsed trustee of a charitable fund.
Example: This section does not apply in relation to an entity that is both a charitable institution and a gift - deductible entity unless the entity is an endorsed charitable institution.
(3) This section does not apply in relation to a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless the entity is:
(a) a charitable institution or a trustee of a charitable fund; or
(b) a * government school; or
(c) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997.
Note: This subsection excludes from this section certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution.
(4) This section has effect despite section 29 - 40 (which is about choosing to account on a cash basis).
157 - 10 Charitable institutions etc. ceasing to account on a cash basis
(1) Paragraph 29 - 50(1)(a) and subsection 29 - 50(3) do not apply in relation to any charitable institution, any trustee of a charitable fund, any * gift - deductible entity or any * government school.
(2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an * endorsed charitable institution or an * endorsed trustee of a charitable fund.
Example: This section does not apply in relation to an entity that is both a charitable institution and a gift - deductible entity unless the entity is an endorsed charitable institution.
(3) This section does not apply in relation to a * gift - deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 - 120 of the ITAA 1997, unless the entity is:
(a) a charitable institution or a trustee of a charitable fund; or
(b) a * government school; or
(c) a fund, authority or institution of a kind referred to in paragraph 30 - 125(1)(b) of the ITAA 1997.
Note: This subsection excludes from this section certain (but not all) gift - deductible entities that are only endorsed for the operation of a fund, authority or institution.
15 Section 195 - 1
Insert:
"gift-deductible purpose" , of an entity, means a purpose that is the principal purpose of:
(a) if the entity legally owns a fund for the operation of which the entity is entitled, under subsection 30 - 125(2) of the * ITAA 1997, to be so endorsed--that fund; or
(b) if the entity includes an authority or institution for the operation of which the entity is entitled, under subsection 30 - 125(2) of the ITAA 1997, to be so endorsed--that authority or institution.
16 Application
The amendments made by this Schedule apply in relation to net amounts for tax periods starting on or after the day on which this Act receives the Royal Assent.