Commonwealth Numbered Regulations - Explanatory Statements

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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) AMENDMENT REGULATIONS 2003 (NO. 2) 2003 NO. 73

STATUTORY RULES 2003 No. 73

Issued by authority of the Minister for Revenue and Assistant Treasurer

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

A New Tax System (Goods and Services Tax) Amendment Regulations 2003 (No. 2)

Section 177-15 of the A New Tax System (Goods and Services Tax) Act 1999 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 51-5 of the Act provides that the regulations may specify the activities that may be approved as goods and services tax (GST) joint ventures. Regulation 51-5.01 of the A New Tax System (Goods and Services Tax) Regulations 1999 specifies the eligible purposes for a GST joint venture. Applications for approval as a GST joint venture are made to the Commissioner of Taxation.

The GST joint venture provisions reduce compliance costs by having the joint venture operator deal with the GST responsibilities arising from its dealings on behalf of the participants in the arrangement.

The purpose of the amending Regulations is to extend the current list of eligible purposes for a GST joint venture to allow entities involved in the transportation industry to be approved as GST joint ventures.

These amendment Regulations allow qualifying transportation joint ventures to access the benefits of the GST joint venture provisions. This extension to the GST joint venture provisions is consistent with the range of industries that are currently eligible to access the GST joint venture provisions. It will help transport companies involved in joint venture arrangements to substantially reduce the administrative costs associated with accounting for the GST on joint venture transactions.

The amending Regulations would commence on 1 May 2003. This date has been chosen as it is the commencement of a tax period.