Changes to the GST rules
2010 changes to GST rules to prevent 'phoenix' schemes, simplify the change-in-use rules and clarify when GST applies to residential and commercial accommodation.
Sections 2(1), 3A, 3A(3B), 3A(3C), 5(15), 5(22), 5(23), 5(24), 8(4B), 9(2), 9(6), 10(7B), 11(1)(mb), 11(8B), 11(8C), 17(1B), 19D(2B), 20(2), 20(3), 20(3C-3K), 20(4), 20(4B), 21(1)-(4), 21A-H, 24(7B), 25, 43(1B), 43(1C), 51B(4)-(6), 60B, 75(3B), and 78F of the Goods and Services Tax Act 1985.
Budget 2010 foreshadowed amendments to the GST rules as part of a package of changes aimed at improving the integrity and fairness of the tax rules generally.
The Taxation (GST and Remedial Matters) Act 2010 principally strengthens the GST rules by preventing so-called "phoenix" schemes.
The new legislation also makes some useful changes to the GST rules more generally, to make it easier for taxpayers to understand their GST obligations. These include simplifying the change-in-use rules and providing greater clarity over when GST applies to residential and commercial accommodation.