2006 amendment to s 55 of the GST Act allows companies to form a GST group even if all of the members are not GST-registered.
Section 55 of the Goods and Services Tax Act 1985
Section 55, which governs the treatment of GST groups, has been amended to allow companies to form a GST group even if all of the members are not GST-registered. The change does not affect companies that are already grouped for GST purposes.
Section 55(1) now allows a group of companies meeting the requirements of section IG 1 of the Income Tax Act 2004 to be treated as a group for GST purposes if the total value of taxable supplies made by the companies is equal to or greater than 75 percent of the total supplies made by the group. The change allows companies that were previously unable to form a GST group to now do so and removes the GST risk associated with intra-group supplies.
A consequential change has also been made to section 55(3) to ensure that the representative member of the GST group is a GST-registered person.
The amendment applies from 1 October 2001.
Other sections in this legislation
| Offshore investment | Tax rules for PIEs | Tax on geothermal wells | Australian superannuation fund exemption | New rules for selecting SSCWT rates | Allowing documents to be removed for inspection | Military and police allowances | New rules for spreading income on the sale of patents | Organisations approved for charitable donee status | Consolidated groups and foreign losses | Assessments by the Commissioner | GST and financial services | GST on fringe benefits | GST grouping rules | Taxation of business environmental expenditure | Family assistance provisions | Rewrite amendments | Tax depreciation treatment of patents | Fringe benefit tax | Depreciation formula | Economic rate of depreciation | Calculating depreciation rates | Election to depreciate | Transitional residents | Death and asset transfers | New GST due date | Limit on refunds and allocations of tax | The imputation system and companies | Reverse takeovers | Changes in GST taxable periods | Miscellaneous technical amendments |