In media release No 2011/012, issued 20 January 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of draft legislation to make further reforms to the GST grouping rules.
"The measures in the draft legislation will result in more principle-based and simple GST grouping rules and allow GST grouping of non-operating holding entities, thus reducing compliance costs for businesses. These changes also clarify that specific contribution amounts, calculated under an indirect tax sharing agreement must, if requested, be provided to the Commissioner of Taxation," Mr Shorten said.
The Assistant Treasurer said that public consultation on the legislative design of these measures was undertaken in 2009. A number of changes were made following stakeholder feedback including:
- Grandfathering of the existing GST grouping membership rules until 1 July 2012 to assist entities in transitioning to the new principle-based rules
- Expanding the scope of the non-operating holding companies measure to also include non-operating holding trusts.
The measures are to apply from 1 July 2011. Consultation will close on 16 February 2011.