The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 4) was Mon 3.9.2012, registered on the Federal Register of Legislative Instruments. It amends the GST regs to expand the definition of “credit union” to also include those that were listed by APRA as a credit union at 1 July 2011, and have subsequently rebranded (or will in the future) as a bank while retaining their mutuality. The purpose of the Amendment Regulation is to restore access to a reduced input tax credit (RITC) for credit unions who rebrand as a bank but do not otherwise change their ownership structure. Date of effect: The Amendment Regulation is taken to have commenced on 1 July 2011.
[LTN 171, 4/9]
Extracts from A New Tax System (Goods and Services Tax) Regulations 1999
Section 70-5 of the A New Tax System Goods and Services Tax) Act 1999, allows taxpayers to claim input tax credits at a reduced rate (where otherwise there would be none at all). It allows this in the circumstances, permitted by the above regulations, Reg 70.5.02(2), item 16 of which provides as follows:
16. Supply to a credit union by:
(a) an entity that is wholly owned by 2 or more credit unions; or
(b) an entity that is wholly owned by an entity mentioned in paragraph (a).
The amendment to the Regulations was to the definition of ‘credit union’ in the Dictionary of the Regulations, as follows.
Dictionary, definition of credit union
substitute
credit union means:
(a) an Australian ADI listed on the APRA website as a credit union; or
(b) an Australian ADI listed on the APRA website as an Australian-owned bank that:
(i) on or before 1 July 2011 was listed on the APRA website as a credit union; and
(ii) retains mutuality; and
(iii) was listed on the APRA website as a credit union at all times in the period between 1 July 2011 and the time it was listed on the APRA website as an Australian-owned bank; or
(c) the Cairns Penny Savings & Loans Limited (ACN 087 933 757).