*GST regs amended to make all of HP taxable; extend RITC’s for Life Insurance; modify RITC’s for trustees and clarify guarantees and indemnities [50]

The A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No 1) was registered on the Federal Register of Legislative Instruments on 29 May 2012. It amends the GST Regulations to:

(i)      treat all components of a hire purchase transaction as taxable supplies;

(ii)      extend the availability of reduced input tax credits relating to life insurance, lenders mortgage reinsurance and transactional fraud monitoring services;

(iii)     modify access to a reduced input tax credit for recognised trust entities; and

(iv)     clarify the language used in relation to guarantees and indemnities.

The Regulation commenced on 1 July 2012.

[LTN 126, 3/7]