The Assistant Treasurer has released draft regulations implementing the remaining 4 measures of proposed changes to the financial supply provisions of the GST law that were announced in the 2010-11 Federal Budget.
The 4 measures are:
- simplifying the treatment of hire purchase transactions by making them fully taxable;
- expanding the range of expenses qualifying for a reduced input tax credit to include superannuation funds providing life insurance products, lenders’ mortgage reinsurance and transactional fraud monitoring;
- changes to the reduced input tax credit for trustee and responsible entity services; and
- clarifying the language used in relation to guarantees and indemnities.
The changes are to have effect from 1 July 2012.
COMMENTS are due by 24 February 2012.
In the 2010-11 Federal Budget, the Government announced that it would amend the financial supply provisions of the GST law to clarify the operation of the legislation and reduce compliance and administrative costs, with effect from 1 July 2012.
Amendments implementing 3 of the 7 measures agreed to by the Government were contained in Sch 3 to the Tax Laws Amendment (2011 Measures No 9) Bill 2011, which was introduced into Parliament on 23 November 2011.
[LTN 9, 16/1]