The Government on Tue 14.2.2012, released draft legislation and an EM for public consultation on the proposal to amend s 195-1 of the GST Act to expressly provide that Div 105 operates to the exclusion of Div 58 where a mortgagee in possession or control sells the property of a corporation.
The measure was initially announced by the Government in the 2011-12 Budget, and a consultation paper was subsequently released. The Government says the draft legislation incorporates comments made by stakeholders on the consultation paper.
Further, the Government says “the draft legislation seeks to clarify the GST law for entities in the mortgage lending sector so that representatives of incapacitated entities will no longer need to differentiate between different provisions of the GST law and will be able to report and account under a single registration”.
Date of Effect: The provisions will take effect from the start of the first quarterly tax period on or after Royal Assent.
Comments are due by 13 March 2012.
[LTN 29, 14/2]