GST and the Mortgagee or Charge sale of a corporation’s property – Exposure draft released

On 14 February 2012, Treasury released exposure draft legislation and explanatory materials seeking to clarify the GST law for entities in the mortgage lending sector. 

The intention is 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.

This amendment seeks to implement the announcement in the 2011-12 Budget (Budget Paper No.2, page 25) that the government would amend the GST law to clarify that Division 105 of the GST Act operates to the exclusion of Division 58 of the GST Act where a mortgagee in possession or control sells the property of a corporation. Treasury’s consultation paper on the design of this proposed amendment - the GST Treatment of Property in Possession of a Mortgagee - was released on 7 June 2011. 

The Institute lodged a submission in response to an earlier consultation on GST and representatives of incapacitated entities, in which we commented on this issue of the interaction between Division 105, and sections 58-5 and 58-10 of the GST Act. 

Submissions on the ED are due by Tuesday 13 March 2012. The Institute expects to lodge a submission on the ED, so members wishing to have input into the submission should provide their comments to the tax group by no later than Friday 2 March 2012.

Article last Updated 23 April 2012