Appendix 1 - Suggested draft legislation
Submissions are sought on whether the suggested drafting presented below would achieve the intended policy outcomes described in chapter 2.
Following analysis of submissions, the Government intends to introduce amendments in the next available taxation bill.
1 Section 14 amended (Exempt supplies)
(1) After section 14(1)(e), insert:
“(f) the supply of goods or services by a body corporate, as that term is defined in section 5 of the Unit Titles Act
2010, to the extent to which the goods or services are supplied under a power or duty of the body corporate as
set out in section 84 of that Act.”
(2) Subsection (1) applies for supplies made on or after 1 October 1986. However, subsection (1) does not apply—
(a) to a body corporate that is registered for GST before (date of announcement) as a result of an application under section 51(2) or 51(3); and
(b) for the period that starts on 1 October 1986 and ends on (date of announcement); and
(c) in relation to the tax treatment under the Goods and Services Tax Act 1985 of supplies made by the body corporate during the period.
2 Section 51 amended (Persons making supplies in course of taxable activity to be registered)
(1) After section 51(4), insert:
“(4B) Subsection (4C) applies to a body corporate that is registered for GST between 1 April 2010 and (date of announcement) as
a result of an application under section 51(2) or 51(3).
“(4C) Despite subsection (4), the body corporate may choose to be a registered person for the purposes of this Act with effect from
the date that is the later of—
“(a) the first day of their first taxable period that occurs after 1 April 2010; or
“(b) the first day on which they are liable to be registered under subsection (1).”
(2) Subsection (1) comes into force on (date of announcement).
3 New section 60C inserted (Bodies corporate)
(1) After section 60B, insert:
“60C Bodies corporate
“(1) To the extent to which a supply of goods or services made to a body corporate is used in the course of making an exempt supply
under section 14(1)(f), the supply is treated as made—
“(a) to the persons who are owners of the units and common property administered by the body corporate; and
“(b) in proportion to each unit owner’s ownership interest in the body corporate.
“(2) For the purposes of this section, body corporate, common property, owner, ownership interest, and unit have the meanings given in section 5 of the Unit Titles Act 2010.”
(2) Subsection (1) applies for supplies made on or after (date of announcement).
(3) Subsections (1) and (2) come into force on (date of announcement)