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This is a Bill, not an Act. For current law, see the Acts databases.
2004
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Tax
Laws Amendment (Retirement Villages) Bill
2004
No. ,
2004
(Treasury)
A Bill
for an Act to amend the A New Tax System (Goods and Services Tax) Act
1999, and for related purposes
Contents
Part 1—Amendments 3
A New Tax System (Goods and Services Tax) Act
1999 3
Part 2—Application
provisions 8
A Bill for an Act to amend the A New Tax System (Goods
and Services Tax) Act 1999, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Tax Laws Amendment (Retirement Villages)
Act 2004.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
A New Tax System (Goods and
Services Tax) Act 1999
1 Paragraph 38-25(3)(c)
After “services” (second occurring), insert “(care
services)”.
2 After subsection 38-25(3)
Insert:
(3A) Services provided to a resident of a
*retirement village are taken, for the purposes
of paragraph (3)(a), to be provided in a residential setting if, and only
if:
(a) he or she is a resident of a
*serviced apartment in the retirement village;
and
(b) there is in force a written agreement under which the operator of the
retirement village provides daily meals and heavy laundry services to all of the
residents of the apartment.
(3B) However, services provided to a resident of a
*serviced apartment in a
*retirement village are not taken, for the
purposes of paragraph (3)(a), to be provided in a residential setting
if:
(a) the *Aged Care Minister has
determined in writing:
(i) the levels of care services that residents of serviced apartments in
retirement villages must require in order for subsection (3) to apply;
and
(ii) the way in which the levels of care services required by residents
are to be assessed; and
(b) the *Aged Care Secretary has not, in
accordance with the determination, assessed the person to whom the services are
provided as requiring the levels of care services so determined.
(3C) A determination made for the purposes of paragraph (3B)(a) may
be restricted to a specified class of residents of
*serviced apartments in
*retirement villages.
3 After subsection 38-25(4)
Insert:
(4A) A supply is GST-free if:
(a) it is made to a person who is a person of a kind referred to in
paragraph (3)(c); and
(b) it is:
(i) a supply, by way of lease, hire or licence, of
*residential premises consisting of a
*serviced apartment in a
*retirement village; or
(ii) a sale of *real property that is
residential premises consisting of a serviced apartment in a retirement village;
or
(iii) a supply of an excluded security (within the meaning of the
Corporations Act 2001) in respect of which the right to participate in a
retirement village scheme (within the meaning of that Act) entitles the person
to use or occupy a serviced apartment in a retirement village; and
(c) in a case where:
(i) a determination made for the purposes of paragraph (3B)(a) is in
force; and
(ii) the determination is not restricted under subsection (3C) in
such a way that the determination excludes the person;
the *Aged Care Secretary has, in
accordance with the determination, assessed the person as requiring the levels
of care services determined in the determination; and
(d) it is made in connection with one or more supplies, or proposed
supplies, to the person that are or will be GST-free under
subsection (3).
4 Subdivision 38-G
(heading)
Repeal the heading, substitute:
5 At the end of
Subdivision 38-G
Add:
A supply is GST-free if:
(a) the supplier is a charitable institution, or a trustee of a charitable
fund, that operates a *retirement village;
and
(b) the supply is made to a resident of the retirement village;
and
(c) the supply is:
(i) a supply of accommodation in the retirement village, or a supply of a
service related to the supply of the accommodation; or
(ii) a supply of meals.
6 Subdivision 38-H
(heading)
Repeal the heading.
7 After paragraph 177-10(1)(c)
Insert:
(ca) paragraph 38-25(3B)(a); or
8 After section 177-10
Insert:
The *Aged Care Secretary may, in
writing, delegate his or her powers under paragraph 38-25(3B)(b) to:
(a) a person in relation to whom there is in force a delegation by the
Aged Care Secretary of functions under subsection 96-2(5) of the Aged Care
Act 1997; or
(b) a person:
(i) who is a person of a kind specified in a determination that is in
force and that is made by the *Aged Care
Minister for the purposes of paragraph 38-25(3B)(a); and
(ii) whom the Aged Care Secretary is satisfied is qualified and
experienced to make assessments of the kind referred to in paragraph
38-25(3B)(b).
9 Section 195-1
Insert:
Aged Care Secretary means the Secretary of the Department
that administers the Aged Care Act 1997.
10 Section 195-1 (definition of residential
care)
Repeal the definition.
11 Section 195-1
Insert:
retirement village: premises are a retirement village
if:
(a) the premises are *residential
premises; and
(b) accommodation in the premises is intended to be for persons who are at
least 55 years old, or who are a certain age that is more than 55 years;
and
(c) the premises include communal facilities for use by the residents of
the premises;
but the following are not retirement villages:
(d) premises used, or intended to be used, for the provision of
residential care (within the meaning of the Aged Care Act 1997) by an
approved provider (within the meaning of that Act);
(e) *commercial residential
premises.
12 Section 195-1
Insert:
serviced apartment: an apartment (however described) is a
serviced apartment in relation to a *retirement
village if:
(a) the apartment is designed to be occupied by aged residents who require
either or both of the following:
(i) the services set out in item 2.1 (daily living activities
assistance) of Part 2 of Schedule 1 to the
*Quality of Care Principles;
(ii) the services set out in item 3.8 (nursing services) of
Part 3 of that Schedule; and
(b) at least one responsible person is continuously:
(i) on call to render emergency assistance to the residents of the
apartment; and
(ii) in reasonable proximity to the apartment; and
(c) the apartment is part of a single complex of apartments to which
paragraphs (a) and (b) apply, and is accessible from a common corridor
linking the apartment to the other apartments in the complex; and
(d) there is in the retirement village a communal dining facility that is
available for use by the residents of apartments in the retirement village to
which paragraphs (a), (b) and (c) apply.
However, a detached house, row house, terrace house, town house or villa
unit is not a serviced apartment.
13 Definition
In this Part:
GST Act means the A New Tax System (Goods and Services
Tax) Act 1999.
14 General application
(1) The amendments made by this Schedule (other than items 4 to 6)
apply, and are taken to have applied, in relation to net amounts for tax periods
starting, or that started, on or after 1 July 2000.
(2) However, to avoid doubt, a determination made for the purposes of
paragraph 38-25(3B)(a) of the GST Act (as amended by this Act) does not apply in
relation to any supplies made before the commencement of this item.
(3) The amendments made by items 4 to 6 of this Schedule apply to
supplies made on or after the day on which this Act receives the Royal
Assent.
15 Attributing input tax
credits
(1) If:
(a) you are entitled to an input tax credit for an acquisition or
importation made before the commencement of this item; and
(b) you would not be entitled to the input tax credit if the amendments
made by this Schedule had not been made;
to the extent that you would, apart from this item, attribute that input
tax credit to a tax period ending before the commencement of this item, you may
instead attribute it to the first tax period ending after that
commencement.
(2) This item does not apply for the purpose of working out adjustment
periods for the purposes of Division 129 of the GST Act (which is about
adjustments for changes to the extent of creditable purposes).
(3) This item has effect despite:
(a) sections 29-10 and 29-15 of the GST Act (which are about
attributing input tax credits); and
(b) section 36 of the Taxation Administration Act 1953 (which
is about the time limit on entitlement to input tax credits).
16 Application of section 36 of the Taxation
Administration Act 1953
Section 36 of the Taxation Administration Act 1953 does not
apply to a refund under section 35-5 of the GST Act in respect of a tax
period to the extent that:
(a) before the commencement of this item, GST on a taxable supply was
attributable to that tax period; and
(b) because of the amendments of the GST Act made by this Act, the supply
is no longer a taxable supply.
17 Application of section 78-50 of the GST
Act
Section 78-50 of the GST Act does not apply to a payment or supply
made in settlement of a claim under an insurance policy if:
(a) the entity that paid all or a part of the premium for the insurance
policy had, at or before the time referred to in subparagraph 78-50(1)(c)(i) of
the GST Act, informed the insurer of the entitlement to an input tax credit for
the premium it paid; and
(b) in so informing the insurer, the entity did not, at that time,
understate the extent of the entitlement; and
(c) because of the amendments of the GST Act made by this Act, the
statement of the extent of the entitlement is now an understatement of the
entitlement.
18 Application of Aged Care Minister’s
determinations relating to paragraph 38-25(3)(b) of the GST
Act
Any requirement in a determination made for the purposes of paragraph
38-25(3)(b) of the GST Act that accommodation be included in a package of
services, or that charges for accommodation be payable to the entity to which
charges for services are payable, does not apply in relation to a supply
that:
(a) is made to a resident of a serviced apartment in a retirement village;
and
(b) is connected with a supply of a kind referred to in subparagraph
38-25(4A)(b)(i), (ii) or (iii) to the resident.