Inserts for
Tax Laws Amendment (2011 Measures No. 9) Bill 2011: GST and appropriations

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  Schedule?	The day this Act receives the Royal Assent.		
2.  			
3.  			

Schedule?—GST treatment of appropriations
A New Tax System (Goods and Services Tax) Act 1999
1  Paragraph 9‑15(3)(c)
Repeal the paragraph, substitute:
	(c)	a payment is not the provision of consideration if:
	(i)	the payment is made by a *government related entity to another government related entity; and
	(ii)	the payment is covered by an appropriation under an *Australian law; and
	(iii)	the payment is not made for a supply which is commercial in nature.
Note 1:	A payment by a State Department of Health to a State hospital to fund its operations, where the hospital commits to achieving certain health outcomes, is a payment for a supply which is not commercial in nature. 
Note 2:	A payment by a Department to a government entity, which provides legal services on a fee for service basis, for the provision of legal services is a payment for a supply which is commercial in nature.
2  Section 72‑95
Before “This”, insert “(1)”.
3  After section 72‑95
Insert:
	(2)	However, this Division does not apply to anything covered by paragraph 9‑15(3)(c).
4  Section 72‑100
Before “This”, insert “(1)”.
5  After section 72‑100
Insert:
	(2)	However, this Division does not apply to anything covered by paragraph 9‑15(3)(c).
6  Application
The amendments made by this Schedule apply, and are taken to have applied, in relation to payments made on or after 1 July 2012.