10 December 2009

GST-free treatment of supplies of going concerns

Following the Commonwealth Budget 2009/10 in May of this year, the Treasury in conjunction with the Board of Taxation has been working on a range of reforms to the administration and legal framework of the GST. While some of the recommendations are now contained in a Bill currently before the Commonwealth Parliament, the recommendation in respect of the supply of a going concern exemption which, while accepted by the Government, awaits introduction to the Parliament. The Government proposes to abolish GST free treatment in respect of a supply of a going concern and replace it with an optional reverse-charge mechanism (which is currently used for certain supplies made by non-residents). The Government also proposes to widen the concept of a supply of a going concern and in doings so, addresses industry concerns about the rigidity of the existing GST-free treatment. This article discusses the proposal in more detail. Media contacts: Peter Slattery, Managing Partner Phone. +61 8 8239 7114 Mobile. +61 419 819 348 Email. peter.slattery@jws.com.au Andrea Shaw, Communications Manager Phone. +61 8 8239 7148 Mobile. +61 412 711 966 Email. andrea.shaw@jws.com.au

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