In the 2011-12 Budget (Budget Paper No.2, page 25), the Government announced that it will amend the goods and services tax (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.
A consultation paper relating to the policy design and implementation of the proposed change was released on 7 June 2011. The exposure draft material has been developed taking into account comments made by stakeholders.
The exposure draft legislation seeks to clarify the GST law for entities in the mortgage lending sector so 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.