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A New Tax System (Goods and Services Tax) Act 1999

Authoritative Version
  • - C2016C00695
  • In force - Superseded Version
  • View Series
Act No. 55 of 1999 as amended, taking into account amendments up to Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016
An Act about a goods and services tax to implement A New Tax System, and for related purposes
Administered by: Treasury
Registered 01 Jul 2016
Start Date 01 Jul 2016
End Date 31 Dec 2016

A New Tax System (Goods and Services Tax) Act 1999

No. 55, 1999

Compilation No. 68

Compilation date:                              1 July 2016

Includes amendments up to:            Act No. 52, 2016

Registered:                                         1 July 2016

 

About this compilation

This compilation

This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 1 July 2016 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Chapter 1—Introduction                                                                                       4

Part 1‑1—Preliminary                                                                                                         4

Division 1—Preliminary                                                                                              4

1‑1......................... Short title............................................................................ 4

1‑2......................... Commencement.................................................................. 4

1‑3......................... Commonwealth‑State financial relations............................. 4

1‑4......................... States and Territories are bound by the GST law................ 4

Part 1‑2—Using this Act                                                                                                    4

Division 2—Overview of the GST legislation                                                  4

2‑1......................... What this Act is about......................................................... 4

2‑5......................... The basic rules (Chapter 2)................................................. 4

2‑10....................... The exemptions (Chapter 3)................................................ 4

2‑15....................... The special rules (Chapter 4).............................................. 4

2‑20....................... Miscellaneous (Chapter 5).................................................. 4

2‑25....................... Interpretative provisions (Chapter 6).................................. 4

2‑30....................... Administration, collection and recovery provisions in the Taxation Administration Act 1953 4

Division 3—Defined terms                                                                                         4

3‑1......................... When defined terms are identified....................................... 4

3‑5......................... When terms are not identified............................................. 4

3‑10....................... Identifying the defined term in a definition......................... 4

Division 4—Status of Guides and other non‑operative material           4

4‑1......................... Non‑operative material........................................................ 4

4‑5......................... Explanatory sections........................................................... 4

4‑10....................... Other material..................................................................... 4

Chapter 2—The basic rules                                                                                 4

Division 5—Introduction                                                                                            4

5‑1......................... What this Chapter is about.................................................. 4

5‑5......................... The structure of this Chapter............................................... 4

Part 2‑1—The central provisions                                                                                  4

Division 7—The central provisions                                                                       4

7‑1......................... GST and input tax credits................................................... 4

7‑5......................... Net amounts........................................................................ 4

7‑10....................... Tax periods......................................................................... 4

7‑15....................... Payments and refunds......................................................... 4

Part 2‑2—Supplies and acquisitions                                                                           4

Division 9—Taxable supplies                                                                                    4

9‑1......................... What this Division is about................................................. 4

Subdivision 9‑A—What are taxable supplies?                                                    4

9‑5......................... Taxable supplies................................................................. 4

9‑10....................... Meaning of supply.............................................................. 4

9‑15....................... Consideration...................................................................... 4

9‑17....................... Certain payments and other things not consideration.......... 4

9‑20....................... Enterprises.......................................................................... 4

9‑25....................... Supplies connected with the indirect tax zone..................... 4

9‑26....................... Supplies by non‑residents that are not connected with the indirect tax zone             4

9‑27....................... When enterprises are carried on in the indirect tax zone.... 4

9‑30....................... Supplies that are GST‑free or input taxed........................... 4

9‑39....................... Special rules relating to taxable supplies............................. 4

Subdivision 9‑B—Who is liable for GST on taxable supplies?                      4

9‑40....................... Liability for GST on taxable supplies................................. 4

9‑69....................... Special rules relating to liability for GST on taxable supplies  4

Subdivision 9‑C—How much GST is payable on taxable supplies?              4

9‑70....................... The amount of GST on taxable supplies............................. 4

9‑75....................... The value of taxable supplies.............................................. 4

9‑80....................... The value of taxable supplies that are partly GST‑free or input taxed      4

9‑85....................... Value of taxable supplies to be expressed in Australian currency            4

9‑90....................... Rounding of amounts of GST............................................ 4

9‑99....................... Special rules relating to the amount of GST on taxable supplies              4

Division 11—Creditable acquisitions                                                                   4

11‑1....................... What this Division is about................................................. 4

11‑5....................... What is a creditable acquisition?......................................... 4

11‑10..................... Meaning of acquisition....................................................... 4

11‑15..................... Meaning of creditable purpose........................................... 4

11‑20..................... Who is entitled to input tax credits for creditable acquisitions?                4

11‑25..................... How much are the input tax credits for creditable acquisitions?               4

11‑30..................... Acquisitions that are partly creditable................................. 4

11‑99..................... Special rules relating to acquisitions................................... 4

Part 2‑3—Importations                                                                                                       4

Division 13—Taxable importations                                                                      4

13‑1....................... What this Division is about................................................. 4

13‑5....................... What are taxable importations?........................................... 4

13‑10..................... Meaning of non‑taxable importation.................................. 4

13‑15..................... Who is liable for GST on taxable importations?................. 4

13‑20..................... How much GST is payable on taxable importations?......... 4

13‑25..................... The value of taxable importations that are partly non‑taxable importations              4

13‑99..................... Special rules relating to taxable importations...................... 4

Division 15—Creditable importations                                                                 4

15‑1....................... What this Division is about................................................. 4

15‑5....................... What are creditable importations?....................................... 4

15‑10..................... Meaning of creditable purpose........................................... 4

15‑15..................... Who is entitled to input tax credits for creditable importations?               4

15‑20..................... How much are the input tax credits for creditable importations?              4

15‑25..................... Importations that are partly creditable................................. 4

15‑99..................... Special rules relating to creditable importations.................. 4

Part 2‑4—Net amounts and adjustments                                                                 4

Division 17—Net amounts and adjustments                                                     4

17‑1....................... What this Division is about................................................. 4

17‑5....................... Net amounts........................................................................ 4

17‑10..................... Adjustments........................................................................ 4

17‑20..................... Determinations relating to how to work out net amounts.... 4

17‑99..................... Special rules relating to net amounts or adjustments........... 4

Division 19—Adjustment events                                                                             4

19‑1....................... What this Division is about................................................. 4

19‑5....................... Explanation of the effect of adjustment events.................... 4

Subdivision 19‑A—Adjustment events                                                                  4

19‑10..................... Adjustment events.............................................................. 4

Subdivision 19‑B—Adjustments for supplies                                                      4

19‑40..................... Where adjustments for supplies arise.................................. 4

19‑45..................... Previously attributed GST amounts.................................... 4

19‑50..................... Increasing adjustments for supplies.................................... 4

19‑55..................... Decreasing adjustments for supplies................................... 4

Subdivision 19‑C—Adjustments for acquisitions                                               4

19‑70..................... Where adjustments for acquisitions arise............................ 4

19‑75..................... Previously attributed input tax credit amounts.................... 4

19‑80..................... Increasing adjustments for acquisitions.............................. 4

19‑85..................... Decreasing adjustments for acquisitions............................. 4

19‑99..................... Special rules relating to adjustment events.......................... 4

Division 21—Bad debts                                                                                                4

21‑1....................... What this Division is about................................................. 4

21‑5....................... Writing off bad debts (taxable supplies)............................. 4

21‑10..................... Recovering amounts previously written off (taxable supplies) 4

21‑15..................... Bad debts written off (creditable acquisitions).................... 4

21‑20..................... Recovering amounts previously written off (creditable acquisitions)       4

21‑99..................... Special rules relating to adjustments for bad debts.............. 4

Part 2‑5—Registration                                                                                                        4

Division 23—Who is required to be registered and who may be registered       4

23‑1....................... Explanation of Division...................................................... 4

23‑5....................... Who is required to be registered......................................... 4

23‑10..................... Who may be registered....................................................... 4

23‑15..................... The registration turnover threshold..................................... 4

23‑20..................... Not registered for 4 years................................................... 4

23‑99..................... Special rules relating to who is required to be registered or who may be registered 4

Division 25—How you become registered, and how your registration can be cancelled            4

Subdivision 25‑A—How you become registered                                                4

25‑1....................... When you must apply for registration................................. 4

25‑5....................... When the Commissioner must register you........................ 4

25‑10..................... The date of effect of your registration................................. 4

25‑15..................... Effect of backdating your registration................................. 4

25‑49..................... Special rules relating to registration.................................... 4

Subdivision 25‑B—How your registration can be cancelled                           4

25‑50..................... When you must apply for cancellation of registration......... 4

25‑55..................... When the Commissioner must cancel registration............... 4

25‑57..................... When the Commissioner may cancel your registration....... 4

25‑60..................... The date of effect of your cancellation................................ 4

25‑65..................... Effect of backdating your cancellation of registration......... 4

25‑99..................... Special rules relating to cancellation of registration............. 4

Part 2‑6—Tax periods                                                                                                         4

Division 27—How to work out the tax periods that apply to you        4

27‑1....................... What this Division is about................................................. 4

27‑5....................... General rule—3 month tax periods..................................... 4

27‑10..................... Election of one month tax periods....................................... 4

27‑15..................... Determination of one month tax periods............................. 4

27‑20..................... Withdrawing elections of one month tax periods................ 4

27‑22..................... Revoking elections of one month tax periods..................... 4

27‑25..................... Revoking determinations of one month tax periods............ 4

27‑30..................... Tax periods determined by the Commissioner to take account of changes in tax periods         4

27‑35..................... Changing the days on which your tax periods end............. 4

27‑37..................... Special determination of tax periods on request.................. 4

27‑38..................... Revoking special determination of tax periods.................... 4

27‑39..................... Tax periods of incapacitated entities.................................... 4

27‑40..................... An entity’s concluding tax period....................................... 4

27‑99..................... Special rules relating to tax periods..................................... 4

Division 29—What is attributable to tax periods                                          4

29‑1....................... What this Division is about................................................. 4

Subdivision 29‑A—The attribution rules                                                             4

29‑5....................... Attributing the GST on your taxable supplies..................... 4

29‑10..................... Attributing the input tax credits for your creditable acquisitions              4

29‑15..................... Attributing the input tax credits for your creditable importations             4

29‑20..................... Attributing your adjustments.............................................. 4

29‑25..................... Commissioner may determine particular attribution rules... 4

29‑39..................... Special rules relating to attribution rules............................. 4

Subdivision 29‑B—Accounting on a cash basis                                                  4

29‑40..................... Choosing to account on a cash basis................................... 4

29‑45..................... Permission to account on a cash basis................................ 4

29‑50..................... Ceasing to account on a cash basis..................................... 4

29‑69..................... Special rules relating to accounting on a cash basis............ 4

Subdivision 29‑C—Tax invoices and adjustment notes                                    4

29‑70..................... Tax invoices........................................................................ 4

29‑75..................... Adjustment notes................................................................ 4

29‑80..................... Tax invoices and adjustment notes not required for low value transactions             4

29‑99..................... Special rules relating to tax invoices and adjustment notes. 4

Part 2‑7—Returns, payments and refunds                                                            4

Division 31—GST returns                                                                                          4

31‑1....................... What this Division is about................................................. 4

31‑5....................... Who must give GST returns............................................... 4

31‑8....................... When GST returns must be given—quarterly tax periods.. 4

31‑10..................... When GST returns must be given—other tax periods........ 4

31‑15..................... The form and contents of GST returns............................... 4

31‑20..................... Additional GST returns...................................................... 4

31‑25..................... Electronic lodgment of GST returns................................... 4

31‑99..................... Special rules relating to GST returns.................................. 4

Division 33—Payments of GST                                                                               4

33‑1....................... What this Division is about................................................. 4

33‑3....................... When payments of assessed net amounts must be made—quarterly tax periods      4

33‑5....................... When payments of assessed net amounts must be made—other tax periods            4

33‑10..................... How payment of assessed net amounts are made............... 4

33‑15..................... Payments of assessed GST on importations....................... 4

33‑99..................... Special rules relating to payments of GST.......................... 4

Division 35—Refunds                                                                                                   4

35‑1....................... What this Division is about................................................. 4

35‑5....................... Entitlement to refund........................................................... 4

35‑10..................... When entitlement arises...................................................... 4

35‑99..................... Special rules relating to refunds.......................................... 4

Part 2‑8—Checklist of special rules                                                                            4

Division 37—Checklist of special rules                                                               4

37‑1....................... Checklist of special rules.................................................... 4

Chapter 3—The exemptions                                                                               4

Part 3‑1—Supplies that are not taxable supplies                                                4

Division 38—GST‑free supplies                                                                              4

38‑1....................... What this Division is about................................................. 4

Subdivision 38‑A—Food                                                                                           4

38‑2....................... Food................................................................................... 4

38‑3....................... Food that is not GST‑free................................................... 4

38‑4....................... Meaning of food................................................................. 4

38‑5....................... Premises used in supplying food........................................ 4

38‑6....................... Packaging of food............................................................... 4

Subdivision 38‑B—Health                                                                                        4

38‑7....................... Medical services................................................................. 4

38‑10..................... Other health services........................................................... 4

38‑15..................... Other government funded health services........................... 4

38‑20..................... Hospital treatment............................................................... 4

38‑25..................... Residential care etc.............................................................. 4

38‑30..................... Home care etc..................................................................... 4

38‑35..................... Flexible care........................................................................ 4

38‑38..................... Disability support provided to NDIS participants............... 4

38‑40..................... Specialist disability services................................................ 4

38‑45..................... Medical aids and appliances................................................ 4

38‑47..................... Other GST‑free health goods.............................................. 4

38‑50..................... Drugs and medicinal preparations etc................................. 4

38‑55..................... Private health insurance etc................................................. 4

38‑60..................... Third party procured GST‑free health supplies................... 4

Subdivision 38‑C—Education                                                                                 4

38‑85..................... Education courses............................................................... 4

38‑90..................... Excursions or field trips...................................................... 4

38‑95..................... Course materials................................................................. 4

38‑97..................... Lease etc. of curriculum related goods................................ 4

38‑100................... Supplies that are not GST‑free............................................ 4

38‑105................... Accommodation at boarding schools etc............................. 4

38‑110................... Recognition of prior learning etc......................................... 4

Subdivision 38‑D—Child care                                                                                 4

38‑140................... Child care—registered carers under the family assistance law 4

38‑145................... Child care—approved child care services under the family assistance law               4

38‑150................... Other child care................................................................... 4

38‑155................... Supplies directly related to child care that is GST‑free........ 4

Subdivision 38‑E—Exports and other cross‑border supplies                         4

38‑185................... Exports of goods................................................................ 4

38‑187................... Lease etc. of goods for use outside the indirect tax zone..... 4

38‑188................... Tooling used by non‑residents to manufacture goods for export             4

38‑190................... Supplies of things, other than goods or real property, for consumption outside the indirect tax zone      4

38‑191................... Supplies relating to the repair etc. of goods under warranty 4

Subdivision 38‑F—Religious services                                                                   4

38‑220................... Religious services............................................................... 4

Subdivision 38‑G—Activities of charities etc.                                                     4

38‑250................... Nominal consideration etc................................................... 4

38‑255................... Second‑hand goods............................................................ 4

38‑260................... Supplies of retirement village accommodation etc............... 4

38‑270................... Raffles and bingo conducted by charities etc...................... 4

Subdivision 38‑I—Water, sewerage and drainage                                            4

38‑285................... Water.................................................................................. 4

38‑290................... Sewerage and sewerage‑like services................................. 4

38‑295................... Emptying of septic tanks..................................................... 4

38‑300................... Drainage............................................................................. 4

Subdivision 38‑J—Supplies of going concerns                                                   4

38‑325................... Supply of a going concern.................................................. 4

Subdivision 38‑K—Transport and related matters                                           4

38‑355................... Supplies of transport and related matters............................ 4

38‑360................... Travel agents arranging overseas supplies.......................... 4

Subdivision 38‑L—Precious metals                                                                       4

38‑385................... Supplies of precious metals................................................ 4

Subdivision 38‑M—Supplies through inwards duty free shops                      4

38‑415................... Supplies through inwards duty free shops.......................... 4

Subdivision 38‑N—Grants of land by governments                                          4

38‑445................... Grants of freehold and similar interests by governments.... 4

38‑450................... Leases preceding grants of freehold and similar interests by governments              4

Subdivision 38‑O—Farm land                                                                                4

38‑475................... Subdivided farm land.......................................................... 4

38‑480................... Farm land supplied for farming.......................................... 4

Subdivision 38‑P—Cars for use by disabled people                                          4

38‑505................... Disabled veterans................................................................ 4

38‑510................... Other disabled people......................................................... 4

Subdivision 38‑Q—International mail                                                                 4

38‑540................... International mail................................................................ 4

Subdivision 38‑R—Telecommunication supplies made under arrangements for global roaming in the indirect tax zone                                                                                                  4

38‑570................... Telecommunication supplies made under arrangements for global roaming in the indirect tax zone        4

Subdivision 38‑S—Eligible emissions units                                                         4

38‑590................... Eligible emissions units...................................................... 4

Subdivision 38‑T—Inbound intangible consumer supplies                             4

38‑610................... Inbound intangible consumer supplies................................ 4

Division 40—Input taxed supplies                                                                          4

40‑1....................... What this Division is about................................................. 4

Subdivision 40‑A—Financial supplies                                                                  4

40‑5....................... Financial supplies............................................................... 4

Subdivision 40‑B—Residential rent                                                                       4

40‑35..................... Residential rent................................................................... 4

Subdivision 40‑C—Residential premises                                                              4

40‑65..................... Sales of residential premises............................................... 4

40‑70..................... Supplies of residential premises by way of long‑term lease 4

40‑75..................... Meaning of new residential premises................................. 4

Subdivision 40‑D—Precious metals                                                                       4

40‑100................... Precious metals................................................................... 4

Subdivision 40‑E—School tuckshops and canteens                                           4

40‑130................... School tuckshops and canteens........................................... 4

Subdivision 40‑F—Fund‑raising events conducted by charities etc.             4

40‑160................... Fund‑raising events conducted by charities etc................... 4

40‑165................... Meaning of fund‑raising event............................................ 4

Subdivision 40‑G—Inbound intangible consumer supplies                             4

40‑180................... Inbound intangible consumer supplies................................ 4

Part 3‑2—Non‑taxable importations                                                                          4

Division 42—Non‑taxable importations                                                             4

42‑1....................... What this Division is about................................................. 4

42‑5....................... Non‑taxable importations—Schedule 4 to the Customs Tariff Act 1995  4

42‑10..................... Goods returned to the indirect tax zone in an unaltered condition            4

Chapter 4—The special rules                                                                             4

Division 45—Introduction                                                                                          4

45‑1....................... What this Chapter is about.................................................. 4

45‑5....................... The effect of special rules................................................... 4

Part 4‑1—Special rules mainly about particular ways entities are organised       4

Division 48—GST groups                                                                                           4

48‑1....................... What this Division is about................................................. 4

Subdivision 48‑A—Formation and membership of GST groups                   4

48‑5....................... Formation of GST groups.................................................. 4

48‑7....................... Membership of GST groups............................................... 4

48‑10..................... Membership requirements of a GST group........................ 4

48‑15..................... Relationship of companies and non‑companies in a GST group              4

Subdivision 48‑B—Consequences of GST groups                                              4

48‑40..................... Who is liable for GST......................................................... 4

48‑45..................... Who is entitled to input tax credits...................................... 4

48‑50..................... Adjustments........................................................................ 4

48‑51..................... Consequences of being a member of a GST group for part of a tax period              4

48‑52..................... Consequences for a representative member of membership change during a tax period          4

48‑53..................... Consequences of changing a representative member during a tax period 4

48‑55..................... GST groups treated as single entities for certain purposes.. 4

48‑57..................... Tax invoices that are required to identify recipients............ 4

48‑60..................... GST returns........................................................................ 4

Subdivision 48‑C—Administrative matters                                                         4

48‑70..................... Changing the membership etc. of GST groups................... 4

48‑71..................... Approval of early day of effect of forming, changing etc. GST groups   4

48‑73..................... Tax periods of GST groups with incapacitated members.... 4

48‑75..................... Effect of representative member becoming an incapacitated entity           4

Subdivision 48‑D—Ceasing to be a member of a GST group                         4

48‑110................... Adjustments after you cease to be a member of a GST group  4

48‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST group        4

Division 49—GST religious groups                                                                       4

49‑1....................... What this Division is about................................................. 4

Subdivision 49‑A—Approval of GST religious groups                                    4

49‑5....................... Approval of GST religious groups..................................... 4

49‑10..................... Membership requirements of a GST religious group.......... 4

Subdivision 49‑B—Consequences of approval of GST religious groups     4

49‑30..................... Supplies between members of GST religious groups......... 4

49‑35..................... Acquisitions between members of GST religious groups... 4

49‑40..................... Adjustment events.............................................................. 4

49‑45..................... Changes in the extent of creditable purpose........................ 4

49‑50..................... GST religious groups treated as single entities for certain purposes        4

Subdivision 49‑C—Administrative matters                                                         4

49‑70..................... Changing the membership etc. of GST religious groups.... 4

49‑75..................... Revoking the approval of GST religious groups................ 4

49‑80..................... Notification by principal members...................................... 4

49‑85..................... Date of effect of approvals and revocations........................ 4

49‑90..................... Notification by the Commissioner...................................... 4

Division 50—GST treatment of religious practitioners                             4

Guide to Division 50                                                                                                      187

50‑1....................... What this Division is about................................................. 4

50‑5....................... GST treatment of religious practitioners............................. 4

Division 51—GST joint ventures                                                                            4

51‑1....................... What this Division is about................................................. 4

Subdivision 51‑A—Formation of and participation in GST joint ventures 4

51‑5....................... Formation of GST joint ventures........................................ 4

51‑7....................... Participants in GST joint ventures...................................... 4

51‑10..................... Participation requirements of a GST joint venture.............. 4

Subdivision 51‑B—Consequences of GST joint ventures                                 4

51‑30..................... Who is liable for GST......................................................... 4

51‑35..................... Who is entitled to input tax credits...................................... 4

51‑40..................... Adjustments........................................................................ 4

51‑45..................... Additional net amounts relating to GST joint ventures....... 4

51‑50..................... GST returns relating to GST joint ventures........................ 4

51‑52..................... Consolidation of GST returns relating to GST joint ventures  4

51‑55..................... Payments of GST relating to GST joint ventures................ 4

51‑60..................... Refunds relating to GST joint ventures............................... 4

Subdivision 51‑C—Administrative matters                                                         4

51‑70..................... Changing the participants etc. of GST joint ventures.......... 4

51‑75..................... Approval of early day of effect of forming, changing etc. GST joint ventures         4

Subdivision 51‑D—Ceasing to be a participant in, or an operator of, a GST joint venture        4

51‑110................... Adjustments after you cease to be a participant in a GST joint venture    4

51‑115................... Changes in extent of creditable purpose after you cease to be a member of a GST joint venture             4

Division 54—GST branches                                                                                      4

54‑1....................... What this Division is about................................................. 4

Subdivision 54‑A—Registration of GST branches                                            4

54‑5....................... Registration of GST branches............................................. 4

54‑10..................... The date of effect of registration of a GST branch.............. 4

54‑15..................... GST branch registration number......................................... 4

Subdivision 54‑B—Consequences of registration of GST branches             4

54‑40..................... Additional net amounts relating to GST branches............... 4

54‑45..................... Net amounts of parent entities............................................. 4

54‑50..................... Tax invoices and adjustment notes...................................... 4

54‑55..................... GST returns relating to GST branches................................ 4

54‑60..................... Payments of GST relating to GST branches....................... 4

54‑65..................... Refunds relating to GST branches...................................... 4

Subdivision 54‑C—Cancellation of registration of GST branches               4

54‑70..................... When an entity must apply for cancellation of registration of a GST branch            4

54‑75..................... When the Commissioner must cancel registration of a GST branch         4

54‑80..................... The date of effect of cancellation of registration of a GST branch            4

54‑85..................... Application of Subdivision 25‑B........................................ 4

54‑90..................... Effect on GST branches of cancelling the entity’s registration 4

Division 57—Resident agents acting for non‑residents                              4

57‑1....................... What this Division is about................................................. 4

57‑5....................... Who is liable for GST......................................................... 4

57‑7....................... Agreement to apply this Division to all supplies through a resident agent               4

57‑10..................... Who is entitled to input tax credits...................................... 4

57‑15..................... Adjustments........................................................................ 4

57‑20..................... Resident agents are required to be registered...................... 4

57‑25..................... Cancellation of registration of a resident agent.................... 4

57‑30..................... Notice of cessation of agency............................................. 4

57‑35..................... Tax periods of resident agents............................................ 4

57‑40..................... GST returns for non‑residents............................................ 4

57‑45..................... Resident agents giving GST returns................................... 4

57‑50..................... Non‑residents that belong to GST groups.......................... 4

Division 58—Representatives of incapacitated entities                              4

58‑1....................... What this Division is about................................................. 4

58‑5....................... General principle for the relationship between incapacitated entities and their representatives 4

58‑10..................... Circumstances in which representatives have GST‑related liabilities and entitlements             4

58‑15..................... Adjustments for bad debts.................................................. 4

58‑20..................... Representatives are required to be registered...................... 4

58‑25..................... Cancellation of registration of a representative.................... 4

58‑30..................... Notice of cessation of representation.................................. 4

58‑35..................... Tax periods of representatives............................................ 4

58‑40..................... Effect on attribution rules of not accounting on a cash basis 4

58‑45..................... GST returns for representatives of incapacitated entities..... 4

58‑50..................... Representatives to give GST returns for incapacitated entities 4

58‑55..................... Incapacitated entities not required to give GST returns in some cases      4

58‑60..................... Representative to notify Commissioner of certain liabilities etc.               4

58‑65..................... Money available to meet representative’s liabilities............. 4

58‑70..................... Protection for actions of representative............................... 4

58‑95..................... Division does not apply to the extent that the representative is a creditor of the incapacitated entity        4

Division 60—Pre‑establishment costs                                                                  4

60‑1....................... What this Division is about................................................. 4

60‑5....................... Input tax credit for acquisitions and importations before establishment   4

60‑10..................... Registration etc. not needed for input tax credits................. 4

60‑15..................... Pre‑establishment acquisitions and importations................. 4

60‑20..................... Creditable purpose.............................................................. 4

60‑25..................... Attributing the input tax credit for pre‑establishment acquisitions            4

60‑30..................... Attributing the input tax credit for pre‑establishment importations           4

60‑35..................... Application of Division 129............................................... 4

Division 63—Non‑profit sub‑entities                                                                    4

63‑1....................... What this Division is about................................................. 4

63‑5....................... Entities that may choose to apply this Division................... 4

63‑10..................... Period for which a choice has effect................................... 4

63‑15..................... Consequences of choosing to apply this Division.............. 4

63‑20..................... Non‑profit sub‑entities may register................................... 4

63‑25..................... Registration turnover threshold for non‑profit sub‑entities. 4

63‑27..................... Application of particular provisions relating to charities etc. 4

63‑30..................... When non‑profit sub‑entities must apply for cancellation of registration 4

63‑35..................... When the Commissioner must cancel registration of non‑profit sub‑entities            4

63‑40..................... Effect on adjustments of becoming a non‑profit sub‑entity. 4

63‑45..................... Effect on adjustments of ceasing to be a non‑profit sub‑entity 4

63‑50..................... Membership requirements of GST groups......................... 4

Part 4‑2—Special rules mainly about supplies and acquisitions                4

Division 66—Second‑hand goods                                                                           4

66‑1....................... What this Division is about................................................. 4

Subdivision 66‑A—Input tax credits for acquiring second‑hand goods       4

66‑5....................... Creditable acquisitions of second‑hand goods.................... 4

66‑10..................... Amounts of input tax credits for creditable acquisitions of second‑hand goods       4

66‑15..................... Attributing input tax credits for creditable acquisitions of second‑hand goods        4

66‑17..................... Records of creditable acquisitions of second‑hand goods... 4

Subdivision 66‑B—Acquisitions of second‑hand goods that are divided for re‑supply                4

66‑40..................... Acquisitions of second‑hand goods that can be used to offset GST on future re‑supplies       4

66‑45..................... Future re‑supplies that are not taxable supplies................... 4

66‑50..................... Future re‑supplies on which GST is reduced...................... 4

66‑55..................... Records of acquisitions of second‑hand goods to which this Subdivision applied  4

66‑60..................... Input tax credits for acquiring second‑hand goods the supply of which is not fully taxable    4

66‑65..................... Total Subdivision 66‑B credit amounts and Subdivision 66‑B GST amounts         4

66‑70..................... Commissioner may determine rules for applying this Subdivision          4

Division 69—Non‑deductible expenses                                                                4

69‑1....................... What this Division is about................................................. 4

Subdivision 69‑A—Non‑deductible expenses generally                                    4

69‑5....................... Non‑deductible expenses do not give rise to creditable acquisitions or creditable importations               4

69‑10..................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           4

Subdivision 69‑B—Elections for GST purposes relating to meal entertainment and entertainment facilities      4

69‑15..................... What this Subdivision is about........................................... 4

69‑20..................... Effect of elections on net amounts...................................... 4

69‑25..................... Election to use the 50/50 split method for meal entertainment  4

69‑30..................... Election to use the 12 week register method for meal entertainment         4

69‑35..................... Election to use the 50/50 split method for entertainment facilities            4

69‑40..................... When elections take effect................................................... 4

69‑45..................... When elections cease to have effect.................................... 4

69‑50..................... Adjustment events relating to elections............................... 4

69‑55..................... Adjustment notes not required............................................ 4

Division 70—Financial supplies (reduced credit acquisitions)                4

70‑1....................... What this Division is about................................................. 4

70‑5....................... Acquisitions that attract the reduced credit.......................... 4

70‑10..................... Extended meaning of creditable purpose............................ 4

70‑15..................... How much are the reduced input tax credits?...................... 4

70‑20..................... Extent of creditable purpose................................................ 4

70‑25..................... Sale of reduced credit acquisitions (Division 132).............. 4

Division 71—Fringe benefits provided by input taxed suppliers           4

71‑1....................... What this Division is about................................................. 4

71‑5....................... Acquisitions by input taxed suppliers to provide fringe benefits              4

71‑10..................... Importations by input taxed suppliers to provide fringe benefits              4

Division 72—Associates                                                                                              4

72‑1....................... What this Division is about................................................. 4

Subdivision 72‑A—Supplies without consideration                                           4

72‑5....................... Taxable supplies without consideration.............................. 4

72‑10..................... The value of taxable supplies without consideration........... 4

72‑15..................... Attributing the GST to tax periods...................................... 4

72‑20..................... Supplies and acquisitions that would otherwise be sales etc. 4

72‑25..................... Supplies that would otherwise be GST‑free, input taxed or financial supplies         4

Subdivision 72‑B—Acquisitions without consideration                                    4

72‑40..................... Creditable acquisitions without consideration..................... 4

72‑45..................... The amount of the input tax credit....................................... 4

72‑50..................... Attributing the input tax credit to tax periods...................... 4

Subdivision 72‑C—Supplies for inadequate consideration                             4

72‑70..................... The value of taxable supplies for inadequate consideration. 4

Subdivision 72‑D—Application of this Division to certain sub‑entities        4

72‑90..................... GST branches..................................................................... 4

72‑92..................... Non‑profit sub‑entities........................................................ 4

72‑95..................... Commonwealth government entities................................... 4

72‑100................... State or Territory government entities................................. 4

Division 75—Sale of freehold interests etc.                                                      4

75‑1....................... What this Division is about................................................. 4

75‑5....................... Applying the margin scheme.............................................. 4

75‑10..................... The amount of GST on taxable supplies............................. 4

75‑11..................... Margins for supplies of real property in particular circumstances            4

75‑12..................... Working out margins to take into account failure to pay full consideration              4

75‑13..................... Working out margins to take into account supplies to associates             4

75‑14..................... Consideration for acquisition of real property not to include cost of improvements etc.          4

75‑15..................... Subdivided real property..................................................... 4

75‑16..................... Margins for supplies of real property acquired through several acquisitions           4

75‑20..................... Supplies under a margin scheme do not give rise to creditable acquisitions             4

75‑22..................... Increasing adjustment relating to input tax credit entitlement 4

75‑25..................... Adjustments relating to bad debts....................................... 4

75‑27..................... Decreasing adjustment for later payment of consideration.. 4

75‑30..................... Tax invoices not required for supplies of real property under the margin scheme    4

75‑35..................... Approved valuations........................................................... 4

Division 78—Insurance                                                                                               4

78‑1....................... What this Division is about................................................. 4

Subdivision 78‑A—Insurers                                                                                     4

78‑5....................... GST on insurance premiums is exclusive of stamp duty.... 4

78‑10..................... Decreasing adjustments for settlements of insurance claims 4

78‑15..................... How to work out the decreasing adjustments..................... 4

78‑18..................... Increasing adjustments for payments of excess under insurance policies 4

78‑20..................... Settlements of insurance claims do not give rise to creditable acquisitions               4

78‑25..................... Supplies in settlement of claims are not taxable supplies.... 4

78‑30..................... Acquisitions by insurers in the course of settling claims under non‑taxable policies               4

78‑35..................... Taxable supplies relating to rights of subrogation............... 4

78‑40..................... Adjustment events relating to decreasing adjustments under this Division              4

78‑42..................... Adjustment events relating to increasing adjustments under section 78‑18              4

Subdivision 78‑B—Insured entities etc.                                                                4

78‑45..................... Settlements of insurance claims do not give rise to taxable supplies        4

78‑50..................... Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed............................................................................................ 4

78‑55..................... Payments of excess under insurance policies are not consideration for supplies      4

78‑60..................... Supplies of goods to insurers in the course of settling claims  4

Subdivision 78‑C—Third parties                                                                           4

78‑65..................... Payments etc. to third parties by insurers............................ 4

78‑70..................... Payments etc. to third parties by insured entities................. 4

78‑75..................... Creditable acquisitions relating to rights of subrogation..... 4

Subdivision 78‑D—Insured entities that are not registered etc.                      4

78‑80..................... Net amounts........................................................................ 4

78‑85..................... GST returns........................................................................ 4

78‑90..................... Payments of GST............................................................... 4

Subdivision 78‑E—Statutory compensation schemes                                       4

78‑95..................... GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty      4

78‑100................... Settlements of claims for compensation under statutory compensation schemes      4

78‑105................... Meaning of statutory compensation scheme....................... 4

Subdivision 78‑F—Miscellaneous                                                                          4

78‑110................... Effect of judgments and court orders.................................. 4

78‑115................... Exclusion of certain Commonwealth, State or Territory insurance schemes            4

78‑118................... Portfolio transfers............................................................... 4

78‑120................... HIH rescue package............................................................ 4

Division 79—Compulsory third party schemes                                              4

79‑1....................... What this Division is about................................................. 4

Subdivision 79‑A—Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies                                             4

79‑5....................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where premium selection test is satisfied............................................................................... 4

79‑10..................... Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied................................... 4

79‑15..................... Application of sections 78‑10 and 78‑15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement..................................... 4

79‑20..................... Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery............................................................................................ 4

Subdivision 79‑B—Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies                 4

79‑25..................... Meaning of CTP hybrid payment or supply....................... 4

79‑30..................... Application of Division 78................................................. 4

Subdivision 79‑C—Other payments and supplies under compulsory third party schemes         4

79‑35..................... Meaning of CTP compensation or ancillary payment or supply etc.       4

79‑40..................... GST on CTP premiums is exclusive of stamp duty............ 4

79‑45..................... Exclusion of certain compulsory third party schemes......... 4

79‑50..................... Decreasing adjustments for CTP compensation or ancillary payments or supplies  4

79‑55..................... Increasing adjustments for payments of excess etc. under compulsory third party schemes    4

79‑60..................... Effect of settlements and payments under compulsory third party schemes             4

79‑65..................... Taxable supplies relating to recovery by operators of compulsory third party schemes           4

79‑70..................... Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes 4

79‑75..................... Adjustment events relating to increasing adjustments under section 79‑55              4

79‑80..................... Payments of excess under compulsory third party schemes are not consideration for supplies               4

79‑85..................... Supplies of goods to operators in the course of settling claims                4

79‑90..................... Effect of judgments and court orders.................................. 4

Subdivision 79‑D—Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction                                                              4

79‑95..................... How to work out decreasing adjustments using the applicable average input tax credit fraction              4

79‑100................... Meaning of average input tax credit fraction...................... 4

Division 80—Settlement sharing arrangements                                             4

80‑1....................... What this Division is about................................................. 4

Subdivision 80‑A—Insurance policy settlement sharing arrangements      4

80‑5....................... Meaning of insurance policy settlement sharing arrangement etc.          4

80‑10..................... Effect of becoming parties to industry deeds or entering into settlement sharing arrangements               4

80‑15..................... Effect of contributing operator’s payment........................... 4

80‑20..................... Managing operator’s payments or supplies........................ 4

80‑25..................... Contributing operator’s payment........................................ 4

80‑30..................... Managing operator’s increasing adjustment where contributing operator’s payment               4

80‑35..................... Adjustment events relating to managing operator’s payment or supply   4

Subdivision 80‑B—Nominal defendant settlement sharing arrangements  4

80‑40..................... Meaning of nominal defendant settlement sharing arrangement etc.      4

80‑45..................... Nominal defendant settlement sharing arrangements to which this Subdivision applies          4

80‑50..................... Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements....................................................................... 4

80‑55..................... Effect of contributing operator’s payment........................... 4

80‑60..................... Managing operator’s payment or supply............................ 4

80‑65..................... Contributing operator’s payment........................................ 4

80‑70..................... Managing operator’s increasing adjustment where contributing operator’s payment               4

80‑75..................... Adjustment events relating to managing operator’s payment or supply   4

Subdivision 80‑C—Hybrid settlement sharing arrangements                        4

80‑80..................... Meaning of hybrid settlement sharing arrangement etc..... 4

80‑85..................... Subdivision 80‑A to apply to hybrid settlement sharing arrangement, subject to exceptions   4

80‑90..................... Subdivision 80‑B to apply to payments or supplies by managing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement        4

80‑95..................... Subdivision 80‑B to apply to payments or supplies by contributing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement        4

Division 81—Payments of taxes, fees and charges                                       4

81‑1....................... What this Division is about................................................. 4

81‑5....................... Effect of payment of tax...................................................... 4

81‑10..................... Effect of payment of certain fees and charges..................... 4

81‑15..................... Other fees and charges that do not constitute consideration 4

81‑20..................... Division has effect despite sections 9‑15 and 9‑17............. 4

81‑25..................... Retrospective application of regulations.............................. 4

Division 82—Supplies in return for rights to develop land                      4

82‑1....................... What this Division is about................................................. 4

82‑5....................... Supplies of rights to develop land do not constitute consideration in certain cases  4

82‑10..................... Supplies by Australian government agencies of rights to develop land are not for consideration            4

Division 83—Non‑residents making supplies connected with the indirect tax zone        4

83‑1....................... What this Division is about................................................. 4

83‑5....................... “Reverse charge” on supplies made by non‑residents......... 4

83‑10..................... Recipients who are members of GST groups..................... 4

83‑15..................... Recipients who are participants in GST joint ventures........ 4

83‑20..................... The amount of GST on “reverse charged” supplies made by non‑residents             4

83‑25..................... When non‑residents must apply for registration................. 4

83‑30..................... When the Commissioner must register non‑residents......... 4

83‑35..................... Tax invoices not required for “reverse charged” supplies made by non‑residents    4

Division 84—Offshore supplies other than goods or real property    4

Subdivision 84‑A—Intangible supplies from offshore that are taxable supplies under this Subdivision                4

84‑1....................... What this Subdivision is about........................................... 4

84‑5....................... Intangible supplies from offshore that are taxable supplies under this Subdivision 4

84‑10..................... “Reverse charge” on offshore intangible supplies............... 4

84‑12..................... The amount of GST on offshore intangible supplies.......... 4

84‑13..................... The amount of input tax credits relating to offshore intangible supplies   4

84‑14..................... Supplies relating to employee share ownership schemes.... 4

84‑15..................... Transfers etc. between branches of the same entity............. 4

84‑20..................... The price of taxable supplies of offshore intangibles without, or for inadequate, consideration               4

84‑25..................... Tax periods for supplies from associates that are not connected with the indirect tax zone      4

84‑30..................... Adjustments for acquisitions made solely for a creditable purpose          4

Subdivision 84‑B—Inbound intangible consumer supplies                             4

84‑45..................... What this Subdivision is about........................................... 4

84‑50..................... No tax invoices or adjustment notes for inbound intangible consumer supplies      4

84‑55..................... Operator of electronic distribution platform treated as supplier                4

84‑60..................... Extension of section 84‑55 to certain other supplies through an electronic distribution platform             4

84‑65..................... Meaning of inbound intangible consumer supply............... 4

84‑70..................... Meaning of electronic distribution platform....................... 4

Subdivision 84‑C—Australian consumers                                                           4

84‑95..................... What this Subdivision is about........................................... 4

84‑100................... When entities are treated as not being Australian consumers 4

Subdivision 84‑D—Limited registration entities                                                4

84‑135................... What this Subdivision is about........................................... 4

84‑140................... Limited registration entities................................................. 4

84‑145................... Limited registration entities cannot make creditable acquisitions              4

84‑150................... Entries in the Australian Business Register........................ 4

84‑155................... Limited registration entities have only quarterly tax periods 4

Division 85—Telecommunication supplies                                                        4

85‑1....................... What this Division is about................................................. 4

85‑5....................... When telecommunication supplies are connected with the indirect tax zone             4

85‑10..................... Meaning of telecommunication supply............................... 4

Division 87—Long‑term accommodation in commercial residential premises  4

87‑1....................... What this Division is about................................................. 4

87‑5....................... Commercial residential premises that are predominantly for long‑term accommodation          4

87‑10..................... Commercial residential premises that are not predominantly for long‑term accommodation    4

87‑15..................... Meaning of commercial accommodation........................... 4

87‑20..................... Meaning of long‑term accommodation etc......................... 4

87‑25..................... Suppliers may choose not to apply this Division................ 4

Division 90—Company amalgamations                                                              4

90‑1....................... What this Division is about................................................. 4

90‑5....................... Supplies not taxable—amalgamated company registered or required to be registered              4

90‑10..................... Value of taxable supplies—amalgamated company not registered or required to be registered                4

90‑15..................... Acquisitions not creditable—amalgamated company registered or required to be registered    4

90‑20..................... Liability after amalgamation for GST on amalgamating company’s supplies           4

90‑25..................... Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions                4

90‑30..................... Adjustments........................................................................ 4

90‑35..................... Amalgamating companies accounting on a cash basis........ 4

Division 93—Time limit on entitlements to input tax credits                   4

93‑1....................... What this Division is about................................................. 4

93‑5....................... Time limit on entitlements to input tax credits..................... 4

93‑10..................... Exceptions to time limit on entitlements to input tax credits 4

93‑15..................... GST no longer able to be taken into account....................... 4

Division 96—Supplies partly connected with the indirect tax zone     4

96‑1....................... What this Division is about................................................. 4

96‑5....................... Supplies that are only partly connected with the indirect tax zone            4

96‑10..................... The value of the taxable components of supplies that are only partly connected with the indirect tax zone............................................................................................ 4

Division 99—Deposits as security                                                                          4

99‑1....................... What this Division is about................................................. 4

99‑5....................... Giving a deposit as security does not constitute consideration 4

99‑10..................... Attributing the GST relating to deposits that are forfeited etc.  4

Division 100—Vouchers                                                                                              4

100‑1..................... What this Division is about................................................. 4

100‑5..................... Supplies of vouchers with a stated monetary value............. 4

100‑10................... Redemption of vouchers..................................................... 4

100‑12................... Consideration on redemption of vouchers.......................... 4

100‑15................... Increasing adjustments for unredeemed vouchers............... 4

100‑18................... Arrangement for supply of voucher.................................... 4

100‑20................... Vouchers supplied to non‑residents and redeemed by others in the indirect tax zone              4

100‑25................... Meaning of voucher etc...................................................... 4

Division 102—Cancelled lay‑by sales                                                                  4

102‑1..................... What this Division is about................................................. 4

102‑5..................... Cancelled lay‑by sales......................................................... 4

102‑10................... Attributing GST and input tax credits................................. 4

Division 105—Supplies in satisfaction of debts                                               4

105‑1..................... What this Division is about................................................. 4

105‑5..................... Supplies by creditors in satisfaction of debts may be taxable supplies     4

105‑10................... Net amounts........................................................................ 4

105‑15................... GST returns........................................................................ 4

105‑20................... Payments of GST............................................................... 4

Division 108—Valuation of taxable supplies of goods in bond               4

108‑1..................... What this Division is about................................................. 4

108‑5..................... Taxable supplies of goods in bond etc................................ 4

Division 110—Tax‑related transactions                                                             4

110‑1..................... What this Division is about................................................. 4

Subdivision 110‑A—Income tax‑related transactions                                      4

110‑5..................... Transfers of tax losses and net capital losses...................... 4

110‑15................... Supplies under operation of consolidated group regime..... 4

110‑20................... Tax sharing agreements—entering into agreement etc........ 4

110‑25................... Tax sharing agreements—leaving group clear of group liability              4

110‑30................... Tax funding agreements...................................................... 4

Subdivision 110‑B—Other tax‑related transactions                                         4

110‑60................... Indirect tax sharing agreements—entering into agreement etc. 4

110‑65................... Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability   4

Division 111—Reimbursement of employees etc.                                          4

111‑1..................... What this Division is about................................................. 4

111‑5..................... Creditable acquisitions relating to reimbursements............. 4

111‑10................... Amounts of input tax credits relating to reimbursements.... 4

111‑15................... Tax invoices relating to reimbursements............................. 4

111‑18................... Application of Division to volunteers working for charities etc.              4

111‑20................... Application of Division to recipients of certain withholding payments    4

111‑25................... Employers paying expenses of employees etc.................... 4

111‑30................... Reimbursements etc. of former or future employees etc..... 4

Division 113—PAYG voluntary agreements                                                   4

113‑1..................... What this Division is about................................................. 4

113‑5..................... Supply of work or services not a taxable supply................ 4

Part 4‑3—Special rules mainly about importations                                           4

Division 114—Importations without entry for home consumption      4

114‑1..................... What this Division is about................................................. 4

114‑5..................... Importations without entry for home consumption............. 4

114‑10................... Goods that have already been entered for home consumption etc.           4

114‑15................... Payments of amounts of assessed GST where security for payment of customs duty is forfeited           4

114‑20................... Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act............................................................. 4

114‑25................... Warehoused goods entered for home consumption by an entity other than the importer          4

Division 117—Valuation of re‑imported goods                                              4

117‑1..................... What this Division is about................................................. 4

117‑5..................... Valuation of taxable importations of goods that were exported for repair or renovation          4

117‑10................... Valuation of taxable importations of live animals that were exported       4

117‑15................... Refunds of assessed GST on certain reimportations of live animals        4

Part 4‑4—Special rules mainly about net amounts and adjustments     4

Division 123—Simplified accounting methods for retailers and small enterprise entities           4

123‑1..................... What this Division is about................................................. 4

123‑5..................... Commissioner may determine simplified accounting methods 4

123‑7..................... Meaning of small enterprise entity..................................... 4

123‑10................... Choosing to apply a simplified accounting method............. 4

123‑15................... Net amounts........................................................................ 4

Division 126—Gambling                                                                                             4

126‑1..................... What this Division is about................................................. 4

126‑5..................... Global accounting system for gambling supplies................ 4

126‑10................... Global GST amounts.......................................................... 4

126‑15................... Losses carried forward....................................................... 4

126‑20................... Bad debts............................................................................ 4

126‑25................... Application of Subdivision 9‑C.......................................... 4

126‑27................... When gambling supplies are connected with the indirect tax zone           4

126‑30................... Gambling supplies do not give rise to creditable acquisitions  4

126‑32................... Repayments of gambling losses are not consideration........ 4

126‑33................... Tax invoices not required for gambling supplies................ 4

126‑35................... Meaning of gambling supply and gambling event.............. 4

Division 129—Changes in the extent of creditable purpose                    4

129‑1..................... What this Division is about................................................. 4

Subdivision 129‑A—General                                                                                   4

129‑5..................... Adjustments arising under this Division............................. 4

129‑10................... Adjustments do not arise under this Division for acquisitions and importations below a certain value    4

129‑15................... Adjustments do not arise under this Division where there are adjustments under Division 130              4

Subdivision 129‑B—Adjustment periods                                                              4

129‑20................... Adjustment periods............................................................. 4

129‑25................... Effect on adjustment periods of things being disposed of etc.  4

Subdivision 129‑C—When adjustments for acquisitions and importations arise          4

129‑40................... Working out whether you have an adjustment.................... 4

129‑45................... Gifts to gift‑deductible entities............................................ 4

129‑50................... Creditable purpose.............................................................. 4

129‑55................... Meaning of apply................................................................ 4

Subdivision 129‑D—Amounts of adjustments for acquisitions and importations          4

129‑70................... The amount of an increasing adjustment............................. 4

129‑75................... The amount of a decreasing adjustment.............................. 4

129‑80................... Effect of adjustment under certain Divisions...................... 4

Subdivision 129‑E—Attributing adjustments under this Division                 4

129‑90................... Attributing your adjustments for changes in extent of creditable purpose                4

Division 130—Goods applied solely to private or domestic use            4

130‑1..................... What this Division is about................................................. 4

130‑5..................... Goods applied solely to private or domestic use................. 4

Division 131—Annual apportionment of creditable purpose                  4

131‑1..................... What this Division is about................................................. 4

Subdivision 131‑A—Electing to have annual apportionment                         4

131‑5..................... Eligibility to make an annual apportionment election.......... 4

131‑10................... Making an annual apportionment election........................... 4

131‑15................... Annual apportionment elections by representative members of GST groups           4

131‑20................... Duration of an annual apportionment election..................... 4

Subdivision 131‑B—Consequences of electing to have annual apportionment              4

131‑40................... Input tax credits for acquisitions that are partly creditable... 4

131‑45................... Input tax credits for importations that are partly creditable.. 4

131‑50................... Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars           4

131‑55................... Increasing adjustments relating to annually apportioned acquisitions and importations           4

131‑60................... Attributing adjustments under section 131‑55.................... 4

Division 132—Supplies of things acquired etc. without full input tax credits     4

132‑1..................... What this Division is about................................................. 4

132‑5..................... Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable............................................................................. 4

132‑10................... Attribution of adjustments under this Division................... 4

Division 133—Providing additional consideration under gross‑up clauses         4

133‑1..................... What this Division is about................................................. 4

133‑5..................... Decreasing adjustments for additional consideration provided under gross‑up clauses           4

133‑10................... Availability of adjustments under Division 19 for acquisitions                4

Division 134—Third party payments                                                                   4

134‑1..................... What this Division is about................................................. 4

134‑5..................... Decreasing adjustments for payments made to third parties 4

134‑10................... Increasing adjustments for payments received by third parties 4

134‑15................... Attribution of decreasing adjustments................................. 4

134‑20................... Third party adjustment notes............................................... 4

134‑25................... Adjustment events do not arise........................................... 4

134‑30................... Application of sections 48‑55 and 49‑50............................ 4

Division 135—Supplies of going concerns                                                         4

135‑1..................... What this Division is about................................................. 4

135‑5..................... Initial adjustments for supplies of going concerns.............. 4

135‑10................... Later adjustments for supplies of going concerns............... 4

Division 136—Bad debts relating to transactions that are not taxable or creditable to the fullest extent                                                                                                                        4

136‑1..................... What this Division is about................................................. 4

Subdivision 136‑A—Bad debts relating to partly taxable or creditable transactions  4

136‑5..................... Adjustments relating to partly taxable supplies................... 4

136‑10................... Adjustments in relation to partly creditable acquisitions..... 4

Subdivision 136‑B—Bad debts relating to transactions that are taxable or creditable at less than 1/11 of the price                                                                                                           4

136‑30................... Writing off bad debts (taxable supplies)............................. 4

136‑35................... Recovering amounts previously written off (taxable supplies) 4

136‑40................... Bad debts written off (creditable acquisitions).................... 4

136‑45................... Recovering amounts previously written off (creditable acquisitions)       4

136‑50................... Meanings of taxable at less than 1/11 of the price and creditable at less than 1/11 of the consideration   4

Division 137—Stock on hand on becoming registered etc.                       4

137‑1..................... What this Division is about................................................. 4

137‑5..................... Adjustments for stock on hand on becoming registered etc. 4

Division 138—Cessation of registration                                                             4

138‑1..................... What this Division is about................................................. 4

138‑5..................... Adjustments for cessation of registration............................ 4

138‑10................... Attributing adjustments for cessation of registration........... 4

138‑15................... Ceasing to be registered—amounts not previously attributed.. 4

138‑17................... Situations to which this Division does not apply................ 4

138‑20................... Application of Division 129............................................... 4

Division 139—Distributions from deceased estates                                      4

139‑1..................... What this Division is about................................................. 4

139‑5..................... Adjustments for distributions from deceased estates.......... 4

139‑10................... Attributing adjustments for distributions from deceased estates               4

139‑15................... Application of Division 129............................................... 4

Division 141—Tradex scheme goods                                                                   4

141‑1..................... What this Division is about................................................. 4

141‑5..................... Adjustments for applying goods contrary to the Tradex Scheme             4

141‑10................... Meaning of tradex scheme goods etc.................................. 4

141‑15................... Attribution of adjustments under this Division................... 4

141‑20................... Application of Division 129............................................... 4

Division 142—Excess GST                                                                                        4

142‑1..................... What this Division is about................................................. 4

Subdivision 142‑A—Excess GST unrelated to adjustments                             4

142‑5..................... When this Subdivision applies............................................ 4

142‑10................... Refunding the excess GST................................................. 4

142‑15................... When section 142‑10 does not apply.................................. 4

Subdivision 142‑B—GST related to cancelled supplies                                    4

142‑20................... Refunding GST relating to cancelled supplies.................... 4

Subdivision 142‑C—Passed‑on GST                                                                      4

142‑25................... Working out if GST has been passed on............................ 4

Part 4‑5—Special rules mainly about registration                                             4

Division 144—Taxis                                                                                                      4

144‑1..................... What this Division is about................................................. 4

144‑5..................... Requirement to register....................................................... 4

Division 149—Government entities                                                                      4

149‑1..................... What this Division is about................................................. 4

149‑5..................... Government entities may register........................................ 4

149‑10................... Government entities are not required to be registered......... 4

149‑15................... GST law applies to registered government entities............. 4

149‑20................... Government entities not required to cancel their registration 4

149‑25................... Membership requirements of a government GST group..... 4

Part 4‑6—Special rules mainly about tax periods                                              4

Division 151—Annual tax periods                                                                         4

151‑1..................... What this Division is about................................................. 4

Subdivision 151‑A—Electing to have annual tax periods                                4

151‑5..................... Eligibility to make an annual tax period election................. 4

151‑10................... Making an annual tax period election.................................. 4

151‑15................... Annual tax period elections by representative members of GST groups  4

151‑20................... When you must make your annual tax period election........ 4

151‑25................... Duration of an annual tax period election............................ 4

Subdivision 151‑B—Consequences of electing to have annual tax periods 4

151‑40................... Annual tax periods.............................................................. 4

151‑45................... When GST returns for annual tax periods must be given... 4

151‑50................... When payments of assessed net amounts for annual tax periods must be made       4

151‑55................... An entity’s concluding annual tax period............................ 4

151‑60................... The effect of incapacitation or cessation.............................. 4

Division 153—Agents etc. and insurance brokers                                        4

153‑1..................... What this Division is about................................................. 4

Subdivision 153‑A—General                                                                                   4

153‑5..................... Attributing the input tax credits for your creditable acquisitions              4

153‑10................... Attributing your adjustments.............................................. 4

153‑15................... Tax invoices........................................................................ 4

153‑20................... Adjustment notes................................................................ 4

153‑25................... Insurance supplied through insurance brokers.................... 4

Subdivision 153‑B—Principals and intermediaries as separate suppliers or acquirers              4

153‑50................... Arrangements under which intermediaries are treated as suppliers or acquirers       4

153‑55................... The effect of these arrangements on supplies...................... 4

153‑60................... The effect of these arrangements on acquisitions................ 4

153‑65................... Determinations that supplies or acquisitions are taken to be under these arrangements            4

Division 156—Supplies and acquisitions made on a progressive or periodic basis         4

156‑1..................... What this Division is about................................................. 4

156‑5..................... Attributing the GST on progressive or periodic supplies.... 4

156‑10................... Attributing the input tax credits on progressive or periodic acquisitions  4

156‑15................... Progressive or periodic supplies partly connected with the indirect tax zone           4

156‑17................... Application of Division 58 to progressive or periodic supplies and acquisitions     4

156‑20................... Application of Division 129 to progressive or periodic acquisitions        4

156‑22................... Leases etc. treated as being on a progressive or periodic basis 4

156‑23................... Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis............................................................................................ 4

156‑25................... Accounting on a cash basis................................................. 4

Division 157—Accounting basis of charities etc.                                           4

157‑1..................... What this Division is about................................................. 4

157‑5..................... Charities etc. choosing to account on a cash basis.............. 4

157‑10................... Charities etc. ceasing to account on a cash basis................. 4

Division 158—Hire purchase agreements                                                         4

158‑1..................... What this Division is about................................................. 4

158‑5..................... Treat as not accounting on a cash basis............................... 4

Division 159—Changing your accounting basis                                             4

159‑1..................... What this Division is about................................................. 4

159‑5..................... Ceasing to account on a cash basis—amounts not previously attributed  4

159‑10................... Ceasing to account on a cash basis—amounts partly attributed                4

159‑15................... Ceasing to account on a cash basis—bad debts.................. 4

159‑20................... Starting to account on a cash basis...................................... 4

159‑25................... Starting to account on a cash basis—bad debts................... 4

159‑30................... Entities ceasing to exist or coming into existence................ 4

Part 4‑7—Special rules mainly about returns, payments and refunds 4

Division 162—Payment of GST by instalments                                              4

162‑1..................... What this Division is about................................................. 4

Subdivision 162‑A—Electing to pay GST by instalments                                4

162‑5..................... Eligibility to elect to pay GST by instalments..................... 4

162‑10................... Your current GST lodgment record.................................... 4

162‑15................... Electing to pay GST by instalments.................................... 4

162‑20................... Elections by representative members of GST groups......... 4

162‑25................... When you must make your election.................................... 4

162‑30................... Duration of your election.................................................... 4

Subdivision 162‑B—Consequences of electing to pay GST by instalments 4

162‑50................... GST instalment payers........................................................ 4

162‑55................... Tax periods for GST instalment payers.............................. 4

162‑60................... When GST returns for GST instalment payers must be given 4

162‑65................... The form and contents of GST returns for GST instalment payers          4

162‑70................... Payment of GST instalments.............................................. 4

162‑75................... Giving notices relating to GST instalments......................... 4

162‑80................... Certain entities pay only 2 GST instalments for each year.. 4

162‑85................... A GST instalment payer’s concluding tax period............... 4

162‑90................... The effect of incapacitation or cessation.............................. 4

162‑95................... The effect of changing the membership of GST groups..... 4

162‑100................. General interest charge on late payment.............................. 4

162‑105................. Net amounts for GST instalment payers............................. 4

162‑110................. When payments of assessed net amounts must be made—GST instalment payers  4

Subdivision 162‑C—GST instalments                                                                   4

162‑130................. What are your GST instalments.......................................... 4

162‑135................. Notified instalment amounts............................................... 4

162‑140................. Varied instalment amounts.................................................. 4

162‑145................. Your annual GST liability................................................... 4

Subdivision 162‑D—Penalty payable in certain cases if varied instalment amounts are too low             4

162‑170................. What this Subdivision is about........................................... 4

162‑175................. GST payments are less than 85% of annual GST liability.. 4

162‑180................. Estimated annual GST amount is less than 85% of annual GST liability 4

162‑185................. Shortfall in GST instalments worked out on the basis of estimated annual GST amount         4

162‑190................. Periods for which penalty is payable.................................. 4

162‑195................. Reduction in penalties if notified instalment amount is less than 25% of annual GST liability 4

162‑200................. Reduction in penalties if GST instalment shortfall is made up in a later instalment  4

162‑205................. This Subdivision does not create a liability for general interest charge     4

Division 165—Anti‑avoidance                                                                                 4

165‑1..................... What this Division is about................................................. 4

Subdivision 165‑A—Application of this Division                                               4

165‑5..................... When does this Division operate?....................................... 4

165‑10................... When does an entity get a GST benefit from a scheme?...... 4

165‑15................... Matters to be considered in determining purpose or effect.. 4

Subdivision 165‑B—Commissioner may negate effects of schemes for GST benefits 4

165‑40................... Commissioner may make declaration for purpose of negating avoider’s GST benefits           4

165‑45................... Commissioner may reduce an entity’s net amount or GST to compensate               4

165‑50................... Declaration has effect according to its terms....................... 4

165‑55................... Commissioner may disregard scheme in making declarations  4

165‑60................... One declaration may cover several tax periods and importations             4

165‑65................... Commissioner must give copy of declaration to entity affected                4

Division 168—Tourist refund scheme                                                                  4

168‑1..................... What this Division is about................................................. 4

168‑5..................... Tourist refund scheme........................................................ 4

168‑10................... Supplies later found to be GST‑free supplies..................... 4

Division 171—Customs security etc. given on taxable importations  4

171‑1..................... What this Division is about................................................. 4

171‑5..................... Security or undertaking given under section 162 or 162A of the Customs Act       4

Chapter 5—Miscellaneous                                                                                    4

Part 5‑1—Miscellaneous                                                                                                     4

Division 176—Endorsement of charities etc.                                                   4

176‑1..................... Endorsement by Commissioner as charity.......................... 4

Division 177—Miscellaneous                                                                                    4

177‑1..................... Commonwealth etc. not liable to pay GST.......................... 4

177‑3..................... Acquisitions from State or Territory bodies where GST liability is notional            4

177‑5..................... Cancellation of exemptions from GST................................ 4

177‑10................... Ministerial determinations................................................... 4

177‑11................... Delegation by Aged Care Secretary.................................... 4

177‑12................... GST implications of references to price, value etc. in other Acts             4

177‑15................... Regulations......................................................................... 4

Chapter 6—Interpreting this Act                                                                   4

Part 6‑1—Rules for interpreting this Act                                                                4

Division 182—Rules for interpreting this Act                                                 4

182‑1..................... What forms part of this Act................................................ 4

182‑5..................... What does not form part of this Act.................................... 4

182‑10................... Explanatory sections, and their role in interpreting this Act 4

182‑15................... Schedules 1, 2 and 3........................................................... 4

Part 6‑2—Meaning of some important concepts                                                 4

Division 184—Meaning of entity                                                                            4

184‑1..................... Entities................................................................................ 4

184‑5..................... Supplies etc. by partnerships and other unincorporated bodies                4

Division 188—Meaning of GST turnover                                                          4

188‑1..................... What this Division is about................................................. 4

188‑5..................... Explanation of the turnover thresholds............................... 4

188‑10................... Whether your GST turnover meets, or does not exceed, a turnover threshold         4

188‑15................... Current GST turnover......................................................... 4

188‑20................... Projected GST turnover...................................................... 4

188‑22................... Settlements of insurance claims to be disregarded.............. 4

188‑23................... Supplies “reverse charged” under Division 83 not to be included in a recipient’s GST turnover             4

188‑24................... Supplies to which Subdivision 153‑B applies.................... 4

188‑25................... Transfer of capital assets, and termination etc. of enterprise, to be disregarded        4

188‑30................... The value of non‑taxable supplies....................................... 4

188‑32................... The value of gambling supplies.......................................... 4

188‑35................... The value of loans............................................................... 4

188‑40................... Supplies of employee services by overseas entities to be disregarded for the registration turnover threshold............................................................................................ 4

Division 189—Exceeding the financial acquisitions threshold                4

189‑1..................... What this Division is about................................................. 4

189‑5..................... Exceeding the financial acquisitions threshold—current acquisitions       4

189‑10................... Exceeding the financial acquisitions threshold—future acquisitions        4

189‑15................... Meaning of financial acquisition........................................ 4

Division 190—90% owned groups of companies                                           4

190‑1..................... 90% owned groups............................................................. 4

190‑5..................... When a company has at least a 90% stake in another company                4

Part 6‑3—Dictionary                                                                                                            4

Division 195—Dictionary                                                                                           4

195‑1..................... Dictionary........................................................................... 4

Schedule 1—Food that is not GST‑free                                                  4

1............................ Food that is not GST‑free................................................... 4

2............................ Prepared food, bakery products and biscuit goods............. 4

3............................ Prepared meals.................................................................... 4

4............................ Candied peel....................................................................... 4

5............................ Goods that are not biscuit goods......................................... 4

Schedule 2—Beverages that are GST‑free                                           4

1............................ Beverages that are GST‑free............................................... 4

2............................ Tea, coffee etc..................................................................... 4

3............................ Fruit and vegetable juices.................................................... 4

Schedule 3—Medical aids and appliances                                           4

Endnotes                                                                                                                                      4

Endnote 1—About the endnotes                                                                              4

Endnote 2—Abbreviation key                                                                                  4

Endnote 3—Legislation history                                                                               4

Endnote 4—Amendment history                                                                             4

 


An Act about a goods and services tax to implement A New Tax System, and for related purposes

Chapter 1Introduction

Part 1‑1Preliminary

Division 1Preliminary

1‑1  Short title

                   This Act may be cited as the A New Tax System (Goods and Services Tax) Act 1999.

1‑2  Commencement

             (1)  This Act commences on 1 July 2000.

1‑3  Commonwealth‑State financial relations

                   The Parliament acknowledges that the Commonwealth:

                     (a)  will introduce legislation to provide that the revenue from the GST will be granted to the States, the Australian Capital Territory and the Northern Territory; and

                     (b)  will maintain the rate and base of the GST in accordance with the Agreement on Principles for the Reform of Commonwealth‑State Financial Relations endorsed at the Special Premiers’ Conference in Canberra on 13 November 1998.

1‑4  States and Territories are bound by the GST law

                   The *GST law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.

Part 1‑2Using this Act

Division 2Overview of the GST legislation

2‑1  What this Act is about

                   This Act is about the GST.

                   It begins (in Chapter 2) with the basic rules about the GST, and then sets out in Chapter 3 the exemptions from the GST and in Chapter 4 the special rules that can apply in particular cases.

                   It concludes with definitions and other interpretative material.

Note:          The GST is imposed by 6 Acts, the most important of which are:

(a)    the A New Tax System (Goods and Services Tax Imposition—General) Act 1999; and

(b)    the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999; and

(c)    the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999.

2‑5  The basic rules (Chapter 2)

                   Chapter 2 has the basic rules for the GST, including:

                          when and how the GST arises, and who is liable to pay it;

                          when and how input tax credits arise, and who is entitled to them;

                          how to work out payments and refunds of GST;

                          when and how the payments and refunds are to be made.

2‑10  The exemptions (Chapter 3)

                   Chapter 3 sets out the supplies and importations that are GST‑free or input taxed.

2‑15  The special rules (Chapter 4)

                   Chapter 4 has special rules which, in particular cases, have the effect of modifying the basic rules in Chapter 2.

Note:          There is a checklist of special rules at the end of Chapter 2 (in Part 2‑8).

2‑20  Miscellaneous (Chapter 5)

                   Chapter 5 deals with miscellaneous matters.

2‑25  Interpretative provisions (Chapter 6)

                   Chapter 6 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.

2‑30  Administration, collection and recovery provisions in the Taxation Administration Act 1953

                   Schedule 1 to the Taxation Administration Act 1953 contains provisions relating to the administration of the GST, and to collection and recovery of amounts of GST.

Division 3Defined terms

  

3‑1  When defined terms are identified

             (1)  Many of the terms used in the law relating to the GST are defined.

             (2)  Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “*enterprise”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 195‑1.

3‑5  When terms are not identified

             (1)  Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.

             (2)  Terms are not asterisked in the non‑operative material contained in this Act.

Note:          The non‑operative material is described in Division 4.

             (3)  The following basic terms used throughout the Act are not identified with an asterisk.

Common definitions that are not asterisked

Item

This term:

1

acquisition

2

amount

3

Commissioner

4

entity

5

goods

6

GST

7

import

8

indirect tax zone

9

individual

10

input tax credit

11

supply

12

tax period

13

thing

14

you

3‑10  Identifying the defined term in a definition

                   Within a definition, the defined term is identified by bold italics.

Division 4Status of Guides and other non‑operative material

  

4‑1  Non‑operative material

                   In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.

                   This other material falls into 2 main categories.

4‑5  Explanatory sections

                   One category is the explanatory section in many Divisions. Under the section heading “What this Division is about”, a short explanation of the Division appears in boxed text.

                   Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 182‑10.

4‑10  Other material

                   The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.

Chapter 2The basic rules

  

Division 5Introduction

5‑1  What this Chapter is about

This Chapter sets out the basic rules for the GST. In particular, these rules will tell you:

•      where liability for GST arises;

•      where entitlements to input tax credits arise;

•      how the amounts of GST and input tax credits are combined to work out the amount payable by you or to you;

•      when and how that amount is to be paid.

5‑5  The structure of this Chapter

                   The diagram on the next page shows how the basic rules in this Chapter relate to each other. It also shows their relationship with:

                        •  the exemptions (Chapter 3)—these provisions exempt from the GST what would otherwise be taxable; and

                        •  the special rules (Chapter 4)—these provisions modify the basic rules in particular situations, often in quite limited ways.

Part 2‑1The central provisions

Division 7The central provisions

7‑1  GST and input tax credits

             (1)  GST is payable on *taxable supplies and *taxable importations.

             (2)  Entitlements to input tax credits arise on *creditable acquisitions and *creditable importations.

For taxable supplies and creditable acquisitions, see Part 2‑2.

For taxable importations and creditable importations, see Part 2‑3.

7‑5  Net amounts

                   Amounts of GST and amounts of input tax credits are set off against each other to produce a *net amount for a tax period (which may be altered to take account of *adjustments).

For net amounts (including adjustments to net amounts), see Part 2‑4.

7‑10  Tax periods

                   Every entity that is *registered, or *required to be registered, has tax periods applying to it.

For registration, see Part 2‑5.

For tax periods, see Part 2‑6.

7‑15  Payments and refunds

                   The amount *assessed as being the *net amount for a tax period is the amount that the entity must pay to the Commonwealth, or the Commonwealth must refund to the entity, in respect of the period.

For payments and refunds (and GST returns), see Part 2‑7.

Note 1:       For assessment of net amounts, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:       Refunds may be set off against your other liabilities (if any) under laws administered by the Commissioner.

Part 2‑2Supplies and acquisitions

Division 9Taxable supplies

Table of Subdivisions

9‑A       What are taxable supplies?

9‑B        Who is liable for GST on taxable supplies?

9‑C        How much GST is payable on taxable supplies?

9‑1  What this Division is about

GST is payable on taxable supplies. This Division defines taxable supplies, states who is liable for the GST, and describes how to work out the GST on supplies.

Subdivision 9‑AWhat are taxable supplies?

9‑5  Taxable supplies

                   You make a taxable supply if:

                     (a)  you make the supply for *consideration; and

                     (b)  the supply is made in the course or furtherance of an *enterprise that you *carry on; and

                     (c)  the supply is *connected with the indirect tax zone; and

                     (d)  you are *registered, or *required to be registered.

However, the supply is not a *taxable supply to the extent that it is *GST‑free or *input taxed.

9‑10  Meaning of supply

             (1)  A supply is any form of supply whatsoever.

             (2)  Without limiting subsection (1), supply includes any of these:

                     (a)  a supply of goods;

                     (b)  a supply of services;

                     (c)  a provision of advice or information;

                     (d)  a grant, assignment or surrender of *real property;

                     (e)  a creation, grant, transfer, assignment or surrender of any right;

                      (f)  a *financial supply;

                     (g)  an entry into, or release from, an obligation:

                              (i)  to do anything; or

                             (ii)  to refrain from an act; or

                            (iii)  to tolerate an act or situation;

                     (h)  any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).

             (3)  It does not matter whether it is lawful to do, to refrain from doing or to tolerate the act or situation constituting the supply.

          (3A)  For the avoidance of doubt, the delivery of:

                     (a)  livestock for slaughtering or processing into *food; or

                     (b)  game for processing into *food;

under an arrangement under which the entity making the delivery only relinquishes title after food has been produced, is the supply of the livestock or game (regardless of when the entity relinquishes title). The supply does not take place on or after the subsequent relinquishment of title.

             (4)  However, a supply does not include a supply of *money unless the money is provided as *consideration for a supply that is a supply of money.

9‑15  Consideration

             (1)  Consideration includes:

                     (a)  any payment, or any act or forbearance, in connection with a supply of anything; and

                     (b)  any payment, or any act or forbearance, in response to or for the inducement of a supply of anything.

             (2)  It does not matter whether the payment, act or forbearance was voluntary, or whether it was by the *recipient of the supply.

          (2A)  It does not matter:

                     (a)  whether the payment, act or forbearance was in compliance with an order of a court, or of a tribunal or other body that has the power to make orders; or

                     (b)  whether the payment, act or forbearance was in compliance with a settlement relating to proceedings before a court, or before a tribunal or other body that has the power to make orders.

          (2B)  For the avoidance of doubt, the fact that the supplier is an entity of which the *recipient of the supply is a member, or that the supplier is an entity that only makes supplies to its members, does not prevent the payment, act or forbearance from being consideration.

9‑17  Certain payments and other things not consideration

             (1)  If a right or option to acquire a thing is granted, then:

                     (a)  the consideration for the supply of the thing on the exercise of the right or option is limited to any additional consideration provided either for the supply or in connection with the exercise of the right or option; or

                     (b)  if there is no such additional consideration—there is no consideration for the supply.

             (2)  Making a gift to a non‑profit body is not the provision of consideration.

             (3)  A payment is not the provision of consideration if:

                     (a)  the payment is made by a *government related entity to another government related entity for making a supply; and

                     (b)  the payment is:

                              (i)  covered by an appropriation under an *Australian law; or

                             (ii)  made under the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time; or

                            (iii)  made under another agreement entered into to implement the National Health Reform Agreement; and

                     (c)  the payment is calculated on the basis that the sum of:

                              (i)  the payment (including the amounts of any other such payments) relating to the supply; and

                             (ii)  anything (including any payment for any act or forbearance) that the other government related entity receives from another entity in connection with, or in response to, or for the inducement of, the supply, or for any other related supply;

                            does not exceed the supplier’s anticipated or actual costs of making those supplies.

             (4)  A payment is not the provision of consideration if the payment is made by a *government related entity to another government related entity and the payment is of a kind specified in regulations made for the purposes of this subsection.

             (5)  This section applies despite section 9‑15.

9‑20  Enterprises

             (1)  An enterprise is an activity, or series of activities, done:

                     (a)  in the form of a *business; or

                     (b)  in the form of an adventure or concern in the nature of trade; or

                     (c)  on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or

                     (d)  by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30‑B of the *ITAA 1997 and to which deductible gifts can be made; or

                   (da)  by a trustee of a *complying superannuation fund or, if there is no trustee of the fund, by a person who manages the fund; or

                     (e)  by a charity; or

                     (g)  by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or

                     (h)  by a trustee of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN.

             (2)  However, enterprise does not include an activity, or series of activities, done:

                     (a)  by a person as an employee or in connection with earning *withholding payments covered by subsection (4) (unless the activity or series is done in supplying services as the holder of an office that the person has accepted in the course of or in connection with an activity or series of activities of a kind mentioned in subsection (1)); or

Note:           Acts done as mentioned in paragraph (a) will still form part of the activities of the enterprise to which the person provides work or services.

                     (b)  as a private recreational pursuit or hobby; or

                     (c)  by an individual (other than a trustee of a charitable fund, or of a fund covered by item 2 of the table in section 30‑15 of the ITAA 1997 or of a fund that would be covered by that item if it had an ABN), or a *partnership (all or most of the members of which are individuals), without a reasonable expectation of profit or gain; or

                     (d)  as a member of a local governing body established by or under a *State law or *Territory law (except a local governing body to which paragraph 12‑45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 applies).

             (3)  For the avoidance of doubt, the fact that activities of an entity are limited to making supplies to members of the entity does not prevent those activities:

                     (a)  being in the form of a *business within the meaning of paragraph (1)(a); or

                     (b)  being in the form of an adventure or concern in the nature of trade within the meaning of paragraph (1)(b).

             (4)  This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.

 

Withholding payments covered

Item

Provision

Subject matter

1

Section 12‑35

Payment to employee

2

Section 12‑40

Payment to company director

3

Section 12‑45

Payment to office holder

4

Section 12‑60

Payment under labour hire arrangement, or specified by regulations

9‑25  Supplies connected with the indirect tax zone

Supplies of goods wholly within the indirect tax zone

             (1)  A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.

Supplies of goods from the indirect tax zone

             (2)  A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone.

Supplies of goods to the indirect tax zone

             (3)  A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.

Supplies of real property

             (4)  A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.

Supplies of anything else

             (5)  A supply of anything other than goods or *real property is connected with the indirect tax zone if:

                     (a)  the thing is done in the indirect tax zone; or

                     (b)  the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or

                     (c)  all of the following apply:

                              (i)  neither paragraph (a) nor (b) applies in respect of the thing;

                             (ii)  the thing is a right or option to acquire another thing;

                            (iii)  the supply of the other thing would be connected with the indirect tax zone; or

                     (d)  the *recipient of the supply is an *Australian consumer.

Example:    A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).

Note:          A supply that is connected with the indirect tax zone under this subsection might be GST‑free if it is consumed outside the indirect tax zone: see section 38‑190. For more rules about supplies that are GST‑free, see Division 38.

Supplies of goods involving installation or assembly services

             (6)  If a supply of goods (other than a *luxury car) (the actual supply) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:

                     (a)  the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;

                     (b)  the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.

Note 1:       The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9‑26 applies.

Note 2:       The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13.

Note 3:       For the price of the separate supplies, see subsection 9‑75(4).

Meaning of Australian consumer

             (7)  An entity is an Australian consumer of a supply made to the entity if:

                     (a)  the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of Australia in the *ITAA 1997 includes the external Territories); and

                     (b)  the entity:

                              (i)  is not *registered; or

                             (ii)  if the entity is registered—the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.

Note:          Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84‑100.

9‑26  Supplies by non‑residents that are not connected with the indirect tax zone

             (1)  A supply is not connected with the indirect tax zone if:

                     (a)  the supplier is a *non‑resident; and

                     (b)  the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and

                     (c)  the supply is covered by an item in this table:

 

Offshore supplies that are not connected with the indirect tax zone

Item

Topic

These supplies are not connected with the indirect tax zone …

1

Inbound intangible supply

a supply of anything other than goods or *real property if:

(a) the thing is done in the indirect tax zone; and

(b) the *recipient is an *Australian‑based business recipient of the supply.

2

Intangible supply between non‑residents

a supply of anything other than goods or *real property if:

(a) the thing is done in the indirect tax zone; and

(b) the *recipient is a *non‑resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.

3

Supply between non‑residents of leased goods

a supply by way of transfer of ownership of leased goods if:

(a) the *recipient is a *non‑resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and

(b) the lessee:

(i) made a *taxable importation of the goods before the supply was made; and

(ii) continues to lease the goods on substantially similar terms and conditions after the supply is made.

4

Supply by way of continued lease of goods from item 3

a supply made by way of lease if:

(a) the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and

(b) the lease is the lease referred to in subparagraph (ii) of that paragraph.

Note:          This subsection does not apply to supplies made by a non‑resident through a resident agent if they have agreed it is not to apply: see section 57‑7.

             (2)  An entity is an Australian‑based business recipient of a supply made to the entity if:

                     (a)  the entity is *registered; and

                     (b)  an *enterprise of the entity is *carried on in the indirect tax zone; and

                     (c)  the entity’s acquisition of the thing supplied is not solely of a private or domestic nature.

Note:          If a supply is not connected with the indirect tax zone, the Australian‑based business recipient may be subject to a reverse charge: see Subdivision 84‑A.

             (3)  This section applies despite sections 9‑25 (which is about when supplies are connected with the indirect tax zone) and 85‑5 (which is about telecommunication supplies).

9‑27  When enterprises are carried on in the indirect tax zone

             (1)  An *enterprise of an entity is carried on in the indirect tax zone if:

                     (a)  the enterprise is *carried on by one or more individuals covered by subsection (3) who are in the indirect tax zone; and

                     (b)  any of the following applies:

                              (i)  the enterprise is carried on through a fixed place in the indirect tax zone;

                             (ii)  the enterprise has been carried on through one or more places in the indirect tax zone for more than 183 days in a 12 month period;

                            (iii)  the entity intends to carry on the enterprise through one or more places in the indirect tax zone for more than 183 days in a 12 month period.

             (2)  It does not matter whether:

                     (a)  the entity has exclusive use of a place; or

                     (b)  the entity owns, leases or has any other claim or interest in relation to a place.

             (3)  This subsection covers the following individuals:

                     (a)  if the entity is an individual—that individual;

                     (b)  an employee or *officer of the entity;

                     (c)  an individual who is, or is employed by, an agent of the entity that:

                              (i)  has, and habitually exercises, authority to conclude contracts on behalf of the entity; and

                             (ii)  is not a broker, general commission agent or other agent of independent status that is acting in the ordinary course of the agent’s business as such an agent.

9‑30  Supplies that are GST‑free or input taxed

GST‑free

             (1)  A supply is GST‑free if:

                     (a)  it is GST‑free under Division 38 or under a provision of another Act; or

                     (b)  it is a supply of a right to receive a supply that would be GST‑free under paragraph (a).

Input taxed

             (2)  A supply is input taxed if:

                     (a)  it is input taxed under Division 40 or under a provision of another Act; or

                     (b)  it is a supply of a right to receive a supply that would be input taxed under paragraph (a).

Note:          If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11‑15 and 15‑10).

Supplies that would be both GST‑free and input taxed

             (3)  To the extent that a supply would, apart from this subsection, be both *GST‑free and *input taxed:

                     (a)  the supply is GST‑free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or

                     (b)  the supply is input taxed and not GST‑free, if that provision requires the supplier to have so chosen.

Note:          Subdivisions 40‑E (School tuckshops and canteens) and 40‑F (Fund‑raising events conducted by charities etc.) require such a choice.)

Supply of things used solely in connection with making supplies that are input taxed but not financial supplies

             (4)  A supply is taken to be a supply that is *input taxed if it is a supply of anything (other than *new residential premises) that you have used solely in connection with your supplies that are input taxed but are not *financial supplies.

9‑39  Special rules relating to taxable supplies

                   Chapter 4 contains special rules relating to taxable supplies, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Agents and insurance brokers

Division 153

1

Associates

Division 72

2

Cancelled lay‑by sales

Division 102

3

Company amalgamations

Division 90

3A

Compulsory third party schemes

Division 79

4

Deposits as security

Division 99

5

Gambling

Division 126

5A

GST religious groups

Division 49

6

Insurance

Division 78

7

Offshore supplies other than goods or real property

Division 84

8

Payments of taxes, fees and charges

Division 81

8AA

Resident agents acting for non‑residents

Division 57

8A

Second‑hand goods

Division 66

8B

Settlement sharing arrangements

Division 80

9

Supplies and acquisitions made on a progressive or periodic basis

Division 156

9A

Supplies in return for rights to develop land

Division 82

10

Supplies in satisfaction of debts

Division 105

11

Supplies partly connected with the indirect tax zone

Division 96

12

Supply under arrangement covered by PAYG voluntary agreement

Division 113

12A

Tax‑related transactions

Division 110

13

Telecommunication supplies

Division 85

14

Vouchers

Division 100

Subdivision 9‑BWho is liable for GST on taxable supplies?

9‑40  Liability for GST on taxable supplies

                   You must pay the GST payable on any *taxable supply that you make.

9‑69  Special rules relating to liability for GST on taxable supplies

                   Chapter 4 contains special rules relating to liability for GST on taxable supplies, as follows:

 

Checklist of special rules

 

Item

For this case ...

See:

1

Company amalgamations

Division 90

2

GST groups

Division 48

3

GST joint ventures

Division 51

4

Offshore supplies other than goods or real property

Division 84

4A

Non‑residents making supplies connected with the indirect tax zone

Division 83

4B

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

Subdivision 9‑CHow much GST is payable on taxable supplies?

9‑70  The amount of GST on taxable supplies

                   The amount of GST on a *taxable supply is 10% of the *value of the taxable supply.

9‑75  The value of taxable supplies

             (1)  The value of a *taxable supply is as follows:

where:

price is the sum of:

                     (a)  so far as the *consideration for the supply is consideration expressed as an amount of *money—the amount (without any discount for the amount of GST (if any) payable on the supply); and

                     (b)  so far as the consideration is not consideration expressed as an amount of money—the *GST inclusive market value of that consideration.

Example:    You make a taxable supply by selling a car for $22,000 in the course of carrying on an enterprise.

                   The value of the supply is:

                  

                   The GST on the supply is therefore $2,000 (i.e. 10% of $20,000).

             (2)  However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:

where:

luxury car tax value has the meaning given by section 5‑20 of the A New Tax System (Luxury Car Tax) Act 1999.

             (3)  In working out under subsection (1) the value of a *taxable supply made in a *tax period, being a supply that is a *fringe benefit, the price is taken to be the sum of:

                     (a)  to the extent that, apart from this subsection, paragraph(a) of the definition of price in subsection (1) would be applicable:

                              (i)  if the fringe benefit is a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the *recipient’s payment made in that period; or

                             (ii)  if the fringe benefit is a benefit other than a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the *recipients contribution made in that period; and

                     (b)  to the extent that, apart from this subsection, paragraph(b) of the definition of price in subsection (1) would be applicable:

                              (i)  if the fringe benefit is a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the recipient’s payment made in that period; or

                             (ii)  if the fringe benefit is a benefit other than a car fringe benefit—so much of the amount that would be worked out under that paragraph as represented the recipients contribution made in that period.

             (4)  Despite subsection (1), if a supply of goods (the actual supply) is to be treated as separate supplies because of subsection 9‑25(6), then the price of each such separate supply is so much of the price of the actual supply, worked out under subsection (1), as reasonably represents the price of the separate supply.

9‑80  The value of taxable supplies that are partly GST‑free or input taxed

             (1)  If a supply (the actual supply) is:

                     (a)  partly a *taxable supply; and

                     (b)  partly a supply that is *GST‑free or *input taxed;

the value of the part of the actual supply that is a taxable supply is the proportion of the value of the actual supply that the taxable supply represents.

             (2)  The value of the actual supply, for the purposes of subsection (1), is as follows:

where:

taxable proportion is the proportion of the value of the actual supply that represents the value of the *taxable supply (expressed as a number between 0 and 1).

9‑85  Value of taxable supplies to be expressed in Australian currency

             (1)  For the purposes of this Act, the *value of a *taxable supply is to be expressed in Australian currency.

             (2)  In working out the *value of a *taxable supply, any amount of the *consideration for the supply that is expressed in a currency other than Australian currency is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.

9‑90  Rounding of amounts of GST

One taxable supply recorded on an invoice

             (1)  If the amount of GST on a *taxable supply that is the only taxable supply recorded on a particular *invoice would, apart from this section, be an amount that includes a fraction of a cent, the amount of GST is rounded to the nearest cent (rounding 0.5 cents upwards).

Several taxable supplies recorded on an invoice

             (2)  If 2 or more *taxable supplies are recorded on the same *invoice, the total amount of GST on the supplies is:

                     (a)  what would be the amount of GST if it were worked out by:

                              (i)  working out the GST on each of the supplies (without rounding the amounts to the nearest cent); and

                             (ii)  adding the amounts together and, if the total is an amount that includes a fraction of a cent, rounding it to the nearest cent (rounding 0.5 cents upwards); or

                     (b)  the amount worked out using the following method statement:

Method statement

Step 1.   Work out, for each *taxable supply, what would, apart from this section, be the amount of GST on the supply.

Step 2.   If the amount for the supply has more decimal places than the number of decimal places allowed by the accounting system used to work out the amount, round the amount (up or down as appropriate) to that number of decimal places.

                   Note:       Subsection (4) gives further details of this rounding.

Step 3.   Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.

Step 4.   If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).

             (3)  Whether to use paragraph (2)(a) or paragraph (2)(b) to work out the total amount of GST on the supplies is a matter of choice for:

                     (a)  the supplier if the amount is being worked out to ascertain the supplier’s liability for GST; or

                     (b)  the *recipient of the supplies if the amount is being worked out to ascertain the recipient’s entitlement to input tax credits.

             (4)  In applying step 2 of the method statement in subsection (2), if:

                     (a)  the number of decimal places in the amount for the supply exceeds by one decimal place the number of decimal places allowed by the accounting system used to work out the amount; and

                     (b)  the last digit of the amount (before rounding) is 5;

the amount is rounded upwards to that number of decimal places.

Taxable supplies divided into items

             (5)  If one or more *taxable supplies recorded on the same *invoice are divided into 2 or more items:

                     (a)  subsection (1) does not apply; and

                     (b)  subsection (2) applies as if each such item represented a separate taxable supply.

Taxable supplies recorded on documents other than invoices

             (6)  If one or more *taxable supplies, none of which are recorded on an *invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.

9‑99  Special rules relating to the amount of GST on taxable supplies

                   Chapter 4 contains special rules relating to the amount of GST on taxable supplies, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Agents and insurance brokers

Division 153

1

Associates

Division 72

2

Company amalgamations

Division 90

2A

Compulsory third party schemes

Division 79

3

Gambling

Division 126

4

Long‑term accommodation in commercial residential premises

Division 87

4AA

Non‑residents making supplies connected with the indirect tax zone

Division 83

4A

Offshore supplies other than goods or real property

Division 84

5

Sale of freehold interests etc.

Division 75

7

Supplies partly connected with the indirect tax zone

Division 96

8

Transactions relating to insurance policies

Division 78

9

Valuation of taxable supplies of goods in bond

Division 108

10

Excess GST

Division 142

Note:          There are other laws that may affect the amount of GST on taxable supplies. For example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule).

Division 11Creditable acquisitions

11‑1  What this Division is about

You are entitled to input tax credits for your creditable acquisitions. This Division defines creditable acquisitions, states who is entitled to the input tax credits and describes how to work out the input tax credits on acquisitions.

11‑5  What is a creditable acquisition?

                   You make a creditable acquisition if:

                     (a)  you acquire anything solely or partly for a *creditable purpose; and

                     (b)  the supply of the thing to you is a *taxable supply; and

                     (c)  you provide, or are liable to provide, *consideration for the supply; and

                     (d)  you are *registered, or *required to be registered.

11‑10  Meaning of acquisition

             (1)  An acquisition is any form of acquisition whatsoever.

             (2)  Without limiting subsection (1), acquisition includes any of these:

                     (a)  an acquisition of goods;

                     (b)  an acquisition of services;

                     (c)  a receipt of advice or information;

                     (d)  an acceptance of a grant, assignment or surrender of *real property;

                     (e)  an acceptance of a grant, transfer, assignment or surrender of any right;

                      (f)  an acquisition of something the supply of which is a *financial supply;

                     (g)  an acquisition of a right to require another person:

                              (i)  to do anything; or

                             (ii)  to refrain from an act; or

                            (iii)  to tolerate an act or situation;

                     (h)  any combination of any 2 or more of the matters referred to in paragraphs (a) to (g).

             (3)  However, an acquisition does not include an acquisition of *money unless the money is provided as *consideration for a supply that is a supply of money.

11‑15  Meaning of creditable purpose

             (1)  You acquire a thing for a creditable purpose to the extent that you acquire it in *carrying on your *enterprise.

             (2)  However, you do not acquire the thing for a creditable purpose to the extent that:

                     (a)  the acquisition relates to making supplies that would be *input taxed; or

                     (b)  the acquisition is of a private or domestic nature.

             (3)  An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.

             (4)  An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:

                     (a)  the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and

                     (b)  you do not *exceed the financial acquisitions threshold.

             (5)  An acquisition is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:

                     (a)  the acquisition relates to making a *financial supply consisting of a borrowing (other than through a *deposit account you make available); and

                     (b)  the borrowing relates to you making supplies that are not input taxed.

11‑20  Who is entitled to input tax credits for creditable acquisitions?

                   You are entitled to the input tax credit for any *creditable acquisition that you make.

11‑25  How much are the input tax credits for creditable acquisitions?

                   The amount of the input tax credit for a *creditable acquisition is an amount equal to the GST payable on the supply of the thing acquired. However, the amount of the input tax credit is reduced if the acquisition is only *partly creditable.

Note:          The basic rule for working out the GST payable on the supply is in Subdivision 9‑C. However, the GST payable may be affected by other provisions in:

(a)    this Act (for a list of provisions, see section 9‑99); and

(b)    other GST laws (for example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule)).

11‑30  Acquisitions that are partly creditable

             (1)  An acquisition that you make is partly creditable if it is a *creditable acquisition to which one or both of the following apply:

                     (a)  you make the acquisition only partly for a *creditable purpose;

                     (b)  you provide, or are liable to provide, only part of the *consideration for the acquisition.

             (3)  The amount of the input tax credit on an acquisition that you make that is *partly creditable is as follows:

where:

extent of consideration is the extent to which you provide, or are liable to provide, the *consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.

extent of creditable purpose is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.

full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.

             (4)  For the purpose of working out the extent of the *consideration, so far as the consideration is not expressed as an amount of *money, take into account the *GST inclusive market value of the consideration.

             (5)  The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which a *creditable acquisition is for a *creditable purpose.

11‑99  Special rules relating to acquisitions

                   Chapter 4 contains special rules relating to acquisitions, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Agents and insurance brokers

Division 153

1B

Annual apportionment of creditable purpose

Division 131

1

Associates

Division 72

2

Company amalgamations

Division 90

2A

Compulsory third party schemes

Division 79

3

Financial supplies (reduced credit acquisitions)

Division 70

3A

Fringe benefits provided by input taxed suppliers

Division 71

4

Gambling

Division 126

5

GST groups

Division 48

6

GST joint ventures

Division 51

6A

GST religious groups

Division 49

7

Insurance

Division 78

8

Non‑deductible expenses

Division 69

8A

Offshore supplies other than goods or real property

Division 84

9

Pre‑establishment costs

Division 60

10

Reimbursement of employees etc.

Division 111

10A

Representatives of incapacitated entities

Division 58

11

Resident agents acting for non‑residents

Division 57

13

Sale of freehold interests etc.

Division 75

14

Second‑hand goods

Division 66

15

Settlement sharing arrangements

Division 80

16

Time limit on entitlements to input tax credits

Division 93

Part 2‑3Importations

Division 13Taxable importations

13‑1  What this Division is about

GST is payable on taxable importations. This Division defines taxable importations, states who is liable for the GST and describes how to work out the GST on importations.

Note 1:       This Division applies whether or not you are registered.

Note 2:       Things other than goods that are supplied overseas for use in the indirect tax zone (and are therefore in that sense “imported”) are not taxable importations, but they can attract GST under Subdivision 84‑A.

13‑5  What are taxable importations?

             (1)  You make a taxable importation if:

                     (a)  goods are imported; and

                     (b)  you enter the goods for home consumption (within the meaning of the Customs Act 1901).

However, the importation is not a taxable importation to the extent that it is a *non‑taxable importation.

Note:          There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.

             (3)  However, an importation of *money is not an importation of goods into the indirect tax zone.

13‑10  Meaning of non‑taxable importation

                   An importation is a non‑taxable importation if:

                     (a)  it is a non‑taxable importation under Part 3‑2; or

                     (b)  it would have been a supply that was *GST‑free or *input taxed if it had been a supply.

13‑15  Who is liable for GST on taxable importations?

                   You must pay the GST payable on any *taxable importation that you make.

13‑20  How much GST is payable on taxable importations?

             (1)  The amount of GST on the *taxable importation is 10% of the *value of the taxable importation.

             (2)  The value of a *taxable importation is the sum of:

                     (a)  the *customs value of the goods imported; and

                     (b)  the amount paid or payable:

                              (i)  for the *international transport of the goods to their *place of consignment in the indirect tax zone; and

                             (ii)  to insure the goods for that transport;

                            to the extent that the amount is not already included under paragraph (a); and

                   (ba)  the amount paid or payable for a supply to which item 5A in the table in subsection 38‑355(1) applies, to the extent that the amount:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

Note:       Division 81 excludes certain taxes, fees and charges from the provision of consideration.

                             (ii)  is not already included under paragraph (a) or (b); and

                     (c)  any *customs duty payable in respect of the importation of the goods; and

                     (d)  any *wine tax payable in respect of the *local entry of the goods.

          (2A)  If an amount to be taken into account under paragraph (2)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901.

             (3)  The Commissioner may, in writing:

                     (a)  determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (2)(b); and

                     (b)  determine the way in which the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is to be worked out for the purposes of that paragraph; and

                     (c)  in relation to importations of a specified kind or importations to which specified circumstances apply—determine that:

                              (i)  the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of paragraph (2)(b), to be zero; or

                             (ii)  the amount paid or payable for a specified kind of supply referred to in paragraph (2)(ba) is taken, for the purposes of that paragraph, to be zero.

             (4)  For a *taxable importation that you make, you may choose to treat the amount under paragraph (2)(b), (or, if paragraph (2)(ba) applies, the sum of the amounts under paragraphs (2)(b) and (ba)), as an amount equal to:

                     (a)  the percentage prescribed by the regulations of the *customs value of the goods imported; or

                     (b)  if no percentage is prescribed—10% of their customs value.

             (5)  However, subsection (4) does not apply if:

                     (a)  you are not *registered; or

                     (b)  the *local entry of the goods is a *taxable dealing in relation to *wine; or

                     (c)  the importation of the goods is a *taxable importation of a luxury car.

13‑25  The value of taxable importations that are partly non‑taxable importations

                   If an importation (the actual importation) is:

                     (a)  partly a *taxable importation; and

                     (b)  partly a *non‑taxable importation;

the value of the part of the actual importation that is a taxable importation is the proportion of the value of the actual importation (worked out as if it were solely a taxable importation) that the taxable importation represents.

13‑99  Special rules relating to taxable importations

                   Chapter 4 contains special rules relating to taxable importations, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1

GST groups

Division 48

2

GST joint ventures

Division 51

3

Importations without entry for home consumption

Division 114

4

Representatives of incapacitated entities

Division 58

5

Resident agents acting for non‑residents

Division 57

6

Valuation of re‑imported goods

Division 117

Note:          There are other laws that may affect the amount of GST on taxable importations. For example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule).

Division 15Creditable importations

15‑1  What this Division is about

You are entitled to input tax credits for your creditable importations. This Division defines creditable importations, states who is entitled to the input tax credits and describes how to work out the input tax credits on importations.

15‑5  What are creditable importations?

                   You make a creditable importation if:

                     (a)  you import goods solely or partly for a *creditable purpose; and

                     (b)  the importation is a *taxable importation; and

                     (c)  you are *registered, or *required to be registered.

15‑10  Meaning of creditable purpose

             (1)  You import goods for a creditable purpose to the extent that you import the goods in *carrying on your *enterprise.

             (2)  However, you do not import the goods for a creditable purpose to the extent that:

                     (a)  the importation relates to making supplies that would be *input taxed; or

                     (b)  the importation is of a private or domestic nature.

             (3)  An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that the supply is made through an *enterprise, or a part of an enterprise, that you *carry on outside the indirect tax zone.

             (4)  An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed if:

                     (a)  the only reason it would (apart from this subsection) be so treated is because it relates to making *financial supplies; and

                     (b)  you do not *exceed the financial acquisitions threshold.

             (5)  An importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be *input taxed to the extent that:

                     (a)  the importation relates to making a *financial supply consisting of a borrowing; and

                     (b)  the borrowing relates to you making supplies that are not input taxed.

15‑15  Who is entitled to input tax credits for creditable importations?

                   You are entitled to the input tax credit for any *creditable importation that you make.

15‑20  How much are the input tax credits for creditable importations?

                   The amount of input tax credit for a *creditable importation is an amount equal to the GST payable on the importation. However, the amount of the input tax credit is reduced if the importation is only *partly creditable.

Note:          The basic rule for working out the GST payable on the importation is in section 13‑20. However, the GST payable may be affected by other provisions in:

(a)    this Act (for a list of provisions, see section 13‑99); and

(b)    other GST laws (for example, see subsection 357‑60(3) in Schedule 1 to the Taxation Administration Act 1953 (about the effect of rulings made under Part 5‑5 in that Schedule)).

15‑25  Importations that are partly creditable

             (1)  An importation that you make is partly creditable if it is a *creditable importation that you make only partly for a *creditable purpose.

             (3)  The amount of the input tax credit on an importation that you make that is *partly creditable is as follows:

where:

extent of creditable purpose is the extent to which the importation is for a *creditable purpose, expressed as a percentage of the total purpose of the importation.

full input tax credit is what would have been the amount of the input tax credit for the importation if it had been made solely for a creditable purpose.

             (4)  The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (3), the extent to which an importation is for a *creditable purpose.

15‑99  Special rules relating to creditable importations

                   Chapter 4 contains special rules relating to creditable importations, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1AA

Annual apportionment of creditable purpose

Division 131

1A

Fringe benefits provided by input taxed suppliers

Division 71

1

GST groups

Division 48

2

GST joint ventures

Division 51

2AA

Importations without entry for home consumption

Division 114

2A

Non‑deductible expenses

Division 69

3

Pre‑establishment costs

Division 60

3A

Representatives of incapacitated entities

Division 58

4

Resident agents acting for non‑residents

Division 57

Part 2‑4Net amounts and adjustments

Division 17Net amounts and adjustments

17‑1  What this Division is about

A net amount is worked out for each tax period that applies to you.

Adjustments can be made to the net amount. Increasing adjustments increase your net amount, and decreasing adjustments decrease your net amount.

Note:          GST on taxable importations is not included in the net amount. It is dealt with separately under section 33‑15.

17‑5  Net amounts

             (1)  The net amount for a tax period applying to you is worked out using the following formula:

where:

GST is the sum of all of the GST for which you are liable on the *taxable supplies that are attributable to the tax period.

input tax credits is the sum of all of the input tax credits to which you are entitled for the *creditable acquisitions and *creditable importations that are attributable to the tax period.

Note 1:       For the basic rules on what is attributable to a particular period, see Division 29.

Note 2:       For further rules if you have excess GST for the period, see Division 142.

             (2)  However, the *net amount for the tax period:

                     (a)  may be increased or decreased if you have any *adjustments for the tax period; and

                     (b)  may be increased or decreased under Subdivision 21‑A of the *Wine Tax Act; and

                     (c)  may be increased or decreased under Subdivision 13‑A of the A New Tax System (Luxury Car Tax) Act 1999.

Note 1:       Under Subdivision 21‑A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount.

Note 2:       Under Subdivision 13‑A of the A New Tax System (Luxury Car Tax) Act 1999, amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount.

17‑10  Adjustments

                   If you have any *adjustments that are attributable to a tax period applying to you, alter your *net amount for the period as follows:

                     (a)  add to the amount worked out under subsection 17‑5(1) for the period the sum of all the *increasing adjustments (if any) that are attributable to the period;

                     (b)  subtract from that amount the sum of all the *decreasing adjustments (if any) that are attributable to the period.

For the basic rules on what adjustments are attributable to a particular period, see Division 29.

17‑20  Determinations relating to how to work out net amounts

             (1)  The Commissioner may make a determination that, in the circumstances specified in the determination, a *net amount for a tax period may be worked out to take account of other matters in the way specified in the determination.

             (2)  The matters must relate to correction of errors:

                     (a)  that were made in working out *net amounts to which subsection (2A) applies; and

                     (b)  that do not relate to amounts:

                              (i)  that have ceased to be payable by you because of section 105‑50 in Schedule 1 to the Taxation Administration Act 1953; or

                             (ii)  to which, because of section 105‑55 in that Schedule, you are not entitled.

Note:          Paragraph (2)(b) will be repealed on 1 January 2017: see Part 2 of Schedule 1 to the Indirect Tax Laws Amendment (Assessment) Act 2012.

          (2A)  This subsection applies to a *net amount for a tax period (the earlier tax period) if:

                     (a)  the earlier tax period precedes the tax period mentioned in subsection (1); and

                     (b)  if the earlier tax period started on or after 1 July 2012—the tax period mentioned in subsection (1) starts during the *period of review for the *assessment of the *net amount.

             (3)  If those circumstances apply in relation to a tax period applying to you, you may work out your *net amount for the tax period in that way.

17‑99  Special rules relating to net amounts or adjustments

                   Chapter 4 contains special rules relating to net amounts or adjustments, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Annual apportionment of creditable purpose

Division 131

1

Anti‑avoidance

Division 165

2

Cessation of registration

Division 138

3

Changes in the extent of creditable purpose

Division 129

4

Company amalgamations

Division 90

4AA

Compulsory third party schemes

Division 79

4A

Distributions from deceased estates

Division 139

5

Gambling

Division 126

5A

Goods applied solely to private or domestic use

Division 130

6

GST branches

Division 54

7

GST groups

Division 48

8

GST joint ventures

Division 51

8A

GST religious groups

Division 49

9

Insurance

Division 78

9AA

Non‑deductible expenses

Division 69

9A

Non‑profit sub‑entities

Division 63

9B

Payment of GST by instalments

Division 162

9C

Providing additional consideration under gross‑up clauses

Division 133

10

Representatives of incapacitated entities

Division 58

11

Resident agents acting for non‑residents

Division 57

11A

Sale of freehold interests etc.

Division 75

12

Second‑hand goods

Division 66

12AA

Settlement sharing arrangements

Division 80

12A

Simplified accounting methods for retailers and small enterprise entities

Division 123

12B

Stock on hand on becoming registered etc.

Division 137

13

Supplies in satisfaction of debts

Division 105

14

Supplies of going concerns

Division 135

15

Supplies of things acquired etc. without full input tax credits

Division 132

15A

Third party payments

Division 134

16

Tradex scheme goods

Division 141

17

Vouchers

Division 100

Division 19Adjustment events

Table of Subdivisions

19‑A     Adjustment events

19‑B      Adjustments for supplies

19‑C      Adjustments for acquisitions

19‑1  What this Division is about

Adjustments can arise because of adjustment events. They are events such as a cancellation of a supply or acquisition, or a change in the consideration for a supply or acquisition (for example, because of a volume discount).

Note:          Importations do not give rise to adjustment events.

19‑5  Explanation of the effect of adjustment events

                   The following diagram shows how an *adjustment event for a supply or acquisition can give rise to an *increasing adjustment or a *decreasing adjustment.

 

 

Note:          This section is an explanatory section.

Subdivision 19‑AAdjustment events

19‑10  Adjustment events

             (1)  An adjustment event is any event which has the effect of:

                     (a)  cancelling a supply or acquisition; or

                     (b)  changing the *consideration for a supply or acquisition; or

                     (c)  causing a supply or acquisition to become, or stop being, a *taxable supply or *creditable acquisition.

Example:    If goods that are supplied for export are not exported within the time provided in section 38‑185, the supply is likely to become a taxable supply after originally being a supply that was GST‑free.

             (2)  Without limiting subsection (1), these are *adjustment events:

                     (a)  the return to a supplier of a thing, or part of a thing, supplied (whether or not the return involves a change of ownership of the thing);

                     (b)  a change to the previously agreed *consideration for a supply or acquisition, whether due to the offer of a discount or otherwise;

                     (c)  a change in the extent to which an entity that makes an acquisition provides, or is liable to provide, consideration for the acquisition (unless the entity *accounts on a cash basis).

             (3)  An *adjustment event:

                     (a)  can arise in relation to a supply even if it is not a *taxable supply; and

                     (b)  can arise in relation to an acquisition even if it is not a *creditable acquisition.

             (4)  However, the return of a thing supplied, or part of a thing supplied, to its supplier is not an *adjustment event if the return is for the purpose of repair or maintenance.

Subdivision 19‑BAdjustments for supplies

19‑40  Where adjustments for supplies arise

                   You have an adjustment for a supply for which you are liable to pay GST (or would be liable to pay GST if it were a *taxable supply) if:

                     (a)  in relation to the supply, one or more *adjustment events occur during a tax period; and

                     (b)  GST on the supply was attributable to an earlier tax period (or, if the supply was not a taxable supply, would have been attributable to an earlier tax period had the supply been a taxable supply); and

                     (c)  as a result of those adjustment events, the *previously attributed GST amount for the supply (if any) no longer correctly reflects the amount of GST (if any) on the supply (the corrected GST amount), taking into account any change of circumstances that has given rise to an adjustment for the supply under this Subdivision or Division 21 or 134.

19‑45  Previously attributed GST amounts

                   The previously attributed GST amount for a supply is:

                     (a)  the amount of any GST that was attributable to a tax period in respect of the supply; plus

                     (b)  the sum of any *increasing adjustments, under this Subdivision or Division 21, that were previously attributable to a tax period in respect of the supply; minus

                     (c)  the sum of any *decreasing adjustments, under this Subdivision or Division 21 or 134, that were previously attributable to a tax period in respect of the supply.

19‑50  Increasing adjustments for supplies

                   If the *corrected GST amount is greater than the *previously attributed GST amount, you have an increasing adjustment equal to the difference between the corrected GST amount and the previously attributed GST amount.

19‑55  Decreasing adjustments for supplies

                   If the *corrected GST amount is less than the *previously attributed GST amount, you have a decreasing adjustment equal to the difference between the previously attributed GST amount and the corrected GST amount.

Subdivision 19‑CAdjustments for acquisitions

19‑70  Where adjustments for acquisitions arise

             (1)  You have an adjustment for an acquisition for which you are entitled to an input tax credit (or would be entitled to an input tax credit if the acquisition were a *creditable acquisition) if:

                     (a)  in relation to the acquisition, one or more *adjustment events occur during a tax period; and

                     (b)  an input tax credit on the acquisition was attributable to an earlier tax period (or, if the acquisition was not a creditable acquisition, would have been attributable to an earlier tax period had the acquisition been a creditable acquisition); and

                     (c)  as a result of those adjustment events, the *previously attributed input tax credit amount for the acquisition (if any) no longer correctly reflects the amount of the input tax credit (if any) on the acquisition (the corrected input tax credit amount).

             (2)  In working out the *corrected input tax credit amount for the acquisition:

                     (a)  take into account any change of circumstances that has given rise to an adjustment for the acquisition under this Subdivision or Division 21, 129, 133 or 134; and

                     (b)  if an adjustment relating to the acquisition under Division 131 was attributable to an earlier tax period:

                              (i)  do not take into account that adjustment; and

                             (ii)  treat the acquisition as one in relation to which Division 131 had not applied.

19‑75  Previously attributed input tax credit amounts

                   The previously attributed input tax credit amount for an acquisition is:

                     (a)  the amount of any input tax credit that was attributable to a tax period in respect of the acquisition; minus

                     (b)  the sum of any *increasing adjustments, under this Subdivision or Division 21, 129, 131 or 134, that were previously attributable to a tax period in respect of the acquisition; plus

                     (c)  the sum of any *decreasing adjustments, under this Subdivision or Division 21, 129 or 133, that were previously attributable to a tax period in respect of the acquisition.

19‑80  Increasing adjustments for acquisitions

                   If the *previously attributed input tax credit amount is greater than the *corrected input tax credit amount, you have an increasing adjustment equal to the difference between the previously attributed input tax credit amount and the corrected input tax credit amount.

19‑85  Decreasing adjustments for acquisitions

                   If the *previously attributed input tax credit amount is less than the *corrected input tax credit amount, you have a decreasing adjustment equal to the difference between the corrected input tax credit amount and the previously attributed input tax credit amount.

19‑99  Special rules relating to adjustment events

                   Chapter 4 contains special rules relating to *adjustment events in particular cases, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1AA

Compulsory third party schemes

Division 79

1AB

Excess GST and cancelled supplies

Division 142

1A

GST religious groups

Division 49

1

Insurance

Division 78

2

Non‑deductible expenses

Division 69

2A

Providing additional consideration under gross‑up clauses

Division 133

3

Settlement sharing arrangements

Division 80

4

Third party payments

Division 134

Division 21Bad debts

21‑1  What this Division is about

If debts are written off as bad or are outstanding after 12 months, adjustments (for the purpose of working out net amounts) are made. They can arise both for amounts written off or outstanding and for recovery of amounts previously written off or outstanding.

Note:          This Division does not apply to supplies and acquisitions that you account for on a cash basis (except in the limited circumstances referred to in Division 159).

21‑5  Writing off bad debts (taxable supplies)

             (1)  You have a decreasing adjustment if:

                     (a)  you made a *taxable supply; and

                     (b)  the whole or part of the *consideration for the supply has not been received; and

                     (c)  you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.

The amount of the decreasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.

             (2)  However, you cannot have an *adjustment under this section if you *account on a cash basis.

21‑10  Recovering amounts previously written off (taxable supplies)

                   You have an increasing adjustment if:

                     (a)  you made a *taxable supply in relation to which you had a *decreasing adjustment under section 21‑5 for a debt; and

                     (b)  you recover the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.

The amount of the increasing adjustment is 1/11 of the amount recovered.

21‑15  Bad debts written off (creditable acquisitions)

             (1)  You have an increasing adjustment if:

                     (a)  you made a *creditable acquisition for *consideration; and

                     (b)  the whole or part of the consideration is *overdue, but you have not provided the consideration overdue; and

                     (c)  the supplier of the thing you acquired writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.

The amount of the increasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.

             (2)  However, you cannot have an *adjustment under this section if you *account on a cash basis.

21‑20  Recovering amounts previously written off (creditable acquisitions)

                   You have a decreasing adjustment if:

                     (a)  you made a *creditable acquisition in relation to which you had an *increasing adjustment under section 21‑15 for a debt; and

                     (b)  you pay to the supplier of the thing you acquired the whole or a part of the amount written off, or the whole or a part of the amount that has been *overdue for 12 months or more, as the case requires.

The amount of the decreasing adjustment is 1/11 of the amount recovered.

21‑99  Special rules relating to adjustments for bad debts

                   Chapter 4 contains special rules relating to adjustments for bad debts, as follows:

 

Checklist of special rules

Item

For this case ...

See:

1A

Bad debts relating to transactions that are not taxable or creditable to the fullest extent

Division 136

1

Changing your accounting basis

Division 159

2

Gambling

Division 126

2A

Representatives of incapacitated entities

Division 58

3