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

Chapter 4 - The special rules  

Part 4-4 - Special rules mainly about net amounts and adjustments  

Note:

The special rules in this Part mainly modify the operation of Part 2-4 , but they may affect other Parts of Chapter 2 in minor ways.

Division 138 - Cessation of registration  

138-5   Adjustments for cessation of registration  

(1)    
You have an increasing adjustment if:

(a) your * registration is cancelled; and

(b) immediately before the cancellation takes effect, your assets include anything in respect of which you were, or are, entitled to an input tax credit.

Note:

Increasing adjustments increase your net amounts.

(2)    
The amount of the adjustment, for each thing referred to in paragraph (1)(b) , is as follows:

1   11

×

*Actual application of the thing

×

Applicable value

where:

applicable value
is:

(a) the * GST inclusive market value of the thing immediately before the cancellation takes effect; or

(b) if you were, or are, entitled to an input tax credit for acquiring the thing - the amount of the * consideration that you provided, or were liable to provide, for your acquisition of the thing, but only if the amount is less than that value; or

(c) if you were, or are, entitled to an input tax credit for importing the thing - the cost to you of acquiring or producing the thing (plus the * assessed GST paid on its importation), but only if the amount is less than that value.

(3)    
However, an * adjustment does not arise under this section in respect of an asset if:

(a) there were one or more * adjustment periods for your acquisition or importation of the asset; and

(b) the last of those adjustment periods has ended before the cancellation of your * registration takes effect.