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

S 19B repealed by No 101 of 2006, s 3 and Sch 5 item 12, effective 14 September 2006. For application and saving provisions see history note for s 5(3). S 19B formerly read:

19B Sales etc. of cars held on 1 July 2000 for the purpose of rental  
Entitlement to special credit

(1)
If, in relation to a supply of a car, all of the following conditions are met, the entity referred to in subsection (6) is entitled to a special credit under this section in relation to the supply:

(a) the supply takes place, or took place:

(i) on or after 1 July 2000; and

(ii) before 1 July 2002;

(b) the entity held the car at the start of 1 July 2000;

(c) the supply is, or was, the first sale of the car on or after 1 July 2000;

(d) during the entire period at the start of 1 July 2000 until the entity ceases to hold the car:

(i) the entity held the car, for the purposes of supply by way of rental, in the course or furtherance of an enterprise; and

(ii) the car was covered by the appropriate compulsory third party insurance under subsection (4);

(e) the car has been the subject of sales tax.

(2)
For the purposes of paragraph (1)(c), a sale of the car to the entity at the end of a period during which the entity was the lessee of the car is not treated as a sale of the car.

(3)
For the purposes of subsection (1), a supply of the car to an insurer in settlement of a claim under an insurance policy is treated as a sale of the car.

(4)
For the purposes of subparagraph (1)(d)(ii), the appropriate compulsory third party insurance for the car is:

(a) in any case - compulsory third party insurance for which the premium was calculated on the basis that the car was for supply by the entity by way of rental in the course or furtherance of the enterprise referred to in subparagraph (1)(d)(i); or

(b) if:

(i) the car is not required, by the law of the State or Territory in which it is registered, to be covered by compulsory third party insurance of that kind; but

(ii) there is another State or Territory in which it would be required to be covered by compulsory third party insurance of that kind if it were registered in that State or Territory;

the kind of compulsory third party insurance by which the car is required, by the law of the State or Territory in which it is registered, to be covered.

(5)
This section does not apply to a supply in relation to which any entity is entitled to a special credit under section 19A.

Who is entitled to the special credit

(6)
The entity entitled to the special credit is the entity that held the car for supply by way of rental (whether or not the entity made the sale referred to in paragraph (1)(c)).

Amount of the special credit

(7)
The amount of the special credit in relation to the supply is an amount equal to 1/ 11 of the price of the supply.

(8)
However, if the car was covered by an eligible short-term lease, the amount of the special credit is an amount equal to:

Original special credit

×     (100% − Exempt percentage)

where:

exempt percentage
is the exempt percentage specified in an agreement under subsection 15A(2) of the Sales Tax Assessment Act 1992 that was in force on 30 June 2000 and that applies to the eligible short-term lease in question.

original special credit
is the amount that would (but for this subsection) be the amount of the special credit.

Special rules for working out the price of the supply

(9)
If:

(a) the entity entitled to the special credit was so entitled as the lessee of the car; and

(b) the entity is unable to find out the price at which the car was sold;

the price of the supply is taken to be an amount worked out in the way determined in writing by the Commissioner.

(10)
If the supply of the car is part of another supply, the price of the supply of the car is an amount equal to the part of the price of the other supply that represents the supply of the car.

(11)
If the supply of the car is a supply to an insurer in settlement of a claim under an insurance policy, the price of the supply is taken to be the sum of:

(a) if the entity entitled to the special credit receives one or more payments from the insurer in settlement of the claim - the amount of the payment, or the sum of the amounts of all of the payments, as the case may be; and

(b) if the entity entitled to the special credit receives one or more supplies from the insurer in settlement of the claim - the value of the supply, or the total value of all of the supplies, as the case may be.

When the special credit can be claimed

(12)
The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice ending:

(a) on or after the day on which the Taxation Laws Amendment Act (No. 3) 2002 received the Royal Assent; and

(b) on or before 7 January 2003, or such later day as the Commissioner determines in writing.

Definitions etc.

(13)
In this section:

car
has the meaning given by subsection 995-1(1) of the ITAA 1997.

held
has the meaning given by subsection 995-1(1) of the ITAA 1997 for the purposes of Division 28 of that Act.

registered
: a car is registered in a State or Territory if it is registered, under the law of the State or Territory, to be driven on a public road in the State or Territory.

(14)
A reference in this section to a supply of a car by way of rental does not include:

(a) a supply that involves passengers being transported by or on behalf of the supplier; or

(b) a supply of a car to an entity that acquires the car for the purposes of supply by way of rental in the course or furtherance of an enterprise.

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History

S 19B inserted by No 97 of 2002, s 3 and Sch 1 item 7, effective 10 November 2002.