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 129 - Changes in the extent of creditable purpose  

Subdivision 129-B - Adjustment periods  

129-20   Adjustment periods  

(1)    

An adjustment period for an acquisition or importation is a tax period applying to you that:

(a) starts at least 12 months after the end of the tax period to which the acquisition or importation is attributable (or would be attributable if it were a *creditable acquisition or *creditable importation); and

(b) ends:

(i) on 30 June in any year; or

(ii) if none of the tax periods applying to you in a particular year ends on 30 June - closer to 30 June than any of the other tax periods applying to you in that year.

In addition, a tax period provided for under section 27-39 or 27-40 or subsection 151-55(1) or 162-85(1) is an adjustment period for the acquisition or importation.

Note:

Section 27-39 deals with an incapacitated entity ' s tax periods. Section 27-40 and subsections 151-55(1) and 162-85(1) deal with an entity ' s concluding tax period.

(2)    
Despite subsection (1) , for an acquisition or importation that *relates to business finance:

(a) if the *GST exclusive value of the acquisition or importation is $50,000 or less - only the first such tax period is an adjustment period ; or

(b) if the GST exclusive value of the acquisition or importation is more than $50,000 but less than $500,000 - only the first 5 such tax periods are adjustment periods ; or

(c) if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are adjustment periods .

(3)    
Despite subsection (1), for an acquisition or importation that does not *relate to business finance:

(a) if the *GST exclusive value of the acquisition or importation is $5,000 or less - only the first 2 such tax periods are adjustment periods ; or

(b) if the GST exclusive value of the acquisition or importation is more than $5,000 but less than $500,000 - only the first 5 such tax periods are adjustment periods ; or

(c) if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are adjustment periods .

However, the Commissioner may, having regard to record keeping requirements for the purposes of income tax, determine in writing that a fewer number of tax periods are adjustment periods for a particular class of acquisitions or importations that do not *relate to business finance.