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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-C - When adjustments for acquisitions and importations arise  

129-40   Working out whether you have an adjustment  

(1)    
This is how to work out whether you have an * increasing adjustment or a * decreasing adjustment under this Division, for an * adjustment period , for an acquisition or importation: Method statement


Step 1.

Work out the extent (if any) to which you have * applied the thing acquired or imported for a * creditable purpose during the period of time:

  • (a) starting when you acquired or imported the thing; and
  • (b) ending at the end of the * adjustment period .

    • This is the actual application of the thing .


    Step 2.

    Work out:

  • (a) if you have not previously had an * adjustment under this Division for the acquisition or importation - the extent (if any) to which you acquired or imported the thing for a * creditable purpose : or
  • (b) if you have previously had an * adjustment under this Division for the acquisition or importation - the * actual application of the thing in respect of the last adjustment.

    • This is the intended or former application of the thing .


    Step 3.

    If the * actual application of the thing is less than its * intended or former application , you have an increasing adjustment , for the * adjustment period , for the acquisition or importation.


    Step 4.

    If the * actual application of the thing is greater than its * intended or former application , you have a decreasing adjustment , for the * adjustment period , for the acquisition or importation.


    Step 5.

    If the * actual application of the thing is the same as its * intended or former application , you have neither an increasing adjustment nor a decreasing adjustment, for the * adjustment period , for the acquisition or importation.


    (2)    
    * Actual applications and * intended or former applications are to be expressed as percentages.

    (3)    

    View history reference

    If the thing is acquired through a * reduced credit acquisition and, at the time of the acquisition, it was wholly for a * creditable purpose because of Division 70 , the extent to which it was acquired for a creditable purpose is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.
     View history note


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