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

Chapter 6 - Interpreting this Act  

Part 6-2 - Meaning of some important concepts  

Division 189 - Exceeding the financial acquisitions threshold  

189-5   Exceeding the financial acquisitions threshold - current acquisitions  

General

(1)    
You exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the * financial acquisitions you have made, or are likely to make, during the 12 months ending at the end of that month were made solely for a * creditable purpose , either or both of the following would apply:

(a) the amount of all the input tax credits to which you would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;

(b) the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you would be entitled for all your acquisitions and importations during that 12 months (including the financial acquisitions).

Members of GST groups

(2)    
If you are a * member of a * GST group , you exceed the financial acquisitions threshold at a time during a particular month if, assuming that all the * financial acquisitions you or any other member of the group have made, or are likely to make, during the 12 months ending at the end of that month were made solely for a * creditable purpose , either or both of the following would apply:

(a) the amount of all the input tax credits to which you or any other member of the group would be entitled for those acquisitions would exceed $150,000 or such other amount specified in the regulations;

(b) the amount of the input tax credits referred to in paragraph (a) would be more than 10% of the total amount of the input tax credits to which you or any other member of the group would be entitled for all acquisitions and importations of any member of the group during that 12 months (including the financial acquisitions).