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

Chapter 2 - The basic rules  

Part 2-4 - Net amounts and adjustments  

Division 21 - Bad debts  

21-5   Writing off bad debts (taxable supplies)  

(1)    

You have a decreasing adjustment if:

(a) you made a * taxable supply ; and

(b) the whole or part of the * consideration for the supply has not been received; and

(c) you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.

The amount of the decreasing adjustment is 1/11 of the amount written off, or 1/11 of the amount that has been overdue for 12 months or more, as the case requires.

(2)    
However, you cannot have an * adjustment under this section if you * account on a cash basis .