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

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 69 - Non-deductible expenses  

Subdivision 69-A - Non-deductible expenses generally  

69-10   Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars  

(1)    

If:

(a) you are entitled to an input tax credit for a * creditable acquisition or * creditable importation of a * car ; and

(b) you are not, for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 , entitled to quote an * ABN in relation to the supply to which the creditable acquisition relates, or in relation to the importation, as the case requires; and

(c) the * GST inclusive market value of the car exceeds the * car limit for the * financial year in which you first used the car for any purpose;

the amount of the input tax credit on the acquisition or importation is the amount of GST payable on the supply or importation of the car up to 1/11 of that limit.

(1A)    
(Repealed by No 156 of 2000)

(2)    

However, if:

(a) the supply of the car is * GST-free to any extent under Subdivision 38-P ; or

(b) the importation of the car is non-taxable to any extent under paragraph 13-10(b) because it would have been GST-free to any extent under Subdivision 38-P if it had been a supply;

you are not entitled to the input tax credit for the acquisition or importation.

(3)    
If your acquisition or importation is * partly creditable , the input tax credit is reduced to the extent (expressed as a percentage) to which the acquisition or importation is made for a * creditable purpose .

(4)    
This section does not apply in relation to:

(a) the acquisition or importation of a * car that is not a * luxury car because of subsection 25-1(2) of the A New Tax System (Luxury Car Tax) Act 1999 ; or

Note:

Emergency vehicles, cars fitted to transport disabled people, non-passenger commercial vehicles, motor homes and campervans are not luxury cars under that subsection.

(b) the acquisition of a car by lease or hire.

(5)    
This section has effect despite sections 11-25 and 15-20 (which are about the amount of input tax credits on creditable acquisitions and creditable importations).