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 70 - Financial supplies (reduced credit acquisitions)  

70-5   Acquisitions that attract the reduced credit  

(1)    
The regulations may provide that acquisitions of a specified kind that relate to making * financial supplies can give rise to an entitlement to a reduced input tax credit. These are reduced credit acquisitions .

(1A)    

However, an acquisition is not a reduced credit acquisition to the extent (if any) that, without this Division applying, an entity is entitled to an input tax credit for the acquisition.

Note:

Acquisitions relating to financial supplies can give rise to input tax credits: see subsections 11-15(4) and (5) .

(2)    
For each kind of * reduced credit acquisition specified, the regulations must specify a percentage to which the input tax credit is reduced.