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 72 - Associates  

Subdivision 72-B - Acquisitions without consideration  

72-45   The amount of the input tax credit  

(1)    
The amount of the input tax credit on an acquisition from your * associate that is without * consideration is as follows:

Full input tax credit × Extent of creditable purpose

where:

extent of creditable purpose
is the extent to which the creditable acquisition is for a * creditable purpose , expressed as a percentage of the total purpose of the acquisition.

full input tax credit
is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition.

(1A)    

However, if:

(a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and

(b) the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131-40(1)(b) ;

the amount of the input tax credit on the acquisition is worked out under section 131-40 as if you had provided, or had been liable to provide, all of the *consideration for the acquisition.

(2)    

This section has effect despite subsection 11-30(3) (which is about the amount of input tax credits on partly creditable acquisitions).