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 79 - Compulsory third party schemes  

Subdivision 79-C - Other payments and supplies under compulsory third party schemes  

79-50   Decreasing adjustments for CTP compensation or ancillary payments or supplies  

(1)    
An * operator of a * compulsory third party scheme has a decreasing adjustment if the operator makes a * CTP compensation or ancillary payment or supply under the scheme.

(2)    
However, this section only applies if:

(a) the payments of * CTP premium to the * operator that have been or are required to be made under the scheme are, or would be, * consideration for a * taxable supply ; and

(b) the * operator is *registered or * required to be registered .

(3)    
The * decreasing adjustment in relation to the payment or supply is worked out using the applicable * average input tax credit fraction (see section 79-95 ).