A New Tax System (Goods and Services Tax) Regulations 2019

Chapter 4 - The special rules  

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

Division 70 - Financial supplies (reduced credit acquisitions)  

SECTION 70-5.03  

70-5.03   Percentage to which input tax credits are reduced  
For the purposes of subsection 70-5(2) of the Act, the percentage to which an input tax credit is reduced is as follows:

(a) for a reduced credit acquisition covered by item 32 of the table in subsection 70-5.02(1) - 55%;

(b) for a reduced credit acquisition covered by item 32 and one or more other items of the table in subsection 70-5.02(1) :

(i) to the extent that the acquisition is covered by item 32 - 55%; and

(ii) to the extent that the acquisition is not covered by item 32 - 75%;

(c) for all other kinds of reduced credit acquisitions - 75%.