Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 27 - Effect of input tax credits etc. on deductions  

Subdivision 27-A - General  

SECTION 27-10   Certain increasing adjustments  

27-10(1)    

You can deduct an amount of an ^* increasing adjustment that arises under Division 129 of the ^* GST Act.

27-10(2)    
However, you cannot deduct the amount to the extent (if any) that the adjustment arises from an increase in the extent to which the activity giving rise to the adjustment is of a private or domestic nature.

27-10(3)    
If:

(a) you have an ^* increasing adjustment under Division 138 of the ^* GST Act in respect of an asset as a result of the cancellation of your registration under Part 2-5 of the GST Act; and

(b) immediately after the cancellation, you held the asset for the purpose of gaining or producing assessable income;

you can deduct the amount of the increasing adjustment.

27-10(4)    

However, you cannot deduct an amount under subsection (1) or (3) to the extent that, because it becomes a component of a ^* net input tax credit, a reduction is made under section 103-30 (reduction of cost base etc. by net input tax credits).