A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 63 - Non-profit sub-entities  

63-45   Effect on adjustments of ceasing to be a non-profit sub-entity  

(1)    
If a branch of an entity ceases to be a * non-profit sub-entity , any * adjustment arising afterwards in relation to a supply, acquisition or importation, made by the branch while it was a non-profit sub-entity, is taken to be an adjustment that the entity has, as if the entity had made the supply, acquisition or importation.

(2)    
For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch ceased to be a * non-profit sub-entity , that Division applies as if:

(a) the extent to which the acquisition or importation of the thing was for a * creditable purpose were the extent to which the entity acquired or imported it for a creditable purpose; and

(b) the extent to which the thing has been * applied for a creditable purpose since its acquisition or importation were the extent to which the entity applied it for a creditable purpose.