A New Tax System (Indirect Tax and Consequential Amendments) Act (No. 2) 1999 (177 of 1999)

Schedule 1   Indirect Tax Acts

Part 1   Amendment of the A New Tax System (Goods and Services Tax) Act 1999

58   At the end of Division 48

Add:

Subdivision 48-D - Ceasing to be a member of a GST group

48-110 Adjustments after you cease to be a member of a GST group

(1) If you *cease to be a member of a GST group (the first GST group ), any *adjustment that arises afterwards in relation to a supply, acquisition or importation that you made while a *member of the first GST group (other than a supply to, or an acquisition from, another member of that group):

(a) is an adjustment that you have; and

(b) is not an adjustment of the entity that is or was the *representative member of the first GST group (unless you were that representative member).

(2) In relation to the first GST group, this section has effect despite section 48-50 (which is about who has adjustments for a GST group).

48-115 Changes in extent of creditable purpose after you cease to be a member of a GST group

(1) If:

(a) while you were a *member of a *GST group (the first GST group ), you acquired a thing (other than from another member of that group) or imported a thing; and

(b) you *cease to be a member of the first GST group;

then, when applying section 129-40 for the first time after that cessation, the *intended or former application of the thing is the extent of *creditable purpose last used to work out, under section 48-55:

(c) the amount of the input tax credit to which the *representative member was entitled for the acquisition or importation; or

(d) the amount of any *adjustment the representative member had under Division 129 in relation to the thing.

(2) If:

(a) while you were a *member of a *GST group (the first GST group ), you acquired a thing (other than from another member of that group) or imported a thing; and

(b) you have *ceased to be a member of the first GST group; and

(c) you have an *adjustment under Division 129 in relation to the thing, or the *representative member of another GST group of which you are a *member has that adjustment;

then, for the purposes of working out the full input tax credit in section 129-70 or 129-75, you are taken not to have been a member of a GST group when you acquired or imported the thing.