A New Tax System (Goods and Services Tax Transition) Act 1999
(Repealed by No 101 of 2006)
View history note
Hide history noteS 16 repealed by No 101 of 2006, s 3 and Sch 5 item 9, effective 14 September 2006. For application and saving provisions see history note for s 5(3). S 16 formerly read:
In some cases relating to alcoholic beverages, subsections
16A(3)
and
16B(3)
prevent special credits arising.
16 Special GST credit for sales tax paid on stock
(1)
You are entitled to a special credit for GST purposes if:
(a)
you are registered as at 1 July 2000; and
(b)
you have on hand, at the start of 1 July 2000, goods you acquired or imported that are held for the purposes of sale or exchange (but not for manufacture) in the ordinary course of business.
Note:
S 16(1) amended by No 177 of 1999, s 3 and Sch 2 item 9, by inserting the Note, effective 9 July 1999.
(2)
However, this section does not apply to the following:
(a) second-hand goods, unless:
(i) you imported them; and
(ii) nobody was entitled to quote under the Sales Tax Assessment Act 1992 for the importation; and
(iii) you did not hold the goods, at any time prior to 1 July 2000, for a purpose other than for sale or exchange in the ordinary course of business.
(b) goods mentioned in subsection 15A(1) (alcoholic beverages) of the Sales Tax (Exemptions and Classifications) Act 1992 , if those goods are opened stock;
(c) wine within the meaning of the A New Tax System (Wine Equalisation Tax) Act 1999 .
S 16(2) amended by No 177 of 1999, s 3 and Sch 2 items 10 and 11, by inserting " , if those goods are opened stock " in para (b) and inserting para (c), effective 9 July 1999.
S 16(2) amended by No 176 of 1999, s 3 and Sch 6 item 8, by substituting para (a), effective 9 July 1999. Para (a) formerly read:
(a) second-hand goods (unless you imported them and nobody was entitled to quote under the Sales Tax Assessment Act 1992 for the importation);
(3)
The amount of the special credit is equal to the amount of sales tax that you have borne in respect of the goods.
Note:
In some cases relating to alcoholic beverages, subsections 16A(2) and 16B(2) reduce the amounts of special credits.
S 16(3) amended by No 177 of 1999, s 3 and Sch 2 item 12, by inserting the Note, effective 9 July 1999.
(3A)
However, if the amount of sales tax you have borne in respect of the goods changes after 1 July 2000, the amount of the special credit changes accordingly.
S 16(3A) inserted by No 177 of 1999, s 3 and Sch 2 item 13, effective 9 July 1999.
(4)
The special credit is treated as though it were an input tax credit attributable to any one tax period of your choice. However, you are not entitled to it unless you separately identify it in a GST return that you lodge for a tax period that ends before 7 January 2001.
S 16(4) amended by No 177 of 1999, s 3 and Sch 2 item 14, by substituting " for a tax period that ends before 7 January 2001 " for " before 22 January 2001 " , effective 9 July 1999.
(4A)
If the amount of the special credit changes under subsection (3A) after you lodged that return, you must lodge with the Commissioner an amended GST return for that tax period. You must lodge it on or before the 21st day of the month following the end of the tax period in which the change happens.
S 16(4A) substituted by No 177 of 1999, s 3 and Sch 2 item 15, effective 9 July 1999. S 16(4A) formerly read:
(4A)
The special credit is treated as though it were an input tax credit for the purposes of the Income Tax Assessment Act 1997 (see Division 27 and sections 110-45 and 110-50).
S 16(4A) inserted by No 176 of 1999, s 3 and Sch 6 item 9, effective 9 July 1999.
(5)
The Commissioner may make a written ruling determining methods for working out the amount of sales tax that you have borne in respect of specified goods in cases where that amount is not readily ascertainable.
Note:
Goods may be specified by name, by inclusion in a specified class or in any other way.
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