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

Chapter 4 - The special rules  

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

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 79 - Compulsory third party schemes  

Subdivision 79-D - Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction  

79-100   Meaning of average input tax credit fraction  

(1)    
Except where subsection (7) applies, the average input tax credit fraction for a * compulsory third party scheme for a * financial year is:

(a)    if paragraph (b) does not apply - the same fraction as the average input tax credit fraction for the scheme for the preceding financial year; or

(b)    

if, under subsection (3), the Minister determines the average input tax credit fraction for the scheme for the financial year - that fraction.

Note:

The average input tax credit fraction for financial years beginning on or before 1 July 2006 was worked out under this section as in force before the commencement of item 146 of Schedule 3 to the Treasury Laws Amendment (2019 Measures No. 3) Act 2020 .

(2)    
(Repealed by No 64 of 2020)

Minister to use statistical information to determine whether average input tax credit fraction is to be varied

(3)    
As soon as practicable after the beginning of each of the following * financial years (a determination year ):

(a)    the financial year that begins on 1 July 2006;

(b)    the financial years that begin on each 1 July that occurs 3 years, or a multiple of 3 years, after 1 July 2006;

the Minister must, for each * compulsory third party scheme :

(c)    work out business vehicle use fractions (see subsection (4)) using each set of statistical information, relating to business and total use of vehicles in the State or Territory in which the scheme operates, published by the Australian Bureau of Statistics during the 3 financial years before the determination year; and

(d)    work out the average of those fractions (the new fraction ); and

(e)    if the Minister considers the new fraction is significantly different from the average input tax credit fraction that would, disregarding this subsection, apply under paragraph (1)(a) for the scheme for the financial year (the operative year ) following the determination year - by legislative instrument, determine that the new fraction is to be the average input tax credit fraction for the scheme for the operative year.

Business vehicle use fraction

(4)    
The business vehicle use fraction is the fraction of total vehicle use, in the State or Territory in which the * compulsory third party scheme operates, represented by business vehicle use.

Publication of revised statistical information

(5)    
To avoid doubt, if, after publishing statistical information relating to business and total use of vehicles in a State or Territory, the Australian Bureau of Statistics publishes a revised or replacement version of that statistical information, that revision or replacement is to be disregarded for the purposes of this section.

(6)    
(Repealed by No 64 of 2020)

Exception

(7)    
If:

(a)    this section is being applied in working out the amount of a * decreasing adjustment that arises under section 79-15 (about sole operator elections); and

(b)    the cover under the * insurance policy concerned commenced before 1 July 2003;

the average input tax credit fraction for the * compulsory third party scheme concerned is nil for all * financial years beginning on or after 1 July 2000.