A New Tax System (Indirect Tax and Consequential Amendments) Act 1999 (176 of 1999)

Schedule 3   Income Tax Assessment Act 1997

Part 1   General

7   After Division 15

Insert:

Division 17 - Effect of GST etc. on assessable income

Guide to Division 17

17-1 What this Division is about

This Division sets out the effect of the GST in working out assessable income. Generally speaking, GST, input tax credits and adjustments under the GST Act are disregarded.

Table of sections

17-5 GST and increasing adjustments

17-10 Certain decreasing adjustments

17-15 Elements in calculation of amounts

17-20 GST groups and GST joint ventures

[This is the end of the Guide.]

17-5 GST and increasing adjustments

An amount is not assessable income, and is not *exempt income, to the extent that it includes an amount relating to:

(a) *GST payable on a *taxable supply; or

(b) an *increasing adjustment that relates to a *supply; or

(c) an *increasing adjustment that:

(i) relates to an *acquisition; and

(ii) arises in circumstances that also give rise to an *assessable recoupment.

17-10 Certain decreasing adjustments

An amount of a *decreasing adjustment that arises under Division 129 or 132 of the *GST Act is assessable income , unless the entity that has the adjustment is an *exempt entity.

17-15 Elements in calculation of amounts

In calculating an amount that may be included in assessable income:

(a) an element in the calculation that is an amount received or receivable is treated as not including an amount equal to any *GST payable on a *taxable supply related to the amount received or receivable, or any *increasing adjustment related to that amount; and

(b) an element in the calculation that is an amount paid or payable is treated as not including an amount equal to any *input tax credit for an *acquisition related to the amount paid or payable, or any *decreasing adjustment related to that amount.

17-20 GST groups and GST joint ventures

(1) A *member of a *GST group is to be treated, for the purposes of this Division, as if Subdivision 48-B of the *GST Act (other than paragraph 48-40(2)(a) and subsection 48-40(3)) did not apply to that member.

(2) A *participant in a *GST joint venture is to be treated, for the purposes of this Division, as if Subdivision 51-B of the *GST Act (other than subsections 51-30(2) and (3)) did not apply to that participant.

[The next Division is Division 20.]