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

Schedule 7   Amendments relating to the Tradex Scheme

Part 2   Amendments relating to indirect taxes commencing on 1 July 2000

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

13   At the end of Part 4-4

Add:

Division 141 - Tradex scheme goods

141-1 What this Division is about

The holder of a tradex order has an increasing adjustment if goods relating to that order are dealt with contrary to the Tradex Scheme.

Note: GST would not have been payable on importation of the goods under the Tradex Scheme: see section 42-5.

141-5 Adjustments for applying goods contrary to the Tradex Scheme

(1) You have an increasing adjustment if:

(a) you import *tradex scheme goods; and

(b) you are the holder (within the meaning of the Tradex Scheme Act 1999) of the *tradex order relating to the goods; and

(c) the importation would have been a *taxable importation if the goods had not been covered by item 21A of Schedule 4 to the Customs Tariff Act 1995 at the time of their entry for home consumption under the Customs Act 1901; and

(d) any of the circumstances referred to in subsection 21(1) of that Act occur in respect of any of the goods.

However, the increasing adjustment only arises in relation to the first occurrence of such a circumstance following an importation of the goods.

(2) The amount of the *increasing adjustment is the difference between:

(a) the amount of GST that would have been payable on the importation if the importation had been a *taxable importation; and

(b) the amount (if any) of the input tax credit to which you would have been entitled for the importation if the importation had been a taxable importation.

141-10 Meaning of tradex scheme goods etc.

(1) Tradex scheme goods are imported goods that:

(a) are nominated goods (within the meaning of the Tradex Scheme Act 1999) in relation to a *tradex order; and

(b) were covered by item 21A in Schedule 4 to the Customs Tariff Act 1995 at the time of their entry for home consumption under the Customs Act 1901.

(2) Tradex order has the meaning given by section 4 of the Tradex Scheme Act 1999.

141-15 Attribution of adjustments under this Division

(1) An adjustment under this Division is attributable to the tax period in which the adjustment arises.

(2) This section has effect despite section 29-20 (which is about attributing your adjustments).

141-20 Application of Division 129

This Division does not affect the operation of Division 129 (which is about changes in the extent of creditable purpose).