A New Tax System (Goods and Services Tax Transition) Act 1999
(Repealed by No 101 of 2006)
View history note
Hide history noteS 20 repealed by No 101 of 2006, s 3 and Sch 5 item 12, effective 14 September 2006. For application and saving provisions see history note for s 5(3). S 20 formerly read:
S 20(1) amended by No 92 of 2000, s 3 and Sch 11 item 16A, by substituting ``by way of purchase (including hire purchase), or importation,'' for ``or importation'', effective 9 July 1999. S 20(2) amended by No 73 of 2001, s 3 and Sch 1 item 70, by substituting ``23 May 2001'' for ``1 July 2001'', applicable in relation to acquisitions and importations made on or after 23 May 2001. S 20(3) repealed by No 73 of 2001, s 3 and Sch 1 item 71, applicable in relation to acquisitions and importations made on or after 23 May 2001. S 20(3) formerly read: paragraph
48-40(2)(a)
of the GST Act does not apply to the supply to which the acquisition relates. Paragraph
48-40(2)(a)
of the GST Act prevents supplies between members of a GST group being treated as taxable supplies.
20 Phasing in input tax credits for motor vehicles etc.
(1)
This section applies to the acquisition by way of purchase (including hire purchase), or importation, of:
(a)
a motor vehicle; or
(b)
a detachable trailer designed to be towed by a prime mover of a kind prescribed in the regulations; or
(c)
a body for a motor vehicle, including an insulated body, tank-body, or other body designed for transporting goods of particular kinds.
(2)
You are not entitled to an input tax credit on the acquisition or importation if the acquisition or importation is made before 23 May 2001.
(3)
(Repealed by No 73 of 2001)
(3)
If the acquisition or importation is made on or after 1 July 2001 but before 1 July 2002, the amount of any input tax credit you are entitled to on the acquisition or importation is reduced by 50%.
(3A)
If:
(a)
you are a member of a GST group; and
(b)
you make an acquisition from another member of that group; and
(c)
your entitlement to an input tax credit on the acquisition is affected by subsection (2) or (4B);
Note:
S 20(3A)(c) amended by No 73 of 2001, s 3 and Sch 1 item 72, by omitting ``, (3)'' after ``(2)'' in para (c), applicable in relation to acquisitions and importations made on or after 23 May 2001.
S 20(3A) amended by No 92 of 2000, s 3 and Sch 11 item 16B, by substituting ``subsection (2), (3) or (4B)'' for ``subsection (2) or (3)'' in para (c), effective 9 July 1999.
S 20(3A) inserted by No 176 of 1999, s 3 and Sch 6 item 11, effective 9 July 1999.
(4)
This section does not apply in any of the following cases:
(a) you acquire or import the motor vehicle, trailer or body to hold as trading stock, unless it is held for hire;
(b) the motor vehicle, trailer or body is second-hand;
(c) no dealing in respect of the acquisition or importation would be taxable under the sales tax law (assuming sales tax had not been ended by the A New Tax System (End of Sales Tax) Act 1999 and by section 8 of this Act);
(d) you are an insurer and, in settling a claim, you acquire the motor vehicle, trailer or body to replace an insured motor vehicle, trailer or body.
(4A)
Paragraph (4)(c) does not apply to a dealing in respect of the acquisition or importation if the acquisition or importation is made with the intention of granting an eligible short-term lease in respect of the motor vehicle, trailer or body.
S 20(4A) inserted by No 92 of 2000, s 3 and Sch 11 item 16C, effective 9 July 1999.
(4B)
Subsection (2) does not apply if you make the acquisition or importation before 23 May 2001 with the intention of granting an eligible short-term lease. However, the amount of any input tax credit you are entitled to on the acquisition or importation is reduced by an amount equal to:
| Original input
tax credit |
× | (100% − Exempt percentage) |
where:
exempt percentage
is the exempt percentage specified in the agreement under subsection 15A(2) of the
Sales Tax Assessment Act 1992
that applies to the eligible short-term lease in question.
original input tax credit
is the amount that would (but for this section) be the amount of the input tax credit on the acquisition or importation.
S 20(4B) amended by No 73 of 2001, s 3 and Sch 1 item 73, by substituting ``Subsection (2) does not apply if you make the acquisition or importation before 23 May 2001'' for ``Neither subsection (2) nor subsection (3) applies if you make the acquisition or importation before 1 July 2002'', applicable in relation to acquisitions and importations made on or after 23 May 2001.
S 20(4B) definition of ``original input tax credit'' substituted by No 73 of 2001, s 3 and Sch 1 item 74, applicable in relation to acquisitions and importations made on or after 23 May 2001. Definition formerly read:
original input tax credit
is:
(a) if you make the acquisition or importation before 1 July 2001 - the amount that would (but for this section) be the amount of the input tax credit on the acquisition or importation; or
(b) if you make the acquisition or importation on or after 1 July 2001 but before 1 July 2002 - half that amount.
S 20(4B) inserted by No 92 of 2000, s 3 and Sch 11 item 16C, effective 9 July 1999.
(4C)
Agreements may be made under subsection 15A(2) of the Sales Tax Assessment Act 1992 , on or after 1 July 2000 but before 23 May 2001, as if:
(a) sales tax had not been ended by the A New Tax System (End of Sales Tax) Act 1999 and by section 8 of this Act; and
(b) the reference in subsection 15A(2) of the Sales Tax Assessment Act 1992 to a use of goods to satisfy one or more exemption Items were a reference to a use of goods that would have satisfied one or more exemption Items.
S 20(4C) amended by No 73 of 2001, s 3 and Sch 1 item 75, by substituting ``23 May 2001'' for ``1 July 2002'', applicable in relation to acquisitions and importations made on or after 23 May 2001.
S 20(4C) inserted by No 92 of 2000, s 3 and Sch 11 item 16C, effective 9 July 1999.
(5)
If you are not entitled to an input tax credit on an acquisition because of this section, sections 21-15 and 21-20 of the GST Act do not apply to you in relation to that acquisition.
S 20(5) inserted by No 177 of 1999, s 3 and Sch 2 item 18, effective 9 July 1999.
(6)
(Repealed by No 73 of 2001)
S 20(6) repealed by No 73 of 2001, s 3 and Sch 1 item 76, applicable in relation to acquisitions and importations made on or after 23 May 2001. S 20(6) formerly read:
(6)
If an input tax credit to which you are entitled is reduced by 50% because of subsection (3), then, for the purposes of applying section 21-15 or 21-20 of the GST Act (where relevant), the amount of any adjustment under that section is reduced by 50% (before any application of Division 136 of that Act).
S 20(6) amended by No 92 of 2000, s 3 and Sch 11 item 16D, by substituting ``subsection (3)'' for ``this section'', effective 9 July 1999.
S 20(6) inserted by No 177 of 1999, s 3 and Sch 2 item 18, effective 9 July 1999.
(7)
If an input tax credit to which you are entitled is reduced under subsection (4B), then, for the purposes of applying section 21-15 or 21-20 of the GST Act (where relevant), the amount of any adjustment under that section is reduced by the same proportion (before any application of Division 136 of that Act).
S 20(7) inserted by No 92 of 2000, s 3 and Sch 11 item 16E, effective 9 July 1999.
(8)
For the purposes of applying subsection 6(2) to determine when an acquisition to which this section applies is made, the goods in question are not taken to be removed until the goods are physically removed:
(a) by the entity acquiring the goods; or
(b) if the entity acquires the goods for supply by way of lease - by that entity or the lessee of the goods.
S 20(8) inserted by No 73 of 2001, s 3 and Sch 1 item 77, applicable in relation to acquisitions and importations made on or after 23 May 2001.
(9)
Subsection (8) does not by implication affect the application of subsection 6(2) to acquisitions to which this section does not apply.
S 20(9) inserted by No 73 of 2001, s 3 and Sch 1 item 77, applicable in relation to acquisitions and importations made on or after 23 May 2001.
(10)
For the purposes of this section, an importation takes place when it becomes a taxable importation.
S 20(10) inserted by No 73 of 2001, s 3 and Sch 1 item 77, applicable in relation to acquisitions and importations made on or after 23 May 2001.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
