Chapter 4
-
The special rules
Part 4-4
-
Special rules mainly about net amounts and adjustments
Note:
The special rules in this Part mainly modify the operation of
Part 2-4
, but they may affect other Parts of
Chapter 2
in minor ways.
Division 132
-
Supplies of things acquired etc. without full input tax credits
History
Div 132 heading substituted by No 156 of 2000, s 3 and Sch 4 item 6, applicable in relation to net amounts for tax periods starting on or after 1 July 2000. The heading formerly read: ``
Division 132
-
Supplies of things acquired, imported or applied to make financial supplies
''
132-5
Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable
(1)
You have a
decreasing adjustment
under this Division if:
(a)
you make a *
taxable supply
of a thing (or a supply of a thing that would have been a taxable supply had it not been *
GST-free
under
Subdivision 38-J
); and
(b)
the supply is a supply by way of sale; and
(c)
your acquisition, importation or subsequent *
application
of the thing, related solely or partly to making *
financial supplies
, or was solely or partly of a private or domestic nature.
History
S 132-5(1) amended by No 41 of 2005, s 3 and Sch 10, item 10, by substituting
"
decreasing adjustment
"
for
"
*decreasing adjustment
"
, effective 1 April 2005.
S 132-5(1) amended by No 156 of 2000, s 3 and Sch 4 item 9, by substituting para (c), applicable in relation to net amounts for tax periods starting on or after 1 July 2000. Para (c) formerly read:
(c)
your acquisition or importation of the thing related solely or partly to making *financial supplies, or you subsequently *applied the thing solely or partly to making financial supplies.
(2)
The amount of the *
decreasing adjustment
is as follows:
where:
adjusted input tax credit
is:
(a)
the amount of any input tax credit that was attributable to a tax period in respect of the acquisition or importation; minus
(b)
the sum of:
(i)
any *increasing adjustments, under Subdivision
19-C
or Division
129
, that were previously attributable to a tax period in respect of the acquisition or importation; and
(ii)
any increasing adjustment under Division 131 that has been previously, is or will be attributable to a tax period in respect of the acquisition or importation; plus
(c)
the sum of any *
decreasing adjustments
, under
Subdivision 19-C
or Division
129
or
133
, that were previously attributable to a tax period in respect of the acquisition or importation.
full input tax credit
is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your *
enterprise
if:
(a)
the acquisition or importation had been solely for a *
creditable purpose
; and
(b)
in the case where the supply to you was a *
taxable supply
because of
section 72-5
or
84-5
-
the supply had been or is a *
taxable supply
under
section 9-5
.
price
is the *
price
of the *
taxable supply
.
History
S 132-5(2) amended by No 20 of 2010, s 3 and Sch 1 item 10, by substituting
"
Division 129 or 133
"
for
"
Division 129
"
in para (c) of the definition of
"
adjusted input tax credit
"
, applicable, and taken to have applied, in relation to acquisitions and adjustments that are taken into account in:
(a) GST returns given to the Commissioner under the
A New Tax System (Goods and Services Tax) Act 1999
after 7.30 pm Australian Eastern Standard Time on 12 May 2009; or
(b) assessments made by the Commissioner under Subdivision
105-A
in Schedule
1
to the
Taxation Administration Act 1953
after that time; or
(c) amendments of:
(i) GST returns referred to in paragraph (a); or
(ii) assessments referred to in paragraph (b).
S 132-5(2) amended by No 77 of 2005, s 3 and Sch 3 items 15 and 16, by omitting
"
only
"
after
"
was a *taxable supply
"
and inserting
"
or is
"
after
"
had been
"
in para (b) of the definition of
"
full input tax credit
"
, applicable to supplies made on or after 1 October 2005.
S 132-5(2) amended by No 134 of 2004, s 3 and Sch 2 item 15, by substituting para (b) of the definition of
"
adjusted input tax credit
"
, applicable in relation to net amounts for tax periods starting, or that started, on or after:
(a) for entities that, on 1 October 2004, had quarterly tax periods applying to them
-
1 October 2004; or
(b) for other entities
-
1 November 2004.
Para (b) of the definition of
"
adjusted input tax credit
"
formerly read:
(b)
the sum of any *
increasing adjustments
, under
Subdivision 19-C
or
Division 129
, that were previously attributable to a tax period in respect of the acquisition or importation; plus
(3)
However, if the amount worked out under
subsection (2)
is greater than the difference between the full input tax credit and the adjusted input tax credit, the amount of the *
decreasing adjustment
is an amount equal to that difference.
(4)
In working out the adjusted input tax credit, the acquisition, importation or *
application
in question is treated as having been for a *
creditable purpose
except to the extent that the acquisition, importation or application:
(a)
relates to the making of *
financial supplies
; or
(b)
is of a private or domestic nature.
History
S 132-5(4) amended by No 156 of 2000, s 3 and Sch 4 item 10, by substituting
"
that the acquisition, importation or application: (a) relates to the making of *financial supplies; or (b) is of a private or domestic nature.
"
for
"
that the acquisition, importation or application relates to the making of *financial supplies.
"
, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.