• 7.6. How often should a test on whether the financial acquisitions threshold is exceeded be conducted?

    For source of ATO view, refer to paragraphs 192 to 197 of GSTR 2003/9External Link - Goods and Services Tax: financial acquisitions threshold

    The test on whether the financial acquisitions threshold is exceeded should be conducted each month.

    An entity is denied input tax credits for financial acquisitions for the entire month if it exceeds the financial acquisitions threshold irrespective of when this occurs during the month. An entity may be below the financial acquisitions threshold during a particular period in the month, but exceeds the threshold when another acquisition is made in the same month. This would result in the entity being denied input tax credits for financial acquisitions for the entire month.

      Last modified: 24 Jun 2015QC 16359