A New Tax System (Goods and Services Tax) Act 1999
Note:Division 142 - Excess GST
For the purposes of each *taxation law, so much of the excess from subsection 142-5(1) (the excess GST ) as you have *passed on to another entity is taken to have always been:
(a) payable; and
(b) on a *taxable supply;
until you reimburse the other entity for the passed-on GST.
If you reimburse the passed-on GST so that this section ceases to apply there will be an adjustment event under paragraph 19-10(1)(b) or (c) . You will have a decreasing adjustment (see section 19-55 ) and the other entity may have an increasing adjustment (see section 19-80 ).
While this section applies, paragraph 11-5(b) (about taxable supplies) is satisfied for the corresponding acquisition by the other entity.