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

Chapter 4 - The special rules  

Part 4-4 - Special rules mainly about net amounts and adjustments  


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 135 - Supplies of going concerns  

135-5   Initial adjustments for supplies of going concerns  

You have an increasing adjustment if:

(a) you are the * recipient of a * supply of a going concern , or a supply that is * GST-free under section 38-480 ; and

(b) you intend that some or all of the supplies made through the * enterprise to which the supply relates will be supplies that are neither *taxable supplies nor *GST-free supplies.


The amount of the increasing adjustment is as follows:

× Supply price × Proportion of non-creditable use


proportion of non-creditable use
is the proportion of all the supplies made through the * enterprise that you intend will be supplies that are neither * taxable supplies nor * GST-free supplies, expressed as a percentage worked out on the basis of the * prices of those supplies.

supply price
means the * price of the supply in relation to which the increasing adjustment arises.

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