A New Tax System (Goods and Services Tax) Act 1999
Note:Division 136 - Bad debts relating to transactions that are not taxable or creditable to the fullest extent
The amount of a * decreasing adjustment that you have under section 21-20 , relating to a * creditable acquisition that is * creditable at less than 1/11 of the consideration , is worked out under this section and not under section 21-20 . (2)
This is how to work out the amount: Method statement
Work out the amount of the input tax credit (if any) to which you were entitled for the acquisition, taking into account any previous * adjustments for the acquisition. This amount is the previous credit amount .
Subtract the step 2 amount from the total amount of the * consideration that you have either provided, or are liable to provide, for the acquisition.
Add to the step 3 amount an amount equal to the amount or amounts, written off or overdue for 12 months or more, that you have paid.
Work out the amount of the input tax credit (if any), taking into account any previous * adjustments for the acquisition (but not adjustments relating to bad debts or debts overdue), to which you would be entitled for the acquisition if the * consideration for the acquisition were the step 4 amount. This amount of GST is the adjusted credit amount .
Subtract the previous credit amount from the adjusted credit amount.