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

Chapter 4 - The special rules  

Part 4-6 - Special rules mainly about tax periods  


The special rules in this Part mainly modify the operation of Part 2-6 , but they may affect other Parts of Chapter 2 in minor ways.

Division 153 - Agents etc. and insurance brokers  

Subdivision 153-B - Principals and intermediaries as separate suppliers or acquirers  

153-60   The effect of these arrangements on acquisitions  


An acquisition that the principal makes from a third party through the intermediary is taken to be a * creditable acquisition made by the intermediary from the third party, and not by the principal, if:

(a) the acquisition is of a kind to which the arrangement applies; and

(b) the acquisition is made in accordance with the arrangement; and

(c) both the principal and the intermediary are * registered .


In addition, the intermediary is taken to make a supply that is a * taxable supply to the principal. This supply is taken:

(a) to be a supply of the same thing as is acquired in the * creditable acquisition (the intermediary ' s acquisition ) that the intermediary is taken to make; and

(b) to have a * value equal to 10/11 of the amount that is payable to the intermediary by the principal in respect of the intermediary ' s acquisition.

The principal is taken to make a corresponding acquisition from the intermediary, and the acquisition is taken to be a creditable acquisition if, apart from this section, the principal ' s acquisition from the third party would have been a creditable acquisition.


If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the intermediary for the intermediary ' s acquisition from the third party:

(a) for the purpose of paragraph (2)(b), the amount payable by the principal to the intermediary is taken to be increased by the amount the principal pays, or is liable to pay, to the intermediary; and

(b) the supply by the intermediary to the principal, to which the principal ' s payment or liability relates, is not a * taxable supply .


This section does not apply in relation to an acquisition if section 84-55 applies to the supply to which the acquisition relates.

Under section 84-55 , an inbound intangible consumer supply, or an offshore supply of low value goods, made through an electronic distribution platform (or a supply that is taken to be such a supply because of section 84-60 ) is treated as having been made by the operator of the platform.

This section has effect despite section 11-5 (which is about what are creditable acquisitions), section 11-10 (which is about what are acquisitions), section 9-5 (which is about what are taxable supplies) and section 9-75 (which is about the value of taxable supplies).

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