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 131 - Annual apportionment of creditable purpose  

Subdivision 131-B - Consequences of electing to have annual apportionment  

131-60   Attributing adjustments under section 131-55  

An *increasing adjustment under section 131-55 is attributable to:

(a)  the tax period worked out using the method statement; or

(b)  such earlier tax period as you choose. Method statement

Step 1.

Work out the tax period (the ITC tax period ) to which the input tax credit for the acquisition or importation to which the adjustment relates is attributable.

Step 2.

Work out in which year of income that tax period starts.

Step 3.

If you are required under section 161 of the * ITAA 1936 to lodge a return in relation to that year of income, work out the last day of the period, specified in the instrument made under that section, for you to lodge as required under that section.

Step 4.

The * increasing adjustment is attributable to the tax period in which that last day occurs.

Step 5.

If step 3 does not apply, the increasing adjustment is attributable to the tax period in which occurs 31 December in the next * financial year to start after the end of the ITC tax period.


Section 388-55 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for giving the GST return.

Despite subsection (1), if, during (but not from the start of) the *financial year in which the ITC tax period ended, your *annual apportionment election ceases to have effect because:

(a)  you revoke your annual apportionment election, or the Commissioner disallows your election, during that financial year; and

(b)  the revocation or disallowance takes effect before the end of that financial year;

the *increasing adjustment is attributable to the tax period in which the cessation takes effect, or to such earlier tax period as you choose.


However, the *increasing adjustment is attributable to a tax period provided under section 27-39 or 27-40 if that tax period ends earlier than the end of the tax period to which the increasing adjustment would, but for this subsection, be attributable under subsections (1) and (2).

This section has effect despite section 29-20 (which is about attributing your adjustments).

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