A New Tax System (Indirect Tax and Consequential Amendments) Act (No. 2) 1999 (177 of 1999)
Schedule 5 Income tax deductions for GST-related expenditure
Income Tax Assessment Act 1997
5 Before section 42-170
42-168 Acquiring plant to meet GST obligations etc.
(1) Despite sections 42-160 and 42-165, your deduction is the *plant's *cost for the income year in which you become its owner or *quasi-owner if:
(a) you become the owner or quasi-owner of the plant between 1 July 1999 and 30 June 2000; and
(b) you do so for the purpose of, or for purposes that include the purpose of, meeting your existing or future obligations, or exercising your existing or future rights, under the *GST law; and
(c) your *pre-GST annual turnover for the income year does not exceed $10,000,000; and
(d) immediately before 1 July 2000, you are registered under Part 2-5 of the *GST Act.
Substituted accounting periods
(2) If the income year in which you become the owner or *quasi-owner of the *plant ends before 30 June 2000, you are taken to have complied with paragraph (1)(d) if:
(a) when you lodge your *income tax return for the income year, you are registered under Part 2-5 of the *GST Act; or
(b) before you lodge your income tax return for the income year, you applied for registration under Part 2-5 of the GST Act and, when you lodge the return, the application has not been refused.
(3) However, if subsection (2) has applied to you but, immediately before 1 July 2000, you are not registered under Part 2-5 of the *GST Act, you cannot deduct the *plant's *cost. If you have already deducted it, your assessment may be amended to disallow the deduction.