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  

Note:

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 129 - Changes in the extent of creditable purpose  

Subdivision 129-B - Adjustment periods  

129-20   Adjustment periods  

(1)  


An adjustment period for an acquisition or importation is a tax period applying to you that:


(a) starts at least 12 months after the end of the tax period to which the acquisition or importation is attributable (or would be attributable if it were a *creditable acquisition or *creditable importation); and


(b) ends:


(i) on 30 June in any year; or

(ii) if none of the tax periods applying to you in a particular year ends on 30 June - closer to 30 June than any of the other tax periods applying to you in that year.

In addition, a tax period provided for under section 27-39 or 27-40 or subsection 151-55(1) or 162-85(1) is an adjustment period for the acquisition or importation.

Note:

Section 27-39 deals with an incapacitated entity ' s tax periods. Section 27-40 and subsections 151-55(1) and 162-85(1) deal with an entity ' s concluding tax period.

(2)  
Despite subsection (1) , for an acquisition or importation that *relates to business finance:


(a) if the *GST exclusive value of the acquisition or importation is $50,000 or less - only the first such tax period is an adjustment period ; or


(b) if the GST exclusive value of the acquisition or importation is more than $50,000 but less than $500,000 - only the first 5 such tax periods are adjustment periods ; or


(c) if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are adjustment periods .

(3)  
Despite subsection (1), for an acquisition or importation that does not *relate to business finance:


(a) if the *GST exclusive value of the acquisition or importation is $5,000 or less - only the first 2 such tax periods are adjustment periods ; or


(b) if the GST exclusive value of the acquisition or importation is more than $5,000 but less than $500,000 - only the first 5 such tax periods are adjustment periods ; or


(c) if the GST exclusive value of the acquisition or importation is $500,000 or more - only the first 10 such tax periods are adjustment periods .

However, the Commissioner may, having regard to record keeping requirements for the purposes of income tax, determine in writing that a fewer number of tax periods are adjustment periods for a particular class of acquisitions or importations that do not *relate to business finance.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.