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-C - When adjustments for acquisitions and importations arise  

129-40   Working out whether you have an adjustment  

(1)  
This is how to work out whether you have an * increasing adjustment or a * decreasing adjustment under this Division, for an * adjustment period , for an acquisition or importation: Method statement


Step 1.

Work out the extent (if any) to which you have * applied the thing acquired or imported for a * creditable purpose during the period of time:

  • (a) starting when you acquired or imported the thing; and
  • (b) ending at the end of the * adjustment period .
  • This is the actual application of the thing .


    Step 2.

    Work out:

  • (a) if you have not previously had an * adjustment under this Division for the acquisition or importation - the extent (if any) to which you acquired or imported the thing for a * creditable purpose : or
  • (b) if you have previously had an * adjustment under this Division for the acquisition or importation - the * actual application of the thing in respect of the last adjustment.
  • This is the intended or former application of the thing .


    Step 3.

    If the * actual application of the thing is less than its * intended or former application , you have an increasing adjustment , for the * adjustment period , for the acquisition or importation.


    Step 4.

    If the * actual application of the thing is greater than its * intended or former application , you have a decreasing adjustment , for the * adjustment period , for the acquisition or importation.


    Step 5.

    If the * actual application of the thing is the same as its * intended or former application , you have neither an increasing adjustment nor a decreasing adjustment, for the * adjustment period , for the acquisition or importation.

    (2)  
    * Actual applications and * intended or former applications are to be expressed as percentages.

    (3)  


    If the thing is acquired through a * reduced credit acquisition and, at the time of the acquisition, it was wholly for a * creditable purpose because of Division 70 , the extent to which it was acquired for a creditable purpose is the reduced input tax credit percentage prescribed for the purposes of subsection 70-5(2) for an acquisition of that kind.

     

    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.