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 138 - Cessation of registration  

138-5   Adjustments for cessation of registration  

You have an increasing adjustment if:

(a) your * registration is cancelled; and

(b) immediately before the cancellation takes effect, your assets include anything in respect of which you were, or are, entitled to an input tax credit.


Increasing adjustments increase your net amounts.

The amount of the adjustment, for each thing referred to in paragraph (1)(b) , is as follows:

× *Actual application of the thing × Applicable value


applicable value

(a) the * GST inclusive market value of the thing immediately before the cancellation takes effect; or

(b) if you were, or are, entitled to an input tax credit for acquiring the thing - the amount of the * consideration that you provided, or were liable to provide, for your acquisition of the thing, but only if the amount is less than that value; or

(c) if you were, or are, entitled to an input tax credit for importing the thing - the cost to you of acquiring or producing the thing (plus the * assessed GST paid on its importation), but only if the amount is less than that value.

However, an * adjustment does not arise under this section in respect of an asset if:

(a) there were one or more * adjustment periods for your acquisition or importation of the asset; and

(b) the last of those adjustment periods has ended before the cancellation of your * registration takes effect.


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