A New Tax System (Goods and Services Tax) Act 1999

Chapter 2 - The basic rules  

Part 2-4 - Net amounts and adjustments  

Division 19 - Adjustment events  

Subdivision 19-A - Adjustment events  

19-10   Adjustment events  

An adjustment event is any event which has the effect of:

(a) cancelling a supply or acquisition; or

(b) changing the * consideration for a supply or acquisition; or

(c) causing a supply or acquisition to become, or stop being, a * taxable supply or * creditable acquisition .


If goods that are supplied for export are not exported within the time provided in section 38-185 , the supply is likely to become a taxable supply after originally being a supply that was GST-free.

Without limiting subsection (1) , these are * adjustment events :

(a) the return to a supplier of a thing, or part of a thing, supplied (whether or not the return involves a change of ownership of the thing);

(b) a change to the previously agreed * consideration for a supply or acquisition, whether due to the offer of a discount or otherwise;

(c) a change in the extent to which an entity that makes an acquisition provides, or is liable to provide, consideration for the acquisition (unless the entity * accounts on a cash basis ).

An * adjustment event :

(a) can arise in relation to a supply even if it is not a * taxable supply ; and

(b) can arise in relation to an acquisition even if it is not a * creditable acquisition .


However, the return of a thing supplied, or part of a thing supplied, to its supplier is not an * adjustment event if the return is for the purpose of repair or maintenance.


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