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

4   After section 25-75

Insert:

25-80 Upgrading plant to meet GST obligations etc.

(1) You can deduct expenditure you incur in upgrading *plant if:

(a) you incur the expenditure 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) you are the owner or *quasi-owner of the plant when you incur the expenditure; and

(d) you use the upgraded plant before 1 July 2000, or have it *installed ready for use immediately before 1 July 2000; and

(e) your *pre-GST annual turnover for the income year in which you incur the expenditure does not exceed $10,000,000; and

(f) 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 incur the expenditure ends before 30 June 2000, you are taken to have complied with paragraph (1)(f) 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 expenditure. If you have already deducted it, your assessment may be amended to disallow the deduction.


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