Taxation Laws Amendment Act (No. 8) 2000 (156 of 2000)

Schedule 6   Other amendments

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

17   Subsections 69-10(1A) and (2)

Repeal the subsections, substitute:

(2) However, if:

(a) the supply of the car is*GST-free to any extent under Subdivision 38-P; or

(b) the importation of the car is non-taxable to any extent under paragraph 13-10(b) because it would have been GST-free to any extent under Subdivision 38-P if it had been a supply;

you are not entitled to the input tax credit for the acquisition or importation.

(3) If your acquisition or importation is*partly creditable, the input tax credit is reduced to the extent (expressed as a percentage) to which the acquisition or importation is made for a*creditable purpose.

(4) This section does not apply in relation to:

(a) the acquisition or importation of a*car that is not a*luxury car because of subsection 25-1(2) of theA New Tax System (Luxury Car Tax) Act 1999; or

Note: Emergency vehicles, cars fitted to transport disabled people, non-passenger commercial vehicles, motor homes and campervans are not luxury cars under that subsection.

(b) the acquisition of a car by lease or hire.

(5) This section has effect despite sections 11-25 and 15-20 (which are about the amount of input tax credits on creditable acquisitions and creditable importations).