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Edited version of private advice
Authorisation Number: 1051881980677
Date of advice: 6 August 2021
Ruling
Subject: GST and creditable acquisitions
Question
Are you making a creditable acquisition and are therefore entitled to an input tax credit of $XX under section 11-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) for your purchase of a Tricycle?
Answer
No, you are not making a creditable acquisition and therefore are not entitled to an input tax credit of $XX under section 11-5 of the GST Act for your purchase of the Tricycle.
Relevant facts and circumstances
You are registered for an Australian Business Number (ABN) but are not registered for GST.
You are disabled and your father is your legal Guardian and Administrator. Your father is also your NDIS Nominee.
Your father made an online purchase on your behalf of a Tricycle for an amount which included GST of $XX.
The Tricycle allows a physically disabled person to ride with the assistance of a carer. The seat of the Tricycle has standard devices to assist the physically disabled including foot stabilising straps, foot levellers, front wheel turn limiter, pelvic belt, lateral supports and lateral belt. The Tricycle also has other standard devices like rear push handles, rear steering handle and rear brake designed to for the carer to assist the physically disabled rider.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 11-5
A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 11-20
Reasons for decision
Section 11-20 of the GST Act provides that you are entitled to an input tax credit for any creditable acquisitions that you make.
Section 11-5 of the GST Act provides that you make a creditable acquisition if:
• you acquire anything solely or partly for a creditable purpose; and
• the supply of the thing to you is a taxable supply; and
• you provide, or are liable to provide, consideration for the supply; and
• you are registered or required to be registered.
You are required to meet all of the above requirements for section 11-5 of the GST Act to apply.
Creditable purpose requires that your acquisition is made in carrying on your enterprise.
You are not registered for GST nor are you required to be registered for GST. You would be required to be registered for GST if your turnover from your enterprise exceeds the GST turnover threshold of $75,000.
You do not meet all the requirements of section11-5 of the GST Act and therefore are not entitled to claim input tax credits amounting to $XX for your acquisition of the Tricycle.