Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 129.20

  (1)   An adjustment period for an acquisition or importation is a tax period applying to you that:

  (a)   starts at least 12 months after the end of the tax period to which the acquisition or importation is attributable (or would be attributable if it were a * creditable acquisition or * creditable importation); and

  (b)   ends:

  (i)   on 30   June in any year; or

  (ii)   if none of the tax periods applying to you in a particular year ends on 30   June--closer to 30   June than any of the other tax periods applying to you in that year.

In addition, a tax period provided for under section   27 - 39 or 27 - 40 or subsection   151 - 55(1) or 162 - 85(1) is an adjustment period for the acquisition or importation.

Note:   Section   27 - 39 deals with an incapacitated entity's tax periods. Section   27 - 40 and subsections   151 - 55(1) and 162 - 85(1) deal with an entity's concluding tax period.

  (2)   Despite subsection   (1), for an acquisition or importation that * relates to business finance:

  (a)   if the * GST exclusive value of the acquisition or importation is $50,000 or less--only the first such tax period is an adjustment period ; or

  (b)   if the GST exclusive value of the acquisition or importation is more than $50,000 but less than $500,000--only the first 5 such tax periods are adjustment periods ; or

  (c)   if the GST exclusive value of the acquisition or importation is $500,000 or more--only the first 10 such tax periods are adjustment periods .

  (3)   Despite subsection   (1), for an acquisition or importation that does not * relate to business finance:

  (a)   if the * GST exclusive value of the acquisition or importation is $5,000 or less--only the first 2 such tax periods are adjustment periods ; or

  (b)   if the GST exclusive value of the acquisition or importation is more than $5,000 but less than $500,000--only the first 5 such tax periods are adjustment periods ; or

  (c)   if the GST exclusive value of the acquisition or importation is $500,000 or more--only the first 10 such tax periods are adjustment periods .

However, the Commissioner may, having regard to record keeping requirements for the purposes of income tax, determine in writing that a fewer number of tax periods are adjustment periods for a particular class of acquisitions or importations that do not * relate to business finance.