Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 133.5

  (1)   You have a decreasing adjustment if:

  (a)   you made an acquisition on the basis that:

  (i)   it was not a * creditable acquisition because the supply to which the acquisition relates was not a * taxable supply; or

  (ii)   it was * partly creditable because the supply to which the acquisition relates was only partly a taxable supply; and

  (b)   you provided * additional consideration for the acquisition in compliance with a contractual obligation that required you, or had the effect of requiring you, to provide additional consideration if:

  (i)   in a case where subparagraph   (a)(i) applies--the supply was later found to be a taxable supply, or to be partly a taxable supply; or

  (ii)   in a case where subparagraph   (a)(ii) applies--the supply was later found to be a taxable supply to a greater extent; and

  (c)   GST on the supply has not ceased to be payable (other than as a result of its payment); and

  (d)   at the time you provided the additional consideration, you were no longer entitled to an input tax credit for the acquisition.

Note:   Section   93 - 5 or 93 - 15 may provide a time limit on your entitlement to an input tax credit.

  (2)   The amount of the * decreasing adjustment is the difference between:

  (a)   what would have been the * previously attributed input tax credit amount for the acquisition if:

  (i)   the * additional consideration for the acquisition had been provided as part of the original * consideration for the acquisition; and

  (ii)   in a case where you have not held a * tax invoice for the acquisition--you held such an invoice; and

  (iii)   subsection   29 - 10(4) did not apply in relation to the acquisition; and

  (b)   the previously attributed input tax credit amount.

  (3)   To avoid doubt, additional consideration for an acquisition includes a part of the * consideration for the acquisition that:

  (a)   relates to the amount of GST payable on the * taxable supply to which the acquisition relates; and

  (b)   at the time of the acquisition, the parties to the transaction under which the acquisition was made assumed was not payable.