Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 134.10

  (1)   You have an increasing adjustment if:

  (a)   you receive a payment from an entity (the payer ) that supplied a thing that you acquire from another entity (whether or not that other entity acquired the thing from the payer); and

  (b)   your acquisition of the thing from the other entity:

  (i)   was a * creditable acquisition; or

  (ii)   would have been a creditable acquisition but for a reason to which subsection   (3) applies; and

  (c)   the payment is in one or more of the following forms:

  (i)   a payment of * money or * digital currency;

  (ii)   an offset of an amount of money or digital currency that you owe to the payer;

  (iii)   a crediting of an amount of money or digital currency to an account that you hold; and

  (d)   the payment is made in connection with, in response to or for the inducement of your acquisition of the thing; and

  (e)   the payment is not * consideration for a supply you make.

  (1A)   However, subsection   (1) does not apply unless the supply of the thing by the payer:

  (a)   was a * taxable supply; or

  (b)   would have been a taxable supply but for any of the following:

  (i)   the payer and the entity that acquired the thing from the payer being * members of the same * GST group;

  (ii)   the payer and the entity that acquired the thing from the payer being members of the same * GST religious group;

  (iii)   the payer being the * joint venture operator for a * GST joint venture, and the entity that acquired the thing from the payer being a * participant in the GST joint venture.

  (2)   The amount of the * increasing adjustment is an amount equal to the difference between:

  (a)   either:

  (i)   if your acquisition from the other entity was a * creditable acquisition--the amount of the input tax credit entitlement for the acquisition; or

  (ii)   if your acquisition from the other entity would have been a creditable acquisition but for a reason to which subsection   (3) applies--the amount that would have been the amount of the input tax credit entitlement for the acquisition had it been a creditable acquisition;

    taking into account any other * adjustments that arose, or would have arisen, relating to the acquisition; and

  (b)   the amount of the input tax credit to which you would have been entitled, or would (but for a reason to which subsection   (3) applies) have been entitled, for that acquisition:

  (i)   if the * consideration for the acquisition had been reduced by the amount of the payer's payment to you; and

  (ii)   taking into account any other adjustments that arose, or would have arisen, relating to the acquisition, as they would have been affected (if applicable) by such a reduction in the consideration.

  (3)   This subsection applies to the following reasons why your acquisition of the thing from the other entity was not a * creditable acquisition:

  (a)   you and the other entity are * members of the same * GST group;

  (b)   you and the other entity are members of the same * GST religious group;

  (c)   you are the * joint venture operator for a * GST joint venture, and the other entity is a * participant in the GST joint venture.

  (4)   However:

  (a)   paragraph   (3)(a) does not apply if you and the payer are * members of the same * GST group when the payment referred to in paragraph   (1)(a) is made; and

  (b)   paragraph   (3)(b) does not apply if you and the payer are members of the same * GST religious group when that payment is made.