Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 142.10

    For the purposes of each * taxation law, so much of the excess from subsection   142 - 5(1) (the excess GST ) as you have * passed on to another entity is taken to have always been:

  (a)   payable; and

  (b)   on a * taxable supply;

until you reimburse the other entity for the passed - on GST.

Note 1:   If you reimburse the passed - on GST so that this section ceases to apply there will be an adjustment event under paragraph   19 - 10(1)(b) or (c). You will have a decreasing adjustment (see section   19 - 55) and the other entity may have an increasing adjustment (see section   19 - 80).

Note 2:   Any excess GST you have not passed on will be refunded as described in section   155 - 75 in Schedule   1 to the Taxation Administration Act 1953 .

Note 3:   While this section applies, paragraph   11 - 5(b) (about taxable supplies) is satisfied for the corresponding acquisition by the other entity.