Private ruling: Goods and services tax and creditable acquisitions
Published: September 2014

Ruling: Q1: Does the Taxpayer make creditable acquisitions under section 11-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) in respect of the acquisitions for which it will pay Amount 1 and Amount 2? | A1: Yes. The Taxpayer acquires a right to be nominated which is within the meaning of "acquisition" under section 11-10 of the GST Act. This acquisition is made by the Taxpayer for a creditable purpose as the Taxpayer acquires it in carrying on its enterprise. Furthermore, the supply to the Taxpayer is a taxable supply, the Taxpayer provides consideration for the supply and the Taxpayer is registered. Accordingly, the Taxpayer will make a creditable acquisition under section 11-5 of the GST Act in respect of the acquisition for which it will pay Amount 1 and Amount 2. | Q2: In which tax periods will input tax credits in respect of the acquisition made by the Taxpayer for which it will pay Amount 1 and Amount 2 be attributable to? | A2: (a) Under subsection 29-10(1) of the GST Act, input tax credits to which you are entitled for a creditable acquisition is attributable to: (b) the tax period in which you have provided any of the consideration for the acquisition; or (c) if before any of the consideration is provided, an invoice is issued relating to the acquisition - the tax period in which the invoice is issued. In order to attribute the input tax credits to a particular tax period, the Taxpayer will need to hold the tax invoice when it gives a GST return to the Commissioner for the tax period. The Taxpayer holds a tax invoice in July 2014 for Amount 1. Therefore, the Taxpayer will be entitled to claim the input tax credit in relation to this invoice in the business activity statement for the monthly tax period ending 31 July 2014. The Taxpayer holds a tax invoice in August 2014 for Amount 2. Therefore, the Taxpayer will be entitled to claim the input tax credit in relation to this invoice in the business activity statement for the monthly tax period ending 31 August 2014.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The Taxpayer is registered for GST, lodges monthly business activity statements and accounts on an accruals basis for GST. The Taxpayer and a Developer have entered into a Development Agreement in relation to the development of a Property, the operation of which the Taxpayer will manage once its construction is completed. The Developer has provided tax invoices to the Taxpayer for the supplies made by it under the Development Agreement for which Amount 1 and Amount 2 was payable.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999: • Section 11-5 | • Section 29-10