A New Tax System (Goods and Services Tax) Act 1999

s 84-12 — The amount of GST on offshore supplies that are “reverse charged”

(1) The amount of GST on a supply that is a * taxable supply because of section 84 ‑ 5 is 10% of the * price of the supply. (2) This section has effect despite section 9 ‑ 70 (which is about the amount of GST on taxable supplies). Note: Section 9 ‑ 90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 92 of 2000, Sch 6 item 6, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Amended by No 77 of 2017, Sch 1 item 32, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-13 — The amount of input tax credits relating to offshore supplies

(1) The amount of the input tax credit for a * creditable acquisition that relates to a supply that is a * taxable supply because of section 84 ‑ 5 is as follows: where: extent of consideration is: (a) if the * recipient is the supplier’s * associate and the supply is without * consideration—100%; or (b) in any other case—the extent to which you provide, or are liable to provide, the consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition. extent of creditable purpose is the extent to which the * creditable acquisition is for a * creditable purpose, expressed as a percentage of the total purpose of the acquisition. full input tax credit is 11 / 10 of what would have been the amount of the input tax credit for the acquisition if: (a) the supply had been or is a * taxable supply otherwise than because of section 84 ‑ 5; and (b) the acquisition had been made solely for a creditable purpose; and (c) you had provided, or had been liable to provide, all of the consideration for the acquisition. (1A) However, if: (a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and (b) the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131 ‑ 40(1)(b); the amount of the input tax credit on the acquisition is worked out under section 131 ‑ 40 as if full input tax credit had the same meaning in subsection 131 ‑ 40(2) as it has in subsection (1) of this section. (2) This section has effect despite: (a) sections 11 ‑ 25 and 11 ‑ 30 (which are about the amount of input tax credits for creditable acquisitions); and (b) section 72 ‑ 45 (which is about the amount of input tax credits on an acquisition from an associate without consideration).

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 77 of 2005, Sch 3 item 10, effective 29 June 2005 | Amended by No 52 of 2016, Sch 2 item 10 | Sch 2 item 11, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Amended by No 77 of 2017, Sch 1 item 33, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-14 — Supplies relating to employee share ownership schemes

This Subdivision does not apply to a supply, to the extent that it is a supply relating to an * employee share scheme, if: (a) the * recipient of the supply is not an entity that has acquired, or may in the future acquire, an ESS interest (within the meaning of the * ITAA 1997) under the scheme; and (b) Subdivision 83A ‑ B or 83A ‑ C of the ITAA 1997 applies to any ESS interest (within the meaning of that Act) acquired under the scheme; and (c) either: (i) the * recipient of the supply is a * 100% subsidiary of the supplier; or (ii) the supply is a transfer that is taken to be a supply because of section 84 ‑ 15.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 56 of 2007, Sch 3 item 8 | Sch 3 item 9, effective 12 Apr 2007 | Amended by No 133 of 2009, effective Schedule 1 (items 6, 7, 86, 87): 14 Dec 2009 | Amended by No 52 of 2016, Sch 1 item 25, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-15 — Transfers etc. between branches of the same entity

(1) For the purposes of section 84 ‑ 5, if an entity: (a) * carries on an * enterprise in the indirect tax zone; and (b) also carries on that or another enterprise outside the indirect tax zone; then: (c) the transfer of anything to the enterprise in the indirect tax zone from the enterprise outside the indirect tax zone; or (d) the doing of anything for the enterprise in the indirect tax zone by the enterprise outside the indirect tax zone; is taken to be a supply that is not * connected with the indirect tax zone. Example: An entity acquires, through a place of business it has overseas, the right to exploit a particular copyright in the indirect tax zone. That right is then transferred to a place of business that the entity has in the indirect tax zone. Under this section, the transfer is taken to be a supply that is not connected with the indirect tax zone and, if the other requirements of section 84 ‑ 5 are satisfied, the transfer is a taxable supply. (2) If the transfer is a transfer of the services of an employee, this section does not apply to the transfer to the extent that any payments that: (a) are made from the * enterprise in the indirect tax zone to the enterprise outside the indirect tax zone; and (b) relate to the transfer; would be * withholding payments if they were payments from the enterprise in the indirect tax zone to the employee.

Amendment history: Amended by No 92 of 2000, Sch 11 item 72, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 84-20 — The price of taxable supplies of offshore intangibles without, or for inadequate, consideration

(1) The price of a supply that is a * taxable supply because of section 84 ‑ 5 is the * GST inclusive market value of the supply, if: (a) the supply is from the * recipient’s * associate; and (b) the supply is: (i) without * consideration; or (ii) for consideration that is less than the GST inclusive market value. Note: A supply to an associate without consideration may be a taxable supply, see section 72 ‑ 5. (2) This section has effect despite section 9 ‑ 75 (which is about the price of taxable supplies).

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-25 — Tax periods for supplies from associates that are not connected with the indirect tax zone

(1) This section applies if a supply that is a * taxable supply because of section 84 ‑ 5 is: (a) a supply from the * recipient’s * associate without * consideration; and (b) not * connected with the indirect tax zone. Note: If the supply is connected with the indirect tax zone, see sections 72 ‑ 15 and 72 ‑ 50 for the tax periods. (2) The tax period to which the GST on the supply, and the input tax credit on the acquisition, is attributable is the tax period in which the thing supplied starts to be done. (3) This section has effect despite: (a) sections 29 ‑ 5 and 72 ‑ 15 (about attributing GST to tax periods); and (b) sections 29 ‑ 10 and 72 ‑ 50 (about attributing input tax credits to tax periods).

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-30 — Adjustments for acquisitions made solely for a creditable purpose

(1) This section applies to an acquisition that relates to a supply if the supply would be a * taxable supply under section 84 ‑ 5 if paragraph 84 ‑ 5(1A)(b) were disregarded. (2) For the purpose of working out whether there is an * adjustment for the acquisition, and the amount of that adjustment, disregard paragraph 84 ‑ 5(1A)(b). Note: As a result, the adjustment (including the full input tax credit referred to in sections 129 ‑ 70 and 129 ‑ 75) is worked out assuming the supply is taxable and the acquisition fully creditable.

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Amended by No 77 of 2017, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-45 — What this Subdivision is about

Tax invoices and adjustment notes are not required for offshore supplies to Australian consumers. The operator of an electronic distribution platform is treated as having made electronic supplies that are made through the platform: (a) from offshore to Australian consumers; or (b) in some cases, under an agreement with the supplier. The result is that the operator, instead of the suppliers, counts the supplies towards its GST turnover and pays GST on the supplies.

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-50 — No tax invoices or adjustment notes for inbound intangible consumer supplies

(1) You are not required to issue a * tax invoice for a * taxable supply that you make if the supply is solely an * inbound intangible consumer supply. (2) You are not required to issue an * adjustment note for an * adjustment event relating to a * taxable supply that you make if the supply is solely an * inbound intangible consumer supply. (3) This section has effect despite sections 29 ‑ 70 and 29 ‑ 75 (which are about tax invoices and adjustment notes).

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-55 — Operator of electronic distribution platform treated as supplier

(1) If an * inbound intangible consumer supply is made through an * electronic distribution platform, the operator of the platform, instead of the supplier, is treated, for the purposes of the * GST law: (a) as being the supplier of, and as making, the supply; and (b) as having made the supply for the * consideration for which it was made; and (c) as having made the supply in the course or furtherance of an * enterprise that the operator * carries on. Note: As a consequence, GST on the supply is payable by the operator of the electronic distribution platform. (2) Despite subsection (1), if an * inbound intangible consumer supply is made through more than one * electronic distribution platform, that subsection only applies to the operator of any of those platforms who is: (a) * registered and a party to a written agreement, where: (i) the agreement is between the operator and at least one of the other operators of the platforms; and (ii) the operator is to be treated as the supplier under the agreement; or (b) if paragraph (a) does not apply—the operator determined in accordance with an instrument made under subsection (3); or (c) if paragraph (a) does not apply and no instrument has been made under subsection (3): (i) the first of the operators of those platforms to receive, or to authorise the charging of, any * consideration for the supply; or (ii) if subparagraph (i) does not apply—the first of the operators of those platforms to authorise the delivery of the supply. (3) The Commissioner may, by legislative instrument, specify how an operator is to be determined for the purposes of paragraph (2)(b). (4) Despite subsections (1) and (2), this section does not apply to an operator of an * electronic distribution platform in relation to an * inbound intangible consumer supply made through the platform if: (a) a document, relating to the supply, issued to the * recipient of the supply identifies: (i) the supply; and (ii) the supplier as the supplier of the supply; and (b) the supplier and the operator of the electronic distribution platform have agreed in writing that the supplier is the entity responsible for paying GST for: (i) the supply; or (ii) a class of supplies that includes the supply; and (c) the operator of the electronic distribution platform: (i) does not authorise the charge to the recipient for the supply; and (ii) does not authorise the delivery of the supply; and (iii) does not (whether directly or indirectly) set any of the terms and conditions under which the supply is made.

Amendment history: Inserted by No 52 of 2016, Sch 1 item 84 | Sch 1 item 27 | Sch 1 item 28, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Amended by No 77 of 2017, Sch 1 item 84 | Sch 1 item 50, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1) | Amended by No 69 of 2023, Sch 21 item 114 | Sch 21 item 116, effective sch 4 (items 105-110, 114-116): 1 Oct 2023 (s 2(1) item 6)

s 84-60 — Extension of section 84 ‑ 55 to certain other supplies through an electronic distribution platform

(1) Section 84 ‑ 55 applies to a supply that is to be made by means of * electronic communication as if it were an * inbound intangible consumer supply if: (a) the supply is made through an * electronic distribution platform; and (b) the supply is covered by a written agreement entered into between the supplier and the operator of the platform before the supply is made; and (c) the operator is * registered; and (d) under the agreement, the supply is to be treated as if it were an inbound intangible consumer supply made through the platform. (2) However, subsection (1) does not apply to the supply if: (a) the supply is GST ‑ free or input taxed; or (b) the operator would not be treated under section 84 ‑ 55 as being the supplier of, and as making, the supply if it were an * inbound intangible consumer supply. (3) If subsection (1) applies to the supply, the supply is treated as having been made in the course or furtherance of the carrying on of the * enterprise through which the operator operates the platform.

Amendment history: Inserted by No 52 of 2016, Sch 1 item 27 | Sch 1 item 28, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Amended by No 77 of 2017, Sch 1 item 36, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-65 — Meaning of inbound intangible consumer supply

(1) A supply of anything other than goods or * real property is an inbound intangible consumer supply if the * recipient is an * Australian consumer, unless: (a) the thing is done wholly in the indirect tax zone; or (b) the supplier makes the supply wholly through an * enterprise that the supplier * carries on in the indirect tax zone. (2) Disregard section 84 ‑ 55 in determining whether paragraph (1)(b) applies.

Amendment history: Inserted by No 52 of 2016, Sch 1 item 36, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-70 — Meaning of electronic distribution platform

(1) A service (including a website, internet portal, gateway, store or marketplace) is an electronic distribution platform if: (a) the service allows entities to make supplies available to end ‑ users; and (b) the service is delivered by means of * electronic communication; and (c) any of the supplies that are * inbound intangible consumer supplies are to be made by means of electronic communication. (2) However, a service is not an electronic distribution platform solely because it is: (a) a carriage service (within the meaning of the Telecommunications Act 1997 ); or (b) a service consisting of one or more of the following: (i) providing access to a payment system; (ii) processing payments; (iii) providing * vouchers the supply of which are not * taxable supplies because of section 100 ‑ 5.

Amendment history: Inserted by No 52 of 2016, Sch 1 item 36, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Amended by No 77 of 2017, Sch 1 item 37, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-73 — What this Subdivision is about

Supplies of low value goods involving goods being brought to the indirect tax zone may be connected with the indirect tax zone. An entity may be treated as the supplier of an offshore supply of low value goods, if the entity is the operator of an electronic distribution platform through which the supply is made, or the entity is a redeliverer of the goods. The result is that the operator or redeliverer, instead of the supplier, counts the supplies towards its GST turnover and pays GST on the supplies. Suppliers of offshore supplies of low value goods are not required to issue tax invoices and adjustment notes, but they must ensure relevant information is included in customs documents. Note 1: The supplies will need to meet other requirements in order to be taxable supplies: see section 9 ‑ 5. Note 2: Offshore supplies of low value goods that are not connected with the indirect tax zone under this Subdivision may be taxable supplies, and “reverse ‑ charged”, under Subdivision 84 ‑ A.

Amendment history: Inserted by No 77 of 2017, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-75 — Supplies of low value goods that are connected with the indirect tax zone

(1) An * offshore supply of low value goods is connected with the indirect tax zone if the * recipient of the supply is a * consumer of the supply. Note: There is an exception to this rule if the supplier reasonably believes there will be a taxable importation of the goods: see section 84 ‑ 83. (2) An entity is a consumer of a supply made to the entity if: (a) the entity is not * registered; or (b) if the entity is registered—the entity does not acquire the thing supplied solely or partly for the purpose of an * enterprise that the entity * carries on in the indirect tax zone. Note: A supplier may treat a recipient as not being a consumer if the supplier reasonably believes (based on certain information) that to be the case: see section 84 ‑ 105. (3) This section has effect in addition to section 9 ‑ 25 (which is about when supplies are connected with the indirect tax zone).

Amendment history: Inserted by No 77 of 2017, Sch 1 item 84 | Sch 1 item 57, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-77 — Meaning of offshore supply of low value goods

Supplies of low value goods delivered etc. into the indirect tax zone by suppliers (1) A * supply of low value goods is an offshore supply of low value goods if: (a) the supply involves the goods being brought to the indirect tax zone; and (b) the supplier delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone. Supplies of low value goods made through an electronic distribution platform (2) Without limiting subsection (1), a * supply of low value goods is an offshore supply of low value goods if: (a) the supply involves the goods being brought to the indirect tax zone; and (b) the supply is made through an * electronic distribution platform; and (c) the operator of the platform delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone. Supplies of low value goods delivered etc. into the indirect tax zone by redeliverers (3) A * supply of low value goods is an offshore supply of low value goods if: (a) the supply involves the goods being delivered to a place outside the indirect tax zone; and (b) a * redeliverer delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone. (4) An entity is a redeliverer in relation to a * supply of low value goods if, as a result of an arrangement with the * recipient of the supply (or another entity acting on the recipient’s behalf), the entity, in the course of * carrying on an enterprise: (a) delivers the goods into the indirect tax zone, or procures, arranges or facilitates the delivery of the goods into the indirect tax zone; and (b) does one or more of the following: (i) provides use of an address outside the indirect tax zone to which the goods are delivered; (ii) procures, arranges or facilitates use of an address outside the indirect tax zone to which the goods are delivered; (iii) purchases the goods; (iv) procures, arranges or facilitates purchase of the goods. (5) Disregard section 84 ‑ 81 in applying this section.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 84 | Sch 1 item 59, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-79 — Meaning of supply of low value goods

(1) A supply of goods is a supply of low value goods if: (a) the goods supplied are covered by subsection (3); or (b) the goods supplied include goods covered by subsection (3). (2) However, if the goods supplied include goods that are not covered by subsection (3), then the supply of goods (the actual supply ) is to be treated as if it were 2 separate supplies in the following way: (a) the part of the actual supply consisting of goods covered by subsection (3) is to be treated as if it were a separate supply that is a supply of low value goods (regardless of the total * customs value of the goods to which those supplies relate); and (b) the remainder of the actual supply is to be treated as if it were a separate supply that is not a supply of low value goods . Low value goods (3) This subsection covers goods if: (a) the * customs value of the goods is $1,000 or less; and (b) the goods are not tobacco, tobacco products or alcoholic beverages. (4) Work out the * customs value of goods for the purposes of this section at the time when the * consideration for the supply was first agreed, and as if: (a) the goods were exported from the country from which they were brought to the indirect tax zone; and (b) the goods were imported into Australia; and (c) the agreement for the supply was an agreement for the importation and for the exportation; and (d) to the extent that working out the value involves an assumption about the way in which the Collector (within the meaning of the Customs Act 1901 ) will exercise a discretion—the Collector exercised that discretion in a reasonable manner in accordance with law; and (e) if an amount to be taken into account in working out that value is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in any of the following ways: (i) in the way provided in section 161J of the Customs Act 1901 ; (ii) in the manner determined by the Commissioner under subsection (5) of this section. (5) The Commissioner may, by legislative instrument, determine a manner of ascertaining an amount in Australian currency for the purposes of paragraph (4)(e). (6) Disregard section 84 ‑ 81 in applying this section.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 59, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-81 — Who makes an offshore supply of low value goods

(1) This section does not apply to a supply to the extent it is * connected with the indirect tax zone because of a provision of this Act other than this Subdivision. (2) This section applies in relation to an * offshore supply of low value goods, regardless of whether the * recipient of the supply is a * consumer. Note: If the recipient is not a consumer, the entity treated as a supplier by this section must still ensure information is included in customs documents: see section 84 ‑ 91. Operator of electronic distribution platform—extension of section 84 ‑ 55 (3) Section 84 ‑ 55 applies to a supply as if it were an * inbound intangible consumer supply if: (a) the supply is made through an * electronic distribution platform; and (b) the supply is an * offshore supply of low value goods. Note: Section 84 ‑ 55 treats the operator of an electronic distribution platform as the supplier of supplies made through the platform. Redeliverer (4) If a supply of goods is an * offshore supply of low value goods solely because of subsection 84 ‑ 77(3), the * redeliverer is taken, for the purposes of this Act: (a) as being the supplier of, and as making, the supply; and (b) as having made the supply for the * consideration for which it was made; and (c) as having made the supply in the course or furtherance of an * enterprise that the redeliverer * carries on. (5) Despite subsection (4), if there is more than one * redeliverer in relation to the supply, that subsection only applies to the redeliverer who is: (a) the first of the redeliverers to enter into an arrangement, with the * recipient, relating to the supply; or (b) if paragraph (a) does not apply—the first of the redeliverers to enter into an arrangement, with an * associate of the recipient, relating to the supply; or (c) if paragraphs (a) and (b) do not apply—the first of the redeliverers to enter into an arrangement, of a kind referred to in subsection 84 ‑ 77(4), relating to the supply; or (d) if paragraphs (a), (b) and (c) do not apply—the redeliverer determined in accordance with an instrument made under subsection (6). (6) The Commissioner may, by legislative instrument, make a determination specifying how a * redeliverer of * offshore supplies of low value goods is to be determined for the purposes of paragraph (5)(d). (7) Division 57 (resident agents acting for non ‑ residents) does not apply in relation to a supply to which subsection (4) applies.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 18 | Sch 1 item 84 | Sch 1 item 50, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-83 — Exception—when supplier reasonably believes there will be a taxable importation

(1) This section does not apply to a supply to the extent it is * connected with the indirect tax zone because of a provision of this Act other than this Subdivision. (2) An * offshore supply of low value goods is not connected with the indirect tax zone to the extent that: (a) the supplier takes reasonable steps to obtain information about whether or not the goods would be imported into the indirect tax zone as a * taxable importation; and (b) after taking those steps, the supplier reasonably believed that the goods would be imported into the indirect tax zone as a taxable importation. (3) Without limiting subsection (2), paragraph (2)(a) is taken to be satisfied if the supplier’s usual business systems and processes provide the supplier with a reasonable basis for forming a reasonable belief about whether or not goods to be imported into the indirect tax zone would be imported as a * taxable importation. (4) For the purposes of paragraph (2)(b), the time at which the supplier must have the reasonable belief is: (a) if subsection 84 ‑ 81(4) (about redeliverers treated as suppliers) does not apply—at the most recent time before export that the * consideration for the supply was agreed; or (b) if subsection 84 ‑ 81(4) applies—at the time of delivering the goods into the indirect tax zone, or procuring, arranging or facilitating the delivery of the goods into the indirect tax zone. (5) This section has effect despite section 84 ‑ 75.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 42 | Sch 1 item 84, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-85 — Exception—when there is also a taxable importation

(1) Subsection (2) applies to an * offshore supply of low value goods you made to the extent that: (a) the supply is, apart from this section, a * supplier ‑ taxed offshore supply of low value goods; and (b) an importation of the goods was a * taxable importation. Note: This section applies if section 42 ‑ 15 has not applied to treat the importation as a non ‑ taxable importation. (2) The supply is treated as if it were not a * taxable supply if: (a) to the extent (if any) that you have * passed on the GST on the supply to another entity—you reimburse the other entity for the passed on GST; and (b) an entity provides to you a declaration or information that indicates that GST has been paid on the * taxable importation. (3) A supply of goods is a supplier ‑ taxed offshore supply of low value goods if the supply is: (a) an * offshore supply of low value goods; and (b) a taxable supply solely under section 9 ‑ 5; and (c) * connected with the indirect tax zone solely because of this Subdivision.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 59, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-87 — No tax invoices or adjustment notes for offshore supplies of low value goods

(1) You are not required to issue a * tax invoice for a * taxable supply that you make if the supply is a * supplier ‑ taxed offshore supply of low value goods. (2) You are not required to issue an * adjustment note for an * adjustment event relating to a * taxable supply that you make if the supply is a * supplier ‑ taxed offshore supply of low value goods. (3) This section has effect despite sections 29 ‑ 70 and 29 ‑ 75 (which are about tax invoices and adjustment notes).

Amendment history: Inserted by No 77 of 2017, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-89 — Notifying amounts of GST to recipients of offshore supplies of low value goods

(1) You must give the * recipient of a supply a notice of the amount of GST (if any) payable in relation to the supply if the supply is a * supplier ‑ taxed offshore supply of low value goods. (2) You must give the notice in the * approved form, and at the time the * consideration for the supply is first agreed. (3) If: (a) you make a * supplier ‑ taxed offshore supply of low value goods; and (b) you did not give a notice under subsection (1); and (c) the * recipient of the supply requests you to notify the recipient of the amount of GST (if any) payable in relation to the supply; you must, within 5 * business days after the request is made, give the recipient a notice of that amount in the * approved form. Note: If you do not give the notice as required by this subsection, you are liable to an administrative penalty under subsection 288 ‑ 45(2A) in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 77 of 2017, Sch 1 item 46 | Sch 1 item 63, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-91 — The amount of GST on offshore supplies of low value goods made by redeliverers

(1) If a * supplier ‑ taxed offshore supply of low value goods is an * offshore supply of low value goods solely because of subsection 84 ‑ 77(3), the amount of GST on the supply is 10% of the * price of the supply. (2) This section has effect despite section 9 ‑ 70 (which is about the amount of GST on taxable supplies). Note: Section 9 ‑ 90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.

Amendment history: Inserted by No 77 of 2017, Sch 1 item 84, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-93 — Suppliers of offshore supplies of low value goods to ensure tax information is included in customs documents

(1) If: (a) you make an * offshore supply of low value goods; and (b) you are * registered, or * required to be registered; you must ensure that the information set out in subsection (2) is included in one or more of the documents referred to in subsection (3) (regardless of whether or not the supply is * connected with the indirect tax zone). Note: If you do not ensure the information is included, you are liable to an administrative penalty under section 288 ‑ 46 in Schedule 1 to the Taxation Administration Act 1953 . (2) For the purposes of subsection (1), the information is as follows: (a) your registration number; (b) if the * recipient’s * ABN has been disclosed to you—that ABN; (c) the extent (if any) to which you are treating the supply as a * taxable supply. (3) For the purposes of subsection (1), the documents are as follows: (a) an import declaration (within the meaning of the Customs Act 1901 ); (b) an import declaration advice (within the meaning of that Act); (c) a self ‑ assessed clearance declaration (within the meaning of that Act); (d) a self ‑ assessed clearance declaration advice (within the meaning of that Act); (e) a document of a kind specified in an instrument made under subsection (4). (4) The Commissioner may, by legislative instrument, make a determination specifying kinds of documents for the purposes of paragraph (3)(e).

Amendment history: Inserted by No 77 of 2017, Sch 1 item 288, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-95 — What this Subdivision is about

A supplier is treated in some situations to be making a supply to an entity that is not a consumer, or not an Australian consumer. Note 1: Whether the recipient of a supply of an intangible is an Australian consumer is one of the tests for whether the supply is connected with the indirect tax zone: see subsection 9 ‑ 25(5). Note 2: Whether the recipient of an offshore supply of low value goods is a consumer is one of the tests for whether the supply is connected with the indirect tax zone: see subsection 84 ‑ 75(1). Note 3: Supplies affected by this Subdivision may be supplies that are taxable supplies, and reverse charged, under Subdivision 84 ‑ A.

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1) | Repealed and substituted by No 77 of 2017, Sch 1 item 40, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-100 — When entities are treated as not being Australian consumers

(1) The * GST law applies in relation to you as if another entity was not an * Australian consumer of a supply if: (a) you take reasonable steps to obtain information about whether or not the other entity is an Australian consumer of the supply; and (b) after taking those steps, you reasonably believe that the other entity is not an Australian consumer of the supply. (2) Without limiting subsection (1), the * GST law applies in relation to you as if another entity was not an * Australian consumer of a supply if: (a) your usual business systems and processes provide you with a reasonable basis for forming a reasonable belief about whether the other entity is an Australian consumer of the supply; and (b) you reasonably believe that the other entity is not an Australian consumer of the supply. (3) For the purposes of subsections (1) and (2), to the extent that your belief that the other entity is not an * Australian consumer of the supply is based on the other entity being * registered, your belief is reasonable only if: (a) the other entity’s * ABN, or the other identifying information prescribed under subsection (4) relating to the other entity, has been disclosed to you; and (b) the other entity has provided to you a declaration or information that indicates that the other entity is registered. (4) The Commissioner may, by legislative instrument, prescribe identifying information for the purposes of paragraph (3)(a).

Amendment history: Inserted by No 52 of 2016, Sch 1 item 3 | Sch 1 item 24 | Sch 1 item 33, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 84-105 — When entities are treated as not being consumers

(1) The * GST law applies in relation to you as if another entity was not a * consumer of a supply if you reasonably believe that the other entity is not a consumer of the supply. (2) For the purposes of subsection (1), your belief is reasonable only if: (a) the other entity’s * ABN, or the other identifying information prescribed under subsection (3) relating to the other entity, has been disclosed to you; and (b) the other entity has provided to you a declaration or information that indicates that the other entity is * registered. (3) The Commissioner may, by legislative instrument, make a determination prescribing identifying information for the purposes of paragraph (2)(a).

Amendment history: Inserted by No 77 of 2017, Sch 1 item 29 | Sch 1 item 84, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 85-1 — What this Division is about

Telecommunication supplies that are effectively used or enjoyed in the indirect tax zone are included in the GST system (regardless of where the supplier has a physical presence).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 85-5 — When telecommunication supplies are connected with the indirect tax zone

(1) A * telecommunication supply is connected with the indirect tax zone if the * recipient of the supply will effectively use or enjoy the supply in the indirect tax zone. (2) However, subsection (1) does not apply to a * telecommunication supply, or a telecommunication supply included in a class of telecommunication supplies, if: (a) the supplier makes the supply through an * enterprise that is not * carried on in the indirect tax zone; and (b) the Commissioner determines that collection of GST on that supply or class of supplies would not be administratively feasible. (3) This section has effect in addition to section 9 ‑ 25 (which is about when supplies are connected with the indirect tax zone), but is subject to section 9 ‑ 26 (which is about when supplies are not connected with the indirect tax zone).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6) | Amended by No 52 of 2016, Sch 2 item 13, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 85-10 — Meaning of telecommunication supply

A telecommunication supply is a supply relating to the transmission, emission or reception of signals, writing, images, sounds or information of any kind by wire, radio, optical or other electromagnetic systems. It includes: (a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception; and (b) provision of access to global information networks.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 156, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 86-1 — What this Division is about

The GST on taxable supplies of goods consisting wholly or partly of valuable metal can be “reverse charged” to the recipients.

Amendment history: Inserted by No 76 of 2017, effective 27 June 2017 (s 2(1) item 1)

s 86-5 — “Reverse charge” on supplies of goods consisting of valuable metal

(1) The GST on a * taxable supply of goods is payable by the * recipient of the supply, and is not payable by the supplier, if: (a) the goods consist wholly or partly of * valuable metal; and (b) the recipient is * registered or * required to be registered; and (c) either: (i) at the time of the supply, the market value of the goods does not exceed the * valuable metal threshold; or (ii) the supplier and the recipient agree, in writing, that the GST on the supply be payable by the recipient. (2) Subsection (1) does not apply to a * taxable supply of goods if the supply is in a class of supplies determined under subsection (3). Determination (3) For the purposes of subsection (2), the Commissioner may, by legislative instrument, determine that subsection (1) does not apply to a specified class of supplies. (4) In making a determination under subsection (3), the Commissioner may have regard to the following: (a) the likelihood that * recipients and suppliers of that class of supply will otherwise comply with their obligations under the * GST law, and the risk of GST not being paid on * taxable supplies in that class if recipients do not pay the GST; (b) the costs for recipients and suppliers of that class of supplies to comply with subsection (1); (c) any other relevant matters. Effect of this section on other sections (5) This section has effect despite sections 9 ‑ 40 (which is about liability for the GST), 48 ‑ 40, 51 ‑ 30 and 83 ‑ 5 (which are about who is liable for GST).

Amendment history: Inserted by No 76 of 2017, Sch 1 item 86, effective 27 June 2017 (s 2(1) item 1)

s 86-10 — The valuable metal threshold

(1) The market value of goods consisting wholly or partly of * valuable metal exceeds the valuable metal threshold at a time if, at that time: (a) unless paragraph (b) applies—the market value of the goods exceeds the market value of the valuable metal in the goods by at least the specified percentage (see subsection (4)); or (b) if the goods consist of goods ( separate goods ), each of which: (i) consist wholly or partly of valuable metal; and (ii) can be separately supplied; the market value of each of the separate goods exceeds the market value of the valuable metal in those particular separate goods by at least the specified percentage. Market value of goods and valuable metal (2) For the purposes of subsection (1), the market value of goods or * valuable metal in goods: (a) is to be worked out disregarding any amount of GST: (i) that is payable on the supply of the goods or metal; or (ii) if there is no supply of valuable metal—that would be payable if there were a supply of valuable metal; and (b) either: (i) unless subparagraph (ii) applies—is the market value of the goods or metal within the ordinary meaning of the expression; or (ii) if the Commissioner has determined under subsection (3) one or more methods for working out the market value of goods or metal—the market value of the goods or metal worked out using any one of those methods. (3) The Commissioner may, by legislative instrument, determine one or more methods of working out the market value of goods or * valuable metal for the purposes of subparagraph (2)(b)(ii). Specified percentage (4) For the purposes of subsection (1), the specified percentage is: (a) if the Minister determines a percentage under subsection (5)—that percentage; or (b) otherwise—10%. (5) The Minister may, by legislative instrument, determine a percentage for the purposes of paragraph (4)(a). Effect of section (6) To avoid doubt, this section does not affect how goods that consist of goods that can be separately supplied are otherwise treated for the purposes of this Act.

Amendment history: Inserted by No 76 of 2017, Sch 1 item 11, effective 27 June 2017 (s 2(1) item 1)

s 86-15 — Recipients who are members of GST groups

(1) If section 86 ‑ 5 applies to a * taxable supply but the * recipient of the supply is a * member of a * GST group, the GST on the supply: (a) is payable by the * representative member; and (b) is not payable by the member (unless the member is the representative member). (2) This section has effect despite sections 48 ‑ 40, 51 ‑ 30 and 86 ‑ 5 (which are about who is liable for GST).

Amendment history: Inserted by No 76 of 2017, effective 27 June 2017 (s 2(1) item 1)

s 86-20 — Recipients who are participants in GST joint ventures

(1) If section 86 ‑ 5 applies to a * taxable supply but the * recipient of the supply is a * participant in a * GST joint venture and the supply is made, on the recipient’s behalf, by the * joint venture operator of the GST joint venture in the course of activities for which the joint venture was entered into, the GST on the supply: (a) is payable by the joint venture operator; and (b) is not payable by the participant. (2) This section has effect despite sections 48 ‑ 40, 51 ‑ 30 and 86 ‑ 5 (which are about who is liable for GST).

Amendment history: Inserted by No 76 of 2017, effective 27 June 2017 (s 2(1) item 1)

s 86-25 — The amount of GST on “reverse charged” supplies of goods consisting of valuable metal

(1) The amount of GST on a supply to which section 86 ‑ 5, 86 ‑ 15 or 86 ‑ 20 applies is 10% of the * price of the supply. (2) This section has effect despite section 9 ‑ 70 (which is about the amount of GST on taxable supplies).

Amendment history: Inserted by No 76 of 2017, effective 27 June 2017 (s 2(1) item 1)

s 87-1 — What this Division is about

Long ‑ term stays in commercial residential premises are given a lower value than would otherwise apply, reducing the amount of GST payable.

s 87-5 — Commercial residential premises that are predominantly for long ‑ term accommodation

(1) The value of a * taxable supply of * commercial accommodation that: (a) is provided in * commercial residential premises that are * predominantly for long ‑ term accommodation; and (b) is provided to an individual as * long ‑ term accommodation; is 50%, or such other percentage as is specified in the regulations, of what would be the * price of the supply if this Division did not apply. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

s 87-10 — Commercial residential premises that are not predominantly for long ‑ term accommodation

(1) The value of a * taxable supply of * commercial accommodation that: (a) is provided in * commercial residential premises that are not * predominantly for long ‑ term accommodation; and (b) is provided to an individual as * long ‑ term accommodation; is the sum of: (c) the value, worked out in the way set out in section 9 ‑ 75, of that part of the supply that relates to provision of the commercial accommodation during the first 27 days; and (d) 50%, or such other percentage as is specified in the regulations, of what would be the * price (if this Division did not apply) of that part of the supply that relates to provision of the commercial accommodation after the first 27 days. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

s 87-15 — Meaning of commercial accommodation

Commercial accommodation means the right to occupy the whole or any part of * commercial residential premises, including, if it is provided as part of the right so to occupy, the supply of: (a) cleaning and maintenance; or (b) electricity, gas, air ‑ conditioning or heating; or (c) telephone, television, radio or any other similar thing.

s 87-20 — Meaning of long ‑ term accommodation etc.

(1) Long ‑ term accommodation is provided to an individual if * commercial accommodation is provided, for a continuous period of 28 days or more, in the same premises: (a) to that individual alone; or (b) to that individual, together with one or more other individuals who: (i) are also provided with that commercial accommodation; and (ii) are not provided with it at their own expense (whether incurred directly or indirectly). (2) For the purpose of working out the number of days in the period for which an individual is provided with * commercial accommodation: (a) count the day on which he or she is first provided with the commercial accommodation; and (b) disregard the day on which he or she ceases to be provided with commercial accommodation. (3) * Commercial residential premises are predominantly for long ‑ term accommodation if at least 70% of the individuals who are provided with * commercial accommodation in the premises are provided with commercial accommodation as * long ‑ term accommodation.

s 87-25 — Suppliers may choose not to apply this Division

(1) This Division does not apply to a supply of * commercial accommodation if the supplier chooses not to apply this Division to any supplies of commercial accommodation that the supplier makes. (2) The choice applies to all supplies of * commercial accommodation that the supplier makes after the choice is made and before the choice is revoked. (3) However, the supplier: (a) cannot revoke the choice within 12 months after the day on which the supplier made the choice; and (b) cannot make a further choice within 12 months after the day on which the supplier revoked a previous choice. Note: If you choose not to apply this Division, your supplies (other than GST ‑ free supplies) of long ‑ term accommodation in commercial residential premises are input taxed under section 40 ‑ 35.

Amendment history: Amended by No 97 of 2008, Sch 3 item 1, effective Schedule 3 (item 1): Royal Assent

s 90-1 — What this Division is about

This Division ensures proper account is taken of liabilities and entitlements under the GST system when companies amalgamate.

s 90-5 — Supplies not taxable—amalgamated company registered or required to be registered

(1) A supply made by an * amalgamating company to an * amalgamated company in the course of * amalgamation is not a * taxable supply if, immediately after the amalgamation, the amalgamated company is * registered or * required to be registered. (2) This section has effect despite section 9 ‑ 5 (which is about what is a taxable supply).

s 90-10 — Value of taxable supplies—amalgamated company not registered or required to be registered

(1) If: (a) an * amalgamating company makes a * taxable supply to an * amalgamated company in the course of * amalgamation; and (b) immediately after the amalgamation, the amalgamated company is neither * registered nor * required to be registered; the value of the taxable supply is the * GST exclusive market value of the supply. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

s 90-15 — Acquisitions not creditable—amalgamated company registered or required to be registered

(1) An acquisition made by an * amalgamated company from an * amalgamating company in the course of * amalgamation is not a * creditable acquisition if, immediately after the amalgamation, the amalgamated company is * registered or * required to be registered. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

s 90-20 — Liability after amalgamation for GST on amalgamating company’s supplies

(1) An * amalgamated company must pay the GST payable on a * taxable supply if: (a) apart from the * amalgamation, the GST would have been payable by any of the * amalgamating companies; and (b) the GST was not attributable, before the amalgamation, to a tax period applying to the amalgamating company. (2) This section has effect despite section 9 ‑ 40 (which is about liability for GST).

s 90-25 — Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions

(1) An * amalgamated company is entitled to the input tax credit for a * creditable acquisition if: (a) apart from the * amalgamation, any of the * amalgamating companies would have been entitled to the input tax credit; and (b) the input tax credit was not attributable, before the amalgamation, to a tax period applying to the amalgamating company. (2) This section has effect despite section 11 ‑ 20 (which is about who is entitled to input tax credits).

s 90-30 — Adjustments

(1) An * amalgamated company has an * adjustment if: (a) apart from the * amalgamation, any of the * amalgamating companies would have had the adjustment; and (b) the adjustment was not attributable, before the amalgamation, to a tax period applying to the amalgamating company. (2) This section has effect despite section 17 ‑ 10 (which is about the effect of adjustments on net amounts).

s 90-35 — Amalgamating companies accounting on a cash basis

(1) If: (a) immediately before * amalgamation, an * amalgamating company * accounted on a cash basis; and (b) GST payable by the company on a * taxable supply, an input tax credit to which the company was entitled for a * creditable acquisition, or an * adjustment that the company had, was not attributable, before the amalgamation, to any of the tax periods applying to the company; and (c) the GST, input tax credit or adjustment would have been attributable to such a tax period if the company had not accounted on a cash basis during that period; and (d) immediately after the amalgamation, the * amalgamated company does not account on a cash basis; the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation. (2) If: (a) immediately before * amalgamation, an * amalgamating company * accounted on a cash basis; and (b) GST payable by the company on a * taxable supply, an input tax credit to which the company was entitled for a * creditable acquisition, or an * adjustment that the company had, was only to some extent attributable, before the amalgamation, to any of the tax periods applying to the company; and (c) the GST, input tax credit or adjustment would have been solely attributable to such a tax period if the company had not accounted on a cash basis during that period; and (d) immediately after the amalgamation, the * amalgamated company does not account on a cash basis; the GST, input tax credit or adjustment (as the case requires) is attributable to the first tax period applying to the amalgamated company that ends after the amalgamation, but only to the extent that it was not attributable to any of the tax periods applying to the amalgamating company. (3) This section has effect despite sections 29 ‑ 5, 29 ‑ 10 and 29 ‑ 20 (which are about attributing GST on supplies, input tax credits for acquisitions, and adjustments).

s 93-1 — What this Division is about

Your entitlements to input tax credits for creditable acquisitions cease unless they are included in your assessed net amounts within a limited period (generally 4 years).

Amendment history: Repealed by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Inserted by No 20 of 2010, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Repealed and substituted by No 39 of 2012, Sch 1 item 244, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Amended by No 39 of 2012, Sch 1 item 244, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 93-5 — Time limit on entitlements to input tax credits

(1) You cease to be entitled to an input tax credit for a * creditable acquisition to the extent that the input tax credit has not been taken into account, in an * assessment of a * net amount of yours, during the period of 4 years after the day on which you were required to give to the Commissioner a * GST return for the tax period to which the input tax credit would be attributable under subsection 29 ‑ 10(1) or (2). Note: Section 93 ‑ 10 sets out circumstances in which your entitlement to the input tax credit does not cease under this section. (2) This section has effect despite section 11 ‑ 20 (which is about entitlement to input tax credits). Note: You must hold a valid tax invoice relating to a creditable acquisition to be entitled to have an input tax credit for that acquisition taken into account in working out your assessed net amount for a tax period: see subsection 29 ‑ 10(3).

Amendment history: Repealed by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Inserted by No 20 of 2010, Sch 1 item 93 | Sch 1 item 133, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Repealed and substituted by No 39 of 2012, Sch 1 item 41 | Sch 1 item 82 | Sch 1 item 91, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 93-10 — Exceptions to time limit on entitlements to input tax credits

Commissioner determines particular attribution rules (1) If the Commissioner determines, under subsection 29 ‑ 25(1), the tax period to which an input tax credit for a * creditable acquisition you make is attributable: (a) you do not cease to be entitled to the input tax credit under section 93 ‑ 5; and (b) you cease to be entitled to the input tax credit to the extent that the input tax credit has not been taken into account, in an * assessment of a * net amount of yours, during the period of 4 years after the day on which you were required to give to the Commissioner a * GST return for the tax period to which the input tax credit is attributable under the determination. Note: Subsections (4) and (5) set out circumstances in which your entitlement to the input tax credit does not cease under paragraph (b) of this subsection. (2) Paragraph (1)(b) has effect despite section 11 ‑ 20 (which is about entitlement to input tax credits). Amendment of assessments in relation to supplies (4) You do not cease under section 93 ‑ 5 or paragraph (1)(b) of this section to be entitled to an input tax credit if: (a) the input tax credit is for a * creditable acquisition that relates to making a supply; and (b) during the period of 4 years mentioned in subsection 93 ‑ 5(1) or paragraph (1)(b) of this section, whichever is relevant, a * net amount of yours is * assessed on the basis that the supply is * input taxed; and (c) after the end of that 4 ‑ year period, the Commissioner amends the assessment of your net amount for the tax period to which the supply is attributable under section 155 ‑ 35, 155 ‑ 45 or 155 ‑ 50, or paragraph 155 ‑ 60(a) or (b), in Schedule 1 to the Taxation Administration Act 1953 on the basis that the supply is not input taxed; and (d) the input tax credit is taken into account in an assessment of a net amount of yours (the credit assessment ): (i) after the end of that 4 ‑ year period; and (ii) at a time when the Commissioner may amend the assessment of your net amount for the tax period mentioned in subsection 93 ‑ 5(1) of this Act or paragraph (1)(b) of this section, whichever is relevant, (whether the credit assessment or another assessment) under Subdivision 155 ‑ B in Schedule 1 to the Taxation Administration Act 1953 on the basis that you are entitled to the input tax credit. Request to treat document as tax invoice (5) If: (a) you requested the Commissioner to treat a document under subsection 29 ‑ 70(1B) as a * tax invoice for the purposes of attributing an input tax credit to a tax period; and (b) you made the request before the end of the 4 ‑ year period mentioned in subsection 93 ‑ 5(1) or paragraph (1)(b) of this section in relation to the tax period; and (c) the Commissioner agrees to the request after the end of the 4 ‑ year period; you do not cease under section 93 ‑ 5 or paragraph (1)(b) of this section, whichever is relevant, to be entitled to the input tax credit to the extent that, had the Commissioner agreed to the request before the end of the 4 ‑ year period, you would not cease under that section or paragraph to be entitled to the credit.

Amendment history: Repealed by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Inserted by No 20 of 2010, Sch 1 item 93, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Amended by No 39 of 2012, Sch 1 item 93 | Sch 1 item 82 | Sch 1 item 83 | Sch 1 item 224 | Sch 1 item 225 | Sch 1 item 226, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Amended by No 72 of 2025, Sch 4 item 44 | Sch 4 item 45 | Sch 4 item 46 | Sch 4 item 48 | Sch 4 item 49 | Sch 4 item 50, effective sch 4 (items 32 ‑ 38, 43 ‑ 51): 1 Jan 2026 (s 2(1) item 5)

s 93-15 — GST no longer able to be taken into account

You are not entitled to an input tax credit for a * creditable acquisition to the extent that GST on the related supply has not been taken into account in the * assessment of the supplier’s * net amount for the tax period to which that GST is attributable if: (a) the period of review (within the meaning of section 155 ‑ 35 in Schedule 1 to the Taxation Administration Act 1953 ) for that assessment has ended; and (b) when that period of review ended, you did not hold a * tax invoice for the creditable acquisition.

Amendment history: Repealed by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Inserted by No 20 of 2010, Sch 1 item 93, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Amended by No 39 of 2012, Sch 1 item 83 | Sch 1 item 84, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Repealed and substituted by No 21 of 2015, Sch 7 item 5, effective Sch 7 (items 1–6): 20 Mar 2015 (s 2(1) item 15)

s 96-1 — What this Division is about

This Division treats a supply that is partly connected with the indirect tax zone as separate supplies, so that only the part of a supply that is connected with the indirect tax zone is included in the GST system.

Amendment history: Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 96-5 — Supplies that are only partly connected with the indirect tax zone

(1) If, because a supply (the actual supply ) is a supply of more than one of these kinds: (a) a supply of goods; (b) a supply of * real property; (c) a * telecommunication supply; (d) a supply of anything, other than goods or real property, that is not a telecommunication supply; only part of the actual supply is * connected with the indirect tax zone, then the actual supply is to be treated as if it were separate supplies in the following way. (2) The part of the actual supply that is * connected with the indirect tax zone is to be treated as if it were a separate supply that is connected with the indirect tax zone. (3) The part of the actual supply that is not * connected with the indirect tax zone is to be treated as if it were a separate supply that is not connected with the indirect tax zone. (4) However, if one of the kinds of supply that forms part of the actual supply may reasonably be regarded as incidental to: (a) the other kind of supply that forms part of the actual supply; or (b) one (but not both) of the other kinds of supply that form part of the actual supply; and its value (if it were a separate * taxable supply) would not exceed $50,000, it is treated as part of that other kind of supply. (5) This section has effect despite section 9 ‑ 25 (which is about when supplies are connected with the indirect tax zone).

Amendment history: Amended by No 177 of 1999, Sch 6 item 97, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 2 of 2015, Sch 4 item 29 | Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 96-10 — The value of the taxable components of supplies that are only partly connected with the indirect tax zone

(1) If a supply (the actual supply ): (a) is, because of section 96 ‑ 5, to be treated as separate supplies; and (b) the part of the actual supply that is * connected with the indirect tax zone is a * taxable supply, or is partly a * taxable supply and partly a supply that is * GST ‑ free or * input taxed; the value of that part of the actual supply is worked out as follows: (c) work out the value of the actual supply, under section 9 ‑ 75, as if it were solely a taxable supply; and (d) work out the proportion of that value of the actual supply that the taxable supply represents; and (e) multiply that value by the proportion in paragraph (d). (2) If that part of the actual supply is partly a * taxable supply and partly a supply that is * GST ‑ free or * input taxed, this section does not affect the operation of section 9 ‑ 80 in working out the value of so much of that part of the actual supply as is a taxable supply. (3) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

Amendment history: Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 99-1 — What this Division is about

GST does not apply to the taking of a deposit as security for the performance of an obligation (unless the deposit is forfeited or is applied as consideration). GST is not attributable prior to forfeiture.

s 99-5 — Giving a deposit as security does not constitute consideration

(1) A deposit held as security for the performance of an obligation is not treated as * consideration for a supply, unless the deposit: (a) is forfeited because of a failure to perform the obligation; or (b) is applied as all or part of the consideration for a supply. (2) This section has effect despite section 9 ‑ 15 (which is about consideration).

s 99-10 — Attributing the GST relating to deposits that are forfeited etc.

(1) The GST payable by you on a * taxable supply for which the * consideration is a deposit that was held as security for the performance of an obligation is attributable to the tax period during which the deposit: (a) is forfeited because of a failure to perform the obligation; or (b) is applied as all or part of the consideration for a supply. (2) This section has effect despite section 29 ‑ 5 (which is about attributing GST for taxable supplies).

s 100-1 — What this Division is about

A supply of a voucher for supplies up to a stated monetary value is not subject to GST. GST may still be payable on the supply for which the voucher is redeemed, and there is an increasing adjustment for unredeemed vouchers. Note: Vouchers that do not have a stated monetary value can be subject to GST when supplied, but the price of the voucher is excluded when working out the GST on the supply for which the voucher is redeemed (see subsection 9 ‑ 17(1)).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 32 of 2006, Sch 4 item 2, effective 6 Apr 2006 | Amended by No 75 of 2012, Sch 2 item 11, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 100-5 — Supplies of vouchers with a stated monetary value

(1) A supply of a * voucher is not a * taxable supply if: (a) on redemption of the voucher, the holder of the voucher is entitled to supplies up to the * stated monetary value of the voucher; and (b) the * consideration for supply of the voucher does not exceed the stated monetary value of the voucher. (2) If the * consideration for supply of the voucher exceeds the * stated monetary value of the voucher, the consideration is treated (except for the purposes of this section) as if it were reduced by that monetary value. (2A) The stated monetary value , in relation to a * voucher other than a * prepaid phone card or facility, means the monetary value stated on the voucher or in documents accompanying the voucher. (2B) The stated monetary value , in relation to a * voucher that is a * prepaid phone card or facility, means the sum of: (a) in any case—the monetary value stated on the voucher or in documents accompanying the voucher; and (b) if the voucher is topped up after it is supplied—the monetary value of the top ‑ up stated on the voucher or in documents accompanying the top ‑ up. However, disregard the monetary value stated on the voucher (or in documents accompanying the voucher) or top ‑ up (as the case requires), of any bonus supplies covered by the voucher or top ‑ up (as the case requires). (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies) and section 9 ‑ 15 (which is about consideration).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 32 of 2006, Sch 4 item 3 | Sch 4 item 4 | Sch 4 item 5 | Sch 4 item 6 | Sch 4 item 7, effective 6 Apr 2006

s 100-10 — Redemption of vouchers

(1) The act of redeeming a * voucher is not a supply. Note: A supply for which the voucher is redeemed is still a supply. (2) Subsection (1) has effect despite section 9 ‑ 10 (which is about what is a supply). (3) Subsection 9 ‑ 17(1) (which is about the consideration for exercising rights or options) does not apply to a right or option that is granted by way of a * voucher if, on redemption of the voucher, the holder of the voucher is entitled to supplies up to the * stated monetary value of the voucher.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 32 of 2006, Sch 4 item 8 | Sch 4 item 9, effective 6 Apr 2006 | Amended by No 75 of 2012, Sch 2 item 12, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 100-12 — Consideration on redemption of vouchers

(1) To avoid doubt, the consideration for a * taxable supply of a thing acquired by fully redeeming a * voucher is taken to be the sum of: (a) the * stated monetary value of the voucher, reduced by any amount of that value refunded to the holder of the voucher in respect of the supply; and (b) any additional consideration provided for the supply. (2) To avoid doubt, the consideration for a * taxable supply of a thing acquired by partly redeeming a * voucher is taken to be the sum of: (a) the amount of the * stated monetary value of the voucher that the redemption represents; and (b) any additional consideration provided for the supply. (3) Subsections (1) and (2) have effect despite section 9 ‑ 15 (which is about consideration).

Amendment history: Inserted by No 32 of 2006, effective 6 Apr 2006

s 100-15 — Increasing adjustments for unredeemed vouchers

(1) You have an increasing adjustment if: (a) you supplied a * voucher for * consideration; and (b) on redemption of the voucher, the holder of the voucher was entitled to supplies up to the * stated monetary value of the voucher; and (c) the voucher has not been fully redeemed; and (d) you have, for accounting purposes, written back to current income any reserves for the redemption of the voucher. (2) The amount of the increasing adjustment is 1/11 of the * stated monetary value of the voucher to the extent that it was not redeemed.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 135 | Sch 6 item 24A, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 32 of 2006, Sch 4 item 10 | Sch 4 item 11 | Sch 4 item 12 | Sch 4 item 13, effective 6 Apr 2006

s 100-18 — Arrangement for supply of voucher

(1) An entity (the supplier ) may, in writing, enter into an arrangement with another entity under which the other entity supplies (whether or not as an agent on the supplier’s behalf) a * voucher to a third party. (2) If, under the arrangement, the supplier pays, or is liable to pay, an amount, as a commission or similar payment, to the other entity for the other entity’s supply, the supply by the other entity to the supplier, to which the supplier’s payment or liability relates, is treated as if it were not a * taxable supply. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 32 of 2006, effective 6 Apr 2006

s 100-20 — Vouchers supplied to non ‑ residents and redeemed by others in the indirect tax zone

This Division does not apply to a * voucher supplied to a * non ‑ resident if, because of the application of subsection 38 ‑ 190(3), the supply is not * GST ‑ free.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 100-25 — Meaning of voucher etc.

(1) A voucher is any: (a) voucher, token, stamp, coupon or similar article; or (b) * prepaid phone card or facility; the redemption of which in accordance with its terms entitles the holder to receive supplies in accordance with its terms. However, a postage stamp is not a voucher. (2) A prepaid phone card or facility is any article or facility supplied for the primary purpose of enabling the holder: (a) to use, on a prepaid basis, telephone or like services supplied by a supplier of * telecommunications supplies; or (b) to make, on a prepaid basis, acquisitions that are facilitated by using telephone or like services supplied by such a supplier.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 162, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Repealed and substituted by No 32 of 2006, Sch 4 item 14 | Sch 4 item 16 | Sch 4 item 19, effective 6 Apr 2006

s 102-1 — What this Division is about

If a lay ‑ by sale is cancelled, any amount retained or recovered by the supplier is within the GST system.

s 102-5 — Cancelled lay ‑ by sales

(1) If a supply by way of lay ‑ by sale is cancelled: (a) any amount already paid by the * recipient that the supplier retains because of the cancellation; and (b) any amount the supplier recovers from the recipient because of the cancellation; is treated as * consideration for a supply made by the supplier and as consideration for an acquisition made by the recipient. (2) This section has effect despite section 9 ‑ 15 (which is about what is consideration).

s 102-10 — Attributing GST and input tax credits

(1) If an amount is retained or recovered in circumstances referred to in section 102 ‑ 5: (a) the GST payable by you on a * taxable supply for which the amount is * consideration; or (b) the input tax credit to which you are entitled for a * creditable acquisition for which the amount is consideration; is attributable to the tax period during which the amount was retained or recovered, as the case requires. (2) This section has effect despite sections 29 ‑ 5 and 29 ‑ 10 (which are about attributing GST for taxable supplies and input tax credits for creditable acquisitions).

s 105-1 — What this Division is about

This Division makes a creditor liable for GST on supplies of a debtor’s property where the supply is in satisfaction of a debt owed to the creditor. Note: This Division overrides Division 58 to the extent that the creditor is a representative of the debtor and the debtor is an incapacitated entity (see section 58 ‑ 95).

Amendment history: Amended by No 142 of 2012, Sch 2 item 3, effective Sch 2: 28 Sept 2012 (s 2(1) item 2)

s 105-5 — Supplies by creditors in satisfaction of debts may be taxable supplies

(1) You make a taxable supply if: (a) you supply the property of another entity (the debtor ) to a third entity in or towards the satisfaction of a debt that the debtor owes to you; and (b) had the debtor made the supply, the supply would have been a * taxable supply. (2) It does not matter whether: (a) you made the supply in the course or furtherance of an * enterprise that you * carry on; or (b) you are * registered, or * required to be registered. (3) However, the supply is not a * taxable supply if: (a) the debtor has given you a written notice stating that the supply would not be a taxable supply if the debtor were to make it, and stating fully the reasons why the supply would not be a taxable supply; or (b) if you cannot obtain such a notice—you believe on the basis of reasonable information that the supply would not be a taxable supply if the debtor were to make it. (4) This section has effect despite section 9 ‑ 5 (which is about what is a taxable supply).

s 105-10 — Net amounts

(1) If you are not * registered or * required to be registered, you do not have a * net amount under Part 2 ‑ 4 merely because you make a * taxable supply under section 105 ‑ 5. (2) This section does not prevent an * adjustment arising that relates to such a supply, but you cannot have a * decreasing adjustment unless you are * registered or * required to be registered. (3) This section has effect despite Division 17 (which is about net amounts and adjustments).

s 105-15 — GST returns

(1) If, during a month: (a) you make any * taxable supplies under section 105 ‑ 5; or (b) you have any * increasing adjustments that arise in relation to any such supplies (whether made in that month or a previous month); and you are not * registered or * required to be registered during that month, you must give to the Commissioner a * GST return, within 21 days after the end of the month, relating to those supplies you made in that month and those adjustments. (3) This section has effect despite sections 31 ‑ 5 and 31 ‑ 10 (which are about giving GST returns).

Amendment history: Amended by No 73 of 2001, Sch 5 item 18 | Sch 5 item 19, effective Schedule 1 (items 69–78): 23 May 2001 Schedule 2 (items 48–52): 1 Jan 2001 Schedule 3 (items 34–36): 1 Apr 2001 Remainder: Royal Assent

s 105-20 — Payments of GST

(1) If you are not * registered or * required to be registered during a particular month, you must pay to the Commissioner: (a) amounts of * assessed GST on * taxable supplies under section 105 ‑ 5 that you make during that month; and (b) * assessed amounts of * increasing adjustments that you have that arise, during that month, in relation to supplies that are taxable supplies under section 105 ‑ 5. (1A) You must pay each amount: (a) on or before the later of: (i) the 21st day after the end of the month; and (ii) the day the Commissioner gives notice of the relevant * assessment to you under section 155 ‑ 10 in Schedule 1 to the Taxation Administration Act 1953 ; and (b) at the place and in the manner specified by the Commissioner. (2) This section has effect despite Division 33 (which is about payments of GST).

Amendment history: Amended by No 39 of 2012, Sch 1 item 85 | Sch 1 item 241, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 108-1 — What this Division is about

Taxable supplies of goods in bond are given a higher value than would otherwise apply, because the price of a supply in bond does not include any excise duty that would be included after entry of the goods for home consumption.

Amendment history: Amended by No 176 of 1999, Sch 1 item 98, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b))

s 108-5 — Taxable supplies of goods in bond etc.

(1) The value of a * taxable supply of * excisable goods that are in bond is the sum of: (a) the value of the supply worked out in the way set out in section 9 ‑ 75; and (b) the amount of * excise duty to which the goods would have been subject if they had been entered for home consumption under the Excise Act 1901 at the time the supply first became a supply * connected with the indirect tax zone. (2) However, this section does not apply to a supply of goods to a * recipient who: (a) is * registered or * required to be registered; and (b) acquires the goods solely for a * creditable purpose. (3) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

Amendment history: Amended by No 176 of 1999, Sch 1 item 99 | Sch 1 item 100, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 110-1 — What this Division is about

Some transactions that relate to aspects of income tax and other taxes are outside the GST system.

Amendment history: Inserted by No 97 of 2002, effective Schedule 1 (items 1–6, 9–11, 14–16, 19): Royal Assent | Amended by No 74 of 2010, Sch 1 item 53 | Sch 1 item 54, effective Schedule 1 (items 1–40, 43–55, 63) and Schedule 3: Royal Assent Schedule 2 (items 1–5): 1 July 2010

s 110-5 — Transfers of tax losses and net capital losses

(1) A supply is not a * taxable supply if the supply is: (a) the transfer of a * tax loss in accordance with Subdivision 170 ‑ A of the * ITAA 1997; or (b) the transfer of a * net capital loss in accordance with Subdivision 170 ‑ B of the ITAA 1997. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 97 of 2002, effective Schedule 1 (items 1–6, 9–11, 14–16, 19): Royal Assent

s 110-15 — Supplies under operation of consolidated group regime

(1) A supply is not a * taxable supply to the extent that it occurs because of the operation of these provisions: (a) Part 3 ‑ 90 of the * ITAA 1997; (b) Part 3 ‑ 90 of the Income Tax (Transitional Provisions) Act 1997 . (2) Without limiting the scope of subsection (1), for the purposes of that subsection, the operation mentioned in that subsection includes an operation that results from: (a) a choice made under the provisions mentioned in that subsection; or (b) any other voluntary action provided for by those provisions. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 101 of 2004, effective Schedule 6: Royal Assent

s 110-20 — Tax sharing agreements—entering into agreement etc.

(1) This section applies if: (a) an entity makes a supply because it enters into or becomes a party to an agreement; and (b) the agreement satisfies the requirements of subsections 721 ‑ 25(1) and (2) of the * ITAA 1997 in relation to an existing or future * group liability of the * head company of a * consolidated group or * MEC group. (2) The supply is not a * taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 101 of 2004, effective Schedule 6: Royal Assent

s 110-25 — Tax sharing agreements—leaving group clear of group liability

(1) A supply made to a * TSA contributing member of a * consolidated group or a * MEC group is not a * taxable supply if: (a) the supply is a release from an obligation relating to a * contribution amount in relation to a * group liability of the * head company of the group; and Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined. (b) the TSA contributing member has, for the purposes of subsection 721 ‑ 30(3) of the * ITAA 1997, left the group clear of the group liability. Note: See section 721 ‑ 35 of the ITAA 1997 for when a TSA contributing member has left a group clear of the group liability. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 101 of 2004, effective Schedule 6: Royal Assent

s 110-30 — Tax funding agreements

(1) This section applies if: (a) an entity makes a supply because it enters into or becomes a party to a written agreement; and (b) the agreement deals with the distribution of economic burdens and benefits directly related to * tax ‑ related liabilities mentioned in subsection 721 ‑ 10(2) of the * ITAA 1997 of the * head company of a * consolidated group or * MEC group, among * members and former members of the group; and (c) if the group is not in existence when the entity enters into or becomes a party to the agreement—the agreement contemplates that the parties to the agreement will become members of the group when it does come into existence; and (d) the agreement complies with the requirements (if any) set out in the regulations. (2) The supply is not a * taxable supply to the extent that it relates to the fact that the agreement deals with the distribution mentioned in paragraph (1)(b). (3) Without limiting paragraph (1)(b), the agreement deals with the distribution mentioned in that paragraph if it includes one or more of the following kinds of provisions: (a) provisions for * members or former members of the group to contribute towards payment of * tax ‑ related liabilities mentioned in subsection 721 ‑ 10(2) of the * ITAA 1997 of the * head company of the group; (b) provisions for payments to be made to a member or former member of the group in recognition of activities or attributes of that member that have the effect of reducing the amount of those liabilities. (4) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 101 of 2004, effective Schedule 6: Royal Assent

s 110-60 — Indirect tax sharing agreements—entering into agreement etc.

(1) This section applies if: (a) an entity makes a supply because it enters into or becomes a party to an agreement; and (b) the agreement: (i) satisfies the requirements of subsections 444 ‑ 90(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444 ‑ 90(1) in that Schedule; or (ii) satisfies the requirements of subsections 444 ‑ 80(1A) to (1E) in Schedule 1 to the Taxation Administration Act 1953 in relation to an indirect tax amount referred to in subsection 444 ‑ 80(1) in that Schedule. (2) The supply is not a * taxable supply to the extent that it relates to the fact that the agreement satisfies those requirements. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 74 of 2010, effective Schedule 1 (items 1–40, 43–55, 63) and Schedule 3: Royal Assent Schedule 2 (items 1–5): 1 July 2010

s 110-65 — Indirect tax sharing agreements—leaving GST group or GST joint venture clear of liability

(1) A supply made to a contributing member (within the meaning of subsection 444 ‑ 90(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST group is not a * taxable supply if: (a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * representative member of the group that are referred to in that subsection; and Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined. (b) the contributing member leaves the group in circumstances in which subsection 444 ‑ 90(1B) in that Schedule applies to the contributing member. (2) A supply made to a contributing participant (within the meaning of subsection 444 ‑ 80(1A) in Schedule 1 to the Taxation Administration Act 1953 ) of a * GST joint venture is not a * taxable supply if: (a) the supply is a release from an obligation relating to a contribution amount (within the meaning of that subsection) relating to liabilities of the * joint venture operator of the joint venture that are referred to in that subsection; and Example: The obligation could be a contractual obligation created by the agreement under which the contribution amount was determined. (b) the contributing participant leaves the joint venture in circumstances in which subsection 444 ‑ 80(1B) in that Schedule applies to the contributing participant. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 74 of 2010, effective Schedule 1 (items 1–40, 43–55, 63) and Schedule 3: Royal Assent Schedule 2 (items 1–5): 1 July 2010

s 111-1 — What this Division is about

You may be entitled to input tax credits for some reimbursements you make to employees (or associates of employees), agents, officers or partners for expenses they incur. The entitlement extends to charitable bodies and government schools reimbursing their volunteers.

Amendment history: Amended by No 92 of 2000, Sch 1 item 6, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Amended by No 156 of 2000, Sch 3 item 17, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 111-5 — Creditable acquisitions relating to reimbursements

(1) If one or more of the following applies: (a) you reimburse an employee or agent for an expense he or she incurs that is related directly to his or her activities as your employee or agent; (ab) you reimburse an employee (whether or not you are the employee’s employer) for an expense that the employee or the employee’s * associate incurs, and the reimbursement constitutes an * expense payment benefit; (ac) you reimburse an associate of an employee (whether or not you are the employee’s employer) for an expense that the associate or employee incurs, and the reimbursement constitutes an expense payment benefit; (b) you are a * company and you reimburse an * officer for an expense he or she incurs that is related directly to his or her activities as your officer; (c) you are a * partnership and you reimburse a partner for an expense he or she incurs that is related directly to his or her activities as a partner in the partnership; the reimbursement is treated as * consideration for an acquisition that you make from the employee, associate, agent, officer or partner. Note: This section also applies if you reimburse the recipient of certain withholding payments: see section 111 ‑ 20. (2) The fact that the supply to you is not a * taxable supply does not stop the acquisition being a * creditable acquisition. (3) However, the acquisition is not a * creditable acquisition: (a) to the extent (if any) that: (i) the employee, * associate, agent, * officer or partner is entitled to an input tax credit for acquiring the thing acquired in incurring the expense; or (ii) the acquisition would not, because of Division 69, be a creditable acquisition if you made it; or (b) unless the supply of the thing acquired, by the employee, associate, agent, officer or partner in incurring the expense, was a taxable supply; or (c) if you would, because of Division 71, not have been entitled to an input tax credit if you had made the acquisition that the employee, associate, agent, officer or partner made. (3AA) In working out the extent to which a person is entitled to an input tax credit for the purposes of paragraph (3)(a), disregard sections 131 ‑ 40 and 131 ‑ 50 (which are about amounts of input tax credits under the annual apportionment rules). (3A) If you are a * partnership, this section does not apply to your reimbursement of a partner for an expense he or she incurs if, even without this Division applying, you are entitled to an input tax credit arising from the incurring of the expense. (4) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Amended by No 178 of 1999, Sch 1 item 55 | Sch 1 item 56 | Sch 1 item 57 | Sch 1 item 58 | Sch 1 item 59 | Sch 1 item 60, effective Sch 1 (items 50–69): 22 Dec 1999 (s 2(1)) | Amended by No 92 of 2000, Sch 11 item 11A, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Amended by No 156 of 2000, Sch 3 item 18 | Sch 3 item 19 | Sch 3 item 20 | Sch 3 item 21 | Sch 3 item 22 | Sch 3 item 23 | Sch 3 item 24 | Sch 3 item 25 | Sch 3 item 111, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 110 of 2014, Sch 5 item 92, effective Sch 5 (items 1–6, 92, 93): 16 Oct 2014 (s 2(1) items 4, 7)

s 111-10 — Amounts of input tax credits relating to reimbursements

(1) The amount of the input tax credit for a * creditable acquisition the * consideration for which is a reimbursement to which section 111 ‑ 5 applies is an amount equal to 1 / 11 of the amount of the reimbursement. (2) However, if: (a) the person incurring the expense incurs it in the capacity of an agent, * officer or partner; and (b) the incurring of the expense is only in part related directly to his or her activities as your agent or officer, or as a partner, as the case requires; the amount of the input tax credit under subsection (1) is reduced by an extent equivalent to the extent to which the incurring of the expense is not related directly to those activities. (3) This section has effect despite section 11 ‑ 25 (which is about the amount of input tax credits for creditable acquisitions).

Amendment history: Amended by No 178 of 1999, Sch 1 item 61 | Sch 1 item 62, effective Sch 1 (items 50–69): 22 Dec 1999 (s 2(1)) | Amended by No 156 of 2000, Sch 3 item 26, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 111-15 — Tax invoices relating to reimbursements

For the purposes of subsection 29 ‑ 10(3), you are taken to hold a * tax invoice for a * creditable acquisition the * consideration for which is a reimbursement to which section 111 ‑ 5 applies if you hold a tax invoice for the * taxable supply referred to in subsection 111 ‑ 5(3).

s 111-18 — Application of Division to volunteers working for charities etc.

(1) If: (a) an * endorsed charity, a * gift ‑ deductible entity or a * government school reimburses an individual for an expense he or she incurs; and (b) the expense is directly related to his or her activities as a volunteer of the endorsed charity, gift ‑ deductible entity or government school; this Division applies to the endorsed charity, gift ‑ deductible entity or government school as if: (c) the individual were an employee of the endorsed charity, gift ‑ deductible entity or government school; and (d) his or her activities in connection with incurring the expense were activities as such an employee. (3) Subsection (1) does not apply in relation to a reimbursement by a * gift ‑ deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 ‑ 120 of the ITAA 1997, unless: (a) the entity is: (i) an * endorsed charity; or (ii) a * government school; or (iii) a fund, authority or institution of a kind referred to in paragraph 30 ‑ 125(1)(b) of the ITAA 1997; or (b) each purpose to which the expense relates is a * gift ‑ deductible purpose of the entity. Note: This subsection excludes from this section reimbursements by certain (but not all) gift ‑ deductible entities that are only endorsed for the operation of a fund, authority or institution. However, reimbursements can be covered by this section if they relate to the principal purpose of the fund, authority or institution.

Amendment history: Inserted by No 92 of 2000, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Amended by No 95 of 2004, effective Schedule 10 (items 4–17, 42, 44(1), (2)): 1 July 2005 | Amended by No 80 of 2006, Sch 12 item 12, effective Schedule 10 (items 3–5): 1 July 2005 Schedules 12 and 15: Royal Assent | Amended by No 169 of 2012, Sch 2 item 101 | Sch 2 item 102 | Sch 2 item 103 | Sch 2 item 104 | Sch 2 item 105 | Sch 2 item 106, effective Sch 2 (items 25, 69–130): 3 Dec 2012 (s 2(1) item 3)

s 111-20 — Application of Division to recipients of certain withholding payments

(1) If you make, or are liable to make, * withholding payments covered by subsection (2), this Division applies to you as if: (a) an individual to whom you make (or are liable to make) such payments were your employee; and (b) his or her activities in connection with earning such payments were activities as your employee. (2) This subsection covers a * withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table. Withholding payments covered Item Provision Subject matter 1 Section 12 ‑ 35 Payment to employee 2 Section 12 ‑ 40 Payment to company director 3 Section 12 ‑ 45 Payment to office holder 4 Section 12 ‑ 55 Voluntary agreement to withhold 5 Section 12 ‑ 60 Payment under labour hire arrangement, or specified by regulations

Amendment history: Inserted by No 178 of 1999, Sch 1 item 58, effective Sch 1 (items 50–69): 22 Dec 1999 (s 2(1))

s 111-25 — Employers paying expenses of employees etc.

If you make, or are liable to make: (a) a payment on behalf of your employee for an expense that he or she incurs that is related directly to his or her activities as your employee; or (b) a payment: (i) on behalf of an employee (whether or not you are the employee’s employer) for an expense that the employee or the employee’s * associate incurs; or (ii) on behalf of an associate of an employee (whether or not you are the employee’s employer) for an expense that the associate or employee incurs; that constitutes an * expense payment benefit; this Division applies to you as if you reimbursed your employee, or you reimbursed the employee or associate, for the expense.

Amendment history: Inserted by No 92 of 2000, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1)) | Repealed and substituted by No 156 of 2000, Sch 3 item 27 | Sch 3 item 111, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 111-30 — Reimbursements etc. of former or future employees etc.

This Division applies in relation to: (a) reimbursements, of a kind referred to in paragraph 111 ‑ 5(1)(ab) or (ac), of former employees and future employees, and of the * associates of former employees and future employees; and (b) payments, of a kind referred to in paragraph 111 ‑ 25(b), that you make or are liable to make on behalf of former employees and future employees, and of the * associates of former employees and future employees; in the same way that this Division applies to such reimbursements of, and such payments that you make or are liable to make to, employees and their associates.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 113-1 — What this Division is about

A supply is not a taxable supply if: (a) an amount must be withheld from payment for the supply because of section 12 ‑ 55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and (b) the acquisition of the thing supplied would be a creditable acquisition if the supply were a taxable supply.

Amendment history: Inserted by No 178 of 1999, effective Sch 1 (items 50–69): 22 Dec 1999 (s 2(1))

s 113-5 — Supply of work or services not a taxable supply

(1) A supply that you make is not a * taxable supply to the extent that you make it under an arrangement (within the meaning of the * ITAA 1997) if: (a) the arrangement the performance of which, in whole or in part, involves the performance of work or services (whether or not by you); and (b) an agreement is in force that: (i) complies with section 12 ‑ 55 in Schedule 1 to the Taxation Administration Act 1953 (about voluntary agreements to withhold); and (ii) states that the section covers payments under the arrangement, or payments under a series of arrangements that includes the arrangement; and (c) you, and the entity acquiring what you supply under the arrangement, are parties to that agreement; and (d) you have an * ABN that is in force and is quoted in the agreement; and (e) the acquisition, by that entity, of what you supply under the arrangement would be a * creditable acquisition (and not * partly creditable) if the supply were a * taxable supply. (2) This section has effect despite section 9 ‑ 5 (about what is a taxable supply.) A New Tax System (Goods and Services Tax) Act 1999 No. 55, 1999 Compilation No. 96 Compilation date: 1 January 2026 Includes amendments: Act No. 72, 2025 This compilation is in 2 volumes Volume 1: sections 1 ‑ 1 to 113 ‑ 5 Volume 2: sections 114 ‑ 1 to 195 ‑ 1 Schedules Endnotes Each volume has its own contents About this compilation This compilation This is a compilation of the A New Tax System (Goods and Services Tax) Act 1999 that shows the text of the law as amended and in force on 1 January 2026 (the compilation date ). The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). Application, saving and transitional provisions If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Presentational changes The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register. Self ‑ repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents

Amendment history: Inserted by No 178 of 1999, effective Sch 1 (items 50–69): 22 Dec 1999 (s 2(1)) | Amended by No 12 of 2012, Sch 6 item 69, effective Schedule 3: 1 July 2012 Schedule 4 and Schedule 6 (items 68–73, 184): Royal Assent Schedule 6 (items 97–105): 22 Mar 2012

s 114-1 — What this Division is about

This Division treats as taxable importations several kinds of importations of goods covered by the Customs Act 1901 , even though the goods are not entered for home consumption. An entity that enters for home consumption warehoused goods imported by someone else is entitled to any input tax credit for the importation.

Amendment history: Amended by No 92 of 2000, Sch 11 item 11C, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1))

s 114-5 — Importations without entry for home consumption

(1) You make a taxable importation if: (a) the circumstances referred to in the third column of the following table occur; and (b) you are referred to in the fourth column of the table as the importer in relation to those circumstances. However, there is not a taxable importation to the extent that the importation to which the circumstances relate is a * non ‑ taxable importation. Importations without entry for home consumption Item Topic Circumstance Importer 1 Personal or household effects of passengers or crew Goods of a kind referred to in paragraph 68(1)(d) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act. The person to whom the authorisation was granted. 2 Low value consignments by post Goods of a kind referred to in paragraph 68(1)(e) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act. The person to whom the authorisation was granted. 3 Other low value consignments Goods of a kind referred to in paragraph 68(1)(f) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act. The person to whom the authorisation was granted. 4 Other goods exempt from entry Goods of a kind referred to in paragraph 68(1)(i) of the Customs Act 1901 are delivered into home consumption in accordance with an authorisation under section 71 of that Act. The person to whom the authorisation was granted. 5 Like customable goods Goods are delivered into home consumption in accordance with a permission granted under section 69 of the Customs Act 1901 . The person to whom the permission was granted. 6 Special clearance goods Goods are delivered into home consumption in accordance with a permission granted under section 70 of the Customs Act 1901 . The person to whom the permission was granted. 10 Return of seized goods Goods that have been seized under a warrant issued under section 203 of the Customs Act 1901 , or under section 203B or 203C of that Act, are delivered to a person on the basis that they are not forfeited goods. The person to whom the goods are delivered. 13 Inwards duty free shops Goods that are * airport shop goods purchased from an * inwards duty free shop by a * relevant traveller are removed from a * customs clearance area. The relevant traveller. 15 Installations and goods on installations Goods are deemed by section 49B of the Customs Act 1901 to be imported into the indirect tax zone. The person who is the owner (within the meaning of the Customs Act 1901 ) of the goods when they are deemed to be so imported. 16 Goods not entered for home consumption when required Goods not covered by any other item of this table are imported into the indirect tax zone, and: (a) if they are required to be entered under section 68 of the Customs Act 1901 —they are not entered in accordance with that requirement; or (b) in any other case—a requirement under that Act relating to their importation has not been complied with The person who fails to comply with that requirement. (2) This section has effect despite section 13 ‑ 5.

Amendment history: Amended by No 176 of 1999, Sch 1 item 101 | Sch 1 item 102 | Sch 1 item 103 | Sch 1 item 104 | Sch 1 item 105 | Sch 1 item 106 | Sch 1 item 114, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 82 of 2002, Sch 6 item 8, effective Sch 3 (item 8): 19 July 2005 (s 2(1) item 5) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 114-10 — Goods that have already been entered for home consumption etc.

Once goods have been: (a) entered for home consumption within the meaning of the Customs Act 1901 ; or (b) taken to be imported because of the application of an item in the table in section 114 ‑ 5; they cannot subsequently be taken to be imported because of the application of an item in the table, unless they have been exported from the indirect tax zone since they were so entered or taken to be imported.

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 114-15 — Payments of amounts of assessed GST where security for payment of customs duty is forfeited

(1) If: (a) a circumstance relating to goods is an importation of the goods into the indirect tax zone because of an item of the table in section 114 ‑ 5; and (b) security has been given under the Customs Act 1901 for payment of * customs duty in respect of the goods; and (c) the security is forfeited; any * assessed GST payable on the importation is to be paid when the security is forfeited. (2) This section has effect despite section 33 ‑ 15 (which is about payments of amounts of assessed GST on importations).

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Repealed and substituted by No 39 of 2012, Sch 1 item 86, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 114-20 — Payments of amounts of assessed GST where delivery into home consumption is authorised under section 71 of the Customs Act

(1) If: (a) the delivery of goods into home consumption in accordance with an authorisation under section 71 of the Customs Act 1901 is an importation into the indirect tax zone because of item 1, 2, 3 or 4 of the table in section 114 ‑ 5; and (b) information was provided under section 71 of that Act in connection with the granting of the authorisation; any * assessed GST payable on the importation is to be paid when the information was provided/on or before the granting of the authorisation. (2) This section has effect despite sections 33 ‑ 15 (which is about payments of amounts of assessed GST on importations) and 114 ‑ 15.

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Repealed and substituted by No 39 of 2012, Sch 1 item 87, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 114-25 — Warehoused goods entered for home consumption by an entity other than the importer

(1) If you enter for home consumption (within the meaning of the Customs Act 1901 ) goods that are warehoused goods (within the meaning of that Act) and that were imported by another person: (a) you are treated, for the purposes of Division 15, as having imported the goods; and (b) the extent (if any) to which you entered the goods for home consumption for a * creditable purpose is treated as the extent (if any) to which you imported the goods for a creditable purpose. (2) This section has effect despite Division 15 (which is about creditable importations).

Amendment history: Inserted by No 92 of 2000, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1))

s 117-1 — What this Division is about

Taxable importations of goods that were exported, and then re ‑ imported, are in some cases given a lower value than would otherwise apply. The GST then applies only to the lower value, and not to the entire value, of the goods.

Amendment history: Repealed and substituted by No 156 of 2000, Sch 2 item 7, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 117-5 — Valuation of taxable importations of goods that were exported for repair or renovation

(1) The value of a * taxable importation of goods that were exported from the indirect tax zone for repair or renovation, or that are part of a * batch repair process, is the sum of: (a) the cost, as determined by the * Comptroller ‑ General of Customs, of materials, labour and other charges involved in the repair or renovation; and (b) the amount paid or payable: (i) for the * international transport of the goods to their * place of consignment in the indirect tax zone; and (ii) to insure the goods for that transport; to the extent that the amount is not already included under paragraph (a); and (ba) the amount paid or payable for a supply to which item 5A in the table in subsection 38 ‑ 355(1) applies, to the extent that the amount: (i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of * consideration; and Note: Division 81 excludes certain taxes, fees and charges from the provision of consideration. (ii) is not already included under paragraph (a) or (b); and (c) any * customs duty payable in respect of the importation of the goods. (1A) If an amount to be taken into account under paragraph (1)(b) or (ba) is not an amount in Australian currency, the amount so taken into account is the equivalent in Australian currency of that amount, ascertained in the way provided in section 161J of the Customs Act 1901 . (2) Goods are part of a batch repair process if: (a) they are part of a process to replace goods that were exported from the indirect tax zone for repair or renovation; and (b) they are not new or upgraded versions of the exported goods; and (c) they are not replacing goods that have reached the end of their effective operational life. (3) This section has effect despite subsection 13 ‑ 20(2) (which is about the value of taxable importations).

Amendment history: Amended by No 176 of 1999, Sch 1 item 108 | Sch 1 item 109, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 156 of 2000, Sch 2 item 8, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 33 of 2009, Sch 2 item 3, effective Schedule 2 (item 3): 23 May 2009 | Amended by No 91 of 2010, Sch 1 item 10 | Sch 1 item 11, effective 29 June 2010 | Amended by No 41 of 2011, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6) | Amended by No 41 of 2015, Sch 6 item 1 | Sch 6 item 2, effective Sch 6 (items 1, 2) and Sch 9: 1 July 2015 (s 2(1) item 2) | Amended by No 77 of 2017, Sch 1 item 43, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 117-10 — Valuation of taxable importations of live animals that were exported

(1) If there is a * taxable importation of a live animal that was exported, and the difference between: (a) what would have been the value of the importation if this section did not apply; and (b) what would have been the value of a taxable importation of the animal if it had been imported immediately before the time of the exportation; is greater than zero, the value of the * taxable importation is an amount equal to that difference. (2) In any other case, the value of a * taxable importation of a live animal that was exported is nil. (3) However, this section does not apply if the ownership of the animal when it is imported is different from its ownership when it was last exported. (4) This section has effect despite subsection 13 ‑ 20(2) (which is about the value of taxable importations).

Amendment history: Repealed by No 176 of 1999, Sch 1 item 110, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Inserted by No 156 of 2000, Sch 2 item 117, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 117-15 — Refunds of assessed GST on certain reimportations of live animals

(1) If: (a) you were liable to pay the * assessed GST on a * taxable importation to which section 117 ‑ 10 applied; and (b) the importation was not a * creditable importation; and (c) the circumstances specified in the regulations occur; the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to the amount of the assessed GST payable on the taxable importation. (2) The amount is payable within the period and in the manner specified in the regulations.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 39 of 2012, Sch 1 item 88 | Sch 1 item 89 | Sch 1 item 90, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 123-1 — What this Division is about

The Commissioner can create simplified accounting methods that some retailers and small enterprise entities can choose to apply with a view to reducing their costs of complying with the requirements of the GST.

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 112 of 2007, Sch 1 item 4, effective 28 June 2007

s 123-5 — Commissioner may determine simplified accounting methods

(1) The Commissioner may determine in writing an arrangement (to be known as a simplified accounting method) that: (a) specifies the kinds of * retailers to whom it is available and provides a method for working out * net amounts of retailers to whom the method applies; or (b) specifies the kinds of * small enterprise entities to whom it is available and provides a method for working out * net amounts of small enterprise entities to whom the method applies. (2) The kinds of * retailer specified under paragraph (1)(a) must all be kinds of retailers that: (a) sell * food; or (b) make supplies that are * GST ‑ free under Subdivision 38 ‑ G (Non ‑ commercial activities of charities etc.); in the course or furtherance of * carrying on their * enterprise. (3) The kinds of * small enterprise entities specified under paragraph (1)(b) must all be kinds of small enterprise entities that, in the course or furtherance of * carrying on their * enterprises: (a) make both: (i) * taxable supplies; and (ii) supplies that are * GST ‑ free; or (b) make both: (i) * creditable acquisitions; and (ii) acquisitions that are not creditable acquisitions because the supplies, made to the small enterprise entities, to which the acquisitions relate are GST ‑ free.

Amendment history: Inserted by No 176 of 1999, Sch 1 item 159, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 112 of 2007, Sch 1 item 6 | Sch 1 item 7, effective 28 June 2007 | Amended by No 169 of 2012, Sch 2 item 108, effective Sch 2 (items 25, 69–130): 3 Dec 2012 (s 2(1) item 3)

s 123-7 — Meaning of small enterprise entity

(1) An entity is a small enterprise entity at a particular time if: (a) the entity is a * small business entity (other than because of subsection 328 ‑ 110(4) of the * ITAA 1997) for the * income year in which the time occurs; or (aa) the entity is an entity covered by subsection (1A) for the income year in which the time occurs; or (b) at that time, the entity does not carry on a business and its * GST turnover does not exceed the * small enterprise turnover threshold. (1A) An entity is covered by this subsection for an * income year if: (a) the entity is not a * small business entity (other than because of subsection 328 ‑ 110(4) of the * ITAA 1997) for the income year; and (b) the entity would be such a small business entity for the income year if: (i) each reference in Subdivision 328 ‑ C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and (ii) the reference in paragraph 328 ‑ 110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection. (2) The small enterprise turnover threshold is $2 million.

Amendment history: Inserted by No 112 of 2007, Sch 1 item 14 | Sch 1 item 16 | Sch 1 item 17, effective 28 June 2007 | Amended by No 92 of 2020, Sch 3 item 1 | Sch 3 item 2, effective Sch 3 (items 1, 2, 40): 1 Jan 2021 (s 2(1) item 7)

s 123-10 — Choosing to apply a simplified accounting method

(1) You may, by notifying the Commissioner in the * approved form: (a) choose to apply a * simplified accounting method if you are a * retailer of the kind to whom the method is available; or (aa) choose to apply a * simplified accounting method if you are a * small enterprise entity of the kind to whom the method is available; or (b) revoke your choice under paragraph (a) or (aa). (2) However, you: (a) cannot revoke the choice within 12 months after the day on which you made the choice; and (b) cannot make a further choice as a * retailer within 12 months after the day on which you revoked a previous choice as a retailer; and (ba) cannot make a further choice as a * small enterprise entity within 12 months after the day on which you revoked a previous choice as a small enterprise entity; and (c) cannot choose to apply a * simplified accounting method in addition to another simplified accounting method. (3) Your choice to apply a * simplified accounting method has effect from the start of the tax period specified in your notice. (4) Your choice to apply a * simplified accounting method ceases to have effect: (a) if you made your choice as a * retailer and cease to be a retailer of the kind to whom the method is available—from the start of the tax period occurring after the day on which you cease to be such a retailer; or (aa) if you made your choice as a * small enterprise entity and cease to be a small enterprise entity of the kind to whom the method is available—from the start of the tax period occurring after the day on which you cease to be such a small enterprise entity; or (b) if you revoke your choice to apply the method—from the start of the tax period specified in your notice of revocation.

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 112 of 2007, Sch 1 item 8 | Sch 1 item 9 | Sch 1 item 10 | Sch 1 item 11 | Sch 1 item 12, effective 28 June 2007

s 123-15 — Net amounts

(1) If you are a * retailer or a * small enterprise entity who has chosen to apply a * simplified accounting method, the net amount for a tax period during which the choice has effect is worked out using the method provided for by the simplified accounting method. (1A) However, the * net amount worked out under subsection (1) for the tax period: (a) may be increased or decreased under Subdivision 21 ‑ A of the * Wine Tax Act; and (b) may be increased or decreased under Subdivision 13 ‑ A of the A New Tax System (Luxury Car Tax) Act 1999 . Note 1: Under Subdivision 21 ‑ A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount. Note 2: Under Subdivision 13 ‑ A of the A New Tax System (Luxury Car Tax) Act 1999 , amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount. (2) This section has effect despite section 17 ‑ 5 (which is about net amounts).

Amendment history: Inserted by No 176 of 1999, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 112 of 2007, Sch 1 item 13, effective 28 June 2007 | Amended by No 39 of 2012, Sch 3 item 2 | Sch 3 item 3 | Sch 3 item 4 | Sch 3 item 7, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 126-1 — What this Division is about

Gambling is dealt with under the GST by using a global accounting system that provides for an alternative way of working out your net amounts by incorporating your net profits from taxable supplies involving gambling.

s 126-5 — Global accounting system for gambling supplies

(1) If you are liable for the GST on a * gambling supply, your net amount for the tax period to which the GST on the supply is attributable is as follows: where: global GST amount is your * global GST amount for the tax period. input tax credits is the sum of all of the input tax credits to which you are entitled on the * creditable acquisitions and * creditable importations that are attributable to the tax period. Note: Any supplies under the global accounting system will not have attracted input tax credits. other GST is the sum of all of the GST for which you are liable on the * taxable supplies that are attributable to the tax period, other than * gambling supplies. For the basic rules on what is attributable to a particular period, see Division 29. (2) However, the * net amount worked out under subsection (1) for the tax period: (a) may be increased or decreased if you have any * adjustments for the tax period; and (b) may be increased or decreased under Subdivision 21 ‑ A of the * Wine Tax Act; and (c) may be increased or decreased under Subdivision 13 ‑ A of the A New Tax System (Luxury Car Tax) Act 1999 . Note 1: See Part 2 ‑ 4 for the basic rules on adjustments. Note 2: Under Subdivision 21 ‑ A of the Wine Tax Act, amounts of wine tax increase the net amount, and amounts of wine tax credits reduce the net amount. Note 3: Under Subdivision 13 ‑ A of the A New Tax System (Luxury Car Tax) Act 1999 , amounts of luxury car tax increase the net amount, and luxury car tax adjustments alter the net amount. (3) This section has effect despite section 17 ‑ 5 (which is about net amounts). Note: If you are a * GST instalment payer your net amount is reduced by GST instalments you have paid: see section 162 ‑ 105.

Amendment history: Amended by No 73 of 2001, Sch 5 item 28, effective Schedule 1 (items 69–78): 23 May 2001 Schedule 2 (items 48–52): 1 Jan 2001 Schedule 3 (items 34–36): 1 Apr 2001 Remainder: Royal Assent | Amended by No 39 of 2012, Sch 3 item 5 | Sch 3 item 7, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8)

s 126-10 — Global GST amounts

(1) Your global GST amount for a tax period is as follows: where: total amounts wagered is the sum of the * consideration for all of your * gambling supplies that are attributable to that tax period. total monetary prizes is the sum of: (a) the * monetary prizes you are liable to pay, during the tax period, on the outcome of gambling events (whether or not any of those gambling events, or the * gambling supplies to which the monetary prizes relate, take place during the tax period); and (b) any amounts of * money or * digital currency you are liable to pay, during the tax period, under agreements between you and * recipients of your gambling supplies, to repay to them a proportion of their losses relating to those supplies (whether or not the supplies take place during the tax period). For the basic rules on what is attributable to a particular period, see Division 29. (2) However, your global GST amount is zero for any tax period in which total monetary prizes exceeds total amounts wagered. (3) In working out the total monetary prizes for a tax period, disregard any * monetary prizes you are liable to pay, during the tax period, that relate to supplies that are * GST ‑ free. (4) Your global GST amount for a tax period may be affected by sections 126 ‑ 15 and 126 ‑ 20.

Amendment history: Amended by No 58 of 2006, Sch 7 item 3, effective Schedule 7 (items 2–15, 220–226): Royal Assent | Amended by No 20 of 2010, Sch 4 item 1, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Amended by No 118 of 2017, Sch 1 item 19, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 126-15 — Losses carried forward

If, for any tax period, your total monetary prizes referred to in subsection 126 ‑ 10(1) exceed your total amounts wagered referred to in that subsection, the amount of that excess is to be added to your total monetary prizes, referred to in that subsection, for the next tax period.

s 126-20 — Bad debts

(1) You cannot have an * adjustment under Division 21 in relation to a * gambling supply. (2) If, in a tax period, you write off as bad the whole or part of the * consideration for a * gambling supply that is due as a debt, but has not been received, the amount written off is to be added to your total monetary prizes, referred to in subsection 126 ‑ 10(1), for that tax period. (3) However, if, in a tax period, you recover the whole or part of the amount written off, the amount recovered is to be added to your total amounts wagered, referred to in subsection 126 ‑ 10(1), for that tax period. (4) This section has effect despite sections 21 ‑ 5 and 21 ‑ 10 (which are about adjustments for writing off and recovering suppliers’ bad debts).

s 126-25 — Application of Subdivision 9 ‑ C

Subdivision 9 ‑ C does not apply to a * gambling supply.

s 126-27 — When gambling supplies are connected with the indirect tax zone

(1) A * gambling supply is connected with the indirect tax zone if the * recipient of the supply is an Australian resident (unless he or she is an Australian resident solely because the definition of Australia in the * ITAA 1997 includes the external Territories). (2) This section has effect in addition to section 9 ‑ 25 (which is about when supplies are connected with the indirect tax zone).

Amendment history: Inserted by No 52 of 2016, effective Sch 1 (items 1–8, 10–36, 38, 39) and Sch 2 (items 1–17, 18–27): 1 July 2016 (s 2(1) item 1)

s 126-30 — Gambling supplies do not give rise to creditable acquisitions

(1) An acquisition of a thing is not a * creditable acquisition if the supply of the thing acquired was a * gambling supply. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

s 126-32 — Repayments of gambling losses are not consideration

(1) A payment of * money or * digital currency is not the provision of * consideration to the extent that the payment: (a) is made by a supplier of * gambling supplies to a * recipient of gambling supplies that the supplier makes; and (b) is made, under an agreement between them, to repay to the recipient a proportion of his or her losses relating to those supplies. (2) This section has effect despite section 9 ‑ 15 (which is about what is consideration).

Amendment history: Amended by No 118 of 2017, Sch 1 item 20, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 126-33 — Tax invoices not required for gambling supplies

(1) You are not required to issue a * tax invoice for a * taxable supply that you make that is solely a * gambling supply. (2) This section has effect despite section 29 ‑ 70 (which is about the requirement to issue tax invoices).

s 126-35 — Meaning of gambling supply and gambling event

(1) A gambling supply is a * taxable supply involving: (a) the supply of a ticket (however described) in a lottery, raffle or similar undertaking; or (b) the acceptance of a bet (however described) relating to the outcome of a * gambling event. (2) A gambling event is: (a) the conducting of a lottery or raffle, or similar undertaking; or (b) a race, game, or sporting event, or any other event, for which there is an outcome.

s 129-1 — What this Division is about

The extent to which an acquisition or importation is for a creditable purpose affects the amount of the resulting input tax credit. When the extent of creditable purpose is changed by later events, adjustments (for the purpose of working out net amounts under Part 2 ‑ 4) may need to be made.

s 129-5 — Adjustments arising under this Division

(1) An * adjustment can arise under this Division for: (a) an acquisition, even if it is not a * creditable acquisition; or (b) an importation, even if it is not a * creditable importation; in respect of any * adjustment period for the acquisition or importation. (2) However, in determining: (a) whether an adjustment under this Division arises; or (b) the amount of such an * adjustment; disregard any change in the extent to which the thing acquired or imported is * applied in making * financial supplies, unless you * exceed the financial acquisitions threshold.

Amendment history: Amended by No 176 of 1999, Sch 1 item 112, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 92 of 2000, Sch 1 item 49 | Sch 5 item 6, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1))

s 129-10 — Adjustments do not arise under this Division for acquisitions and importations below a certain value

(1) Despite section 129 ‑ 5, an adjustment cannot arise under this Division for an acquisition or importation that * relates to business finance, unless the acquisition or importation had a * GST exclusive value of more than $10,000. (2) Despite section 129 ‑ 5, an adjustment cannot arise under this Division for an acquisition or importation that does not * relate to business finance, unless the acquisition or importation had a * GST exclusive value of more than $1,000. (3) An acquisition or importation relates to business finance if, at the time of the acquisition or importation, it: (a) related solely or partly to making * financial supplies; and (b) was not solely or partly of a private or domestic nature.

s 129-15 — Adjustments do not arise under this Division where there are adjustments under Division 130

Despite section 129 ‑ 5, you cannot have an adjustment under this Division for an acquisition if you have already had an * adjustment under Division 130 (goods applied solely to private or domestic use) for the acquisition.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 129-20 — Adjustment periods

(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.

Amendment history: Amended by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 118 of 2009, Sch 1 item 26 | Sch 1 item 27, effective Schedule 1 (items 1–10): 1 July 2000 Schedule 1 (items 12–45, 50–52, 55): Royal Assent

s 129-25 — Effect on adjustment periods of things being disposed of etc.

(1) Despite section 129 ‑ 20, if: (a) you dispose of a thing acquired or imported (other than in circumstances giving rise to a * decreasing adjustment under Division 132); or (b) a thing acquired or imported is lost, stolen or destroyed; or (c) a thing is acquired only for a particular period and that period expires; the next tax period applying to you that ends: (d) on 30 June in any year; or (e) 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; is the last * adjustment period for the acquisition or importation in question. (2) Despite section 129 ‑ 20, if: (a) you dispose of a thing acquired or imported; and (b) the disposal takes place in circumstances giving rise to a * decreasing adjustment under Division 132; then: (c) the last * adjustment period to end before the disposal is the last adjustment period for the acquisition or importation in question; and (d) if no such adjustment period ended before the disposal, there is no adjustment period for the acquisition or importation. (3) This section does not apply to a disposal if this Division continues to apply to the acquisition or importation of the thing because of subsection 138 ‑ 17(2).

Amendment history: Amended by No 177 of 1999, Sch 6 item 102, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 11 item 11E, effective Sch 1 (items 1–9), Sch 2, Sch 3, Sch 4 (items 1–9), Sch 5, Sch 6 (items 1–6), Sch 7 (items 4–25), Sch 8 (items 1–5), Sch 9 (items 1–11) and Sch 11 (items 3–13): 1 July 2000 (s 2(1))

s 129-40 — Working out whether you have an adjustment

(1) This is how to work out whether you have an * increasing adjustment or a * decreasing adjustment under this Division, for an * adjustment period, for an acquisition or importation: Method statement Step 1. Work out the extent (if any) to which you have * applied the thing acquired or imported for a * creditable purpose during the period of time: (a) starting when you acquired or imported the thing; and (b) ending at the end of the * adjustment period. This is the actual application of the thing . Step 2. Work out: (a) if you have not previously had an * adjustment under this Division for the acquisition or importation—the extent (if any) to which you acquired or imported the thing for a * creditable purpose; or (b) if you have previously had an * adjustment under this Division for the acquisition or importation—the * actual application of the thing in respect of the last adjustment. This is the intended or former application of the thing . Step 3. If the * actual application of the thing is less than its * intended or former application, you have an increasing adjustment , for the * adjustment period, for the acquisition or importation. Step 4. If the * actual application of the thing is greater than its * intended or former application, you have a decreasing adjustment , for the * adjustment period, for the acquisition or importation. Step 5. If the * actual application of the thing is the same as its * intended or former application, you have neither an increasing adjustment nor a decreasing adjustment, for the * adjustment period, for the acquisition or importation. (2) * Actual applications and * intended or former applications are to be expressed as percentages. (3) If the thing is acquired through a * reduced credit acquisition and, at the time of the acquisition, it was wholly for a * creditable purpose because of Division 70, the extent to which it was acquired for a creditable purpose is the reduced input tax credit percentage prescribed for the purposes of subsection 70 ‑ 5(2) for an acquisition of that kind.

Amendment history: Amended by No 177 of 1999, Sch 6 item 48 | Sch 6 item 51 | Sch 6 item 103, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 129-45 — Gifts to gift ‑ deductible entities

(1) If you are or were entitled to an input tax credit for the * creditable acquisition of a thing, an * adjustment does not arise under this Subdivision merely because you supply the thing as a gift to an * endorsed charity or * gift ‑ deductible entity. (3) Subsection (1) does not apply in relation to a thing that you supply to a * gift ‑ deductible entity endorsed as a deductible gift recipient (within the meaning of the * ITAA 1997) under section 30 ‑ 120 of the ITAA 1997, unless: (a) the entity is: (i) an * endorsed charity; or (ii) a fund, authority or institution of a kind referred to in paragraph 30 ‑ 125(1)(b) of the ITAA 1997; or (b) each purpose to which the supply relates is a * gift ‑ deductible purpose of the entity. Note: This subsection excludes from this section supplies to certain (but not all) gift ‑ deductible entities that are only endorsed for the operation of a fund, authority or institution. However, supplies can be covered by this section if they relate to the principal purpose of the fund, authority or institution.

Amendment history: Amended by No 95 of 2004, effective Schedule 10 (items 4–17, 42, 44(1), (2)): 1 July 2005 | Amended by No 80 of 2006, Sch 12 item 13, effective Schedule 10 (items 3–5): 1 July 2005 Schedules 12 and 15: Royal Assent | Amended by No 169 of 2012, Sch 2 item 109 | Sch 2 item 110, effective Sch 2 (items 25, 69–130): 3 Dec 2012 (s 2(1) item 3)

s 129-50 — Creditable purpose

(1) You * apply a thing for a creditable purpose to the extent that you apply it in * carrying on your * enterprise. (2) However, you do not * apply a thing for a creditable purpose to the extent that: (a) the application relates to making supplies that are * input taxed; or (b) the application is of a private or domestic nature. (3) To the extent that an * application relates to making * financial supplies through an * enterprise, or a part of an enterprise, that you * carry on outside the indirect tax zone, the application is not, for the purposes of paragraph (2)(a), treated as one that relates to making supplies that would be * input taxed.

Amendment history: Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6)

s 129-55 — Meaning of apply

Apply , in relation to a thing acquired or imported, includes: (a) supply the thing; and (b) consume, dispose of or destroy the thing; and (c) allow another entity to consume, dispose of or destroy the thing.

s 129-70 — The amount of an increasing adjustment

The amount of an * increasing adjustment that you have under Step 3 of the Method statement in section 129 ‑ 40 for the thing acquired or imported is worked out as follows: where: full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your * enterprise if: (a) the acquisition or importation had been solely for a * creditable purpose; and (b) in the case where the supply to you was a * taxable supply because of section 72 ‑ 5 or 84 ‑ 5—the supply had been or is a * taxable supply under section 9 ‑ 5.

Amendment history: Amended by No 77 of 2005, Sch 3 item 11 | Sch 3 item 12, effective 29 June 2005

s 129-75 — The amount of a decreasing adjustment

The amount of a * decreasing adjustment that you have under Step 4 of the Method statement in section 129 ‑ 40 for the thing acquired or imported is worked out as follows: where: full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your * enterprise if: (a) the acquisition or importation had been solely for a * creditable purpose; and (b) in the case where the supply to you was a * taxable supply because of section 72 ‑ 5 or 84 ‑ 5—the supply had been or is a * taxable supply under section 9 ‑ 5.

Amendment history: Amended by No 77 of 2005, Sch 3 item 13 | Sch 3 item 14, effective 29 June 2005

s 129-80 — Effect of adjustment under certain Divisions

For the purpose of working out under this Subdivision the amount of an * adjustment for an acquisition, any adjustments under Division 19, 21, 133 or 134 that you have had for the acquisition are to be taken into account in working out the full input tax credit for the purpose of section 129 ‑ 70 or 129 ‑ 75.

Amendment history: Amended by No 177 of 1999, Sch 6 item 104, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 20 of 2010, Sch 1 item 8 | Sch 1 item 9, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Amended by No 21 of 2010, Sch 1 item 10 | Sch 1 item 11, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 129-90 — Attributing your adjustments for changes in extent of creditable purpose

(1) An * adjustment that you have arising in respect of an * adjustment period under this Division is attributable to the tax period that is that adjustment period. (2) This section has effect despite section 29 ‑ 20 (which is about attributing adjustments).

s 130-1 — What this Division is about

You may have an increasing adjustment if you apply solely to private or domestic use goods for which you had a full input tax credit.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 130-5 — Goods applied solely to private or domestic use

(1) You have an increasing adjustment if: (a) you made a * creditable acquisition or * creditable importation of goods; and (b) the acquisition or importation was solely for a * creditable purpose; and (c) you * apply the goods solely to private or domestic use. (2) The amount of the increasing adjustment is an amount equal to the amount of the input tax credit to which you were entitled for the acquisition or importation, taking account of any * adjustments for the acquisition or importation. (3) However, this section does not apply if you have previously had an adjustment under Division 129 for the acquisition or importation.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 136, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 131-1 — What this Division is about

In some cases, you may be able to claim a full input tax credit for acquisitions that are only partly for a creditable purpose. You will then have an increasing adjustment for a later tax period (that better matches your obligation to lodge an income tax return).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 131-5 — Eligibility to make an annual apportionment election

(1) You are eligible to make an * annual apportionment election if: (a) either: (i) you are a * small business entity (other than because of subsection 328 ‑ 110(4) of the * ITAA 1997) for the * income year in which you make your election; or (ii) you do not carry on a * business and your * GST turnover does not exceed the * annual apportionment turnover threshold; and (b) you have not made any election under section 162 ‑ 15 to pay GST by instalments (other than such an election that is no longer in effect); and (c) you have not made any * annual tax period election (other than such an election that is no longer in effect). (2) The annual apportionment turnover threshold is: (a) $2 million; or (b) such higher amount as the regulations specify.

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 80 of 2007, Sch 1 item 328 | Sch 2 item 22 | Sch 3 item 328, effective 21 June 2007

s 131-10 — Making an annual apportionment election

(1) You may make an * annual apportionment election if you are eligible under section 131 ‑ 5. (2) Your election takes effect from: (a) the start of the earliest tax period for which, on the day on which you make your election, your * GST return is not yet due (taking into account any further period the Commissioner allows under paragraph 31 ‑ 8(1)(b) or 31 ‑ 10(1)(b)); or (b) the start of such other tax period as the Commissioner allows, in accordance with a request you make in the * approved form. Note: Refusing a request to allow your election to take effect from the start of another tax period is a reviewable GST decision (see Subdivision 110 ‑ F in Schedule 1 to the Taxation Administration Act 1953 ).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 73 of 2006, Sch 5 item 110 | Sch 5 item 123, effective Schedule 5 (items 2, 3, 65–137): 1 July 2006 ( see s. 2(1))

s 131-15 — Annual apportionment elections by representative members of GST groups

(1) A * representative member of a * GST group cannot make an * annual apportionment election unless each * member of the GST group is eligible under section 131 ‑ 5. (2) If the * representative member makes such an election, or revokes such an election, each * member of the * GST group is taken to have made, or revoked, the election.

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 131-20 — Duration of an annual apportionment election

General rule (1) Your election ceases to have effect if: (a) you revoke it; or (b) the Commissioner disallows it under subsection (3); or (c) in a case to which subparagraph 131 ‑ 5(1)(a)(i) applied—you are not a * small business entity of the kind referred to in that subparagraph for an * income year; or (d) in a case to which subparagraph 131 ‑ 5(1)(a)(ii) applied—on 31 July in a * financial year, you do not satisfy the requirements of that subparagraph. Revocation (2) A revocation of your election is taken to have had, or has, effect at the start of the earliest tax period for which, on the day of the revocation, your * GST return is not yet due. Disallowance (3) The Commissioner may disallow your election if, and only if, the Commissioner is satisfied that you have failed to comply with one or more of your obligations under a * taxation law. Note: Disallowing your election is a reviewable GST decision (see Subdivision 110 ‑ F in Schedule 1 to the Taxation Administration Act 1953 ). (4) A disallowance of your election is taken to have had effect from the start of the tax period in which the Commissioner notifies you of the disallowance. Not being a small business entity for an income year (5) If paragraph (1)(c) applies, your election is taken to have ceased to have effect from the start of the tax period in which the first day of the * income year referred to in that paragraph falls. Failing to satisfy the requirements of subparagraph 131 ‑ 5(1)(a)(ii) (6) If paragraph (1)(d) applies, your election is taken to have ceased to have effect from the start of the tax period in which 31 July in the * financial year referred to in that paragraph falls.

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 73 of 2006, Sch 5 item 110 | Sch 5 item 124, effective Schedule 5 (items 2, 3, 65–137): 1 July 2006 ( see s. 2(1)) | Amended by No 80 of 2007, Sch 2 item 23 | Sch 2 item 24 | Sch 2 item 25 | Sch 2 item 26, effective 21 June 2007

s 131-40 — Input tax credits for acquisitions that are partly creditable

(1) The amount of the input tax credit on an acquisition that you make that is * partly creditable is an amount equal to the GST payable on the supply of the thing acquired if: (a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and (b) the acquisition is not an acquisition of a kind specified in the regulations. (2) However, if one or both of the following apply to the acquisition: (a) the acquisition relates to making supplies that would be * input taxed; (b) you provide, or are liable to provide, only part of the * consideration for the acquisition; the amount of the input tax credit on the acquisition is as follows: where: extent of consideration is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition. extent of non ‑ input ‑ taxed purpose is the extent to which the acquisition does not relate to making supplies that would be * input taxed, expressed as a percentage of the total purpose of the acquisition. full input tax credit is what would have been the amount of the input tax credit for the acquisition if it had been made solely for a * creditable purpose and you had provided, or had been liable to provide, all of the consideration for the acquisition. (3) In determining for the purposes of subsection (2) whether, or the extent to which, an acquisition relates to making supplies that would be * input taxed, subsections 11 ‑ 15(3) to (5) apply in the same way that they apply for the purposes of paragraph 11 ‑ 15(2)(a). (4) Determinations made by the Commissioner under subsection 11 ‑ 30(5) apply (so far as they are capable of applying) to working out the extent to which a * partly creditable acquisition does not relate to making supplies that would be * input taxed. (5) This section does not apply to an input tax credit on an acquisition if the acquisition is, to any extent, a * reduced credit acquisition. (6) This section has effect despite sections 11 ‑ 25 and 11 ‑ 30 (which are about amounts of input tax credits).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 131-45 — Input tax credits for importations that are partly creditable

(1) The amount of the input tax credit on an importation that you make that is * partly creditable is an amount equal to the GST payable on the importation if: (a) an * annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and (b) the importation is not an importation of a kind specified in the regulations. (2) However, if the importation relates to making supplies that would be * input taxed, the amount of the input tax credit on the importation is as follows: where: extent of non ‑ input ‑ taxed purpose is the extent to which the importation does not relate to making supplies that would be * input taxed, expressed as a percentage of the total purpose of the importation. full input tax credit is what would have been the amount of the input tax credit for the importation if it had been made solely for a * creditable purpose. (3) In determining for the purposes of subsection (2) whether, or the extent to which, an importation relates to making supplies that would be * input taxed, subsections 15 ‑ 10(3) to (5) apply in the same way that they apply for the purposes of paragraph 15 ‑ 10(2)(a). (4) Determinations made by the Commissioner under subsection 15 ‑ 25(4) apply (so far as they are capable of applying) to working out the extent to which a * partly creditable importation does not relate to making supplies that would be * input taxed. (5) This section has effect despite sections 15 ‑ 20 and 15 ‑ 25 (which are about amounts of input tax credits).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 131-50 — Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars

(1) If: (a) this Division applies to working out the amount of a * creditable acquisition or * creditable importation that you made; and (b) the acquisition or importation is an acquisition or importation of a * car; the amount of the input tax credit on the acquisition or importation under this Division must not exceed the amount (if any) of the input tax credit worked out under section 69 ‑ 10. (2) However, if subsection 131 ‑ 40(2) or 131 ‑ 45(2) applies to the acquisition or importation: (a) take into account the operation of section 69 ‑ 10 in working out the full input tax credit for the purposes of that subsection; but (b) disregard subsection 69 ‑ 10(3).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 131-55 — Increasing adjustments relating to annually apportioned acquisitions and importations

(1) You have an increasing adjustment if: (a) an acquisition or importation that you made was * partly creditable; and (b) the input tax credit on the acquisition or importation is attributable to a tax period ending in a particular * financial year; and (c) the amount of the input tax credit is an amount worked out under this Division. (2) The amount of the increasing adjustment is an amount equal to the difference between: (a) the amount of the input tax credit worked out under this Division; and (b) what would have been the amount of the input tax credit if this Division did not apply. (3) In working out for the purposes of paragraph (2)(a) the amount of an input tax credit, take into account any change of circumstances that has given rise to: (a) an adjustment for the acquisition under Division 19; or (b) an adjustment for the acquisition under Division 21; or (c) an adjustment for the acquisition under Division 134. Note: Because of subsection 136 ‑ 10(3), the amount of the Division 21 adjustment will not be reduced under Division 136. (4) In working out for the purposes of paragraph (2)(b) what would have been the amount of an input tax credit, take into account any change of circumstances that has given rise to: (a) an adjustment for the acquisition under Division 19 (worked out as if this Division had not applied to working out the amount of the input tax credit); or (b) an adjustment for the acquisition under Division 21; or (c) an adjustment for the acquisition under Division 134. Note: If this Division did not apply, the amount of the Division 21 adjustment would have been worked out under Division 136. Example: While an annual apportionment election has effect, you make a partly creditable acquisition for $1,100, for which you have an input tax credit of $100. The extent of your creditable purpose is 10%. During later tax periods, the price increases by $110, for which you have a decreasing adjustment under Division 19 of $10, and the supplier writes off $660 as a bad debt, for which you have an increasing adjustment under Division 21 of $60 (subsection 136 ‑ 10(3) prevents the amount from being reduced under Division 136). The amount of your increasing adjustment under this section is $45. This is the difference between the amounts under paragraphs (2)(a) and (b). The paragraph (2)(a) amount (which is effectively worked out on a fully creditable basis) is: The paragraph (2)(b) amount (which is based on a 10% creditable purpose) is:

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 21 of 2010, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 131-60 — Attributing adjustments under section 131 ‑ 55

(1) An * increasing adjustment under section 131 ‑ 55 is attributable to: (a) the tax period worked out using the method statement; or (b) such earlier tax period as you choose. Method statement Step 1. Work out the tax period (the ITC tax period ) to which the input tax credit for the acquisition or importation to which the adjustment relates is attributable. Step 2. Work out in which year of income that tax period starts. Step 3. If you are required under section 161 of the * ITAA 1936 to lodge a return in relation to that year of income, work out the last day of the period, specified in the instrument made under that section, for you to lodge as required under that section. Step 4. The * increasing adjustment is attributable to the tax period in which that last day occurs. Step 5. If step 3 does not apply, the increasing adjustment is attributable to the tax period in which occurs 31 December in the next * financial year to start after the end of the ITC tax period. Note: Section 388 ‑ 55 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for giving the GST return. (2) Despite subsection (1), if, during (but not from the start of) the * financial year in which the ITC tax period ended, your * annual apportionment election ceases to have effect because: (a) you revoke your annual apportionment election, or the Commissioner disallows your election, during that financial year; and (b) the revocation or disallowance takes effect before the end of that financial year; the * increasing adjustment is attributable to the tax period in which the cessation takes effect, or to such earlier tax period as you choose. (3) However, the * increasing adjustment is attributable to a tax period provided under section 27 ‑ 39 or 27 ‑ 40 if that tax period ends earlier than the end of the tax period to which the increasing adjustment would, but for this subsection, be attributable under subsections (1) and (2). (4) This section has effect despite section 29 ‑ 20 (which is about attributing your adjustments).

Amendment history: Inserted by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 118 of 2009, Sch 1 item 28, effective Schedule 1 (items 1–10): 1 July 2000 Schedule 1 (items 12–45, 50–52, 55): Royal Assent | Amended by No 64 of 2020, Sch 11 item 152, effective Sch 3 (items 146–154, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 132-1 — What this Division is about

You may have a decreasing adjustment if you make a supply of something that you earlier acquired or imported, or subsequently applied, to make financial supplies or for a private or domestic purpose.

Amendment history: Amended by No 156 of 2000, Sch 4 item 7, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 132-5 — Decreasing adjustments for supplies of things acquired, imported or applied for a purpose that is not fully creditable

(1) You have a decreasing adjustment under this Division if: (a) you make a * taxable supply of a thing (or a supply of a thing that would have been a taxable supply had it not been * GST ‑ free under Subdivision 38 ‑ J); and (b) the supply is a supply by way of sale; and (c) your acquisition, importation or subsequent * application of the thing, related solely or partly to making * financial supplies, or was solely or partly of a private or domestic nature. (2) The amount of the * decreasing adjustment is as follows: where: adjusted input tax credit is: (a) the amount of any input tax credit that was attributable to a tax period in respect of the acquisition or importation; minus (b) the sum of: (i) any * increasing adjustments, under Subdivision 19 ‑ C or Division 129, that were previously attributable to a tax period in respect of the acquisition or importation; and (ii) any increasing adjustment under Division 131 that has been previously, is or will be attributable to a tax period in respect of the acquisition or importation; plus (c) the sum of any * decreasing adjustments, under Subdivision 19 ‑ C or Division 129 or 133, that were previously attributable to a tax period in respect of the acquisition or importation. full input tax credit is the amount of the input tax credit to which you would have been entitled for acquiring or importing the thing for the purpose of your * enterprise if: (a) the acquisition or importation had been solely for a * creditable purpose; and (b) in the case where the supply to you was a * taxable supply because of section 72 ‑ 5 or 84 ‑ 5—the supply had been or is a * taxable supply under section 9 ‑ 5. price is the * price of the * taxable supply. (3) However, if the amount worked out under subsection (2) is greater than the difference between the full input tax credit and the adjusted input tax credit, the amount of the * decreasing adjustment is an amount equal to that difference. (4) In working out the adjusted input tax credit, the acquisition, importation or * application in question is treated as having been for a * creditable purpose except to the extent * that the acquisition, importation or application: (a) relates to the making of * financial supplies; or (b) is of a private or domestic nature.

Amendment history: Amended by No 156 of 2000, Sch 4 item 8 | Sch 4 item 9 | Sch 4 item 10, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent | Amended by No 41 of 2005, Sch 10 item 10 | Sch 10 item 11, effective Schedule 10 (items 1–14): Royal Assent | Amended by No 77 of 2005, Sch 3 item 15 | Sch 3 item 16, effective 29 June 2005 | Amended by No 20 of 2010, Sch 1 item 10, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010

s 132-10 — Attribution of adjustments under this Division

(1) A * decreasing adjustment under this Division is attributable to: (a) the same tax period as the * taxable supply to which it relates; or (b) if it relates to a supply that is not a taxable supply—the tax period to which the supply would be attributable if it were a taxable supply. (2) This section has effect despite section 29 ‑ 20 (which is about attributing your adjustments).

s 133-1 — What this Division is about

You may have a decreasing adjustment for an acquisition that you made if, to take account of a GST liability that the supplier is subsequently found to have, you provide additional consideration at a time when you can no longer claim an input tax credit.

Amendment history: Inserted by No 20 of 2010, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010

s 133-5 — Decreasing adjustments for additional consideration provided under gross ‑ up clauses

(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(5) 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.

Amendment history: Inserted by No 20 of 2010, Sch 1 item 12 | Sch 1 item 13, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010 | Amended by No 39 of 2012, Sch 1 item 91, effective Sch 1 (items 3–5, 31–129, 224–226, 239–241), Sch 2 (items 1, 2) and Sch 3 (items 1–7): 1 July 2012 (s 2(1) items 2, 7) Sch 1 (items 242–245, 264): 1 Jan 2017 (s 2(1) item 3) Sch 4 (items 1–13): 15 Apr 2012 (s 2(1) item 8) | Amended by No 72 of 2025, effective sch 4 (items 32 ‑ 38, 43 ‑ 51): 1 Jan 2026 (s 2(1) item 5)

s 133-10 — Availability of adjustments under Division 19 for acquisitions

(1) If: (a) you have a * decreasing adjustment under this Division for an acquisition; and (b) the circumstances that gave rise to the adjustment also constitute an * adjustment event; you do not have a decreasing adjustment under section 19 ‑ 70 for the acquisition in relation to those circumstances. (2) This section has effect despite section 19 ‑ 70 (which is about adjustments for acquisitions arising because of adjustment events).

Amendment history: Inserted by No 20 of 2010, effective Schedule 1 (items 1–13, 19), Schedule 3 (items 1–29, 31), Schedule 4, Schedule 5 (items 1–3) and Schedule 6: Royal Assent Schedule 2 (items 1–11, 23(1)): 1 July 2010

s 134-1 — What this Division is about

You may have a decreasing adjustment if you make a payment to an entity that acquires something that you had supplied to another entity. The entity receiving the payment may have an increasing adjustment.

Amendment history: Inserted by No 21 of 2010, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 134-5 — Decreasing adjustments for payments made to third parties

(1) You have a decreasing adjustment if: (a) you make a payment to an entity (the payee ) that acquires a thing that you supplied to another entity (whether or not that other entity supplies the thing to the payee); and (b) your supply of the thing to the other entity: (i) was a * taxable supply; or (ii) would have been a taxable supply 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 the payee owes to you; (iii) a crediting of an amount of money or digital currency to an account that the payee holds; and (d) the payment is made in connection with, in response to or for the inducement of the payee’s acquisition of the thing; and (e) the payment is not * consideration for a supply to you. (1A) However, subsection (1) does not apply if: (a) the supply of the thing to the payee is a * GST ‑ free supply, or is not * connected with the indirect tax zone; or (b) the Commissioner is required to make a payment to the payee, under Division 168 (about the tourist refund scheme), related to the payee’s acquisition of the thing; and you know, or have reasonable grounds to suspect, that the supply of the thing to the payee is a GST ‑ free supply or is not connected with the indirect tax zone, or that the Commissioner is so required. (2) The amount of the * decreasing adjustment is an amount equal to the difference between: (a) either: (i) if your supply to the other entity was a * taxable supply—the amount of GST payable on the supply; or (ii) if your supply to the other entity would have been a taxable supply but for a reason to which subsection (3) applies—the amount of GST that would have been payable on the supply had it been a taxable supply; taking into account any other * adjustments that arose, or would have arisen, relating to the supply; and (b) the amount of GST that would have been payable, or would (but for a reason to which subsection (3) applies) have been payable, for that supply: (i) if the * consideration for the supply had been reduced by the amount of your payment to the payee; and (ii) taking into account any other adjustments that arose, or would have arisen, relating to the supply, 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 supply of the thing to the other entity was not a * taxable supply: (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 payee 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 payee are members of the same * GST religious group when that payment is made.

Amendment history: Inserted by No 21 of 2010, Sch 1 item 8 | Sch 1 item 134 | Sch 1 item 21, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8) | Amended by No 91 of 2010, Sch 3 item 1 | Sch 3 item 2 | Sch 3 item 3 | Sch 3 item 5, effective 29 June 2010 | Amended by No 136 of 2010, Sch 1 item 1, effective Schedule 1: Royal Assent | Amended by No 2 of 2015, Sch 4 item 1936, effective Sch 2 (items 21, 73): 1 July 2015 (s 2(1) item 4) Sch 4 (items 24–31, 79): 25 Feb 2015 (s 2(1) item 6) | Amended by No 118 of 2017, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 134-10 — Increasing adjustments for payments received by third parties

(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.

Amendment history: Inserted by No 21 of 2010, Sch 1 item 22, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8) | Amended by No 91 of 2010, Sch 3 item 6 | Sch 3 item 7 | Sch 3 item 8 | Sch 3 item 10, effective 29 June 2010 | Amended by No 136 of 2010, Sch 1 item 2, effective Schedule 1: Royal Assent | Amended by No 70 of 2015, Sch 6 item 2, effective Sch 6 (items 1, 2): 25 June 2015 (s 2(1) item 9) | Amended by No 118 of 2017, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 134-15 — Attribution of decreasing adjustments

(1) If: (a) you have a * decreasing adjustment under section 134 ‑ 5; and (b) you do not hold a * third party adjustment note for the adjustment when you give to the Commissioner a * GST return for the tax period to which the adjustment (or any part of the adjustment) would otherwise be attributable; then: (c) the adjustment (including any part of the adjustment) is not attributable to that tax period; and (d) the adjustment (or part) is attributable to the first tax period for which you give to the Commissioner a GST return at a time when you hold that third party adjustment note. However, this subsection does not apply in circumstances of a kind determined by the Commissioner, by legislative instrument, to be circumstances in which the requirement for an adjustment note does not apply. Note: For the giving of GST returns to the Commissioner, see Division 31. (2) This section does not apply to a * decreasing adjustment of an amount that does not exceed the amount provided for under subsection 29 ‑ 80(2). (3) This section has effect despite section 29 ‑ 20 (which is about attributing adjustments).

Amendment history: Inserted by No 21 of 2010, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 134-20 — Third party adjustment notes

(1) A third party adjustment note for a * decreasing adjustment that you have under section 134 ‑ 5 is a document: (a) that is created by you; and (b) a copy of which is given, in the circumstances set out in subsection (2), to the entity that received the payment that gave rise to the adjustment; and (c) that sets out your * ABN; and (d) that contains such other information as the Commissioner determines in writing; and (e) that is in the * approved form. However, the Commissioner may treat as a third party adjustment note a particular document that is not a third party adjustment note. (2) You must give the copy of the document to the entity that received the payment: (a) within 28 days after the entity requests you to give the copy; or (b) if you become aware of the * adjustment before the copy is requested—within 28 days, or such other number of days as the Commissioner determines under subsection (4) or (6), after becoming aware of the adjustment. (3) Subsection (2) does not apply to an * adjustment of an amount that does not exceed the amount provided for under subsection 29 ‑ 80(2). (4) The Commissioner may determine in writing that paragraph (2)(b) has effect, in relation to a particular document, as if the number of days referred to in that paragraph is the number of days specified in the determination. (5) A determination made under subsection (4) is not a legislative instrument. (6) The Commissioner may determine, by legislative instrument, circumstances in which paragraph (2)(b) has effect, in relation to those circumstances, as if the number of days referred to in that paragraph is the number of days specified in the determination. (7) A determination made under subsection (4) has effect despite any determination made under subsection (6).

Amendment history: Inserted by No 21 of 2010, Sch 1 item 9 | Sch 1 item 17 | Sch 1 item 23 | Sch 1 item 27, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 134-25 — Adjustment events do not arise

To avoid doubt, a payment that gives rise to an * adjustment under this Division cannot give rise to an * adjustment event.

Amendment history: Inserted by No 21 of 2010, effective Sch 1 (items 1, 2, 4–9, 12–23, 29) and Sch 2 (items 1, 3): 24 Mar 2010 (s 2(1) items 2, 4, 6) Sch 1 (items 3, 10, 11) and Sch 2 (item 2): 24 Mar 2010 (s 2(1) items 3, 5, 8)

s 134-30 — Application of sections 48 ‑ 55 and 49 ‑ 50

(1) For the purposes of working out whether you have an adjustment under this Division, disregard sections 48 ‑ 55 and 49 ‑ 50. (2) However, this section does not affect the application of sections 48 ‑ 55 and 49 ‑ 50 for the purposes of working out the amount of an adjustment under this Division. Note: Sections 48 ‑ 55 and 49 ‑ 50 require GST groups and GST religious groups to be treated as single entities for the purposes of adjustments.

Amendment history: Inserted by No 91 of 2010, effective 29 June 2010

s 135-1 — What this Division is about

The recipient of a supply of a going concern has an increasing adjustment to take into account the proportion (if any) of supplies that will be made in running the concern and that will not be taxable supplies or GST ‑ free supplies. Later adjustments are needed if this proportion changes over time.

Amendment history: Amended by No 176 of 1999, Sch 1 item 113, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b))

s 135-5 — Initial adjustments for supplies of going concerns

(1) You have an increasing adjustment if: (a) you are the * recipient of a * supply of a going concern, or a supply that is * GST ‑ free under section 38 ‑ 480; and (b) you intend that some or all of the supplies made through the * enterprise to which the supply relates will be supplies that are neither * taxable supplies nor * GST ‑ free supplies. (2) The amount of the increasing adjustment is as follows: where: proportion of non ‑ creditable use is the proportion of all the supplies made through the * enterprise that you intend will be supplies that are neither * taxable supplies nor * GST ‑ free supplies, expressed as a percentage worked out on the basis of the * prices of those supplies. supply price means the * price of the supply in relation to which the increasing adjustment arises.

Amendment history: Amended by No 176 of 1999, Sch 1 item 114 | Sch 1 item 115, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 156 of 2000, Sch 4 item 11, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 135-10 — Later adjustments for supplies of going concerns

(1) If you are the * recipient of a * supply of a going concern, or a supply that is * GST ‑ free under section 38 ‑ 480, Division 129 (which is about changes in the extent of creditable purpose) applies to that acquisition, in relation to: (a) the proportion of all the supplies made through the * enterprise that you intend will be supplies that are neither * taxable supplies nor * GST ‑ free supplies; and (b) the proportion of all the supplies made through the * enterprise that are supplies that are neither taxable supplies nor GST ‑ free supplies; in the same way as that Division applies: (c) in relation to the extent to which you made an acquisition for a * creditable purpose; and (d) in relation to the extent to which a thing acquired is * applied for a creditable purpose. (2) For the purpose of applying Division 129, the proportions referred to in paragraphs (1)(a) and (b) are to be expressed as percentages worked out on the basis of the * prices of the supplies in question. (3) This section applies in relation to any * supply of a going concern, or a supply that is * GST ‑ free under section 38 ‑ 480, whether or not it is a supply in respect of which you have had an * increasing adjustment under section 135 ‑ 5.

Amendment history: Amended by No 176 of 1999, Sch 1 item 116 | Sch 1 item 117, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b))

s 136-1 — What this Division is about

The amount of an adjustment that you have under Division 21 for a bad debt is reduced under this Division if the transaction to which the adjustment relates: • was a supply that was partly taxable or an acquisition that was partly creditable; or • was fully taxable or creditable, but not to the extent of 1 / 11 of the price or consideration for the transaction.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Repealed and substituted by No 156 of 2000, Sch 4 item 13, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 136-5 — Adjustments relating to partly taxable supplies

If you have an * adjustment under section 21 ‑ 5, 21 ‑ 10, 136 ‑ 30 or 136 ‑ 35 in relation to a supply that was partly a * taxable supply, the amount of that adjustment is reduced to the following amount: where: full adjustment is what would be the amount of the adjustment worked out under section 21 ‑ 5, 21 ‑ 10, 136 ‑ 30 or 136 ‑ 35 if this section did not apply. taxable proportion is the proportion of the * value of the supply (worked out as if it were solely a taxable supply) that the taxable supply represents. Example: If the amount of an adjustment under section 21 ‑ 5 would be $100 but the supply was only 80% taxable, the amount of the adjustment is $80.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 156 of 2000, Sch 4 item 14, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 136-10 — Adjustments in relation to partly creditable acquisitions

(1) If you have an * adjustment under section 21 ‑ 15, 21 ‑ 20, 136 ‑ 40 or 136 ‑ 45 in relation to a * creditable acquisition that was * partly creditable, the amount of that adjustment is reduced to the following amount: where: extent of consideration is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition. extent of creditable purpose is the extent of * creditable purpose last used to work out: (a) the amount of the input tax credit for the acquisition; or (b) the amount of any * adjustment under Division 129 in relation to the acquisition; expressed as a percentage of the total purpose of the acquisition. full adjustment is what would be the amount of the adjustment worked out under section 21 ‑ 15, 21 ‑ 20, 136 ‑ 40 or 136 ‑ 45 if this section did not apply. (2) If you have an * adjustment under section 21 ‑ 15, 21 ‑ 20, 136 ‑ 40 or 136 ‑ 45 in relation to a * creditable acquisition that was a * reduced credit acquisition and that was not * partly creditable (that is, it is wholly for a * creditable purpose because of Division 70), the amount of that adjustment is reduced to the following amount: where: extent of consideration is the extent to which you provide, or are liable to provide, the * consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition. percentage credit reduction is the reduced input tax credit percentage prescribed for the purposes of subsection 70 ‑ 5(2) for an acquisition of that kind. full adjustment is what would be the amount of the adjustment worked out under section 21 ‑ 15, 21 ‑ 20, 136 ‑ 40 or 136 ‑ 45 if this section did not apply. (3) However, this section does not apply to an * adjustment that you have in relation to a * creditable acquisition if: (a) the amount of the input tax credit for the acquisition is worked out under Division 131; and (b) the adjustment is attributable to a tax period that is not later than the tax period to which an adjustment under section 131 ‑ 55 relating to the acquisition is attributable.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3)) | Amended by No 134 of 2004, effective Schedule 3 (items 1–4): 13 Dec 2004 (s 2(1) item 4) Remainder: Royal Assent

s 136-30 — Writing off bad debts (taxable supplies)

(1) The amount of a * decreasing adjustment that you have under section 21 ‑ 5, relating to a * taxable supply that is * taxable at less than 1 / 11 of the price, is worked out under this section and not under section 21 ‑ 5. (2) This is how to work out the amount: Method statement Step 1. Work out the amount of GST (if any) that was payable on the supply, taking into account any previous * adjustments for the supply. This amount is the previous GST amount . Step 2. Add together: (a) the amount or amounts written off as bad from the debt to which the decreasing adjustment relates; and (b) the amount of the debt that has been * overdue for 12 months or more (other than amounts already written off). Step 3. Subtract the step 2 amount from the * price of the supply. Step 4. Work out the amount of GST (if any), taking into account any previous * adjustments for the supply (but not adjustments relating to bad debts or debts overdue), that would be payable on the supply if the * price of the supply were the step 3 amount. This amount of GST is the adjusted GST amount . Step 5. Subtract the adjusted GST amount from the previous GST amount.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 136-35 — Recovering amounts previously written off (taxable supplies)

(1) The amount of an * increasing adjustment that you have under section 21 ‑ 10, relating to a * taxable supply that is * taxable at less than 1 / 11 of the price, is worked out under this section and not under section 21 ‑ 10. (2) This is how to work out the amount: Method statement Step 1. Work out the amount of GST (if any) that was payable on the supply, taking into account any previous * adjustments for the supply. This amount is the previous GST amount . Step 2. Add together: (a) the amount or amounts previously written off as bad from the debt to which the increasing adjustment relates; and (b) the amount of the debt that has been * overdue for 12 months or more (other than amounts already written off). Step 3. Subtract the step 2 amount from the * price of the supply. Step 4. Add to the step 3 amount an amount equal to the amount or amounts, written off or overdue for 12 months or more, that have been recovered. Step 5. Work out the amount of GST (if any), taking into account any previous * adjustments for the supply (but not adjustments relating to bad debts or debts overdue), that would be payable on the supply if the * price of the supply were the step 4 amount. This amount of GST is the adjusted GST amount . Step 6. Subtract the previous GST amount from the adjusted GST amount.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))

s 136-40 — Bad debts written off (creditable acquisitions)

(1) The amount of an * increasing adjustment that you have under section 21 ‑ 15, relating to a * creditable acquisition that is * creditable at less than 1 / 11 of the consideration, is worked out under this section and not under section 21 ‑ 15. (2) This is how to work out the amount: Method statement Step 1. Work out the amount of the input tax credit (if any) to which you were entitled for the acquisition, taking into account any previous * adjustments for the acquisition. This amount is the previous credit amount . Step 2. Add together: (a) the amount or amounts previously written off as bad from the debt to which the increasing adjustment relates; and (b) the amount of the debt that has been * overdue for 12 months or more (other than amounts already written off). Step 3. Subtract the step 2 amount from the total amount of the * consideration that you have either provided, or are liable to provide, for the acquisition. Step 4. Work out the amount of the input tax credit (if any), taking into account any previous * adjustments for the acquisition (but not adjustments relating to bad debts or debts overdue), to which you would be entitled for the acquisition if the * consideration for the acquisition were the step 3 amount. This amount of GST is the adjusted credit amount . Step 5. Subtract the adjusted credit amount from the previous credit amount.

Amendment history: Inserted by No 156 of 2000, effective Sch 1 (items 1–16, 18), Sch 2 (items 1–12, 25), Sch 3, Sch 4, Sch 5 (items 1–3, 18(1)), and Sch 6 (items 1–40, 49(1), (2)): 21 Dec 2000 (s 2(1)) Sch 7 (items 1–7): 1 July 2000 (s 2(3))