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

s 60-20 — Creditable purpose

(1) If, before a * company is in existence, you make an acquisition or importation: (a) for the purpose of bringing the company into existence; or (b) for the purpose of the company * carrying on an * enterprise after it is in existence; you acquire or import the thing for a creditable purpose only to the extent that you acquire or import it for either or both of those purposes. (2) However, you do not acquire or import the thing for a creditable purpose to the extent that: (a) the acquisition or importation relates (directly or indirectly) to the company making supplies that would be * input taxed; or (b) the acquisition or importation is of a private or domestic nature. (3) An acquisition or importation is not treated, for the purposes of paragraph (2)(a), as relating to making supplies that would be * input taxed to the extent that the supply is made through an * enterprise, or a part of an enterprise, that the company will * carry on outside the indirect tax zone. (4) This section has effect despite sections 11 ‑ 15 and 15 ‑ 10 (which are about creditable purpose).

Amendment history: Amended by No 156 of 2000, Sch 1 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 41 of 2005, Sch 10 item 5, effective Schedule 10 (items 1–14): 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)

s 60-25 — Attributing the input tax credit for pre ‑ establishment acquisitions

(1) The input tax credit to which a * company is entitled under this Division for an acquisition that you made is attributable to the tax period (applying to the company) in which you were fully reimbursed by the company for the * consideration you paid for the acquisition. (2) However, if the company does not hold a copy of a * tax invoice that you (or your agent) hold for the acquisition when the company gives to the Commissioner a * GST return for the tax period to which the input tax credit for the acquisition would otherwise be attributable, then: (a) the input tax credit (including any part of the input tax credit) is not attributable to that tax period; and (b) the input tax credit (or the part of the input tax credit) is attributable to the first tax period for which the company gives to the Commissioner a GST return at a time when it holds a copy of that tax invoice. However, this subsection does not apply in circumstances of a kind determined in writing by the Commissioner, under subsection 29 ‑ 10(3), to be circumstances in which the requirement for a tax invoice does not apply. For the giving of GST returns to the Commissioner, see Division 31. (3) This section has effect despite section 29 ‑ 10 (which is about attributing input tax credits for acquisitions).

s 60-30 — Attributing the input tax credit for pre ‑ establishment importations

(1) The input tax credit to which a * company is entitled under this Division for an importation that you made is attributable to the tax period (applying to the company) in which you were fully reimbursed by the company: (a) for the * assessed GST paid on the importation; and (b) for the cost of acquiring or producing the thing imported. (2) This section has effect despite section 29 ‑ 15 (which is about attributing input tax credits for importations).

Amendment history: Amended by No 39 of 2012, Sch 1 item 79, 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 60-35 — Application of Division 129

If a * company is entitled under this Division to an input tax credit for an acquisition or importation, the acquisition or importation is treated, for the purposes of Division 129 (which is about changes in the extent of creditable purpose), as if the company had made it.

s 63-1 — What this Division is about

Some kinds of non ‑ profit entities may choose to have some (or all) of their separately identifiable branches treated as separate entities for GST purposes. Note: The parent entities then cease to be responsible, for GST purposes, for these branches. (By way of contrast, parent entities would remain responsible for their branches if they registered them under Division 54.)

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

s 63-5 — Entities that may choose to apply this Division

(1) An entity may choose to apply this Division. (2) However, the entity must be * registered and must be: (a) an * endorsed charity or a * government school; or (aa) a * gift ‑ deductible entity that is a non ‑ profit body; or (b) a non ‑ profit body that is exempt from income tax under any of these provisions of the * ITAA 1997: (i) section 50 ‑ 5 (charity, education and science); (ii) section 50 ‑ 10 (community service); (iii) section 50 ‑ 15 (employees and employers); (iv) section 50 ‑ 40 (primary and secondary resources, and tourism); (v) item 9.1 or 9.2 of section 50 ‑ 45 (sports, culture and recreation).

Amendment history: Inserted by No 177 of 1999, Sch 6 item 63, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 1 item 2 | Sch 1 item 4B, 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 11, effective Schedule 10 (items 3–5): 1 July 2005 Schedules 12 and 15: Royal Assent | Amended by No 169 of 2012, Sch 2 item 95 | Sch 2 item 96, effective Sch 2 (items 25, 69–130): 3 Dec 2012 (s 2(1) item 3)

s 63-10 — Period for which a choice has effect

(1) The choice has effect from the time the entity makes the choice. (2) The choice ceases to have effect if: (a) the entity revokes the choice; or (b) the entity ceases to meet the requirements of subsection 63 ‑ 5(2). (3) However, the entity: (a) cannot revoke the choice within 12 months after the day on which the entity made the choice; and (b) cannot make a further choice within 12 months after the day on which the entity revoked a previous choice.

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

s 63-15 — Consequences of choosing to apply this Division

(1) While the choice has effect, any branch of the entity is treated, for the purposes of the * GST law (other than sections 63 ‑ 5 and 63 ‑ 10 and this section), as an entity if that branch: (a) maintains an independent system of accounting; and (b) can be separately identified by reference to: (i) the nature of the activities carried on through the branch; or (ii) the location of the branch; and (c) is referred to in the entity’s records to the effect that it is to be treated as a separate entity for the purposes of the GST law. (2) The branch’s treatment as an entity ceases if: (a) the choice ceases to have effect; or (b) the branch ceases to meet the requirements of paragraphs (1)(a), (b) and (c). However, if the branch is * registered, its treatment as an entity continues until its registration is cancelled. (3) At all times during its treatment as an entity, the branch is a non ‑ profit sub ‑ entity .

Amendment history: Inserted by No 177 of 1999, Sch 6 item 144, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 63-20 — Non ‑ profit sub ‑ entities may register

(1) A * non ‑ profit sub ‑ entity may apply to be * registered under section 23 ‑ 10 even if it is not * carrying on an * enterprise and is not intending to carry on an enterprise. (2) The Commissioner must * register the * non ‑ profit sub ‑ entity whether or not the Commissioner is satisfied that it is * carrying on an * enterprise or intending to carry on an enterprise. (3) This section has effect despite section 23 ‑ 10 (which is about who may be registered) and section 25 ‑ 5 (which is about when the Commissioner must register an entity).

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

s 63-25 — Registration turnover threshold for non ‑ profit sub ‑ entities

(1) Subsection 23 ‑ 15(2) applies in relation to a * non ‑ profit sub ‑ entity of an entity (the parent entity ) whether or not the parent entity is a non ‑ profit body. (2) Regulations made for the purposes of paragraph 23 ‑ 15(2)(b) may: (a) provide that they apply only to * non ‑ profit sub ‑ entities, or only to other non ‑ profit entities; or (b) specify one amount for * non ‑ profit sub ‑ entities and a different amount for other non ‑ profit entities.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 61 of 2011, Sch 5 item 1 | Sch 5 item 2 | Sch 5 item 3, effective Schedule 5: 30 June 2011

s 63-27 — Application of particular provisions relating to charities etc.

Application of particular provisions (1) For the purposes of the provisions mentioned in subsection (2), a * non ‑ profit sub ‑ entity of an entity (the parent entity ) is taken to be a body of the following type, if the parent entity is a body of that type: (a) a non ‑ profit body; (b) a * gift ‑ deductible entity; (c) a * government school; (d) an * endorsed charity; (e) 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; (f) a fund, authority or institution of a kind referred to in paragraph 30 ‑ 125(1)(b) of the ITAA 1997; (g) a body that has a particular * gift ‑ deductible purpose; (h) a body that operates a particular * retirement village; (i) a particular * school. (2) The provisions are: (a) subsection 9 ‑ 17(2) (gifts to non ‑ profit bodies not consideration); and (b) Subdivision 38 ‑ G (Activities of charities etc.); and (c) Subdivision 40 ‑ E (Schools tuckshops and canteens); and (d) Subdivision 40 ‑ F (fund ‑ raising events); and (e) section 111 ‑ 18 (reimbursement of volunteers’ expenses); and (f) section 129 ‑ 45 (Gifts to gift ‑ deductible entities); and (g) Division 157 (Accounting basis of charities etc.). (3) To avoid doubt, subsection (1) does not prevent the * non ‑ profit sub ‑ entity being a body of a particular type merely because the parent entity is not a body of that type.

Amendment history: Inserted by No 61 of 2011, effective Schedule 5: 30 June 2011 | Amended by No 75 of 2012, Sch 2 item 3, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2) | Amended by No 169 of 2012, Sch 2 item 97 | Sch 2 item 98 | Sch 2 item 99, effective Sch 2 (items 25, 69–130): 3 Dec 2012 (s 2(1) item 3) | Amended by No 21 of 2015, Sch 7 item 4, effective Sch 7 (items 1–6): 20 Mar 2015 (s 2(1) item 15)

s 63-30 — When non ‑ profit sub ‑ entities must apply for cancellation of registration

(1) If a * non ‑ profit sub ‑ entity is * registered and it does not meet the requirements of paragraphs 63 ‑ 15(1)(a), (b) and (c), it must apply to the Commissioner in the * approved form for cancellation of its * registration. It must lodge the application within 21 days after the day on which it ceased to meet those requirements. (2) Section 25 ‑ 50 (which is about cancelling registration) does not apply to * non ‑ profit sub ‑ entities.

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

s 63-35 — When the Commissioner must cancel registration of non ‑ profit sub ‑ entities

(1) The Commissioner must cancel * registration of a * non ‑ profit sub ‑ entity (even if it has not applied for cancellation of the registration) if the Commissioner is satisfied that the sub ‑ entity does not meet the requirements of paragraphs 63 ‑ 15(1)(a), (b) and (c). Note: Cancelling registration under this subsection is a reviewable GST decision (see Subdivision 110 ‑ F in Schedule 1 to the Taxation Administration Act 1953 ). (2) The Commissioner must notify the sub ‑ entity if the Commissioner decides to cancel its * registration. The notice must specify the date of effect of the cancellation. (3) Subsection 25 ‑ 55(2) (which is about cancelling registration) does not apply to * non ‑ profit sub ‑ entities.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 21, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 73 of 2006, Sch 5 item 110 | Sch 5 item 121, effective Schedule 5 (items 2, 3, 65–137): 1 July 2006 ( see s. 2(1)) | Amended by No 69 of 2023, Sch 21 item 108, effective sch 4 (items 105-110, 114-116): 1 Oct 2023 (s 2(1) item 6)

s 63-40 — Effect on adjustments of becoming a non ‑ profit sub ‑ entity

(1) If a branch of an entity becomes a * non ‑ profit sub ‑ entity, any * adjustment arising afterwards in relation to a supply, acquisition or importation, made by the entity through the branch before it became a non ‑ profit sub ‑ entity: (a) is taken to be an adjustment that the non ‑ profit sub ‑ entity has, as if the non ‑ profit sub ‑ entity had made the supply, acquisition or importation; and (b) is not taken to be an adjustment that the entity has. (2) For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch became a * non ‑ profit sub ‑ entity, that Division applies as if: (a) the extent to which the acquisition or importation of the thing was for a * creditable purpose were the extent to which the non ‑ profit sub ‑ entity acquired or imported it for a creditable purpose; and (b) the extent to which the thing has been * applied for a creditable purpose since its acquisition or importation were the extent to which the non ‑ profit sub ‑ entity applied it for a creditable purpose.

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

s 63-45 — Effect on adjustments of ceasing to be a non ‑ profit sub ‑ entity

(1) If a branch of an entity ceases to be a * non ‑ profit sub ‑ entity, any * adjustment arising afterwards in relation to a supply, acquisition or importation, made by the branch while it was a non ‑ profit sub ‑ entity, is taken to be an adjustment that the entity has, as if the entity had made the supply, acquisition or importation. (2) For the purpose of applying subsection (1) to an adjustment under Division 129 relating to a thing acquired or imported before the branch ceased to be a * non ‑ profit sub ‑ entity, that Division applies as if: (a) the extent to which the acquisition or importation of the thing was for a * creditable purpose were the extent to which the entity acquired or imported it for a creditable purpose; and (b) the extent to which the thing has been * applied for a creditable purpose since its acquisition or importation were the extent to which the entity applied it for a creditable purpose.

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

s 63-50 — Membership requirements of GST groups

A * non ‑ profit sub ‑ entity satisfies the membership requirements for a * GST group, or a proposed GST group, if: (a) it is * registered; and (b) it has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and (c) it accounts on the same basis as all those other members; and (d) it is not a * member of any other GST group; and (e) each of the other members of the GST group or proposed GST group is either: (i) the entity of which the non ‑ profit sub ‑ entity is a branch; or (ii) another branch of that entity that is a non ‑ profit sub ‑ entity.

Amendment history: Inserted by No 92 of 2000, Sch 1 item 4, 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 66-1 — What this Division is about

This Division allows you to claim input tax credits for your acquisitions of second ‑ hand goods, even though GST was not payable on the supply of the goods to you. However, some limitations apply, and a form of global accounting is used for some acquisitions of second ‑ hand goods that are divided for re ‑ supply.

Amendment history: Amended by No 177 of 1999, Sch 6 item 75 | Sch 6 item 76, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-5 — Creditable acquisitions of second ‑ hand goods

(1) If you acquire * second ‑ hand goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of * business, the fact that the supply of the goods to you is not a * taxable supply does not stop the acquisition being a * creditable acquisition. (2) However, this section does not apply, and is taken never to have applied, to the acquisition if: (a) the supply of the goods to you was a * taxable supply, or was * GST ‑ free; or (b) you * imported the goods; or (c) the supply of the goods to you was a supply by way of hire; or (d) Subdivision 66 ‑ B applies to the acquisition; or (e) you make a supply of the goods that is not a taxable supply. (3) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Amended by No 177 of 1999, Sch 6 item 77 | Sch 6 item 78, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-10 — Amounts of input tax credits for creditable acquisitions of second ‑ hand goods

(1) The amount of the input tax credit for a * creditable acquisition of * second ‑ hand goods for which the * consideration is more than $300 is: (a) an amount equal to 1 / 11 of the * consideration that you provide, or are liable to provide, for the acquisition; or (b) if that amount is more than the amount of the GST payable on a * taxable supply of the goods that you make—the amount of GST on that taxable supply. (1A) The amount of the input tax credit for a * creditable acquisition of * second ‑ hand goods for which the * consideration is $300 or less is an amount equal to 1 / 11 of the * consideration that you provide, or are liable to provide, for the acquisition. (2) However, this section does not apply if the supply of the goods to you is a * taxable supply. (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 177 of 1999, Sch 6 item 79 | Sch 6 item 80, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-15 — Attributing input tax credits for creditable acquisitions of second ‑ hand goods

(1) If: (a) you are entitled, under this Division, to the input tax credit for a * creditable acquisition of * second ‑ hand goods; and (b) either the * consideration for the acquisition was more than $300 or you choose to have this section apply to the acquisition; the input tax credit for the acquisition is attributable to: (c) the tax period in which any * consideration is received for a subsequent * taxable supply of the goods; or (d) if, before any of the consideration is received, you have issued an * invoice relating to the supply—the tax period in which the invoice is issued. (2) However, if you * account on a cash basis, then: (a) if, in a tax period, all of the * consideration is received for the subsequent * taxable supply—the input tax credit for the acquisition is attributable to that tax period; or (b) if, in a tax period, part of the consideration is received—the input tax credit for the acquisition is attributable to that tax period, but only to the extent that the consideration is received in that tax period; or (c) if, in a tax period, none of the consideration is received—none of the input tax credit for the acquisition is attributable to that tax period. (4) This section has effect despite section 29 ‑ 10 (which is about attributing the input tax credits for creditable acquisitions).

Amendment history: Amended by No 177 of 1999, Sch 6 item 81 | Sch 6 item 82 | Sch 6 item 83, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-17 — Records of creditable acquisitions of second ‑ hand goods

(1) If you make a * creditable acquisition of second ‑ hand goods and the supply of the goods to you was not a * taxable supply: (a) subsection 29 ‑ 10(3) applies to the acquisition as if references to a * tax invoice were references to a record you prepared that complies with this section; and (b) subsection 29 ‑ 20(3) applies to an adjustment event relating to the acquisition as if references to an * adjustment note were references to a record you prepared that complies with this section. (2) To comply with this section, the record must: (a) set out the name and address of the entity that supplied the goods to you; and (b) describe the goods (including their quantity); and (c) set out the date of, and the * consideration for, the acquisition. (2A) Subsection 29 ‑ 10(3) does not apply to a * creditable acquisition of * second ‑ hand goods if: (a) the supply to which the acquisition relates is not a * taxable supply; and (b) the amount that would have been the * value of the supply (if it had been a * taxable supply) does not exceed $50, or such higher amount as the regulations made for the purposes of subsection 29 ‑ 80(1) specify. (2B) Subsection 29 ‑ 20(3) does not apply to a * decreasing adjustment relating to a * creditable acquisition of * second ‑ hand goods if: (a) the supply to which the acquisition relates is not a * taxable supply; and (b) the amount of the adjustment does not exceed $50, or such higher amount as the regulations made for the purposes of subsection 29 ‑ 80(2) specify. (3) This section has effect despite section 29 ‑ 10 (which is about attributing the input tax credits for creditable acquisitions) and section 29 ‑ 20 (which is about attributing decreasing adjustments).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 11 item 10, 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 66-40 — Acquisitions of second ‑ hand goods that can be used to offset GST on future re ‑ supplies

(1) This Subdivision applies to an acquisition of * second ‑ hand goods if: (a) you acquire the goods for the purposes of sale or exchange (but not for manufacture) in the ordinary course of * business; and (b) either the * consideration for the acquisition was more than $300 or you choose to have this section apply to the acquisition; and (c) the goods are of such a kind, or they are supplied to you in such a way, that it would be reasonable to expect you to divide them before supplying them in 2 or more separate supplies; and (d) you do not subsequently make a single supply of the entirety of the goods acquired. (2) However, this Subdivision does not apply, and is taken never to have applied, to the acquisition if: (a) the * consideration for the acquisition separately itemises the consideration for the different goods acquired, and your division of the goods before supplying them: (i) corresponds to that itemisation; or (ii) does not involve dividing the goods any further than the division indicated by that itemisation; or (b) the supply of the goods to you was a * taxable supply, or was * GST ‑ free; or (c) you * imported the goods; or (d) the supply of the goods to you was a supply by way of hire; or (e) you make a supply of the goods, or of part of the goods, that is not a taxable supply (other than because of section 66 ‑ 45).

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

s 66-45 — Future re ‑ supplies that are not taxable supplies

(1) A supply you make is not a * taxable supply if: (a) it is a supply of goods that were part of an acquisition you made that was an acquisition of * second ‑ hand goods to which this Subdivision applied; and (b) your * total Subdivision 66 ‑ B credit amount is more than your * total Subdivision 66 ‑ B GST amount; and (c) what would be the amount of GST payable on the supply, if the supply were a taxable supply, is less than or equal to the difference between: (i) your * total Subdivision 66 ‑ B credit amount; and (ii) your * total Subdivision 66 ‑ B GST amount. Note: This section will not apply unless the record keeping requirements of section 66 ‑ 55 are met. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 177 of 1999, Sch 6 item 55 | Sch 6 item 66, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-50 — Future re ‑ supplies on which GST is reduced

(1) The amount of GST on a * taxable supply you make is reduced if: (a) it is a supply of goods that were part of an acquisition you made that was an acquisition of * second ‑ hand goods to which this Subdivision applied; and (b) your * total Subdivision 66 ‑ B credit amount is more than your * total Subdivision 66 ‑ B GST amount; and (c) what would be the amount of GST payable on the supply, if the amount were not reduced under this section, is more than the difference between: (i) your total Subdivision 66 ‑ B credit amount; and (ii) your total Subdivision 66 ‑ B GST amount. Note: This section will not apply unless the record keeping requirements of section 66 ‑ 55 are met. (2) The amount by which the GST on the supply is reduced is an amount equal to the difference between: (a) your * total Subdivision 66 ‑ B credit amount; and (b) your * total Subdivision 66 ‑ B GST amount. (3) 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 177 of 1999, Sch 6 item 66, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 6 item 4, 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 66-55 — Records of acquisitions of second ‑ hand goods to which this Subdivision applied

Sections 66 ‑ 45 and 66 ‑ 50 do not apply to a supply of goods you made unless you hold a record, relating to the acquisition of * second ‑ hand goods of which the goods supplied were a part, that: (a) sets out the name and address of the entity that supplied the goods to you; and (b) describes the goods (including their quantity); and (c) sets out the date of, and the * consideration for, the acquisition.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 66, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-60 — Input tax credits for acquiring second ‑ hand goods the supply of which is not fully taxable

(1) If an entity acquires * second ‑ hand goods, and, because of section 66 ‑ 45 and for no other reason, the supply of the goods to the entity is not a * taxable supply: (a) the fact that the supply is not a taxable supply does not stop the acquisition being a * creditable acquisition; and (b) the amount of the input tax credit for the creditable acquisition is worked out as if the supply were a taxable supply. (2) If: (a) an entity makes a * creditable acquisition of * second ‑ hand goods; and (b) the amount of GST on the supply of the goods to the entity was reduced because of section 66 ‑ 50; the amount of the input tax credit for the creditable acquisition is worked out as if that amount of GST had not been so reduced. (3) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition) and section 11 ‑ 25 (which is about the amount of input tax credits for creditable acquisitions).

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

s 66-65 — Total Subdivision 66 ‑ B credit amounts and Subdivision 66 ‑ B GST amounts

(1) Your total Subdivision 66 ‑ B credit amount is the sum of the amounts of the input tax credits to which you would have been entitled, for all your acquisitions of * second ‑ hand goods to which this Subdivision applied, if this Subdivision had not applied to them. (2) Your total Subdivision 66 ‑ B GST amount is the sum of: (a) all the amounts of GST that, but for the operation of section 66 ‑ 45, would have been payable on supplies that you made; and (b) all the amounts by which GST payable on supplies that you made has been reduced under section 66 ‑ 50.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 157 | Sch 6 item 158, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 66-70 — Commissioner may determine rules for applying this Subdivision

(1) The Commissioner may, in writing, determine: (a) that acquisitions of * second ‑ hand goods of a specified kind are, or are not, acquisitions of second ‑ hand goods to which this Subdivision applies; or (b) how * total Subdivision 66 ‑ B credit amounts or * total Subdivision 66 ‑ B GST amounts are to be worked out in specified circumstances. (2) Determinations under subsection (1) override the provisions of this Subdivision (except this section), but only to the extent of any inconsistency.

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

s 69-1 — What this Division is about

Some expenses that are not deductible under the ITAA 1997 do not give rise to creditable acquisitions or creditable importations. The amount of input tax credits on some creditable acquisitions or creditable importations of cars is reduced.

s 69-5 — Non ‑ deductible expenses do not give rise to creditable acquisitions or creditable importations

(1) An acquisition is not a * creditable acquisition to the extent that it is a * non ‑ deductible expense. (2) An importation is not a * creditable importation to the extent that it is a * non ‑ deductible expense. (3) An acquisition or importation is a non ‑ deductible expense if it is not deductible under Division 8 of the * ITAA 1997 because of one of the following: (a) section 26 ‑ 5 of the * ITAA 1997 (Penalties); (b) section 26 ‑ 30 of the * ITAA 1997 (Relative’s travel expenses); (c) section 26 ‑ 40 of the * ITAA 1997 (Maintaining your family); (d) section 26 ‑ 45 of the * ITAA 1997 (Recreational club expenses); (e) section 26 ‑ 50 of the * ITAA 1997 (Expenses for a leisure facility); (f) Division 32 of the * ITAA 1997 (Entertainment expenses); (g) Division 34 of the * ITAA 1997 (Non ‑ compulsory uniforms); (h) section 51AK of the * ITAA 1936 (Agreements for the provision of non ‑ deductible non ‑ cash business benefits). (3A) An acquisition or importation is also a non ‑ deductible expense to the extent that it is not deductible under Division 8 of the * ITAA 1997 because of one of the following: (a) section 51AEA of the * ITAA 1936 (Meal entertainment—election to use the 50/50 split method); (b) section 51AEB of the ITAA 1936 (Meal entertainment—election to use the 12 week register method); (c) section 51AEC of the ITAA 1936 (Entertainment facility—election to use the 50/50 split method). (4) If the entity making the acquisition or importation is an * exempt entity, the acquisition or importation is a non ‑ deductible expense if it would have been a non ‑ deductible expense under subsection (3) or (3A) had the entity not been an exempt entity. (5) This section has effect despite sections 11 ‑ 5 and 15 ‑ 5 (which are about what is a creditable acquisition and what is a creditable importation).

Amendment history: Amended by No 156 of 2000, Sch 3 item 9 | Sch 3 item 9A | Sch 3 item 69 | Sch 3 item 32, 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 41 of 2005, effective Schedule 10 (items 1–14): Royal Assent | Amended by No 78 of 2007, Sch 2 item 5 | Sch 7 item 16, effective Schedule 2 (items 5, 18): Royal Assent

s 69-10 — Amounts of input tax credits for creditable acquisitions or creditable importations of certain cars

(1) If: (a) you are entitled to an input tax credit for a * creditable acquisition or * creditable importation of a * car; and (b) you are not, for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 , entitled to quote an * ABN in relation to the supply to which the creditable acquisition relates, or in relation to the importation, as the case requires; and (c) the * GST inclusive market value of the car exceeds the * car limit for the * financial year in which you first used the car for any purpose; the amount of the input tax credit on the acquisition or importation is the amount of GST payable on the supply or importation of the car up to 1 / 11 of that limit. (2) However, if: (a) the supply of the car is * GST ‑ free to any extent under Subdivision 38 ‑ P; or (b) the importation of the car is non ‑ taxable to any extent under paragraph 13 ‑ 10(b) because it would have been GST ‑ free to any extent under Subdivision 38 ‑ P if it had been a supply; you are not entitled to the input tax credit for the acquisition or importation. (3) If your acquisition or importation is * partly creditable, the input tax credit is reduced to the extent (expressed as a percentage) to which the acquisition or importation is made for a * creditable purpose. (4) This section does not apply in relation to: (a) the acquisition or importation of a * car that is not a * luxury car because of subsection 25 ‑ 1(2) of the A New Tax System (Luxury Car Tax) Act 1999 ; or Note: Emergency vehicles, cars fitted to transport disabled people, non ‑ passenger commercial vehicles, motor homes and campervans are not luxury cars under that subsection. (b) the acquisition of a car by lease or hire. (5) This section has effect despite sections 11 ‑ 25 and 15 ‑ 20 (which are about the amount of input tax credits on creditable acquisitions and creditable importations).

Amendment history: Amended by No 92 of 2000, Sch 11 item 10A, 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 6 item 16, 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 77 of 2001, Sch 2 item 12, effective Sch 2 (items 10–14, 488(1)): 30 June 2001 (s 2(1))

s 69-15 — What this Subdivision is about

The GST consequences of incurring certain expenses for the provision of meal entertainment and entertainment facilities depend on elections made under fringe benefits tax law. These elections might not be made until after GST returns are due. This Subdivision allows elections to be made for GST purposes so that GST returns can take into account the likely application of subsection 69 ‑ 5(3A) to those expenses, before the fringe benefits tax elections are made.

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 69-20 — Effect of elections on net amounts

(1) If you make an election under this Subdivision that has effect during a particular tax period, your * net amount for the tax period must be worked out on the basis of that election. (2) This section has effect despite section 17 ‑ 5 (which is about working out your net 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 69-25 — Election to use the 50/50 split method for meal entertainment

You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as * non ‑ deductible expenses because of paragraph 69 ‑ 5(3A)(a), to the extent that the acquisitions or importations would be non ‑ deductible expenses because of that paragraph if: (a) an election were in force under section 37AA of the Fringe Benefits Tax Assessment Act 1986 (but no further election were in force under section 37CA of that Act); and (b) section 51AEA of the * ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations.

Amendment history: Inserted by No 156 of 2000, Sch 3 item 69, 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 69-30 — Election to use the 12 week register method for meal entertainment

(1) You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as * non ‑ deductible expenses because of paragraph 69 ‑ 5(3A)(b), to the extent that the acquisitions or importations would be non ‑ deductible expenses because of that paragraph if: (a) an election were in force under section 37CA of the Fringe Benefits Tax Assessment Act 1986 ; and (b) section 51AEB of the * ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations. (2) However, you cannot make the election unless you have a * valid meal entertainment register.

Amendment history: Inserted by No 156 of 2000, Sch 3 item 69, 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 69-35 — Election to use the 50/50 split method for entertainment facilities

You may elect to have acquisitions or importations treated, for the purposes of this Subdivision, as * non ‑ deductible expenses because of paragraph 69 ‑ 5(3A)(c), to the extent that the acquisitions or importations would be non ‑ deductible expenses because of that paragraph if: (a) an election were in force under section 152B of the Fringe Benefits Tax Assessment Act 1986 ; and (b) section 51AEC of the * ITAA 1936 were to apply, because of that election, to expenses relating to the acquisitions or importations.

Amendment history: Inserted by No 156 of 2000, Sch 3 item 69, 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 69-40 — When elections take effect

(1) An election under this Subdivision is taken to have effect, or to have had effect, from the start of the tax period specified in the election. (2) The tax period may be a future tax period or the current tax period. It cannot be a tax period that has already come to an end.

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 69-45 — When elections cease to have effect

If a circumstance specified in the second column of the following table occurs, the election ceases to have effect from the start of the tax period specified in the third column: When elections cease to have effect Item Kind of election Circumstance Tax period 1 Any election under this Subdivision You withdraw the election The tax period (which must not be a past tax period) specified in the withdrawal 2 An election under section 69 ‑ 25 You make an election under section 69 ‑ 30 The tax period at the start of which the election under section 69 ‑ 30 takes effect 3 An election under section 69 ‑ 30 You make an election under section 69 ‑ 25 The tax period at the start of which the election under section 69 ‑ 25 takes effect 4 An election under section 69 ‑ 30 You cease to have a * valid meal entertainment register The tax period during which you cease to have such a register 5 An election under section 69 ‑ 25 or 69 ‑ 30 You make an election under section 37AA or 37CA of the Fringe Benefits Tax Assessment Act 1986 The tax period during which the election is made 6 An election under section 69 ‑ 35 You make an election under section 152B of that Act The tax period during which the election is made

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 69-50 — Adjustment events relating to elections

(1) The following are adjustment events if they have the effect of changing the extent to which an acquisition you made is a * creditable acquisition: (a) an election you make under this Subdivision ceases to have effect at a time other than the start of an * FBT year; (b) an election is made under section 37AA, 37CA or 152B of the Fringe Benefits Tax Assessment Act 1986 for an FBT year, without one or more corresponding elections under this Subdivision having been made covering all the tax periods in that year; (c) an election is not made under section 37AA, 37CA or 152B of that Act for an FBT year, but one or more corresponding elections have been made under this Subdivision covering one or more of the tax periods in that year. (2) However, an * adjustment event under this section arises only in respect of a tax period in which: (a) the day occurs by which you are required, under section 68 of the Fringe Benefits Tax Assessment Act 1986 , to furnish a return to the Commissioner relating to an * FBT year; or (b) if you are not required under that section to lodge a return relating to that FBT year—the day occurs by which you would have been required under that section to lodge a return relating to that FBT year, if you were required to lodge the return. (3) Subdivision 19 ‑ C applies to the acquisition in question as if every * adjustment event under this section that occurred during the * FBT year, and that relates to the acquisition, occurred during the tax period referred to in paragraph 19 ‑ 70(a). (4) This table sets out when elections that you make or fail to make under section 37AA, 37CA or 152B of the Fringe Benefits Tax Assessment Act 1986 correspond to elections under this Subdivision: Corresponding elections Item These elections under the Fringe Benefits Tax Assessment Act 1986 . .. correspond to these elections under this Subdivision... 1 an election under section 37AA, but without a further election under section 37CA an election under section 69 ‑ 25 2 an election under section 37AA, together with a further election under section 37CA an election under section 69 ‑ 30 3 an election under section 152B an election under section 69 ‑ 35

Amendment history: Inserted by No 156 of 2000, Sch 3 item 69, 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 69-55 — Adjustment notes not required

Subsection 29 ‑ 20(3) does not apply to a * decreasing adjustment arising from an * adjustment event of a kind referred to in section 69 ‑ 50.

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 70-1 — What this Division is about

In some cases, acquisitions relating to financial supplies can attract a reduced input tax credit, even though no input tax credit could arise under the basic rules.

s 70-5 — Acquisitions that attract the reduced credit

(1) The regulations may provide that acquisitions of a specified kind that relate to making * financial supplies can give rise to an entitlement to a reduced input tax credit. These are reduced credit acquisitions . (1A) However, an acquisition is not a reduced credit acquisition to the extent (if any) that, without this Division applying, an entity is entitled to an input tax credit for the acquisition. Note: Acquisitions relating to financial supplies can give rise to input tax credits: see subsections 11 ‑ 15(4) and (5). (2) For each kind of * reduced credit acquisition specified, the regulations must specify a percentage to which the input tax credit is reduced.

Amendment history: Amended by No 92 of 2000, Sch 5 item 5 | Sch 5 item 11, 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 1 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 70-10 — Extended meaning of creditable purpose

(1) The fact that a * reduced credit acquisition relates to making * financial supplies does not stop it being for a * creditable purpose, to the extent that it relates to making financial supplies. (2) The fact that you * apply a * reduced credit acquisition in making * financial supplies does not stop it being applied for a * creditable purpose, to the extent that it relates to making financial supplies. (3) This section has effect despite sections 11 ‑ 15 and 129 ‑ 50 (which are about the meaning of creditable purpose).

s 70-15 — How much are the reduced input tax credits?

(1) The amount of an input tax credit for a * creditable acquisition of a * reduced credit acquisition is an amount equal to the GST payable on the supply of the acquisition multiplied by the percentage specified under subsection 70 ‑ 5(2) for acquisitions of that kind. (2) However, the amount of such an input tax credit is further reduced if the acquisition is only * partly creditable. (3) This section has effect despite section 11 ‑ 25 (which is about the amount of input tax credits).

s 70-20 — Extent of creditable purpose

(1) If: (a) a * reduced credit acquisition is a * creditable acquisition; and (b) it is not wholly for a * creditable purpose because of this Division; it is * partly creditable. (2) The extent to which the acquisition is acquired or applied for a * creditable purpose is worked out using the following formula: where: extent of creditable purpose is the extent to which the purpose for which you applied or acquired the acquisition was a * creditable purpose otherwise than because of this Division, expressed as a percentage. extent of Division 70 creditable purpose is the extent to which the purpose for which you applied or acquired the acquisition was a * creditable purpose because of this Division, expressed as a percentage. 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. Note: This section affects sections 11 ‑ 30 and 129 ‑ 40. It is used even if the reduced credit acquisition is used wholly in carrying on your enterprise (unless the acquisition was wholly for a creditable purpose because of this Division, then section 70 ‑ 15 applies). Example 1: You make a reduced credit acquisition of $110,000, wholly for the purposes of carrying on your enterprise, partly for the purpose of making financial supplies (40%) and partly for the purpose of making taxable supplies (60%). Assume the percentage credit reduction to be 50%. The extent to which you make the acquisition for a creditable purpose is: Applying section 11 ‑ 30, your input tax credit is $8,000 (assuming you were liable for all the consideration). Example 2: You subsequently apply the acquisition partly in making financial supplies (40%), partly in making taxable supplies (40%) and partly for private use (20%). The extent to which you made the acquisition for a creditable purpose is: Applying Division 129, your input tax credit is reduced to $6,000, giving you an increasing adjustment of $2,000. (3) The Commissioner may determine, in writing, one or more ways in which to work out, for the purpose of subsection (2), the extent to which an acquisition is for a * creditable purpose.

Amendment history: Amended by No 177 of 1999, Sch 6 item 85, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 70-25 — Sale of reduced credit acquisitions (Division 132)

(1) If: (a) you supply a * reduced credit acquisition in circumstances to which Division 132 applies; and (b) you made the acquisition for a * creditable purpose because of this Division, or you applied the acquisition for a * creditable purpose because of this Division; this section applies for the purposes of Division 132. (2) In working out the full input tax credit in subsection 132 ‑ 5(2), the reference to a * creditable purpose in paragraph (a) of the definition of full input tax credit is to be read as a reference to a * creditable purpose otherwise than because of Division 70. (3) In working out the adjusted input tax credit in subsection 132 ‑ 5(2), the extent of the * creditable purpose because of subsection 132 ‑ 5(4) is increased by the following extent: where: extent of Division 70 creditable purpose has the same meaning as in section 70 ‑ 20. percentage credit reduction has the same meaning as in section 70 ‑ 20.

s 71-1 — What this Division is about

Suppliers making input taxed supplies may not be entitled to input tax credits for acquisitions or importations they make to provide fringe benefits to their employees. Note: Under the Fringe Benefits Tax Assessment Act 1986 , a lower rate of fringe benefits tax is payable for providing fringe benefits without entitlement to input tax credits.

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 156 of 2000, Sch 3 item 12, 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 71-5 — Acquisitions by input taxed suppliers to provide fringe benefits

(1) An acquisition that solely or partly relates to making supplies that are * input taxed is not a * creditable acquisition if: (a) the acquisition would (but for this section) be an acquisition of a kind referred to in paragraph 149A(2)(b) of the Fringe Benefits Tax Assessment Act 1986 ; and (b) the acquisition specifically relates to the provision of a particular benefit (within the meaning of that Act) in respect of which * fringe benefits tax is or will be payable. (2) However, this section does not apply to an acquisition if: (a) the only reason it relates to making supplies that are * input taxed is because it relates to making * financial supplies; and (b) you do not * exceed the financial acquisitions threshold. (3) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

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 156 of 2000, Sch 3 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 71-10 — Importations by input taxed suppliers to provide fringe benefits

(1) An importation that solely or partly relates to making supplies that are * input taxed is not a * creditable importation if: (a) the importation would (but for this section) be an importation of a kind referred to in paragraph 149A(2)(b) of the Fringe Benefits Tax Assessment Act 1986 ; and (b) the importation specifically relates to the provision of a particular benefit (within the meaning of that Act) in respect of which * fringe benefits tax is or will be payable. (2) However, this section does not apply to an importation if: (a) the only reason it relates to making supplies that are * input taxed is because it relates to making * financial supplies; and (b) you do not * exceed the financial acquisitions threshold. (3) This section has effect despite section 15 ‑ 5 (which is about what is a creditable importation).

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 156 of 2000, Sch 3 item 15, 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 72-1 — What this Division is about

This Division ensures that supplies to, and acquisitions from, your associates without consideration are brought within the GST system, and that supplies to your associates for inadequate consideration are properly valued for GST purposes.

s 72-5 — Taxable supplies without consideration

(1) The fact that a supply to your * associate is without * consideration, does not stop the supply being a * taxable supply if: (a) your associate is not * registered or * required to be registered; or (b) your associate acquires the thing supplied otherwise than solely for a * creditable purpose. (2) This section has effect despite paragraphs 9 ‑ 5(a) and 84 ‑ 5(1)(a) (which would otherwise require a taxable supply to be for consideration). (3) However, this section does not apply to any supply that is constituted by an insured entity settling a claim under an * insurance policy or by an entity (other than an * operator) settling a claim under a * compulsory third party scheme.

Amendment history: Amended by No 177 of 1999, Sch 6 item 86, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 67 of 2003, Sch 11 item 12, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 52 of 2016, Sch 2 item 6 | Sch 2 item 84, 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 22, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 72-10 — The value of taxable supplies without consideration

(1) If a supply to your * associate without * consideration is a * taxable supply, its value 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). (3) This section does not apply to a supply that is a * taxable supply because of section 84 ‑ 5 (which is about offshore supplies).

Amendment history: Amended by No 52 of 2016, Sch 2 item 7, 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 72-15 — Attributing the GST to tax periods

(1) The tax period to which the GST on a * taxable supply to your * associate without * consideration is attributable is the tax period in which the supply first becomes a supply that is * connected with the indirect tax zone. (2) This section has effect despite section 29 ‑ 5 (which is about attributing GST on 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 72-20 — Supplies and acquisitions that would otherwise be sales etc.

(1) If, apart from a lack of * consideration: (a) a supply to your * associate from you; or (b) a supply to you from your associate; would be a sale or some other kind of supply, the supply is taken for the purposes of the * GST law to be a supply of that kind. (2) If, apart from a lack of * consideration: (a) an acquisition by your * associate from you; or (b) an acquisition by you from your associate; would be by sale or some other means, the acquisition is taken for the purposes of the * GST law to be an acquisition by that means.

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 72-25 — Supplies that would otherwise be GST ‑ free, input taxed or financial supplies

The fact that a supply to or from your * associate is without * consideration does not stop the supply from being any of the following for the purposes of the * GST law: (a) a * GST ‑ free supply; (b) a supply that is * input taxed; (c) a * financial supply.

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 72-40 — Creditable acquisitions without consideration

(1) The fact that an acquisition from your * associate is without * consideration does not stop the acquisition being a * creditable acquisition if you acquire the thing supplied otherwise than solely for a * creditable purpose. (2) This section has effect despite paragraph 11 ‑ 5(c) (which would otherwise require a creditable acquisition to be for consideration). (3) However, this section does not apply to any acquisition that is constituted by an insurer settling a claim under an * insurance policy or by an * operator settling a claim under a * compulsory third party scheme.

Amendment history: Amended by No 177 of 1999, Sch 6 item 87, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 67 of 2003, Sch 11 item 13, effective Schedule 11 (items 1–41, 43): Royal Assent

s 72-45 — The amount of the input tax credit

(1) The amount of the input tax credit on an acquisition from your * associate that is without * consideration is as follows: where: 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 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. (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 you had provided, or had been liable to provide, all of the * consideration for the acquisition. (2) This section has effect despite subsection 11 ‑ 30(3) (which is about the amount of input tax credits on partly creditable acquisitions).

Amendment history: Amended by No 156 of 2000, Sch 7 item 4, 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 72-50 — Attributing the input tax credit to tax periods

(1) The tax period to which the input tax credit for a * creditable acquisition from your * associate without * consideration is attributable is the tax period in which the supply to which the acquisition relates first becomes a supply that is * connected with the indirect tax zone. (2) This section has effect despite section 29 ‑ 10 (which is about attributing input tax credits for creditable acquisitions).

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 72-70 — The value of taxable supplies for inadequate consideration

(1) If a supply to your * associate for * consideration that is less than the * GST inclusive market value is a * taxable supply, its value is the * GST exclusive market value of the supply. (2) Subsection (1) does not apply if: (a) your associate is * registered or * required to be registered; and (b) your associate acquires the thing supplied solely for a * creditable purpose. (3) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies). (4) This section does not apply to a supply that is a * taxable supply because of section 84 ‑ 5 (which is about offshore supplies).

Amendment history: Amended by No 52 of 2016, Sch 2 item 8, 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 72-90 — GST branches

This Division applies to a * GST branch of an entity as if the GST branch were an * associate of: (a) that entity; and (b) every other GST branch of that entity; and (c) any other associate of that entity.

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 72-92 — Non ‑ profit sub ‑ entities

This Division applies to a * non ‑ profit sub ‑ entity of an entity as if the non ‑ profit sub ‑ entity were an * associate of: (a) that entity; and (b) every other non ‑ profit sub ‑ entity of that entity; and (c) any other associate of that entity.

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 72-95 — Commonwealth government entities

(1) This Division applies to a * government entity that is: (a) a Department of State of the Commonwealth; or (b) a Department of the Parliament established under the Parliamentary Service Act 1999 ; or (c) an Executive Agency, or Statutory Agency, within the meaning of the Public Service Act 1999 ; or (d) an organisation, established by the Commonwealth, of a kind referred to in paragraph (e) of the definition of government entity in section 41 of the A New Tax System (Australian Business Number) Act 1999 ; as if the government entity were an * associate of the Commonwealth, of every other government entity of a kind referred to in paragraph (a), (b), (c) or (d) and of any other associate of the Commonwealth. (2) However, this Division does not apply to a supply or acquisition if a payment for the supply or acquisition is covered by subsection 9 ‑ 17(3) or (4).

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 5 of 2011, Sch 6 item 121, effective Schedule 6 (item 121): 19 Apr 2011 | Amended by No 75 of 2012, Sch 2 item 4 | Sch 2 item 5, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 72-100 — State or Territory government entities

(1) This Division applies to a * government entity that is: (a) a Department of State of a State or Territory; or (b) an organisation, established by a State or Territory, of a kind referred to in paragraph (e) of the definition of government entity in section 41 of the A New Tax System (Australian Business Number) Act 1999 ; as if the government entity were an * associate of: (c) that State or Territory; and (d) every other Department of State of that State or Territory, or organisation, established by that State or Territory, of a kind referred to in paragraph (e) of that definition; and (e) any other associate of that State or Territory. (2) However, this Division does not apply to a supply or acquisition if a payment for the supply or acquisition is covered by subsection 9 ‑ 17(3) or (4).

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 75 of 2012, Sch 2 item 6 | Sch 2 item 7, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 75-1 — What this Division is about

This Division allows you to use a margin scheme to bring within the GST system your taxable supplies of freehold interests in land, of stratum units and of long ‑ term leases.

s 75-5 — Applying the margin scheme

(1) The * margin scheme applies in working out the amount of GST on a * taxable supply of * real property that you make by: (a) selling a freehold interest in land; or (b) selling a * stratum unit; or (c) granting or selling a * long ‑ term lease; if you and the * recipient of the supply have agreed in writing that the margin scheme is to apply. (1A) The agreement must be made: (a) on or before the making of the supply; or (b) within such further period as the Commissioner allows. Note: Refusing to allow, or allowing, a further period within which to make an agreement is a reviewable GST decision (see Subdivision 110 ‑ F in Schedule 1 to the Taxation Administration Act 1953 ). (1B) A supply that you make to your * associate is taken for the purposes of subsection (1) to be a sale to your associate whether or not the supply is for * consideration. (2) However, the * margin scheme does not apply if you acquired the entire freehold interest, * stratum unit or * long ‑ term lease through a supply that was * ineligible for the margin scheme. Note: If you acquired part of the interest, unit or lease through a supply that was ineligible for the margin scheme, you may have an increasing adjustment: see section 75 ‑ 22. (3) A supply is ineligible for the margin scheme if: (a) it is a * taxable supply on which the GST was worked out without applying the * margin scheme; or (b) it is a supply of a thing you acquired by * inheriting it from a deceased person, and the deceased person had acquired all of it through a supply that was ineligible for the margin scheme; or (c) it is a supply in relation to which all of the following apply: (i) you were a * member of a * GST group at the time you acquired the interest, unit or lease in question; (ii) the entity from whom you acquired it was a member of the GST group at that time; (iii) the last supply of the interest, unit or lease by an entity who was not (at the time of that supply) a member of the GST group to an entity who was (at that time) such a member was a supply that was ineligible for the margin scheme; or (d) it is a supply in relation to which both of the following apply: (i) you acquired the interest, unit or lease from the * joint venture operator of a * GST joint venture at a time when you were a * participant in the joint venture; (ii) the joint venture operator had acquired the interest, unit or lease through a supply that was ineligible for the margin scheme; or (e) it is a supply in relation to which all of the following apply: (i) you acquired the interest, unit or lease from an entity as, or as part of, a * supply of a going concern to you that was * GST ‑ free under Subdivision 38 ‑ J; (ii) the entity was * registered or * required to be registered, at the time of the acquisition; (iii) the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or (f) it is a supply in relation to which all of the following apply: (i) you acquired the interest, unit or lease from an entity as, or as part of, a supply to you that was GST ‑ free under Subdivision 38 ‑ O; (ii) the entity was registered or required to be registered, at the time of the acquisition; (iii) the entity had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme; or (g) it is a supply in relation to which all of the following apply: (i) you acquired the interest, unit or lease from an entity who was your * associate, and who was registered or required to be registered, at the time of the acquisition; (ii) the acquisition from your associate was without * consideration; (iii) the supply by your associate was not a taxable supply; (iv) your associate made the supply in the course or furtherance of an * enterprise that your associate * carried on; (v) your associate had acquired the entire interest, unit or lease through a taxable supply on which the GST was worked out without applying the margin scheme. (3A) Subparagraphs (3)(g)(iii) and (iv) do not apply if the acquisition from your * associate was not by means of a supply by your associate. (4) A reference in paragraph (3)(b), (c) or (d) to a supply that was ineligible for the margin scheme is a reference to a supply: (a) that was ineligible for the margin scheme because of one or more previous applications of subsection (3); or (b) that would have been ineligible for the margin scheme for that reason if subsection (3) had been in force at all relevant times.

Amendment history: Amended by No 78 of 2005, Sch 6 item 9 | Sch 6 item 10 | Sch 6 item 11 | Sch 6 item 27A | Sch 6 item 27B, effective 29 June 2005 | Amended by No 73 of 2006, Sch 5 item 110 | Sch 5 item 122, effective Schedule 5 (items 2, 3, 65–137): 1 July 2006 ( see s. 2(1)) | Amended by No 145 of 2008, Sch 1 item 1 | Sch 1 item 2 | Sch 1 item 3 | Sch 1 item 10, effective Schedule 1 (items 1–13): Royal Assent

s 75-10 — The amount of GST on taxable supplies

(1) If a * taxable supply of * real property is under the * margin scheme, the amount of GST on the supply is 1 / 11 of the * margin for the supply. (2) Subject to subsection (3) and section 75 ‑ 11, the margin for the supply is the amount by which the * consideration for the supply exceeds the consideration for your acquisition of the interest, unit or lease in question. (3) Subject to section 75 ‑ 11, if: (a) the circumstances specified in an item in the second column of the table in this subsection apply to the supply; and (b) an * approved valuation of the freehold interest, * stratum unit or * long ‑ term lease, as at the day specified in the corresponding item in the third column of the table, has been made; the margin for the supply is the amount by which the * consideration for the supply exceeds that valuation of the interest, unit or lease. Use of valuations to work out margins Item When valuations may be used Days when valuations are to be made 1 The supplier acquired the interest, unit or lease before 1 July 2000, and items 2, 3 and 4 do not apply. 1 July 2000 2 The supplier acquired the interest, unit or lease before 1 July 2000, but does not become * registered or * required to be registered until after 1 July 2000. The date of effect of your registration, or the day on which you applied for registration (if it is earlier) 2A The supplier acquired the interest, unit or lease on or after 1 July 2000, but the supply to the supplier: (a) was * GST ‑ free under subsection 38 ‑ 445(1A); and 1 July 2000 (b) related to a supply before 1 July 2000, by way of lease, that would have been GST ‑ free under section 38 ‑ 450 had it been made on or after 1 July 2000. 3 The supplier is * registered or * required to be registered and has held the interest, unit or lease since before 1 July 2000, and there were improvements on the land or premises in question as at 1 July 2000. 1 July 2000 4 The supplier is the Commonwealth, a State or a Territory and has held the interest, unit or lease since before 1 July 2000, and there were no improvements on the land or premises in question as at 1 July 2000. The day on which the * taxable supply takes place (3A) If: (a) the circumstances specified in item 4 in the second column of the table in subsection (3) apply to the supply; and (b) there are improvements on the land or premises in question on the day on which the * taxable supply takes place; the valuation is to be made as if there are no improvements on the land or premises on that day. (4) 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: Amended by No 177 of 1999, Sch 6 item 88, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 6 item 5, 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 1 item 12, 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 78 of 2005, Sch 6 item 12 | Sch 6 item 13 | Sch 6 item 14 | Sch 6 item 15 | Sch 6 item 16 | Sch 6 item 17 | Sch 6 item 21 | Sch 6 item 27, effective 29 June 2005

s 75-11 — Margins for supplies of real property in particular circumstances

Margin for supply of real property acquired from fellow member of GST group (1) If: (a) you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were * members of the same * GST group; and (b) on or after 1 July 2000, there has been a supply (an earlier supply ) of the interest, unit or lease that occurred at a time when the supplier was not a member of the GST group; and (ba) the * recipient was at that time, or subsequently became, a member of the GST group; the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (c) the consideration for the last such earlier supply, if the supplier and the recipient were not * associates at that time; or (d) the * GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time. (2) If: (a) you acquired the interest, unit or lease in question at a time when both you and the entity from whom you acquired it were * members of the same * GST group; and (b) subsection (1) does not apply; the margin for the supply you make is the amount by which the * consideration for the supply exceeds an * approved valuation of the interest, unit or lease as at 1 July 2000. Margin for supply of real property acquired from joint venture operator of a GST joint venture (2A) If: (a) you acquired the interest, unit or lease in question at a time when you were a * participant in a * GST joint venture and the entity from whom you acquired it was the * joint venture operator of the joint venture; and (b) you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and (c) on or after 1 July 2000, there has been a supply (an earlier supply ) of the interest, unit or lease to the entity from whom you acquired it (whether or not that entity was the joint venture operator of the joint venture at the time of that acquisition); the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (d) the consideration for the last such earlier supply, if the supplier and the * recipient were not * associates at the time of the earlier supply; or (e) the * GST inclusive market value of the interest, unit or lease at that time, if the 2 entities were associates at that time. (2B) If: (a) you acquired the interest, unit or lease in question at a time when you were a * participant in a * GST joint venture and the entity from whom you acquired it was the * joint venture operator of the joint venture; and (b) you acquired the interest, unit or lease for consumption, use or supply in the course of activities for which the joint venture was entered into; and (c) subsection (2A) does not apply; the margin for the supply you make is the amount by which the * consideration for the supply exceeds an * approved valuation of the interest, unit or lease as at 1 July 2000. Margin for supply of real property acquired from deceased estate (3) If: (a) you acquired the interest, unit or lease in question by * inheriting it; and (b) none of subsections (1) to (2B) applies; and (c) the entity from whom you inherited the interest, unit or lease (the deceased ) acquired it before 1 July 2000; the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (ca) if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply—that consideration; or (d) if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was neither * registered nor * required to be registered—an * approved valuation of the interest, unit or lease as at the latest of: (i) 1 July 2000; or (ii) the day on which you inherited the interest, unit or lease; or (iii) the first day on which you registered or were required to be registered; or (e) if paragraph (ca) does not apply and, immediately before the time at which you inherited the interest, unit or lease, the deceased was registered or required to be registered—an approved valuation of the interest, unit or lease as at the later of: (i) 1 July 2000; or (ii) the first day on which the deceased registered or was required to be registered. (4) If: (a) you acquired the interest, unit or lease in question by * inheriting it; and (b) none of subsections (1) to (2B) applies; and (c) the entity from whom you inherited the interest, unit or lease (the deceased ) acquired it on or after 1 July 2000; the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (d) if you know what was the consideration for the supply of the interest, unit or lease to the deceased and you choose to use that consideration to work out the margin for the supply—that consideration; or (e) if paragraph (d) does not apply—an * approved valuation of the interest, unit or lease as at the day on which the deceased acquired it. Margin for supply of real property acquired as a GST ‑ free going concern or as GST ‑ free farm land (5) If: (a) you acquired the interest, unit or lease in question from an entity as, or as part of: (i) a * supply of a going concern to you that was * GST ‑ free under Subdivision 38 ‑ J; or (ii) a supply to you that was GST ‑ free under Subdivision 38 ‑ O; and (b) the entity was * registered or * required to be registered, at the time of the acquisition; and (c) none of subsections (1) to (4) applies; the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (d) if that entity had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered: (i) if you choose to apply an * approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at 1 July 2000; or (ii) if subparagraph (i) does not apply—the * GST inclusive market value of the interest, unit or lease as at 1 July 2000; or (e) if that entity had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition: (i) if the entity’s acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at the day on which the entity had acquired it; or (ii) if the entity’s acquisition was for consideration and subparagraph (i) does not apply—that consideration; or (iii) if the entity’s acquisition was without consideration—the GST inclusive market value of the interest, unit or lease as at the time of the acquisition; or (f) if that entity had not been registered or required to be registered at the time of the entity’s acquisition of the interest, unit or lease (and paragraph (d) does not apply): (i) if you choose to apply an approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or (ii) if subparagraph (i) does not apply—the GST inclusive market value of the interest, unit or lease as at that day. Margin for supply of real property acquired from associate (6) If: (a) you acquired the interest, unit or lease in question from an entity who was your * associate, and who was * registered or * required to be registered, at the time of the acquisition; and (b) the acquisition from your associate was without * consideration; and (c) the supply by your associate was not a * taxable supply; and (d) your associate made the supply in the course or furtherance of an * enterprise that your associate * carried on; and (e) none of subsections (1) to (5) applies; the margin for the supply you make is the amount by which the consideration for the supply exceeds: (f) if your associate had acquired the interest, unit or lease before 1 July 2000 and on that day was registered or required to be registered: (i) if you choose to apply an * approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at 1 July 2000; or (ii) if subparagraph (i) does not apply—the * GST inclusive market value of the interest, unit or lease as at 1 July 2000; or (g) if your associate had acquired the interest, unit or lease on or after 1 July 2000 and had been registered or required to be registered at the time of the acquisition: (i) if your associate’s acquisition was for consideration and you choose to apply an approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at the day on which your associate had acquired it; or (ii) if your associate’s acquisition was for consideration and subparagraph (i) does not apply—that consideration; or (iii) if your associate’s acquisition was without consideration—the GST inclusive market value of the interest, unit or lease at the time of the acquisition; or (h) if your associate had not been registered or required to be registered at the time of your associate’s acquisition of the interest, unit or lease (and paragraph (f) does not apply): (i) if you choose to apply an approved valuation to work out the margin for the supply—an approved valuation of the interest, unit or lease as at the first day on which the entity was registered or required to be registered; or (ii) if subparagraph (i) does not apply—the GST inclusive market value of the interest, unit or lease as at that day. (6A) Paragraphs (6)(c) and (d) do not apply if the acquisition from your * associate was not by means of a supply by your associate. (6B) To avoid doubt, you cannot be taken, for the purposes of paragraph (5)(f) or (6)(h), to be * registered or * required to be registered on a day earlier than 1 July 2000. (7) If: (a) you acquired the interest, unit or lease in question from an entity who was your * associate at the time of the acquisition; and (b) none of the other subsections of this section apply; the margin for the supply you make is the amount by which the * consideration for the supply exceeds: (c) if your acquisition was made before 1 July 2000—an * approved valuation of the interest, unit or lease as at 1 July 2000; or (d) if your acquisition was made on or after 1 July 2000—the * GST inclusive market value of the interest, unit or lease at the time of the acquisition. (8) Subsection (6) or (7) applies to an acquisition through a supply made by: (a) a * GST branch; or (b) a * non ‑ profit sub ‑ entity; or (c) a * government entity of a kind referred to in section 72 ‑ 95 or 72 ‑ 100; as if Subdivision 72 ‑ D affected the operation of that subsection in the same way that it affects the operation of Division 72.

Amendment history: Inserted by No 78 of 2005, Sch 6 item 12 | Sch 6 item 13, effective 29 June 2005 | Amended by No 58 of 2006, Sch 7 item 2, effective Schedule 7 (items 2–15, 220–226): Royal Assent | Amended by No 145 of 2008, Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 75, effective Schedule 1 (items 1–13): Royal Assent

s 75-12 — Working out margins to take into account failure to pay full consideration

In working out the * margin for a * taxable supply of * real property you make (the later supply ), if: (a) you had acquired the interest, unit or lease in question through a supply (the earlier supply ); and (b) the * consideration for: (i) if your acquisition was not an acquisition from a * member of a * GST group of which you were also a member at the time of the acquisition—the earlier supply; or (ii) if your acquisition was such an acquisition—the last supply of the interest, unit or lease at a time when the supplier of that last supply was not, but the * recipient of that last supply was, a member of the GST group; had not been paid in full at the time of the later supply; treat the amount of the consideration as having been reduced by the amount of unpaid consideration referred to in paragraph (b). Note: If you subsequently pay more of the consideration for the earlier supply, you may have a decreasing adjustment: see section 75 ‑ 27.

Amendment history: Inserted by No 78 of 2005, Sch 6 item 75, effective 29 June 2005

s 75-13 — Working out margins to take into account supplies to associates

In working out the * margin for a * taxable supply of * real property you make to an entity who is your * associate at the time of the supply, treat the * consideration for the supply (whether or not the supply was for consideration) as if it were the same as the * GST inclusive market value of the interest, unit or lease at the time of the supply.

Amendment history: Inserted by No 78 of 2005, effective 29 June 2005 | Amended by No 145 of 2008, Sch 1 item 8, effective Schedule 1 (items 1–13): Royal Assent

s 75-14 — Consideration for acquisition of real property not to include cost of improvements etc.

(1) To avoid doubt, in working out the * consideration for an acquisition for the purposes of applying the * margin scheme to a * taxable supply of * real property, disregard: (a) the cost or value of any other acquisitions that have been made by you, or any work that has been performed, in relation to the real property; and (b) the cost or value of any other acquisitions that are intended to be made by you, or any work that is intended to be performed, in relation to the real property after its acquisition; including acquisitions or work connected with bringing into existence the interest, unit or lease supplied. (2) This section does not affect what constitutes * consideration for a purpose not connected with applying the * margin scheme.

Amendment history: Inserted by No 78 of 2005, effective 29 June 2005

s 75-15 — Subdivided real property

(1) This section applies if you make a * taxable supply of * real property that relates only to part of the land or premises in which you acquired an interest, unit or lease. (2) In applying any of sections 75 ‑ 10 to 75 ‑ 14 in working out the * margin for the * taxable supply, use only the corresponding proportion of the following (as applicable): (a) the * consideration for the acquisition or supply referred to in that section of that interest, unit or lease; (b) an * approved valuation of that interest, unit or lease as at the day referred to in that section; (c) the * GST inclusive market value of that interest, unit or lease as at the day or time referred to in that section. Example 1: If subsection 75 ‑ 11(2) applies, use only the corresponding proportion of an approved valuation of your interest, unit or lease in the unsubdivided property as at 1 July 2000. Example 2: If subparagraph 75 ‑ 11(5)(e)(ii) applies, use only the corresponding proportion of the consideration for the acquisition of the interest, unit or lease in the unsubdivided property by the entity that supplied it to you.

Amendment history: Amended by No 78 of 2005, Sch 6 item 17, effective 29 June 2005 | Repealed and substituted by No 84 of 2013, Sch 8 item 17, effective Sch 8 (items 17–19): 28 June 2013 (s 2(1) item 4)

s 75-16 — Margins for supplies of real property acquired through several acquisitions

(1) If: (a) you make a * taxable supply of * real property under the * margin scheme; and (b) the interest, unit or lease in question is one that you acquired through 2 or more acquisitions ( partial acquisitions ); and (c) one of the following provisions (a margin provision ) applies in relation to such a partial acquisition, or would so apply if the partial acquisition had been an acquisition of the whole of the interest, unit or lease: (i) section 75 ‑ 10; (ii) subsection 75 ‑ 11(1), (2), (2A), (2B), (3), (4), (5), (6) or (7); the margin provision applies, in working out the margin for the supply you make, only to the extent that the supply is connected to the partial acquisition. (2) The application of a margin provision in relation to one of the partial acquisitions does not prevent that margin provision or a different margin provision applying in relation to another of the partial acquisitions.

Amendment history: Inserted by No 145 of 2008, effective Schedule 1 (items 1–13): Royal Assent

s 75-20 — Supplies under a margin scheme do not give rise to creditable acquisitions

(1) An acquisition of a freehold interest in land, a * stratum unit or a * long ‑ term lease is not a * creditable acquisition if the supply of the interest, unit or lease was a * taxable supply under the * margin scheme. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

s 75-22 — Increasing adjustment relating to input tax credit entitlement

(1) You have an increasing adjustment if: (a) you make a * taxable supply of * real property under the * margin scheme; and (b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was * ineligible for the margin scheme; and (c) you were, or are, entitled to an input tax credit for the acquisition. The amount of the increasing adjustment is an amount equal to the * previously attributed input tax credit amount for the acquisition. (2) You have an increasing adjustment if: (a) you make a * taxable supply of * real property under the * margin scheme; and (b) you acquired all or part of the interest, unit or lease in question by inheriting it; and (c) the entity from whom you inherited (the deceased ) had acquired part of the interest, unit or lease that you inherited through a supply that was * ineligible for the margin scheme; and (d) the deceased was entitled to an input tax credit for that acquisition. The amount of the increasing adjustment is an amount equal to the * previously attributed input tax credit amount for the acquisition. (3) You have an increasing adjustment if: (a) you make a * taxable supply of * real property under the * margin scheme; and (b) an acquisition that you made of part of the interest, unit or lease in question was made through a supply that was * ineligible for the margin scheme because of paragraph 75 ‑ 5(3)(e), (f) or (g); and (c) the entity from whom you made the acquisition had been entitled to an input tax credit for its acquisition. (4) You have an increasing adjustment if: (a) you make a * taxable supply of * real property under the * margin scheme; and (b) the acquisition that you made of the interest, unit or lease in question: (i) was made through a supply that was * GST ‑ free under Subdivision 38 ‑ J or Subdivision 38 ‑ O; or (ii) was made through a supply (other than a taxable supply) from your * associate without * consideration and in the course or furtherance of an * enterprise that your associate * carried on; or (iii) was made from your associate but not by means of a supply from your associate; and (c) the entity from whom you acquired the interest, unit or lease: (i) acquired part of the interest, unit or lease through a supply that would have been * ineligible for the margin scheme if it had been a supply of the whole of the interest, unit or lease; and (ii) had been entitled to an input tax credit for its acquisition; and (iii) was * registered or * required to be registered, at the time of your acquisition of the interest, unit or lease. (5) The amount of the * increasing adjustment under subsection (3) or (4) is an amount equal to 1 / 11 of: (a) if you choose to apply an * approved valuation to work out the amount—an approved valuation of the part of the interest, unit or lease referred to in paragraph (3)(b) or subparagraph (4)(c)(i) as at the day on which the entity had acquired it; or (b) otherwise—the * consideration for the entity’s acquisition of that part of the interest, unit or lease.

Amendment history: Inserted by No 78 of 2005, Sch 6 item 11 | Sch 6 item 25, effective 29 June 2005 | Amended by No 145 of 2008, Sch 1 item 10, effective Schedule 1 (items 1–13): Royal Assent

s 75-25 — Adjustments relating to bad debts

(1) If: (a) you have an * adjustment under Division 21 relating to a supply that you made that is a * taxable supply of * real property under the * margin scheme; and (b) the amount of the adjustment would (apart from this section) exceed 1 / 11 of the * margin for the supply; the amount of the adjustment is 1 / 11 of the margin for the supply. (2) This section has effect despite sections 21 ‑ 5 and 21 ‑ 10 (which are about adjustments for writing off and recovering suppliers’ bad debts).

s 75-27 — Decreasing adjustment for later payment of consideration

(1) You have a decreasing adjustment if: (a) section 75 ‑ 12 applied to working out the * margin for a * taxable supply of * real property that you made; and (b) after you made the supply, a further amount of the * consideration was paid for the earlier supply referred to in that section. (2) The amount of the decreasing adjustment is an amount equal to 1 / 11 of the further amount of the * consideration paid.

Amendment history: Inserted by No 78 of 2005, Sch 6 item 75 | Sch 6 item 24, effective 29 June 2005

s 75-30 — Tax invoices not required for supplies of real property under the margin scheme

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

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 75-35 — Approved valuations

(1) The Commissioner may, by legislative instrument, determine in writing requirements for making valuations for the purposes of this Division. (2) A valuation made in accordance with those requirements is an approved valuation .

Amendment history: Inserted by No 78 of 2005, Sch 6 item 21 | Sch 6 item 22, effective 29 June 2005

s 78-1 — What this Division is about

Stamp duty is not included in working out the GST on insurance premiums. Insurers have decreasing adjustments which enable the net GST on insurance to reflect correctly their margins after settlements of claims are taken into account. Note: Payments and supplies under compulsory third party schemes are dealt with in some cases under this Division and in others under Division 79 or 80. Table of Subdivisions 78 ‑ A Insurers 78 ‑ B Insured entities etc. 78 ‑ C Third parties 78 ‑ D Insured entities that are not registered etc. 78 ‑ E Statutory compensation schemes 78 ‑ F Miscellaneous

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 89, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 67 of 2003, Sch 11 item 14, effective Schedule 11 (items 1–41, 43): Royal Assent

s 78-5 — GST on insurance premiums is exclusive of stamp duty

(1) The * value of a * taxable supply of an * insurance policy is worked out as if the * price of the supply were reduced by the amount of any stamp duty payable under a * State law or * Territory law in respect of the supply. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 124, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 78-10 — Decreasing adjustments for settlements of insurance claims

(1) An insurer has a decreasing adjustment if, in settlement of a claim under an * insurance policy, the insurer makes one or more of the following: (a) a payment of * money; (b) a payment of * digital currency; (c) a supply. (2) However, this section only applies if: (a) the supply of the * insurance policy by the insurer was solely or partly a * taxable supply; and (b) either: (i) there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; or (ii) there was an entitlement to such an input tax credit, but the amount of the input tax credit was less than the GST payable by the insurer for the taxable supply; and (c) the insurer settles the claim for a * creditable purpose; and (d) the insurer is * registered, or * required to be registered; and (e) the settlement does not relate solely to one or more * non ‑ creditable insurance events. (2A) In working out the amount of an input tax credit for the purposes of subparagraph (2)(b)(ii), disregard sections 131 ‑ 40 and 131 ‑ 50 (which are about amounts of input tax credits under the annual apportionment rules). (3) An event is a non ‑ creditable insurance event if the supply of an * insurance policy would not be a * taxable supply if it were only an insurance policy against loss, damage, injury or risk that relates to that event happening.

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 78 | Sch 6 item 127, 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 2017, Sch 1 item 5, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-15 — How to work out the decreasing adjustments

No input tax credit for the premium (1) If there was no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened, the amount of the decreasing adjustment is 1 / 11 of the * settlement amount. Partial input tax credit for the premium (2) If there was an entitlement to such an input tax credit, the amount of the decreasing adjustment is as follows: where: extent of input tax credit is the amount of the input tax credit expressed as a fraction of the GST payable for the supply of the * insurance policy for the period to which the premium relates. Note: There is no decreasing adjustment if there is a full input tax credit for the premium paid: see paragraph 78 ‑ 10(2)(b). Non ‑ creditable insurance events (3) The amount of the decreasing adjustment under subsection (1) or (2) is reduced to the extent (if any) that the settlement relates to one or more * non ‑ creditable insurance events. Settlement amounts (4) The settlement amount is worked out using this method statement. Method statement Step 1. Add together: (a) the sum of the payments of * money, or * digital currency, (if any) made in settlement of the claim; and (b) the * GST inclusive market value of the supplies (if any) made by the insurer in settlement of the claim (other than supplies that would have been * taxable supplies but for section 78 ‑ 25). Step 2. If any payments of excess were made to the insurer under the * insurance policy in question, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 ‑ 18 applies). Step 3. Multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following: where: extent of input tax credit has the meaning given by subsection (2).

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 151, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 8 item 2, 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 6 item 20 | Sch 6 item 21, 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 118 of 2017, Sch 1 item 6, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-18 — Increasing adjustments for payments of excess under insurance policies

(1) An insurer has an increasing adjustment if: (a) there is a payment of an excess to the insurer under an * insurance policy; and (b) the insurer makes, or has made, payments or supplies in settlement of a claim under the policy; and (c) the insurer makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of settling the claim. (2) The amount of the increasing adjustment is 1 / 11 of the amount that represents the extent to which the payment of excess relates to * creditable acquisitions and * creditable importations made by the insurer directly for the purpose of settling the claim. (3) An insurer has an increasing adjustment if: (a) there is a payment of an excess to the insurer under an * insurance policy; and (b) the insurer makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of settling the claim; and (c) the insurer has not made any payments or supplies in settlement of the claim. The amount of the increasing adjustment is 1 / 11 of the amount of the payment of the excess.

Amendment history: Inserted by No 156 of 2000, Sch 6 item 20 | Sch 6 item 78 | Sch 6 item 38, 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 78-20 — Settlements of insurance claims do not give rise to creditable acquisitions

(1) If, in settlement of a claim under an * insurance policy, an insurer makes one or more of the following: (a) a payment of * money; (b) a payment of * digital currency; (c) a supply; the payment or supply is not treated as * consideration for an acquisition made by the insurer. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 118 of 2017, Sch 1 item 7, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-25 — Supplies in settlement of claims are not taxable supplies

(1) A supply that an insurer makes in settlement of a claim under an * insurance policy is not a * taxable supply. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 177 of 1999, Sch 6 item 78, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 78-30 — Acquisitions by insurers in the course of settling claims under non ‑ taxable policies

(1) An acquisition is not a * creditable acquisition if: (a) the insurer makes the acquisition: (i) to the extent that the acquisition is an acquisition of goods—solely for the purpose of supplying the goods in the course of settling a claim under an * insurance policy; or (ii) otherwise—solely for a purpose directly related to settling a particular claim under an * insurance policy; and (b) the supply of the insurance policy by the insurer was * GST ‑ free. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 92 | Sch 6 item 93 | Sch 6 item 94, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 156 of 2000, Sch 6 item 22 | Sch 6 item 23 | Sch 6 item 24 | Sch 6 item 25, 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 78-35 — Taxable supplies relating to rights of subrogation

(1) If, in settlement of a claim made by an insurer in the insurer’s exercising of rights of subrogation in respect of an * insurance policy, an entity that is not insured under the policy makes one or more of the following: (a) a payment of * money; (b) a payment of * digital currency; (c) a supply; the payment or supply is not treated as * consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured. (2) This section has effect despite section 9 ‑ 15 (which is about consideration).

Amendment history: Repealed and substituted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 118 of 2017, Sch 1 item 8, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-40 — Adjustment events relating to decreasing adjustments under this Division

(1) Division 19 applies in relation to a * decreasing adjustment that an insurer has under this Division as if: (a) the adjustment were an input tax credit; and (b) the settlement of the claim to which the adjustment relates were a * creditable acquisition that the insurer made; and (c) any payment or supply made by another entity, in settlement of a claim made by an insurer in the insurer’s exercising of rights of subrogation in respect of the * insurance policy in question, were a reduction in the * consideration for the acquisition. (2) Paragraph (1)(c) does not apply to a payment by another entity in relation to which an * increasing adjustment arises under section 80 ‑ 30 or 80 ‑ 70 (which are about settlement sharing arrangements).

Amendment history: Repealed and substituted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 78-42 — Adjustment events relating to increasing adjustments under section 78 ‑ 18

Division 19 applies in relation to an * increasing adjustment that an insurer has under section 78 ‑ 18 as if: (a) payments of excess under an * insurance policy to which the adjustment relates were * consideration for a * taxable supply that the insurer made; and (b) the adjustment were the GST payable on the taxable supply; and (c) any refund of that payment of excess made by the insurer were a reduction in the consideration for the supply.

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 78-45 — Settlements of insurance claims do not give rise to taxable supplies

(1) If, in settlement of a claim under an * insurance policy, an insurer makes one or more of the following: (a) a payment of * money; (b) a payment of * digital currency; (c) a supply; the payment or supply is not treated as * consideration for a supply made by the entity insured, or by any entity (other than the entity insured) that was entitled to an input tax credit for the premium paid for the insurance policy. (2) This section has effect despite section 9 ‑ 15 (which is about consideration).

Amendment history: Repealed and substituted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 118 of 2017, Sch 1 item 9, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-50 — Settlements of insurance claims give rise to taxable supplies if entitlement to input tax credits is not disclosed

(1) However, the payment or supply is treated as * consideration for a supply made by an entity if: (a) the entity paid all or a part of the premium, for the * insurance policy, relating to the period during which the event giving rise to the claim happened; and (b) the entity, or the * representative member of the * GST group of which the entity is a * member, was entitled to an input tax credit for the premium it paid; and (c) the entity: (i) did not, at or before the time a claim was first made under the insurance policy since the last payment of a premium, inform the insurer of the entitlement to an input tax credit for the premium it paid; or (ii) in informing the insurer of the entitlement at or before that time, understated its extent; and (d) the insurance policy was not issued under a * compulsory third party scheme. It does not matter whether that entity is the entity insured, or whether the payment or supply is made to that entity or any other entity. (2) The extent to which the payment or supply is treated as * consideration is the extent of the entitlement, or the extent to which the entitlement was understated, as the case requires. (2A) In working out, for the purposes of subparagraph (1)(c)(ii) or subsection (2), whether an entitlement to an input tax credit has been understated, or the extent of the understatement, disregard sections 131 ‑ 40 and 131 ‑ 50 (which are about amounts of input tax credits under the annual apportionment rules). (3) The supply made by the entity is a taxable supply whether or not the entity is * registered, or * required to be registered, at the time of the settlement or at the time of the payment or supply by the insurer. Note: Subdivision 78 ‑ D deals with how GST applies to the taxable supply if the insured entity is not registered, or required to be registered. (4) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies) and section 9 ‑ 17 (which is about consideration).

Amendment history: Repealed and substituted by No 177 of 1999, Sch 6 item 92 | Sch 6 item 93 | Sch 6 item 94 | Sch 6 item 23A, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended 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 156 of 2000, Sch 6 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)) | Amended by No 67 of 2003, Sch 11 item 15, effective Schedule 11 (items 1–41, 43): Royal Assent | 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 75 of 2012, Sch 2 item 8, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 78-55 — Payments of excess under insurance policies are not consideration for supplies

(1) The making of any payment by an entity is not treated as * consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess to the insurer under an * insurance policy. (2) This section has effect despite 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))

s 78-60 — Supplies of goods to insurers in the course of settling claims

(1) A supply of goods is not a * taxable supply if it is solely a supply made under an * insurance policy to an insurer in the course of settling a claim under the policy. (2) In working out the value of a * taxable supply that is partly a supply of goods made under an * insurance policy to an insurer in the course of settling a claim under the policy, disregard the * consideration to the extent that it relates to the supply of those goods. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies) and section 9 ‑ 75 (which is about the value of taxable supplies).

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

s 78-65 — Payments etc. to third parties by insurers

(1) The making of any payment by an insurer to an entity is not treated as * consideration for a supply to the insurer by the entity, to the extent that: (a) the payment is made in settlement of a claim under an * insurance policy under which the entity is not insured; and (b) the payment is to discharge a liability owed to that entity by the entity insured. (2) The making of any supply by an insurer to an entity: (a) is not to be treated as a * taxable supply by the insurer; and (b) is not to be treated as * consideration for a supply to the insurer by the entity, or any other entity; to the extent that: (c) the supply is made in settlement of a claim under an * insurance policy under which the entity is not insured; and (d) the supply is to discharge a liability owed to that entity by the entity insured. (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: Amended by No 156 of 2000, Sch 6 item 28 | Sch 6 item 29, 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 78-70 — Payments etc. to third parties by insured entities

(1) The making of any payment by an entity to another entity is not to be treated as * consideration for a supply to the entity by that other entity, to the extent that: (a) the payment is to discharge a liability of the entity to that other entity; and (b) the payment is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability. (2) The making of any supply by an entity to another entity: (a) is not to be treated as a * taxable supply by the entity; and (b) is not to be treated as * consideration for a supply to the entity by that other, or any other, entity; to the extent that: (c) the supply is to discharge a liability of the entity to that other entity; and (d) the supply is covered by a settlement of a claim under an * insurance policy under which the entity was insured against that liability. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies) and section 9 ‑ 15 (which is about consideration).

s 78-75 — Creditable acquisitions relating to rights of subrogation

(1) If, in settlement of a claim made by an insurer in the insurer’s exercising of rights of subrogation in respect of an * insurance policy, an entity that is not insured under the policy makes one or more of the following: (a) a payment of * money; (b) a payment of * digital currency; (c) a supply; the payment or supply is not treated as * consideration for an acquisition made by the entity. (2) This section has effect despite section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 118 of 2017, Sch 1 item 10, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-80 — Net amounts

(1) If an entity insured under an * insurance policy is not * registered or * required to be registered, it does not have a * net amount under Part 2 ‑ 4 merely because it makes a * taxable supply under section 78 ‑ 50. (2) This section does not prevent an * adjustment arising that relates to such a supply, but the entity cannot have a * decreasing adjustment unless it is * registered or * required to be registered. (3) This section has effect despite Division 17 (which is about net amounts and adjustments).

Amendment history: Amended by No 177 of 1999, Sch 6 item 92, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2))

s 78-85 — GST returns

(1) If, during a month: (a) an entity makes any * taxable supplies under section 78 ‑ 50; or (b) an entity has any * increasing adjustments that arise in relation to any such supplies (whether made in that month or a previous month); and the entity is not * registered or * required to be registered during that month, it must give to the Commissioner a * GST return, within 21 days after the end of the month, relating to those supplies it 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 177 of 1999, Sch 6 item 93, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 73 of 2001, Sch 5 item 16 | Sch 5 item 17, 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 78-90 — Payments of GST

(1) An entity that is not * registered or * required to be registered during a particular month must pay to the Commissioner: (a) amounts of * assessed GST on * taxable supplies under section 78 ‑ 50 that it makes during that month; and (b) * assessed amounts of * increasing adjustments that it has that arise, during that month, in relation to supplies that are taxable supplies under section 78 ‑ 50. (1A) The entity 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 the entity 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 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 39 of 2012, Sch 1 item 80 | 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 78-95 — GST on premiums etc. under statutory compensation schemes is exclusive of stamp duty

(1) The * value of a * taxable supply of membership of, or participation in, a * statutory compensation scheme is worked out as if the * price of the supply were reduced by the amount of any stamp duty payable under a * State law or * Territory law in respect of the supply. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

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

s 78-100 — Settlements of claims for compensation under statutory compensation schemes

(1) Subsection 38 ‑ 60(1) and this Division apply in relation to a payment or supply made in settlement of a claim for compensation under a * statutory compensation scheme in the same way that they apply to a payment or supply made in settlement of a claim under an * insurance policy. Note: Subsection 38 ‑ 60(1) provides that certain supplies to insurers are GST ‑ free. (2) For the purposes of the application of subsection 38 ‑ 60(1) and this Division in relation to such a payment or supply: (a) the claim for compensation under the scheme is treated as a claim under an * insurance policy; and (b) the entity operating the scheme is treated as the insurer; and (c) an entity is treated as the entity insured if: (i) the entity’s payment of premiums, contributions or similar payments under the scheme, or payment of levy in connection with the scheme; or (ii) the entity’s liability to pay premiums, contributions or similar payments under the scheme, or liability to pay levy in connection with the scheme; enabled the claim for compensation to arise; and (ca) those payments that that entity makes or is liable to make are treated as a premium it has paid; and (d) the supply of membership of, or participation in, the scheme is treated as the supply of an * insurance policy. (3) However, if the entity treated as the entity insured: (a) is liable to make payments referred to in paragraph (2)(c); and (b) has not made all those payments; for the purposes of sections 78 ‑ 10 and 78 ‑ 15, the entity’s entitlement to an input tax credit for the premium paid is taken to be what its entitlement would have been if it had made all those payments.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 92 of 2000, Sch 8 item 4 | Sch 8 item 5, 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 75 of 2012, Sch 1 item 2 | Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 78-105 — Meaning of statutory compensation scheme

A statutory compensation scheme is a scheme or arrangement: (a) that is established by an * Australian law; and (b) under which compensation is payable for particular kinds of injury, loss or damage; and (c) that is specified in the regulations, or that is of a kind specified in the regulations; but does not include a * compulsory third party scheme. Note: Divisions 79 and 80 deal with compulsory third party schemes.

Amendment history: Inserted by No 177 of 1999, Sch 6 item 152, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 67 of 2003, Sch 11 item 16 | Sch 11 item 17, effective Schedule 11 (items 1–41, 43): Royal Assent

s 78-110 — Effect of judgments and court orders

If: (a) an entity makes one or more of the following: (i) a payment of * money; (ii) a payment of * digital currency; (iii) a supply; in compliance with a judgment or order of a court relating to: (iv) a claim under an * insurance policy; or (v) a claim by an insurer in exercising rights of subrogation in respect of an insurance policy; or (vi) a claim for compensation under a * statutory compensation scheme; and (b) had the payment or supply been made in the absence of such a judgment or order, it would have been a payment or supply made in settlement of the claim; the payment or supply is treated as having been made in settlement of the claim.

Amendment history: Inserted by No 177 of 1999, effective Sch 1 (items 1–162): 1 July 2000 (s 2(2)) | Amended by No 118 of 2017, Sch 1 item 11, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 78-115 — Exclusion of certain Commonwealth, State or Territory insurance schemes

This Division (other than sections 78 ‑ 5 and 78 ‑ 95) does not apply to an * insurance policy, or to a payment or supply made in settlement of a claim made under an insurance policy, if: (a) the policy was supplied under a scheme for insurance, or a * statutory compensation scheme, established by an * Australian law; and (b) that scheme is of a kind specified in the regulations.

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

s 78-118 — Portfolio transfers

(1) If an insurer (the first insurer ) enters into an arrangement, in the nature of a portfolio transfer, with another insurer for the other insurer: (a) to act as the insurer in relation to an * insurance policy; or (b) to meet the first insurer’s liabilities arising under an insurance policy; subsection 38 ‑ 60(1) and this Division apply, from the time the arrangement takes effect, as if the other insurer were an insurer in relation to the policy. Note: Subsection 38 ‑ 60(1) provides that certain supplies to insurers are GST ‑ free. (2) Without limiting subsection (1): (a) anything done after that time by the other insurer that, if it had been done by the first insurer, would have been done under the policy is taken, for the purposes of subsection 38 ‑ 60(1) and this Division, to have been done by the other insurer under the policy; and (b) sections 78 ‑ 10 and 78 ‑ 30 apply as if the other insurer were the insurer that supplied the policy; and (c) section 78 ‑ 18 applies as if the insurer that settles the claim referred to in paragraph 78 ‑ 18(1)(b) or (3)(b) (as the case requires) has the * increasing adjustment under that section, regardless of which insurer was paid the excess to which the adjustment relates.

Amendment history: Inserted by No 169 of 2001, effective s 4 and Sch 5 (items 9A–14): 1 Oct 2001 (s 2(1), (4A)) | Amended by No 75 of 2012, Sch 1 item 38 | Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 8, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 78-120 — HIH rescue package

(1) If a payment of * money, a supply or both a payment of money and a supply are received by an entity from an * HIH rescue entity as * consideration for: (a) the entity transferring or surrendering rights under an * insurance policy held with an * HIH company; or (b) the entity transferring or surrendering rights against another entity that is insured under an insurance policy held with an HIH company; or (c) the entity transferring or surrendering rights against another entity in relation to a matter in relation to which the entity also has or had rights under an insurance policy held with an HIH company; this Division (other than sections 78 ‑ 10, 78 ‑ 15 and 78 ‑ 40) applies to the payment or supply as if the HIH rescue entity made the payment or supply as the insurer in settlement of a claim under the insurance policy. (2) In particular: (a) this Division (other than sections 78 ‑ 10, 78 ‑ 15 and 78 ‑ 40, subsection 78 ‑ 50(1) and this section) applies as if: (i) references to an insurer were references to the * HIH rescue entity; and (ii) references to a claim under an * insurance policy were references to a request or claim to the HIH rescue entity for such a payment or supply; and (iii) references to a settlement of such a claim were references to the agreement to make such a payment or supply as consideration for the transfer or surrender; and (b) sections 78 ‑ 18, 78 ‑ 42 and 78 ‑ 55 apply as if references in those sections to payments of excess to the insurer under the policy were references to payments to the HIH rescue entity corresponding to such payments of excess; and (c) section 78 ‑ 30 applies as if references in that section to settling a claim were references to providing the consideration for the transfer or surrender; and (d) section 78 ‑ 100 applies as if references in that section to a claim for compensation under a * statutory compensation scheme were references to a claim made to the HIH rescue entity corresponding to a claim for compensation under the scheme. (3) This section does not affect the operation of sections 78 ‑ 10, 78 ‑ 15 and 78 ‑ 40.

Amendment history: Inserted by No 169 of 2001, Sch 5 item 11 | Sch 5 item 14, effective s 4 and Sch 5 (items 9A–14): 1 Oct 2001 (s 2(1), (4A))

s 79-1 — What this Division is about

Operators of compulsory third party schemes have adjustments which enable the net GST on the schemes to reflect correctly their margins after settlements of claims and other payments and supplies under the schemes are taken into account. The normal application of Division 78 to some insurance policy payments and supplies under the schemes is modified (see Subdivision 79 ‑ A). That Division is also extended so that it applies in a modified form to payments and supplies connected with, but not under, insurance policies (see Subdivision 79 ‑ B). For other settlements, and payments, provisions similar to Division 78 apply (see Subdivision 79 ‑ C). Certain adjustments are worked out using an “applicable average input tax credit fraction” (see Subdivision 79 ‑ D). Note: Division 80 deals with use of settlement sharing arrangements by the operators of compulsory third party schemes. Table of Subdivisions 79 ‑ A Modified application of Division 78 to certain compulsory third party scheme payments and supplies under insurance policies 79 ‑ B Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies 79 ‑ C Other payments and supplies under compulsory third party schemes 79 ‑ D Compulsory third party scheme decreasing adjustments worked out using applicable average input tax credit fraction

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-5 — Application of sections 78 ‑ 10 and 78 ‑ 15 (about decreasing adjustments) where premium selection test is satisfied

(1) This section applies to a payment or supply if: (a) it is a payment or supply made under a * compulsory third party scheme; and (b) the payment or supply is made in settlement of a claim under an * insurance policy; and (c) the * premium selection test is satisfied; and (d) the payment or supply is not a payment or supply to which section 79 ‑ 15 (about sole operator elections) applies. Premium selection test (2) The premium selection test is satisfied if the amount of the premium or premiums for the policy resulted from: (a) an * operator of the * compulsory third party scheme offering a number of different premium amounts to the entity liable to pay the premium or premiums; and (b) that entity selecting a premium amount: (i) that was offered on the basis that there would be an entitlement to an input tax credit for some or all of the amount; or (ii) that was offered on the basis that there would be no entitlement to an input tax credit for any of the amount. Input tax credit entitlement (3) If subparagraph (2)(b)(i) applies, then, for the purposes of sections 78 ‑ 10 and 78 ‑ 15: (a) there is taken to be an entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; and (b) if the supply of the insurance policy was solely or partly a * taxable supply—the amount of the input tax credit is taken to equal the GST payable by the * operator for the taxable supply. No input tax credit entitlement (4) If subparagraph (2)(b)(ii) applies, then, for the purposes of sections 78 ‑ 10 and 78 ‑ 15, there is taken to be no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79 | Sch 11 item 28 | Sch 11 item 39, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-10 — Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied

Decreasing adjustment (1) If: (a) subsection 79 ‑ 5(3) applies to a payment or supply; and (b) after the * premium selection test was satisfied, the * operator became or becomes aware that there was actually no entitlement to an input tax credit for any of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened; and (c) if subsection 79 ‑ 5(4) had applied, the operator would have been entitled to a * decreasing adjustment (the notional decreasing adjustment ); then: (d) the operator has a decreasing adjustment whose amount is, subject to paragraph (e), equal to the notional decreasing adjustment; and (e) if one or more * increasing adjustments (each being a notional section 78 ‑ 40 increasing adjustment ) would have arisen, before the decreasing adjustment under paragraph (d) arose, under Division 19 because of section 78 ‑ 40 applying in relation to the notional decreasing adjustment, the amount of the decreasing adjustment under paragraph (d) is reduced by the sum of the notional section 78 ‑ 40 increasing adjustments; and (f) for the purposes of applying section 78 ‑ 40 after the decreasing adjustment arises under this subsection, that decreasing adjustment is taken to arise under Division 78. Increasing adjustment (2) If: (a) subsection 79 ‑ 5(4) applies to a payment or supply; and (b) as a result, the * operator has a * decreasing adjustment (the original decreasing adjustment); and (c) after the * premium selection test was satisfied, the operator became or becomes aware that there actually was an entitlement to an input tax credit for some or all of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened; then: (d) the operator has an increasing adjustment whose amount is, subject to paragraph (e), equal to the original decreasing adjustment; and (e) if one or more * increasing adjustments (each being a section 78 ‑ 40 increasing adjustment ) arose, before the increasing adjustment under paragraph (d) arose, under Division 19 because of section 78 ‑ 40 applying in relation to the original decreasing adjustment, the amount of the increasing adjustment under paragraph (d) is reduced by the sum of the section 78 ‑ 40 increasing adjustments; and (f) after the increasing adjustment arises under paragraph (d), no adjustment arises under Division 19 because of section 78 ‑ 40 applying in relation to the original decreasing adjustment.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 32 | Sch 11 item 33, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 79-15 — Application of sections 78 ‑ 10 and 78 ‑ 15 (about decreasing adjustments) where sole operator election to use average input tax credit entitlement

(1) This section applies to a payment or supply if: (a) it is a payment or supply made under a * compulsory third party scheme; and (b) the payment or supply is made in settlement of a claim under an * insurance policy; and (c) there is only one * operator who issues insurance policies under the scheme; and (d) assuming the requirements of paragraph 78 ‑ 10(2)(b) were satisfied, the operator would have a * decreasing adjustment under section 78 ‑ 10 in respect of the payment or supply; and (e) an election under subsection (4) is in force during the * financial year in which the payment or supply is made. (2) For the purposes of section 78 ‑ 10, the * operator has a * decreasing adjustment under that section in relation to the payment or supply. (3) Section 78 ‑ 15 does not apply to the * decreasing adjustment, but its amount is instead worked out using the applicable * average input tax credit fraction (see section 79 ‑ 95). (4) The * operator may, in writing, elect that, from the start of a specified * financial year, any * decreasing adjustment in relation to all payments or supplies: (a) that are made during the financial year; and (b) to which paragraphs (1)(a), (b), (c) and (d) apply; are to be worked out using the applicable * average input tax credit fraction. (5) Subject to subsection (6), the election must be made before the start of the specified * financial year. (6) Subsection (5) does not apply if the election specifies the * financial year beginning on 1 July 2003 and is made before the end of 30 days after the day on which this section commences. (7) The election is in force during the specified * financial year and every later financial year, other than one that begins after a financial year in which the election is revoked.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 79-20 — Extension of various references in Division 78 to rights of subrogation to cover other rights of recovery

Payments or supplies in settlement of claims (1) For the purposes of sections 78 ‑ 35, 78 ‑ 40 and 78 ‑ 75, a reference in those sections to a payment or supply made by an entity in settlement of a claim by an insurer in exercising the insurer’s rights of subrogation in respect of an * insurance policy includes a reference to a payment or supply that satisfies the following requirements: (a) the payment or supply is made by an entity in settlement of a claim by an * operator of a * compulsory third party scheme; (b) the claim was made by the operator in exercise of the operator’s rights to recover in respect of a payment or supply made under the compulsory third party scheme; (c) the claim was not made under an * insurance policy that is a policy of reinsurance. Payments or supplies in compliance with court judgments etc. relating to claims (2) For the purposes of section 78 ‑ 110, a reference in that section to a payment or supply made by an entity in compliance with a judgment or order of a court relating to a claim made by an insurer in exercising the insurer’s rights of subrogation in respect of an * insurance policy includes a reference to a payment or supply that satisfies the following requirements: (a) the payment or supply is made by an entity in compliance with a judgment or order of a court relating to a claim made by an * operator of a * compulsory third party scheme; (b) the claim was made by the * operator in exercise of the operator’s rights to recover a payment or supply made under the * compulsory third party scheme; (c) the claim was not made under an insurance policy that is a policy of reinsurance.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-25 — Meaning of CTP hybrid payment or supply

(1) Subject to this section, a payment or supply is a CTP hybrid payment or supply if: (a) it is made in settlement of a claim for compensation under a * compulsory third party scheme; and (b) the claim would not have been made but for an * insurance policy issued under the scheme; and (c) the claim was not made under the insurance policy. (2) A payment or supply is not a CTP hybrid payment or supply if: (a) when the payment or supply is made, the entity that paid the premium for the * insurance policy cannot be located; and (b) that entity did not, at or before the time the * operator making the payment or supply was first made aware of the circumstances to which the payment or supply relates, inform the operator of the entitlement to an input tax credit for the CTP premium it paid; and (c) the * premium selection test was not satisfied in relation to the insurance policy. (2A) Subsection (2) does not apply if the cover under the * insurance policy commenced before 1 July 2003 (whether or not all or part of the premium on the policy was paid before that day). (3) A payment or supply is not a CTP hybrid payment or supply if the * operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79 | Sch 11 item 29 | Sch 11 item 42, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 79-30 — Application of Division 78

(1) Division 78 (other than section 78 ‑ 100), as modified by Subdivision 79 ‑ A, applies in relation to a * CTP hybrid payment or supply as if it were a payment or supply made in settlement of a claim under the * insurance policy mentioned in paragraph 79 ‑ 25(1)(b). (2) This section does not prevent Division 78 applying to a payment or supply under a * compulsory third party scheme if the payment or supply is made in settlement of a claim under an * insurance policy.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-35 — Meaning of CTP compensation or ancillary payment or supply etc.

Meaning of CTP compensation or ancillary payment or supply (1) A payment or supply is a CTP compensation or ancillary payment or supply if it is a * CTP compensation payment or supply or a * CTP ancillary payment or supply. Meaning of CTP compensation payment or supply (2) A payment or supply is a CTP compensation payment or supply if (a) it is a payment or supply made under a * compulsory third party scheme; and (b) it is a payment or supply made in settlement of a claim for compensation under the scheme; and (c) it is not the case that the * operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer; and (d) Division 78 does not apply in relation to the payment or supply; and (e) the payment or supply is not a * CTP dual premium or election payment or supply or a * CTP hybrid payment or supply. Meaning of CTP ancillary payment or supply (3) A payment or supply is a CTP ancillary payment or supply if: (a) the payment or supply is made under a * compulsory third party scheme; and (b) the payment or supply is of a kind specified in the regulations; and (c) it is not the case that the * operator making the payment or supply was required to do so by law because of the bankruptcy or insolvency of another operator who is an insurer; and (d) Division 78 does not apply in relation to the payment or supply; and (e) the payment or supply is not a * CTP dual premium or election payment or supply or a * CTP hybrid payment or supply; and (f) the payment or supply is not made in settlement of a claim for compensation under the scheme; and (g) the payment or supply is not * consideration for a * creditable acquisition.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 25 | Sch 11 item 26 | Sch 11 item 27, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-40 — GST on CTP premiums is exclusive of stamp duty

(1) The * value of a * taxable supply for which the * consideration includes an amount of * CTP premium is worked out as if the * price of the supply were reduced by the amount of any stamp duty payable under a * State law or * Territory law in respect of the supply. (2) This section has effect despite section 9 ‑ 75 (which is about the value of taxable supplies).

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-45 — Exclusion of certain compulsory third party schemes

This Subdivision (other than section 79 ‑ 40) does not apply to a * compulsory third party scheme under which * CTP compensation or ancillary payments or supplies are made, or to a * CTP compensation or ancillary payment or supply, if the compulsory third party scheme is of a kind specified in the regulations.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-50 — Decreasing adjustments for CTP compensation or ancillary payments or supplies

(1) An * operator of a * compulsory third party scheme has a decreasing adjustment if the operator makes a * CTP compensation or ancillary payment or supply under the scheme. (2) However, this section only applies if: (a) the payments of * CTP premium to the * operator that have been or are required to be made under the scheme are, or would be, * consideration for a * taxable supply; and (b) the * operator is * registered or * required to be registered. (3) The * decreasing adjustment in relation to the payment or supply is worked out using the applicable * average input tax credit fraction (see section 79 ‑ 95).

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79 | Sch 11 item 32, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 79-55 — Increasing adjustments for payments of excess etc. under compulsory third party schemes

(1) An * operator of a * compulsory third party scheme has an increasing adjustment if: (a) there is a payment of an excess to the operator under the scheme; and (b) the payment relates to a * CTP compensation payment or supply that the operator makes or has made; and (c) the operator makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of making the CTP compensation payment or supply. (2) The amount of the increasing adjustment is 1 / 11 of the amount that represents the extent to which the payment of excess relates to * creditable acquisitions or * creditable importations made by the * operator directly for the purpose of making the * CTP compensation payment or supply. (3) An * operator of a * compulsory third party scheme has an increasing adjustment if: (a) there is a payment of an excess to the operator under the scheme; and (b) the operator makes, or has made, * creditable acquisitions or * creditable importations directly for the purpose of making a * CTP compensation payment or supply to which the payment of excess would relate; and (c) the operator has not made any CTP compensation payment or supply to which the payment of excess relates. The amount of the increasing adjustment is 1 / 11 of the amount of the payment of excess.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79 | Sch 11 item 33, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-60 — Effect of settlements and payments under compulsory third party schemes

(1) If an * operator of a * compulsory third party scheme makes a payment under the scheme, it is not treated as * consideration: (a) for an acquisition made by the operator; or (b) for a supply made to the operator by the entity to whom the payment was made; to the extent that the payment is a * CTP compensation or ancillary payment or supply. (2) If an * operator of a * compulsory third party scheme makes a supply under the scheme: (a) it is not a * taxable supply; and (b) it is not treated as * consideration for an acquisition made by the operator; and (c) it is not treated as * consideration for a supply made to the operator by the entity to whom the supply was made; to the extent that the supply is a * CTP compensation or ancillary payment or supply. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies), section 9 ‑ 15 (which is about consideration) and section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-65 — Taxable supplies relating to recovery by operators of compulsory third party schemes

(1) If: (a) an * operator of a * compulsory third party scheme has made a claim in relation to a * CTP compensation or ancillary payment or supply; and (b) the operator’s claim is made in exercising rights to recover in respect of that payment or supply; and (c) an entity makes one or more of the following in settlement of the operator’s claim: (i) a payment of * money; (ii) a payment of * digital currency; (iii) a supply; the payment or supply mentioned in paragraph (c) is not treated as * consideration for a supply made by the operator (whether or not the payment or supply is made to the operator), or for an acquisition made by the entity making the payment or supply (or payment and supply). (2) This section has effect despite section 9 ‑ 15 (which is about consideration) and section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 118 of 2017, Sch 1 item 12, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 79-70 — Adjustment events relating to decreasing adjustments for operators of compulsory third party schemes

(1) Division 19 applies in relation to a * decreasing adjustment that an * operator of a * compulsory third party scheme has under section 79 ‑ 50 as if: (a) the adjustment were an input tax credit; and (b) either: (i) if the adjustment relates to a * CTP compensation payment or supply—the settlement of the claim to which the adjustment relates were a * creditable acquisition that the operator made; or (ii) if the adjustment relates to a * CTP ancillary payment or supply—the operator had made a creditable acquisition for which the payment or supply was the * consideration; and (c) any payment or supply made by another entity, in settlement of a claim made by the operator in exercising rights to recover from the other entity in respect of the settlement mentioned in subparagraph (b)(i) or the payment or supply mentioned in subparagraph (b)(ii), were a reduction in the consideration for the acquisition. (2) Paragraph (1)(c) does not apply to a payment by another entity in relation to which an * increasing adjustment arises under section 80 ‑ 30 or 80 ‑ 70 (which are about settlement sharing arrangements). (3) This section does not apply in relation to a payment or supply that the operator receives in settlement of a claim under an * insurance policy that the operator entered into, as the entity insured, in relation to any liability to make a * CTP compensation or ancillary payment or supply.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 79-75 — Adjustment events relating to increasing adjustments under section 79 ‑ 55

Division 19 applies in relation to an * increasing adjustment that an * operator of a * compulsory third party scheme has under section 79 ‑ 55 as if: (a) payments of excess to which the adjustment relates were * consideration for a * taxable supply that the operator made; and (b) the adjustment were the GST payable on the taxable supply; and (c) any refunds made by the operator of any of those payments of excess were reductions in the consideration for the supply.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-80 — Payments of excess under compulsory third party schemes are not consideration for supplies

(1) The making of any payment by an entity is not treated as * consideration for a supply, to the entity or any other entity, to the extent that the payment is the payment of an excess to an * operator of a * compulsory third party scheme. (2) This section has effect despite section 9 ‑ 15 (which is about consideration).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-85 — Supplies of goods to operators in the course of settling claims

(1) A supply of goods is not a * taxable supply if it is solely a supply made under a * compulsory third party scheme to an * operator of the scheme in the course of settling a claim for compensation made under the scheme. (2) In working out the value of a * taxable supply that is partly a supply of goods made under a * compulsory third party scheme to an * operator of the scheme in the course of settling a claim for compensation made under the scheme, disregard the * consideration to the extent that it relates to the supply of those goods. (3) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies) and section 9 ‑ 75 (which is about the value of taxable supplies).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 79-90 — Effect of judgments and court orders

(1) If: (a) a judgment or order of a court relates to a claim for compensation under a * compulsory third party scheme; and (aa) an entity makes one or more of the following in compliance with the judgment or order: (i) a payment of * money; (ii) a payment of * digital currency; (iii) a supply; and (b) had the payment or supply been made in the absence of such a judgment or order, it would have been a * CTP compensation payment or supply or a CTP ancillary payment or supply; the payment or supply is treated as having been a CTP compensation payment or supply or a CTP ancillary payment or supply. (2) If: (a) a judgment or order of a court relates to a claim by an * operator of a compulsory third party scheme exercising rights to recover from an entity in respect of a settlement made under the scheme; and (aa) an entity makes one or more of the following in compliance with the judgment or order: (i) a payment of * money; (ii) a payment of * digital currency; (iii) a supply; and (b) had the payment or supply been made in the absence of such a judgment or order, it would have been a settlement of a claim made in exercising rights to recover from an entity in respect of a settlement made under the scheme; the payment or supply is treated as having been made in settlement of the operator’s claim made in exercising those rights.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 25 | Sch 11 item 27, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent | Amended by No 118 of 2017, Sch 1 item 13 | Sch 1 item 14 | Sch 1 item 15, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 79-95 — How to work out decreasing adjustments using the applicable average input tax credit fraction

(1) If an * operator of a * compulsory third party scheme has a * decreasing adjustment in relation to a payment or supply that is to be worked out using the applicable * average input tax credit fraction, the amount of the * decreasing adjustment is as follows. (2) The amount is worked out using the formula: where: applicable average input tax credit fraction is the * average input tax credit fraction for the * compulsory third party scheme concerned for the * financial year in which: (a) if the payment or supply is a * CTP compensation payment or supply—the accident or other incident to which the claim relates happened; or (b) if the payment or supply is a * CTP ancillary payment or supply—the payment or supply was made; or (c) if the payment or supply is a payment or supply to which section 79 ‑ 15 applies—the accident or other incident to which the claim relates happened. payment or supply amount is the amount worked out in accordance with subsection (3). Payment or supply amount (3) The payment or supply amount mentioned in subsection (2) is worked out using this method statement. Method statement Step 1. Add together: (a) the sum of the payments of * money, or * digital currency, (if any) that are included in the payment or supply; and (b) the * GST inclusive market value of the supplies (if any) made by the * operator that are included in the payment or supply (other than supplies that would have been * taxable supplies but for section 78 ‑ 25 or 79 ‑ 60). Step 2. If, in relation to the payment or supply, any payments of an excess were made to the * operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 ‑ 18 or 79 ‑ 55 applies). Step 3. Except where the payment or supply is a * CTP ancillary payment or supply, multiply the step 1 amount, or (if step 2 applies) the step 2 amount, by the following: where: applicable average input tax credit fraction has the meaning given by subsection (2). Reduction for non ‑ creditable insurance events (4) The amount of the * decreasing adjustment under subsection (1) is reduced to the extent (if any) that the payment or supply relates to one or more * non ‑ creditable insurance events.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 79, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent | Amended by No 118 of 2017, Sch 1 item 16, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 79-100 — Meaning of average input tax credit fraction

(1) Except where subsection (7) applies, the average input tax credit fraction for a * compulsory third party scheme for a * financial year is: (a) if paragraph (b) does not apply—the same fraction as the average input tax credit fraction for the scheme for the preceding financial year; or (b) if, under subsection (3), the Minister determines the average input tax credit fraction for the scheme for the financial year—that fraction. Note: The average input tax credit fraction for financial years beginning on or before 1 July 2006 was worked out under this section as in force before the commencement of item 146 of Schedule 3 to the Treasury Laws Amendment (2019 Measures No. 3) Act 2020 . Minister to use statistical information to determine whether average input tax credit fraction is to be varied (3) As soon as practicable after the beginning of each of the following * financial years (a determination year ): (a) the financial year that begins on 1 July 2006; (b) the financial years that begin on each 1 July that occurs 3 years, or a multiple of 3 years, after 1 July 2006; the Minister must, for each * compulsory third party scheme: (c) work out business vehicle use fractions (see subsection (4)) using each set of statistical information, relating to business and total use of vehicles in the State or Territory in which the scheme operates, published by the Australian Bureau of Statistics during the 3 financial years before the determination year; and (d) work out the average of those fractions (the new fraction ); and (e) if the Minister considers the new fraction is significantly different from the average input tax credit fraction that would, disregarding this subsection, apply under paragraph (1)(a) for the scheme for the financial year (the operative year ) following the determination year—by legislative instrument, determine that the new fraction is to be the average input tax credit fraction for the scheme for the operative year. Business vehicle use fraction (4) The business vehicle use fraction is the fraction of total vehicle use, in the State or Territory in which the * compulsory third party scheme operates, represented by business vehicle use. Publication of revised statistical information (5) To avoid doubt, if, after publishing statistical information relating to business and total use of vehicles in a State or Territory, the Australian Bureau of Statistics publishes a revised or replacement version of that statistical information, that revision or replacement is to be disregarded for the purposes of this section. Exception (7) If: (a) this section is being applied in working out the amount of a * decreasing adjustment that arises under section 79 ‑ 15 (about sole operator elections); and (b) the cover under the * insurance policy concerned commenced before 1 July 2003; the average input tax credit fraction for the * compulsory third party scheme concerned is nil for all * financial years beginning on or after 1 July 2000.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 20, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 110 of 2014, Sch 5 item 2 | Sch 5 item 3 | Sch 5 item 4 | Sch 5 item 5 | Sch 5 item 6, effective Sch 5 (items 1–6, 92, 93): 16 Oct 2014 (s 2(1) items 4, 7) | Amended by No 64 of 2020, Sch 11 item 146 | Sch 11 item 147 | Sch 11 item 148 | Sch 11 item 149 | Sch 11 item 150 | Sch 11 item 151, effective Sch 3 (items 146–154, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 80-1 — What this Division is about

A series of adjustments arise if, under an arrangement, an operator of a compulsory third party scheme settles a claim, arising from one or more accidents or other incidents, covered by the arrangement and other operators are obliged to contribute payments to that operator in respect of the settlement. Table of Subdivisions 80 ‑ A Insurance policy settlement sharing arrangements 80 ‑ B Nominal defendant settlement sharing arrangements 80 ‑ C Hybrid settlement sharing arrangements

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-5 — Meaning of insurance policy settlement sharing arrangement etc.

Meaning of insurance policy settlement sharing arrangement (1) An insurance policy settlement sharing arrangement is an arrangement: (a) that relates to an accident or other incident or 2 or more related accidents or other incidents; and (b) to which the parties are the * operators of a * compulsory third party scheme or schemes who have issued * insurance policies to persons involved in the accidents or incidents; and (c) under which: (i) one party (the managing operator ) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes, relating to the accidents or incidents; and (ii) each other party (a contributing operator ) is to make a payment to the * managing operator in respect of that operator settling the claim. Meaning of managing operator’s payment or supply (2) If a payment or supply mentioned in subparagraph (1)(c)(i) is not a * CTP ancillary payment or supply, it is a managing operator’s payment or supply . Meaning of contributing operator’s payment (3) A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the * managing operator for managing the process of making settlements under the arrangement, is a contributing operator’s payment .

Amendment history: Inserted by No 67 of 2003, Sch 11 item 24 | Sch 11 item 34 | Sch 11 item 36, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 80-10 — Effect of becoming parties to industry deeds or entering into settlement sharing arrangements

(1) An * operator of a * compulsory third party scheme does not make a * taxable supply by: (a) entering into, or becoming a party to, an * insurance policy settlement sharing arrangement; or (b) becoming a party to a deed created by or under a * State law or a * Territory law establishing a * compulsory third party scheme, that provides for an insurance policy settlement sharing arrangement. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-15 — Effect of contributing operator’s payment

(1) A * contributing operator’s payment is not treated as * consideration for a supply by the * managing operator, or for an acquisition by the * contributing operator. (2) This section has effect despite section 9 ‑ 15 (which is about consideration) and section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-20 — Managing operator’s payments or supplies

(1) For the purposes of Divisions 78 and 79, a * managing operator’s payment or supply is treated as follows. (2) If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued only one * insurance policy, the * managing operator’s payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy. (3) If the * managing operator is a party to the * insurance policy settlement sharing arrangement because it issued 2 or more * insurance policies, the * managing operator’s payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions. Example: 3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident. For the purposes of Division 78 or 79, half of the payment will be treated as being made under each of the policies issued by the managing operator.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-25 — Contributing operator’s payment

(1) For the purposes of Divisions 78 and 79, a * contributing operator’s payment is treated as follows. (2) If the * contributing operator is a party to the * insurance policy settlement sharing arrangement because it issued only one * insurance policy, the * contributing operator’s payment is treated as a payment or supply, made by the contributing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy. Example: Assume the same facts as in the example in section 80 ‑ 20. The contributing operator who issued 1 of the 3 policies covering the vehicles in the accident makes a payment to the managing operator. For the purposes of Division 78 or 79, the payment (except to the extent that it represents a managing operator’s fee) will be treated as being made by the contributing operator under the insurance policy that it issued. (3) If the * contributing operator is a party to the * insurance policy settlement sharing arrangement because it issued 2 or more * insurance policies, the * contributing operator’s payment is treated as a payment or supply, made by the contributing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-30 — Managing operator’s increasing adjustment where contributing operator’s payment

(1) If: (a) a * contributing operator’s payment is made; and (b) as a result of section 80 ‑ 20, there was a * decreasing adjustment for the * managing operator under Division 78 or 79 in relation to the * managing operator’s payment or supply; there is an increasing adjustment for the managing operator of the following amount: Managing operator’s settlement amount (2) The managing operator’s settlement amount mentioned in subsection (1) is worked out using this method statement. Method statement Step 1. Add together: (a) the sum of the payments of * money, or * digital currency, (if any) that are included in the * managing operator’s payment or supply; and (b) the * GST inclusive market value of the supplies (if any) that are included in the * managing operator’s payment or supply (other than supplies that would have been * taxable supplies but for section 78 ‑ 25 or 79 ‑ 60). Step 2. If, in relation to the * managing operator’s payment or supply, any payments of an excess were made to the * managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 ‑ 18 or 79 ‑ 55 applies). Example: Assume the same facts as in the examples in sections 80 ‑ 20 and 80 ‑ 25. Assume also that, as a result of section 80 ‑ 20, there was a decreasing adjustment under Division 78 or 79 for the managing operator’s payment or supply. The managing operator has an increasing adjustment. It equals the part of the decreasing adjustment that is attributable to the managing operator’s payment or supply that was repaid by the contributing operator’s contribution.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80 | Sch 11 item 33, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 118 of 2017, Sch 1 item 17, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 80-35 — Adjustment events relating to managing operator’s payment or supply

Division 19 applies in relation to an * increasing adjustment that the * managing operator has under section 80 ‑ 30 as a result of the making of a * managing operator’s payment or supply as if: (a) the * contributing operator’s payment were * consideration for a * taxable supply made by the managing operator; and (b) the adjustment were the GST payable on the taxable supply; and (c) any changes made to those payments were a change in the consideration for the supply.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-40 — Meaning of nominal defendant settlement sharing arrangement etc.

Meaning of nominal defendant settlement sharing arrangement (1) A nominal defendant settlement sharing arrangement is an arrangement: (a) that relates to an accident or other incident or 2 or more related accidents or other incidents; and (b) to which the parties are * operators of a * compulsory third party scheme, where they are parties because the person involved in the accidents or incidents was not covered under an * insurance policy; and (c) under which: (i) one party (the managing operator ) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme, relating to the accidents or incidents; and (ii) the other party, or one or more of the other parties, (each being a contributing operator ) is to make a payment to the * managing operator in respect of that operator settling the claim. Meaning of managing operator’s payment or supply (2) If a payment or supply mentioned in subparagraph (1)(c)(i) is not a * CTP ancillary payment or supply, it is a managing operator’s payment or supply . Meaning of contributing operator’s payment (3) A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the * managing operator for managing the process of making settlements under the arrangement, is a contributing operator’s payment .

Amendment history: Inserted by No 67 of 2003, Sch 11 item 37, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 80-45 — Nominal defendant settlement sharing arrangements to which this Subdivision applies

This Subdivision applies to a * nominal defendant settlement sharing arrangement if its * managing operator is not a party to a * hybrid settlement sharing arrangement relating to the same accidents or incidents.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-50 — Effect of becoming parties to industry deeds or entering into nominal defendant settlement sharing arrangements

(1) An * operator of a * compulsory third party scheme does not make a * taxable supply by: (a) entering into, or becoming a party to, a * nominal defendant settlement sharing arrangement to which this Subdivision applies; or (b) becoming a party to a deed created by or under a * State law or a * Territory law establishing a compulsory third party scheme, that provides for a nominal defendant settlement sharing arrangement to which this Subdivision applies. (2) This section has effect despite section 9 ‑ 5 (which is about what are taxable supplies).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-55 — Effect of contributing operator’s payment

(1) A * contributing operator’s payment is not treated as * consideration for a supply by the * managing operator, or for an acquisition by the * contributing operator. (2) This section has effect despite section 9 ‑ 15 (which is about consideration) and section 11 ‑ 5 (which is about what is a creditable acquisition).

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-60 — Managing operator’s payment or supply

For the purposes of Division 79, a * managing operator’s payment or supply is treated as a * CTP compensation payment or supply.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-65 — Contributing operator’s payment

For the purposes of Division 79, a * contributing operator’s payment is treated as a * CTP compensation payment or supply.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-70 — Managing operator’s increasing adjustment where contributing operator’s payment

(1) If: (a) a * contributing operator’s payment is made; and (b) as a result of section 80 ‑ 60, there was a * decreasing adjustment for the * managing operator under Division 79 in relation to the * managing operator’s payment or supply; there is an increasing adjustment for the managing operator of the following amount: Managing operator’s settlement amount (2) The managing operator’s settlement amount mentioned in subsection (1) is worked out using this method statement. Method statement Step 1. Add together: (a) the sum of the payments of * money, or * digital currency, (if any) that are included in the * managing operator’s payment or supply; and (b) the * GST inclusive market value of the supplies (if any) that are included in the * managing operator’s payment or supply (other than supplies that would have been * taxable supplies but for section 78 ‑ 25 or 79 ‑ 60). Step 2. If, in relation to the * managing operator’s payment or supply, any payments of an excess were made to the * managing operator, subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78 ‑ 18 or 79 ‑ 55 applies).

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80 | Sch 11 item 33, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 118 of 2017, Sch 1 item 18, effective Sch 1: 1 July 2017 (s 2(1) item 2)

s 80-75 — Adjustment events relating to managing operator’s payment or supply

Division 19 applies in relation to an * increasing adjustment that the * managing operator has under section 80 ‑ 70 as a result of the making of a * managing operator’s payment or supply as if: (a) the * contributing operator’s payment were * consideration for a * taxable supply made by the managing operator; and (b) the adjustment were the GST payable on the taxable supply; and (c) any changes made to those payments were a change in the consideration for the supply.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-80 — Meaning of hybrid settlement sharing arrangement etc.

Meaning of hybrid settlement sharing arrangement (1) A hybrid settlement sharing arrangement is an arrangement: (a) that relates to an accident or other incident or 2 or more related accidents or other incidents; and (b) to which the parties are: (i) an entity that is the * managing operator of a * nominal defendant settlement sharing arrangement, or entities that are managing operators of nominal defendant settlement sharing arrangements, that relate to the accidents or incidents; and (ii) an * operator or operators of a * compulsory third party scheme or schemes who have issued * insurance policies to persons involved in the accidents or incidents; and (c) under which: (i) one party (the managing operator ) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme or one of the compulsory third party schemes involved, relating to the accidents or incidents; and (ii) each other party (a contributing operator ) is to make a payment to the * managing operator in respect of that operator settling the claim. Meaning of managing operator’s payment or supply (2) If a payment or supply mentioned in subparagraph (1)(c)(i) is not a * CTP ancillary payment or supply, it is a managing operator’s payment or supply . Meaning of contributing operator’s payment (3) A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the * managing operator for managing the process of making settlements under the arrangement, is a contributing operator’s payment .

Amendment history: Inserted by No 67 of 2003, Sch 11 item 31, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 83 of 2004, effective Schedule 7: Royal Assent

s 80-85 — Subdivision 80 ‑ A to apply to hybrid settlement sharing arrangement, subject to exceptions

In addition to its operation apart from this Subdivision, Subdivision 80 ‑ A has effect, subject to sections 80 ‑ 90 and 80 ‑ 95, as if a * hybrid settlement sharing arrangement were an * insurance policy settlement sharing arrangement.

Amendment history: Inserted by No 67 of 2003, Sch 11 item 80, effective Schedule 11 (items 1–41, 43): Royal Assent

s 80-90 — Subdivision 80 ‑ B to apply to payments or supplies by managing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement

If: (a) the entity that is the * managing operator of the * hybrid settlement sharing arrangement is a party to that arrangement because it is also the managing operator of a * nominal defendant settlement sharing arrangement; and (b) the entity makes a payment or supply that, as a result of section 80 ‑ 85, is a * managing operator’s payment or supply under the hybrid settlement sharing arrangement; then: (c) Subdivision 80 ‑ A does not have any other effect in relation to the payment or supply in accordance with section 80 ‑ 85; but (d) Subdivision 80 ‑ B (other than section 80 ‑ 45) applies in relation to the payment or supply as if it were a managing operator’s payment or supply under the nominal defendant settlement sharing arrangement and the entity were not party to the hybrid settlement sharing arrangement.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 41 of 2005, Sch 10 item 7, effective Schedule 10 (items 1–14): Royal Assent

s 80-95 — Subdivision 80 ‑ B to apply to payments or supplies by contributing operator of hybrid settlement sharing arrangement who is also managing operator of nominal defendant settlement sharing arrangement

If: (a) an entity that is a * contributing operator of the * hybrid settlement sharing arrangement is a party to that arrangement because it is also the * managing operator of a * nominal defendant settlement sharing arrangement; and (b) the entity makes a payment that, as a result of section 80 ‑ 85, is a * contributing operator’s payment under the hybrid settlement sharing arrangement; then: (c) Subdivision 80 ‑ A does not have any other effect in relation to the payment or supply in accordance with section 80 ‑ 85; but (d) Subdivision 80 ‑ B (other than section 80 ‑ 45) applies in relation to the payment as if it were a * managing operator’s payment or supply under the nominal defendant settlement sharing arrangement and the entity were not party to the hybrid settlement sharing arrangement.

Amendment history: Inserted by No 67 of 2003, effective Schedule 11 (items 1–41, 43): Royal Assent | Amended by No 41 of 2005, Sch 10 item 8, effective Schedule 10 (items 1–14): Royal Assent

s 81-1 — What this Division is about

GST does not apply to payments of taxes, fees and charges that are excluded from the GST by this Division or by regulations. GST applies to certain taxes, fees and charges prescribed by regulations.

Amendment history: Amended by No 176 of 1999, Sch 1 item 90, 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 41 of 2011, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent

s 81-5 — Effect of payment of tax

Australian tax not consideration (1) A payment, or the discharging of a liability to make a payment, is not the provision of * consideration to the extent the payment is an * Australian tax. Regulations may provide for exceptions (2) However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of * consideration to the extent the payment is an * Australian tax that is, or is of a kind, prescribed by the regulations. (3) For the purposes of subsection (2), the * consideration is taken to be provided to the entity to which the tax is payable, for a supply that the entity makes to you.

Amendment history: Amended by No 176 of 1999, Sch 1 item 91 | Sch 1 item 92 | Sch 1 item 93, effective Sch 1 (items 1–168) and Sch 7 (items 9–16): 1 July 2000 (s 2(2), (5), (14)(b)) | Amended by No 97 of 2002, Sch 1 item 3 | Sch 1 item 82, effective Schedule 1 (items 1–6, 9–11, 14–16, 19): Royal Assent | Amended by No 58 of 2006, Sch 7 item 220 | Sch 7 item 221, effective Schedule 7 (items 2–15, 220–226): Royal Assent | Repealed and substituted by No 41 of 2011, Sch 4 item 81 | Sch 4 item 3 | Sch 4 item 16, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent

s 81-10 — Effect of payment of certain fees and charges

Certain fees and charges not consideration (1) A payment, or the discharging of a liability to make a payment, is not the provision of * consideration to the extent the payment is an * Australian fee or charge that is of a kind covered by subsection (4) or (5). Prescribed fees and charges treated as consideration (2) However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of * consideration to the extent the payment is an * Australian fee or charge that is, or is of a kind, prescribed by the regulations. (3) For the purposes of subsection (2), the * consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you. Fees or charges paid for permissions etc. (4) This subsection covers a fee or charge if the fee or charge: (a) relates to; or (b) relates to an application for; the provision, retention, or amendment, under an * Australian law, of a permission, exemption, authority or licence (however described). Fees or charges relating to information and record ‑ keeping etc. (5) This subsection covers a fee or charge paid to an * Australian government agency if the fee or charge relates to the agency doing any of the following: (a) recording information; (b) copying information; (c) modifying information; (d) allowing access to information; (e) receiving information; (f) processing information; (g) searching for information.

Amendment history: Amended by No 176 of 1999, Sch 1 item 94 | Sch 1 item 95, 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 41 of 2011, Sch 4 item 3, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent

s 81-15 — Other fees and charges that do not constitute consideration

The regulations may provide that the payment of a prescribed * Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of * consideration.

Amendment history: Inserted by No 41 of 2011, Sch 4 item 81, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent

s 81-20 — Division has effect despite sections 9 ‑ 15 and 9 ‑ 17

This Division has effect despite sections 9 ‑ 15 and 9 ‑ 17 (which are about consideration).

Amendment history: Inserted by No 41 of 2011, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent | Amended by No 75 of 2012, Sch 2 item 9 | Sch 2 item 10, effective Sch 1 and 2: 27 June 2012 (s 2(1) item 2)

s 81-25 — Retrospective application of regulations

Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to regulations made for the purposes of subsection 81 ‑ 5(2) or 81 ‑ 10(2) or section 81 ‑ 15.

Amendment history: Inserted by No 41 of 2011, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent | Repealed and substituted by No 126 of 2015, Sch 1 item 21, effective Sch 1 (items 20–23): 5 Mar 2015 (s 2(1) item 2)

s 82-1 — What this Division is about

GST does not apply to transactions for making supplies (commonly referred to as in kind developer contributions) in return for the supply by an Australian government agency of a right to develop land.

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

s 82-5 — Supplies of rights to develop land do not constitute consideration in certain cases

(1) The supply, by an * Australian government agency, of a right to develop land is not treated as * consideration for another supply if the other supply complies with requirements imposed by or under an * Australian law. (2) It does not matter whether the other supply is made to the * Australian government agency. (3) This section has effect despite section 9 ‑ 15 (which is about consideration).

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

s 82-10 — Supplies by Australian government agencies of rights to develop land are not for consideration

(1) The supply, by an * Australian government agency, of a right to develop land is treated as a supply that is not made for * consideration to the extent that it is made in return for another supply that complies with requirements imposed by or under an * Australian law. (2) It does not matter whether the other supply is made to the * Australian government agency. (3) If the other supply constitutes the payment of: (a) an * Australian tax prescribed by regulations made for the purposes of subsection 81 ‑ 5(2); or (b) an * Australian fee or charge prescribed by regulations made for the purposes of subsection 81 ‑ 10(2); this section overrides those regulations in relation to the payment. (4) This section has effect despite section 9 ‑ 15 (which is about consideration).

Amendment history: Inserted by No 97 of 2002, effective Schedule 1 (items 1–6, 9–11, 14–16, 19): Royal Assent | Amended by No 41 of 2011, Sch 4 item 3, effective Schedule 4 (items 1–10, 16) and Schedule 5 (items 1–3): Royal Assent

s 83-1 — What this Division is about

The GST on taxable supplies made by non ‑ residents can, with the agreement of the recipients, be “reverse charged” to the recipients.

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 83-5 — “Reverse charge” on supplies made by non ‑ residents

(1) The GST on a * taxable supply is payable by the * recipient of the supply, and is not payable by the supplier, if: (a) the supplier is a * non ‑ resident; and (b) the supplier does not make the supply through an * enterprise that the supplier * carries on in the indirect tax zone; and (c) the recipient is * registered or * required to be registered; and (d) the supplier and the recipient agree that the GST on the supply be payable by the recipient. (2) However, this section does not apply to: (a) a supply that is a * taxable supply under section 84 ‑ 5 (which is about offshore supplies); or (b) a taxable supply made by a * non ‑ resident through a * resident agent; or (c) a supply that is disregarded under paragraph 188 ‑ 15(3)(b) or 188 ‑ 20(3)(b) (which are about supplies of rights or options offshore). Note: GST on these taxable supplies is payable by the resident agent: see section 57 ‑ 5. (3) This section has effect despite section 9 ‑ 40 (which is about liability for the GST).

Amendment history: Inserted by No 92 of 2000, Sch 3 item 83, 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 2005, Sch 3 item 4 | Sch 3 item 4A, effective 29 June 2005 | 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 1 item 18, 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 24, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1) | Amended by No 65 of 2019, Sch 2 item 1, effective Sch 2: 1 Oct 2019 (s 2(1) item 2)

s 83-10 — Recipients who are members of GST groups

(1) If section 83 ‑ 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 section 83 ‑ 5.

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 83-15 — Recipients who are participants in GST joint ventures

(1) If section 83 ‑ 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 section 83 ‑ 5.

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 83-20 — The amount of GST on “reverse charged” supplies made by non ‑ residents

(1) The amount of GST on a supply to which section 83 ‑ 5, 83 ‑ 10 or 83 ‑ 15 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 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 83-25 — When non ‑ residents must apply for registration

(1) A * non ‑ resident need not apply to be * registered under this Act if the non ‑ resident’s * GST turnover would not meet the * registration turnover threshold but for the * taxable supplies of the non ‑ resident that are taxable supplies to which section 83 ‑ 5 applies. (2) It does not matter whether the * non ‑ resident is * required to be registered. (3) This section has effect despite section 25 ‑ 1 (which is about when entities must apply for registration).

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 80 of 2007, Sch 2 item 19, effective 21 June 2007

s 83-30 — When the Commissioner must register non ‑ residents

(1) The Commissioner need not * register a * non ‑ resident if the Commissioner is satisfied that the non ‑ resident’s * GST turnover would not meet the * registration turnover threshold but for the * taxable supplies of the non ‑ resident that are taxable supplies to which section 83 ‑ 5 applies. (2) It does not matter whether the * non ‑ resident is * required to be registered. (3) This section has effect despite section 25 ‑ 5 (which is about when the Commissioner must register an entity).

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 80 of 2007, Sch 2 item 20, effective 21 June 2007

s 83-35 — Tax invoices not required for “reverse charged” supplies made by non ‑ residents

(1) A * non ‑ resident is not required to issue a * tax invoice for a * taxable supply of the non ‑ resident that is a taxable supply to which section 83 ‑ 5 applies. (2) Subsection (1) has effect despite section 29 ‑ 70 (which is about the requirement to issue tax invoices). (3) Subsection 29 ‑ 10(3) does not apply in relation to a * creditable acquisition made by an entity as a result of being the * recipient of a * taxable supply to which section 83 ‑ 5 applies.

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 84-1 — What this Subdivision is about

This Subdivision deals with certain supplies taking place outside the indirect tax zone. The GST on a supply that is a taxable supply under this Subdivision is “reverse charged” to the recipient of the supply.

Amendment history: Repealed and substituted by No 77 of 2005, Sch 3 item 5, effective 29 June 2005 | 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 1 item 19 | Sch 1 item 20 | Sch 1 item 21, 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 27, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-5 — Offshore supplies that are taxable supplies under this Subdivision

(1) A supply is a taxable supply (except to the extent that it is * GST ‑ free or * input taxed) if: (a) the supply is for * consideration; and (b) the * recipient of the supply is * registered, or * required to be registered; and (c) the supply is covered by the third column of this table. Offshore supplies that are taxable supplies under this Subdivision Item Topic These supplies are covered … 1 Intangible supply—general a supply of anything other than goods or * real property if: (a) the supply is not * connected with the indirect tax zone; and (b) the * recipient of the supply satisfies the purpose test in subsection (1A). 2 Intangible supply—right or option a supply of anything other than goods or * real property if: (a) the supply is * connected with the indirect tax zone because of paragraph 9 ‑ 25(5)(c); and (b) the * recipient of the supply satisfies the purpose test in subsection (1A). 3 Intangible supply—supplier believed recipient was not a consumer a supply of anything other than goods or * real property if: (a) the supply is * connected with the indirect tax zone because of paragraph 9 ‑ 25(5)(d); and (b) under section 84 ‑ 100, the * GST law applies in relation to the supplier as if the * recipient was not an * Australian consumer of the supply; and (c) the * ABN of the recipient, or the other identifying information prescribed under subsection 84 ‑ 100(4) relating to the recipient, has been disclosed to the supplier; and (d) the recipient has provided to the supplier a declaration or information that indicates that the recipient is * registered. 4 Low value goods—general an * offshore supply of low value goods if: (a) the supply is not * connected with the indirect tax zone; and (b) the * recipient of the supply satisfies the purpose test in subsection (1A); and (c) the importation of the goods is not a * taxable importation on which the recipient is liable to pay GST. 5 Low value goods—supplier believed recipient was not a consumer an * offshore supply of low value goods if: (a) the supply is * connected with the indirect tax zone solely because of Subdivision 84 ‑ C; and (b) under section 84 ‑ 105, the * GST law applies in relation to the supplier as if the * recipient was not a * consumer of the supply; and (c) the importation of the goods is not a * taxable importation on which the recipient is liable to pay GST. (1A) The purpose test referred to in items 1, 2 and 4 of the table in subsection (1) is that: (a) the * recipient of the supply acquires the thing supplied solely or partly for the purpose of an * enterprise that the recipient * carries on in the indirect tax zone; and (b) the recipient does not acquire the thing supplied solely for a * creditable purpose. (1B) However, items 3 and 5 of the table in subsection (1) only cover a supply to the extent that it is * connected with the indirect tax zone solely because of: (a) for item 3—paragraph 9 ‑ 25(5)(d); or (b) for item 5—Subdivision 84 ‑ C. (2) For the purposes of this section, in determining whether the * recipient is * required to be registered, what would be the * value of such supplies (if they were * taxable supplies) is to be counted towards the recipient’s * GST turnover. (3) This section has effect despite section 9 ‑ 5 (which is about what is a taxable supply).

Amendment history: Amended by No 77 of 2005, Sch 3 item 6 | Sch 3 item 7 | Sch 3 item 8, effective 29 June 2005 | Amended by No 80 of 2007, Sch 2 item 21, effective 21 June 2007 | 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 1 item 15 | Sch 1 item 16 | Sch 1 item 17 | Sch 1 item 18 | Sch 1 item 22 | Sch 1 item 23 | Sch 1 item 24 | Sch 2 item 7 | Sch 2 item 8 | Sch 2 item 9 | Sch 2 item 84, 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 28 | Sch 1 item 30 | Sch 1 item 34, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)

s 84-10 — “Reverse charge” on offshore supplies

(1) The GST on a supply that is a * taxable supply because of section 84 ‑ 5: (a) is payable by the * recipient of the supply; and (b) is not payable by the supplier. (2) This section has effect despite section 9 ‑ 40 (which is about liability for the GST). (3) If a supply is a taxable supply under both sections 9 ‑ 5 and 84 ‑ 5, GST is only payable under this section (instead of section 9 ‑ 40).

Amendment history: Amended by No 77 of 2005, Sch 3 item 9, effective 29 June 2005 | Amended by No 77 of 2017, Sch 1 item 31, effective Sch 1 (items 1–60, 65, 66): 1 July 2017 (s 2(1) item 1)