Document ID: chunk:federal_register_of_legislation:C2025C00126:section:3:p3
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 3 (pt 3/9)
Character Range: 409281–412147

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.

Division 71—Fringe benefits provided by input taxed suppliers

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.

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).

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).

Division 72—Associates

Table of Subdivisions
72‑A Supplies without consideration
72‑B Acquisitions without consideration
72‑C Supplies for inadequate consideration
72‑D Application of this Division to