Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p24
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 24/58)
Character Range: 699058–701658

*money or *digital currency;
 (ii) an offset of an amount of money or digital currency that you owe to the payer;
 (iii) a crediting of an amount of money or digital currency to an account that you hold; and
 (d) the payment is made in connection with, in response to or for the inducement of your acquisition of the thing; and
 (e) the payment is not *consideration for a supply you make.
 (1A) However, subsection (1) does not apply unless the supply of the thing by the payer:
 (a) was a *taxable supply; or
 (b) would have been a taxable supply but for any of the following:
 (i) the payer and the entity that acquired the thing from the payer being *members of the same *GST group;
 (ii) the payer and the entity that acquired the thing from the payer being members of the same *GST religious group;
 (iii) the payer being the *joint venture operator for a *GST joint venture, and the entity that acquired the thing from the payer being a *participant in the GST joint venture.
 (2) The amount of the *increasing adjustment is an amount equal to the difference between:
 (a) either:
 (i) if your acquisition from the other entity was a *creditable acquisition—the amount of the input tax credit entitlement for the acquisition; or
 (ii) if your acquisition from the other entity would have been a creditable acquisition but for a reason to which subsection (3) applies—the amount that would have been the amount of the input tax credit entitlement for the acquisition had it been a creditable acquisition;
  taking into account any other *adjustments that arose, or would have arisen, relating to the acquisition; and
 (b) the amount of the input tax credit to which you would have been entitled, or would (but for a reason to which subsection (3) applies) have been entitled, for that acquisition:
 (i) if the *consideration for the acquisition had been reduced by the amount of the payer's payment to you; and
 (ii) taking into account any other adjustments that arose, or would have arisen, relating to the acquisition, as they would have been affected (if applicable) by such a reduction in the consideration.
 (3) This subsection applies to the following reasons why your acquisition of the thing from the other entity was not a *creditable acquisition:
 (a) you and the other entity are *members of the same *GST group;
 (b) you and the other entity are members of the same *GST religious group;
 (c) you are the *joint venture operator for a *GST joint venture, and the other entity is a *participant in the GST joint venture.
 (4) However:
 (a) paragraph (3)(a) does not apply if you and