Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p32
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 32/58)
Character Range: 718845–721662

solely or partly for a *creditable purpose.
 (2) However, this section does not apply if:
 (a) you were entitled to an input tax credit for the acquisition; and
 (b) you have not had a *increasing adjustment under Division 138 (cessation of registration) relating solely or partly to the stock.
 (3) The amount of the decreasing adjustment is an amount equal to what would have been the *previously attributed input tax credit amount for the acquisition if you had been *registered at the time of the acquisition.

Division 138—Cessation of registration

138‑1  What this Division is about
      An entity whose registration has been cancelled may still have acquisitions and importations for which entitlements to input tax credits have arisen. This Division provides for an increasing adjustment to cancel those input tax credits.

138‑5  Adjustments for cessation of registration
 (1) You have an increasing adjustment if:
 (a) your *registration is cancelled; and
 (b) immediately before the cancellation takes effect, your assets include anything in respect of which you were, or are, entitled to an input tax credit.
Note: Increasing adjustments increase your net amounts.
 (2) The amount of the adjustment, for each thing referred to in paragraph (1)(b), is as follows:

where:
applicable value is:
 (a) the *GST inclusive market value of the thing immediately before the cancellation takes effect; or
 (b) if you were, or are, entitled to an input tax credit for acquiring the thing—the amount of the *consideration that you provided, or were liable to provide, for your acquisition of the thing, but only if the amount is less than that value; or
 (c) if you were, or are, entitled to an input tax credit for importing the thing—the cost to you of acquiring or producing the thing (plus the *assessed GST paid on its importation), but only if the amount is less than that value.
 (3) However, an *adjustment does not arise under this section in respect of an asset if:
 (a) there were one or more *adjustment periods for your acquisition or importation of the asset; and
 (b) the last of those adjustment periods has ended before the cancellation of your *registration takes effect.

138‑10  Attributing adjustments for cessation of registration
 (1) An *adjustment that you have under this Division is attributable to:
 (aa) if you are an *incapacitated entity—your tax period under section 27‑39; or
 (a) your concluding tax period under section 27‑40; or
 (b) if, because of subsection 151‑55(1) or 162‑85(1), you do not have a concluding tax period under section 27‑40—the tax period to which that subsection applies.
 (2) This section has effect despite section 29‑20 (which is about attributing your adjustments).

138‑15  Ceasing to be registered—amounts not previously attributed
 (1) The GST payable