Document ID: chunk:federal_register_of_legislation:C2010A00021:clause:1_13:p1
Version: federal_register_of_legislation:C2010A00021
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 1/3)
Character Range: 7285–9839

13  Before Division 135
Insert:

Division 134—Third party payments

134‑1  What this Division is about
      You may have a decreasing adjustment if you make a payment to an entity that acquires something that you had supplied to another entity. The entity receiving the payment may have an increasing adjustment.

134‑5  Decreasing adjustments for payments made to third parties
 (1) You have a decreasing adjustment if:
 (a) you make a payment to an entity (the payee) that acquires a thing that you supplied to another entity (whether or not that other entity supplies the thing to the payee); and
 (b) your supply of the thing to the other entity was a *taxable supply; and
 (c) the payment is in one or more of the following forms:
 (i) a payment of money;
 (ii) an offset of an amount of money that the payee owes to you;
 (iii) a crediting of an amount of money to an account that the payee holds; and
 (d) the payment is made in connection with, in response to or for the inducement of the payee's acquisition of the thing; and
 (e) the payment is not *consideration for a supply to you.
 (2) The amount of the *decreasing adjustment is an amount equal to the difference between:
 (a) the amount of GST payable on your supply to the other entity, taking into account any other *adjustments relating to the supply; and
 (b) the amount of GST that would have been payable for that supply:
 (i) if the *consideration for the supply had been reduced by the amount of your payment to the payee; and
 (ii) taking into account any other adjustments relating to the supply, as they would have been affected (if applicable) by such a reduction in the consideration.

134‑10  Increasing adjustments for payments received by third parties
 (1) You have an increasing adjustment if:
 (a) you receive a payment from an entity (the payer) that supplied a thing that you acquire from another entity (whether or not that other entity acquired the thing from the payer); and
 (b) your acquisition of the thing from the other entity was a *creditable acquisition; and
 (c) the payment is in one or more of the following forms:
 (i) a payment of money;
 (ii) an offset of an amount of money that you owe to the payer;
 (iii) a crediting of an amount of money 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 from you.
 (2) The amount of the *increasing adjustment is an amount equal to the difference between: