Document ID: chunk:federal_register_of_legislation:C2005A00010:clause:1_15g
Version: federal_register_of_legislation:C2005A00010
Segment Type: clause
Provision Reference: sch 1 cl 15G
Character Range: 13658–14837

15G  Bad debts

 (1) This section has effect if:
 (a) you are the recipient of a taxable supply for which the GST is payable by you because of this Division; and
 (b) the whole or part of the consideration for the supply has not been received by the supplier; and
 (c) the supplier writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.

 (2) Section 21‑5 of the GST Act does not apply to the taxable supply.

 (3) Instead, you have a decreasing adjustment equal to 10% of the amount written off, or 10% of the amount that has been overdue for 12 months or more, as the case requires. However, you cannot have an adjustment under this section if you account on a cash basis.

 (4) You have an increasing adjustment if:
 (a) you were the recipient of a taxable supply in relation to which you had a decreasing adjustment under subsection (3); and
 (b) you subsequently pay to the supplier the whole or a part of the amount written off, or the whole or a part of the amount that has been overdue for 12 months or more, as the case requires.
The amount of the increasing adjustment is 10% of the amount paid.