Document ID: chunk:federal_register_of_legislation:C2004A01369:clause:2_14:p5
Version: federal_register_of_legislation:C2004A01369
Segment Type: clause
Provision Reference: sch 2 cl 14 (pt 5/6)
Character Range: 29988–32750

under Division 136.

Example: While an annual apportionment election has effect, you make a partly creditable acquisition for $1,100, for which you have an input tax credit of $100. The extent of your creditable purpose is 10%.

During later tax periods, the price increases by $110, for which you have a decreasing adjustment under Division 19 of $10, and the supplier writes off $660 as a bad debt, for which you have an increasing adjustment under Division 21 of $60 (subsection 136‑10(3) prevents the amount from being reduced under Division 136).

The amount of your increasing adjustment under this section is $45. This is the difference between the amounts under paragraphs (2)(a) and (b).

The paragraph (2)(a) amount (which is effectively worked out on a fully creditable basis) is:

The paragraph (2)(b) amount (which is based on a 10% creditable purpose) is:

131‑60  Attributing adjustments under section 131‑55

 (1) An *increasing adjustment under section 131‑55 is attributable to:
 (a) the tax period worked out using the method statement; or
 (b) such earlier tax period as you choose.

      Method statement
           Step 1. Work out the tax period (the ITC tax period) to which the input tax credit for the acquisition or importation to which the adjustment relates is attributable.
           Step 2. Work out in which year of income that tax period starts.
           Step 3. If you are required under section 161 of the *ITAA 1936 to lodge a return in relation to that year of income, work out the last day of the period, specified in the notice published in the Gazette under that section, for you to lodge as required under that section.
           Step 4. The *increasing adjustment is attributable to the tax period in which that last day occurs.
           Step 5. If step 3 does not apply, the increasing adjustment is attributable to the tax period in which occurs 31 December in the next *financial year to start after the end of the ITC tax period.
Note: Section 388‑55 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for giving the GST return.

 (2) Despite subsection (1), if, during (but not from the start of) the *financial year in which the ITC tax period ended, your *annual apportionment election ceases to have effect because:
 (a) you revoke your annual apportionment election, or the Commissioner disallows your election, during that financial year; and
 (b) the revocation or disallowance takes effect before the end of that financial year;
the *increasing adjustment is attributable to the tax period in which the cessation takes effect, or to such earlier tax period as you choose.

 (3) However, the *increasing adjustment is attributable to a tax period provided