Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:11_18:p2
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 11 cl 18 (pt 2/18)
Character Range: 106594–109363

the basis that there would be no entitlement to an input tax credit for any of the amount.

Input tax credit entitlement

 (3) If subparagraph (2)(b)(i) applies, then, for the purposes of sections 78‑10 and 78‑15:
 (a) there is taken to be an entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened; and
 (b) if the supply of the insurance policy was solely or partly a *taxable supply—the amount of the input tax credit is taken to equal the GST payable by the *operator for the taxable supply.

No input tax credit entitlement

 (4) If subparagraph (2)(b)(ii) applies, then, for the purposes of sections 78‑10 and 78‑15, there is taken to be no entitlement to an input tax credit for the premium paid in relation to the period during which the event giving rise to the claim happened.

79‑10  Adjustment where operator becomes aware that correct input tax credit situation differs from basis on which premium selection test was satisfied

Decreasing adjustment

 (1) If:
 (a) subsection 79‑5(3) applies to a payment or supply; and
 (b) after the *premium selection test was satisfied, the *operator became or becomes aware that there was actually no entitlement to an input tax credit for any of the amount of the premium or premiums paid in relation to the period during which the event giving rise to the claim happened; and
 (c) if subsection 79‑5(4) had applied, the operator would have been entitled to a *decreasing adjustment (the notional decreasing adjustment);
then:
 (d) the operator has a decreasing adjustment whose amount is, subject to paragraph (e), equal to the notional decreasing adjustment; and
 (e) if one or more *increasing adjustments (each being a notional section 78‑40 increasing adjustment) would have arisen, before the decreasing adjustment under paragraph (d) arose, under Division 19 because of section 78‑40 applying in relation to the notional decreasing adjustment, the amount of the decreasing adjustment under paragraph (d) is reduced by the sum of the notional section 78‑40 increasing adjustments; and
 (f) for the purposes of applying section 78‑40 after the decreasing adjustment arises under this subsection, that decreasing adjustment is taken to arise under Division 78.

Increasing adjustment

 (2) If:
 (a) subsection 79‑5(4) applies to a payment or supply; and
 (b) as a result, the *operator has a *decreasing adjustment (the original decreasing adjustment); and
 (c) after the *premium selection test was satisfied, the operator becomes aware that there actually was an entitlement to an input tax credit for some or all of the amount of the premium or premiums paid in relation to the period during which the event giving rise to