Document ID: chunk:federal_register_of_legislation:C2004A01369:clause:2_14:p1
Version: federal_register_of_legislation:C2004A01369
Segment Type: clause
Provision Reference: sch 2 cl 14 (pt 1/6)
Character Range: 20055–22862

14  After Division 130
Insert:

Division 131—Annual apportionment of creditable purpose

Table of Subdivisions

131‑A Electing to have annual apportionment
131‑B Consequences of electing to have annual apportionment

131‑1  What this Division is about

      In some cases, you may be able to claim a full input tax credit for acquisitions that are only partly for a creditable purpose. You will then have an increasing adjustment for a later tax period (that better matches your obligation to lodge an income tax return).

Subdivision 131‑A—Electing to have annual apportionment

131‑5  Eligibility to make an annual apportionment election

 (1) You are eligible to make an *annual apportionment election if:
 (a) your *annual turnover does not exceed the *annual apportionment turnover threshold; and
 (b) you have not made any election under section 162‑15 to pay GST by instalments (other than such an election that is no longer in effect); and
 (c) you have not made any *annual tax period election (other than such an election that is no longer in effect).

 (2) The annual apportionment turnover threshold is:
 (a) $2 million; or
 (b) such higher amount as the regulations specify.

131‑10  Making an annual apportionment election

 (1) You may make an *annual apportionment election if you are eligible under section 131‑5.

 (2) Your election takes effect from:
 (a) the start of the earliest tax period for which, on the day on which you make your election, your *GST return is not yet due (taking into account any further period the Commissioner allows under paragraph 31‑8(1)(b) or 31‑10(1)(b)); or
 (b) the start of such other tax period as the Commissioner allows, in accordance with a request you make in the *approved form.

Note: Refusing a request to allow your election to take effect from the start of another tax period is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953).

131‑15  Annual apportionment elections by representative members of GST groups

 (1) A *representative member of a *GST group cannot make an *annual apportionment election unless each *member of the GST group is eligible under section 131‑5.

 (2) If the *representative member makes such an election, or revokes such an election, each *member of the *GST group is taken to have made, or revoked, the election.

131‑20  Duration of an annual apportionment election

General rule

 (1) Your election ceases to have effect if:
 (a) you revoke it; or
 (b) the Commissioner disallows it under subsection (3); or
 (c) on 31 July in a *financial year, your *annual turnover exceeds the *annual apportionment turnover threshold.

Revocation

 (2) A revocation of your election is taken to have had, or has, effect at the start of the earliest tax period for which,