Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p54
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 54/58)
Character Range: 773493–776077

on a cash basis
 (1) This section applies if you *account on a cash basis.
 (2) This Act and the regulations apply in relation to:
 (a) an acquisition you make under a *hire purchase agreement; or
 (b) an input tax credit to which you are entitled, or an *adjustment you have, under subsection 58‑10(1) for an acquisition made under a hire purchase agreement;
as if you do not *account on a cash basis.

Division 159—Changing your accounting basis

159‑1  What this Division is about
      This Division tells you to which tax periods to attribute any supplies and acquisitions that are affected by a change in your accounting basis, and how to treat bad debts if your accounting basis changes.

159‑5  Ceasing to account on a cash basis—amounts not previously attributed
 (1) The GST payable by you on a *taxable supply, the input tax credit to which you are entitled for a *creditable acquisition, or an *adjustment that you have, is attributable to a particular tax period (the transition tax period), and not to any other tax period, if:
 (a) at the start of the transition tax period, you cease to *account on a cash basis; and
 (b) the GST on the supply, the input tax credit on the acquisition, or the adjustment, was not attributable, to any extent, to a previous tax period during which you accounted on a cash basis; and
 (c) it would have been attributable to that previous tax period had you not accounted on a cash basis during that period.
For accounting on a cash basis, see Subdivision 29‑B.
Example: In tax period A in the following diagram, you issue an invoice for a supply that you made, but you receive no payment for the supply until tax period D. However, you cease to account on a cash basis at the start of tax period C (which is therefore the transition tax period).

 Under section 29‑5, the supply was not attributable to tax period A (because at the time you were accounting on a cash basis), but it would have been attributable to that period if you had not been accounting on a cash basis (because you issued the invoice in that period). Therefore the supply is attributable to tax period C (the transition tax period).
 (2) This section has effect despite sections 29‑5, 29‑10 and 29‑20 (which are about attributing GST on supplies, input tax credits on acquisitions, and adjustments) and any other provisions of this Chapter.

159‑10  Ceasing to account on a cash basis—amounts partly attributed
 (1) The GST payable by you on a *taxable supply, the input tax credit to which you are entitled for a *creditable acquisition, or an *adjustment that you