Document ID: chunk:federal_register_of_legislation:C2025C00126:section:3:p1
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 3 (pt 1/9)
Character Range: 404069–406978

3                        an election under section 152B                                                       an election under section 69‑35

69‑55  Adjustment notes not required
  Subsection 29‑20(3) does not apply to a *decreasing adjustment arising from an *adjustment event of a kind referred to in section 69‑50.

Division 70—Financial supplies (reduced credit acquisitions)

70‑1  What this Division is about
      In some cases, acquisitions relating to financial supplies can attract a reduced input tax credit, even though no input tax credit could arise under the basic rules.

70‑5  Acquisitions that attract the reduced credit
 (1) The regulations may provide that acquisitions of a specified kind that relate to making *financial supplies can give rise to an entitlement to a reduced input tax credit. These are reduced credit acquisitions.
 (1A) However, an acquisition is not a reduced credit acquisition to the extent (if any) that, without this Division applying, an entity is entitled to an input tax credit for the acquisition.
Note: Acquisitions relating to financial supplies can give rise to input tax credits: see subsections 11‑15(4) and (5).
 (2) For each kind of *reduced credit acquisition specified, the regulations must specify a percentage to which the input tax credit is reduced.

70‑10  Extended meaning of creditable purpose
 (1) The fact that a *reduced credit acquisition relates to making *financial supplies does not stop it being for a *creditable purpose, to the extent that it relates to making financial supplies.
 (2) The fact that you *apply a *reduced credit acquisition in making *financial supplies does not stop it being applied for a *creditable purpose, to the extent that it relates to making financial supplies.
 (3) This section has effect despite sections 11‑15 and 129‑50 (which are about the meaning of creditable purpose).

70‑15  How much are the reduced input tax credits?
 (1) The amount of an input tax credit for a *creditable acquisition of a *reduced credit acquisition is an amount equal to the GST payable on the supply of the acquisition multiplied by the percentage specified under subsection 70‑5(2) for acquisitions of that kind.
 (2) However, the amount of such an input tax credit is further reduced if the acquisition is only *partly creditable.
 (3) This section has effect despite section 11‑25 (which is about the amount of input tax credits).

70‑20  Extent of creditable purpose
 (1) If:
 (a) a *reduced credit acquisition is a *creditable acquisition; and
 (b) it is not wholly for a *creditable purpose because of this Division;
it is *partly creditable.
 (2) The extent to which the acquisition is acquired or applied for a *creditable purpose is worked out using the following formula:

where:
extent of creditable purpose is the extent to which the purpose for which you applied or acquired the acquisition was a *creditable