Document ID: chunk:federal_register_of_legislation:F2023C00564:reg:18:p1
Version: federal_register_of_legislation:F2023C00564
Segment Type: reg
Provision Reference: reg 18 (pt 1/2)
Character Range: 73047–75792

18                                                     Property management

 (4) However, something that is used in making a reduced credit acquisition is not, for that reason, a reduced credit acquisition.
Example 1: Consultant's services used in the provision of recruitment services.
Example 2: Labour hire services used in the provision of security services.
 (5) The performance by a third party, on behalf of the supplying enterprise or a closely related enterprise of the supplying enterprise, of all or part of the relevant supply is an unabsorbed contribution if:
 (a) the amount paid or payable, or part of the amount paid or payable, by the supplying enterprise for the performance is passed on by the supplying enterprise to the receiving enterprise as part of the price of the relevant supply; and
 (b) the enterprise carried on by the third party is not closely related to the supplying enterprise; and
 (c) the thing that is involved in the performance by the third party retains, at the time of the relevant supply, the substance and character that it had when first purchased, for the purposes of the relevant supply, by the supplying enterprise or an entity that carries on an enterprise that is closely related to the supplying enterprise.
Example: For paragraph (c), legal advice that is given in the following circumstances is an unabsorbed contribution:
(a) the advice is acquired by the supplying enterprise from a third party service provider as part of the provision of in‑house legal services by the supplying enterprise to its 100% subsidiary in the indirect tax zone;
(b) the external legal service provider is not closely related to the supplying enterprise;
(c) the advice is passed on to the 100% subsidiary in the indirect tax zone by the supplying enterprise;
(d) the amount paid or payable for the advice is passed on to the 100% subsidiary in the indirect tax zone as part of the price that the supplying enterprise charges for the provision of in‑house legal services.

70‑5.02D  Prohibition against claiming twice
  To avoid doubt, an entity is not entitled to a reduced input tax credit under sections 70‑5.02 and 70‑5.02A for the same acquisition.

70‑5.03  Percentage to which input tax credits are reduced
  For the purposes of subsection 70‑5(2) of the Act, the percentage to which an input tax credit is reduced is as follows:
 (a) for a reduced credit acquisition covered by item 32 of the table in subsection 70‑5.02(1)—55%;
 (b) for a reduced credit acquisition covered by item 32 and one or more other items of the table in subsection 70‑5.02(1):
 (i) to the extent that the acquisition is covered by item 32—55%; and
 (ii) to the extent that the acquisition is not covered by item 32—75%;
 (c) for