Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p21
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 21/58)
Character Range: 691806–694577

that is not a taxable supply—the tax period to which the supply would be attributable if it were a taxable supply.
 (2) This section has effect despite section 29‑20 (which is about attributing your adjustments).

Division 133—Providing additional consideration under gross‑up clauses

133‑1  What this Division is about
      You may have a decreasing adjustment for an acquisition that you made if, to take account of a GST liability that the supplier is subsequently found to have, you provide additional consideration at a time when you can no longer claim an input tax credit.

133‑5  Decreasing adjustments for additional consideration provided under gross‑up clauses
 (1) You have a decreasing adjustment if:
 (a) you made an acquisition on the basis that:
 (i) it was not a *creditable acquisition because the supply to which the acquisition relates was not a *taxable supply; or
 (ii) it was *partly creditable because the supply to which the acquisition relates was only partly a taxable supply; and
 (b) you provided *additional consideration for the acquisition in compliance with a contractual obligation that required you, or had the effect of requiring you, to provide additional consideration if:
 (i) in a case where subparagraph (a)(i) applies—the supply was later found to be a taxable supply, or to be partly a taxable supply; or
 (ii) in a case where subparagraph (a)(ii) applies—the supply was later found to be a taxable supply to a greater extent; and
 (c) GST on the supply has not ceased to be payable (other than as a result of its payment); and
 (d) at the time you provided the additional consideration, you were no longer entitled to an input tax credit for the acquisition.
Note: Section 93‑5 or 93‑15 may provide a time limit on your entitlement to an input tax credit.
 (2) The amount of the *decreasing adjustment is the difference between:
 (a) what would have been the *previously attributed input tax credit amount for the acquisition if:
 (i) the *additional consideration for the acquisition had been provided as part of the original *consideration for the acquisition; and
 (ii) in a case where you have not held a *tax invoice for the acquisition—you held such an invoice; and
 (iii) subsection 29‑10(4) did not apply in relation to the acquisition; and
 (b) the previously attributed input tax credit amount.
 (3) To avoid doubt, additional consideration for an acquisition includes a part of the *consideration for the acquisition that:
 (a) relates to the amount of GST payable on the *taxable supply to which the acquisition relates; and
 (b) at the time of the acquisition, the parties to the transaction under which the acquisition was made assumed was not payable.

133‑10  Availability of adjustments under Division 19 for