Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 133.5

             (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.