Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 70.5

  (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.