A New Tax System (Goods and Services Tax) Act. Australia
2–4—Net amounts and adjustments
Division 17—Net amounts and adjustments
17-1 What this Division is about
A net amount is worked out for each tax period that applies to you. This is the amount payable by you to the Commonwealth, or payable to you by the Commonwealth, for the tax period.
Adjustments can be made to the net amount. Increasing adjustments increase your net amount, and decreasing adjustments decrease your net amount.
Note 1: GST on taxable importations is not included in the net amount. It is dealt with separately under section 33–15.
Note 2: Net amounts payable to the Commonwealth are to be paid to the Commissioner on the Commonwealth’s behalf (see Division 33).
17-5 Net amounts
(1) The net amount for a tax period applying to you is worked out using the following formula:
where:
GST is the sum of all of the GST for which you are liable on the *taxable supplies that are attributable to the tax period.
input tax credits is the sum of all of the input tax credits to which you are entitled for the *creditable acquisitions and *creditable importations that are attributable to the tax period.
For the basic rules on what is attributable to a particular period, see Division 29.
(2) However, the *net amount for the tax period may be increased or decreased if you have any *adjustments for the tax period.
17–10 Adjustments
If you have any *adjustments that are attributable to a tax period applying to you, alter your *net amount for the period as follows:
(a) add to the amount worked out under subsection 17-5(1) for the period the sum of all the *increasing adjustments (if any) that are attributable to the period;
(b) subtract from that amount the sum of all the *decreasing adjustments (if any) that are attributable to the period.
For the basic rules on what adjustments are attributable to a particular period, see Division 29.
17–15 Working out net amounts using approved forms
(1) You may choose to work out your *net amount for a tax period in the way specified in an *approved form if you use the form to notify the Commissioner of that net amount. The amount so worked out is treated as your net amount for the tax period.
Note: Choosing to use section 17-5 to work out your net amount does not mean your GST return is not in the approved form: see subsection 31–15(3).
(2) This section has effect despite section 17-5.
17–20 Determinations relating to how to work out net amounts
(1) The Commissioner may make a determination that, in the circumstances specified in the determination, a *net amount for a tax period may be worked out to take account of other matters in the way specified in the determination.
(2) The matters must relate to correction of errors made in working out *net amounts for the immediately preceding tax period.
(3) If those circumstances apply in relation to a tax period applying to you, you may work out your *net amount for the tax period in that way.
17–99 Special rules relating to net amounts or adjustments
Chapter 4 contains special rules relating to net amounts or adjustments, as follows:
Checklist of special rules
Item
For this case…
See:
1A
Annual apportionment of creditable purpose
Division 131
1
Anti-avoidance
Division 165
2
Cessation of registration
Division 138
3
Changes in the extent of creditable purpose
Division 129
4
Company amalgamations
Division 90
4AA
Compulsory third party schemes
Division 79
4A
Distributions from deceased estates
Division 139
5
Gambling
Division 126
5A
Goods applied solely to private or domestic use
Division 130
6
GST branches
Division 54
7
GST groups
Division 48
8
GST joint ventures
Division 51
8A
GST religious groups
Division 49
9
Insurance
Division 78
9AA
Non-deductible expenses
Division 69
9A
Non-profit sub-entities
Division 63
9B
Payment of GST by instalments
Division 162
9C
Providing additional consideration under gross-up clauses
Division 133
10
Representatives of incapacitated entities
Division 58
11
Resident agents acting for non-residents
Division 57
11A
Sale of freehold interests etc.
Division 75
12
Second-hand goods
Division 66
12AA
Settlement sharing arrangements
Division 80
12A
Simplified accounting methods for retailers and small enterprise entities
Division 123
12B
Stock on hand on becoming registered etc.
Division 137
13
Supplies in satisfaction of debts
Division 105
14
Supplies of going concerns