Commonwealth Consolidated Acts

A NEW TAX SYSTEM (GOODS AND SERVICES TAX TRANSITION) ACT 1999 - SECT 15G

             (1)  This section has effect if:

                     (a)  you are the recipient of a taxable supply for which the GST is payable by you because of this Division; and

                     (b)  the whole or part of the consideration for the supply has not been received by the supplier; and

                     (c)  the supplier writes off as bad the whole or a part of the debt, or the whole or a part of the debt has been overdue for 12 months or more.

             (2)  Section 21‑5 of the GST Act does not apply to the taxable supply.

             (3)  Instead, you have a decreasing adjustment equal to 10% of the amount written off, or 10% of the amount that has been overdue for 12 months or more, as the case requires. However, you cannot have an adjustment under this section if you account on a cash basis.

             (4)  You have an increasing adjustment if:

                     (a)  you were the recipient of a taxable supply in relation to which you had a decreasing adjustment under subsection (3); and

                     (b)  you subsequently pay to the supplier the whole or a part of the amount written off, or the whole or a part of the amount that has been overdue for 12 months or more, as the case requires.

The amount of the increasing adjustment is 10% of the amount paid.