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A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 80 - Settlement sharing arrangements    View history reference

Subdivision 80-A - Insurance policy settlement sharing arrangements    View history reference

80-30  Managing operator ' s increasing adjustment where contributing operator ' s payment  

 View history reference

(1)  

If:


(a) a * contributing operator ' s payment is made; and


(b) as a result of section 80-20 , there was a * decreasing adjustment for the * managing operator under Division 78 or 79 in relation to the * managing operator ' s payment or supply ;

there is an increasing adjustment for the managing operator of the following amount:
   *Contributing operator ' s payment  
Managing operator ' s settlement
amount (see subsection (2))
×   *Decreasing adjustment 

Managing operator ' s settlement amount

(2)  

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The managing operator ' s settlement amount mentioned in subsection (1) is worked out using this method statement.

Method statement

Step 1. 

Add together:

(a) the sum of the payments of * money , or *digital currency, (if any) that are included in the * managing operator ' s payment or supply ; and
(b) the * GST inclusive market value of the supplies (if any) that are included in the * managing operator ' s payment or supply (other than supplies that would have been * taxable supplies but for section 78-25 or 79-60 ).

Step 2. 

If, in relation to the * managing operator ' s payment or supply , any payments of an excess were made to the * managing operator , subtract from the step 1 amount the sum of all those payments (except to the extent that they are payments of excess to which section 78-18 or 79-55 applies).

Example:

Assume the same facts as in the examples in sections 80-20 and 80-25 . Assume also that, as a result of section 80-20 , there was a decreasing adjustment under Division 78 or 79 for the managing operator ' s payment or supply.

The managing operator has an increasing adjustment. It equals the part of the decreasing adjustment that is attributable to the managing operator ' s payment or supply that was repaid by the contributing operator ' s contribution.


 



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