(a) an amount is payable to a State or Territory in accordance with a determination made under:
(i) section 25 (timing and amounts of recurrent funding); or
(ii) paragraph 28(1)(b) (capital funding for block grant authorities); or
(iii) paragraph 29(1)(aa) (funding in prescribed circumstances); and
(b) the amount is payable in relation to an acquisition (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 ); and
(i) an input tax credit (within the meaning of that Act) would arise for that acquisition; or
(ii) a decreasing adjustment (within the meaning of that Act) would arise for that acquisition;
the amount is to be increased by the amount of the input tax credit or the amount of the decreasing adjustment, as the case requires.
Example: If an amount of $10 is payable to a State or Territory in accordance with a determination made under section 25 in relation to an acquisition (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 ) for which an input tax credit (within the meaning of that Act) would arise, the amount payable is to be increased to $11. The amount of $11 reflects an increase of $1 on the amount determined, since $1 is the amount of the input tax credit that would arise.
(2) An increase under subsection ( 1) is to be disregarded for the purposes of applying any limit in this Act.
(3) An increase under subsection ( 1) is to be
disregarded for the purposes of section 9 (definition of overpayment).