Commonwealth Consolidated Acts
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A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 136.30
Writing off bad debts (taxable supplies)
(1) The amount of a
decreasing adjustment that you have under section 21-5, relating to a
* taxable supply that is * taxable at less than 1 / 11 of the price, is worked
out under this section and not under section 21-5.
(2) This is how to work out the amount:
Step 1 . Work out the amount of GST (if any) that was payable on
the supply, taking into account any previous * adjustments for the supply.
This amount is the previous GST amount .
Step 2 . Add together:
(a) the amount or amounts written off as bad from the
debt to which the decreasing adjustment relates; and
(b) the amount of the debt that has been
* overdue for 12 months or more (other than amounts already written off).
Step 3 . Subtract the step 2 amount from the *
price of the supply.
Step 4 . Work out the amount of GST (if any), taking into account
any previous * adjustments for the supply (but not adjustments relating to bad
debts or debts overdue), that would be payable on the supply if the * price of
the supply were the step 3 amount. This amount of GST is the adjusted GST
Step 5 . Subtract the adjusted GST amount from the previous GST
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