A New Tax System (Goods and Services Tax) Act 1999
79‑50 Decreasing adjustments for CTP com79‑50 Decreasing adjustments for CTP compensation or ancillary payments or supplies
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79‑50 Decreasing adjustments for CTP compensation or ancillary payments or supplies
(1) An *operator of a *compulsory third party scheme has a decreasing adjustment if the operator makes a *CTP compensation or ancillary payment or supply under the scheme. (2) However, this section only applies if: (a) the payments of *CTP premium to the *operator that have been or are required to be made under the scheme are, or would be, *consideration for a *taxable supply; and (b) the *operator is *registered or *required to be registered. (3) The *decreasing adjustment in relation to the payment or supply is worked out using the applicable *average input tax credit fraction (see section 79‑95).