125AGST‑inclusive payments

#### 125A GST‑inclusive payments (1) If: (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 (c) either: (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. > Note: 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).