12Indirect tax concession scheme—conditions

12 Indirect tax concession scheme—conditions

(1) For the purposes of paragraph 11C(3)(a) of the Act, the amount mentioned in subsection 11C(1) of the Act is payable only if the following conditions are satisfied: (a) the person who made the acquisition is subject to an agreement in writing between the SKAO and the Commonwealth to repay to the Commonwealth the amount worked out under subsection (3) of this section if: (i) for a payment in relation to an acquisition of a motor vehicle—the person disposes of the motor vehicle (except to another person entitled to an indirect tax concession under this instrument or another law of the Commonwealth in relation to similar acquisitions) in Australia or an external Territory within 3 years after it was acquired; or (ii) for a payment in relation to an acquisition of goods other than a motor vehicle—the person disposes of the goods (except to another person entitled to an indirect tax concession under this instrument or another law of the Commonwealth in relation to similar acquisitions) in Australia or an external Territory within 2 years after they were acquired; or (iii) for a payment in relation to an acquisition of services—the person assigns the services to another person (except to another person entitled to an indirect tax concession under another law of the Commonwealth in relation to similar acquisitions) in Australia or an external Territory; or (iv) for a payment in relation to any other acquisition—the person assigns the thing acquired to another person (except to another person entitled to an indirect tax concession under another law of the Commonwealth in relation to similar acquisitions) in Australia or an external Territory; (b) if the person has breached a previous agreement under paragraph (a)—the person complies with any written requirements, including a requirement to give security, that the Minister considers necessary to ensure that the person complies with the agreement.

Note: A person includes the SKAO: see section 6 of this instrument and section 2C of the Acts Interpretation Act 1901.

(2) For the purposes of subparagraphs (1)(a)(i) and (ii): (a) a sale of goods to a finance company as part of a sale and lease‑back arrangement is not a disposal of the goods; and (b) a person (the first person) is taken to have disposed of goods to which one of those subparagraphs applies within the period mentioned in that subparagraph to a person who is not entitled to an indirect tax concession in relation to similar acquisitions if: (i) the first person disposes of the goods to a person (the second person) who is entitled to the concession; and (ii) the second person disposes of the goods to another person; and (iii) the series of disposals of the goods to other persons continues (if necessary) until the goods are eventually acquired, within the period mentioned in that paragraph, by a person who is not entitled to the concession. (3) For the purposes of paragraph (1)(a), the amount to be repaid is: (a) for an acquisition to which subparagraph (1)(a)(i) or (ii) applies—the proportion of the amount paid under section 11C of the Act in relation to the acquisition that is equal to the proportion of the period mentioned in that subparagraph remaining after the person disposes of the goods; and (b) for an acquisition to which subparagraph (1)(a)(iii) or (iv) applies—the amount paid under section 11C of the Act in relation to the acquisition. (4) However, for an acquisition to which subparagraph (1)(a)(i) or (ii) applies, a person is not required to repay an amount paid under section 11C of the Act in relation to a lease payment that relates to a period before the person disposes of the goods. (5) The amount mentioned in subsection 11C(1) of the Act is not payable if: (a) an amount was payable for a similar acquisition; and (b) the Minister tells the person in writing that, in the Minister’s opinion, the person’s reasonable needs were met by that acquisition.