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New rules apply to all goods and services acquired on or after 1 April 2011
New rules replace the old change-in-use rules by apportioning input tax deductions in line with the actual use of the goods and services. These rules are:
- When goods or services are acquired the portion of GST deduction that a registered person can claim is based on the intended taxable use of the goods or services with some exclusions applying.
- In subsequent periods, when a change to the actual taxable use occurs, from what was first intended, a GST adjustment within an adjustment period must be made. A number of exemptions may apply.
- There are specific periods, known as "adjustment periods", where if applicable a GST adjustment must be made.
- There is a maximum number of adjustment periods according to the asset's value or estimated useful life.
- Special "wash-up" rules apply when goods and services that have been subject to the apportionment rules are sold or the person deregisters.