The ATO has published a Decision Impact Statement in relation to the Federal Court decision in American Express International Inc v FCT  FCA 683; 2009 ATC 20-113. The case concerned whether payments, made by the holders of credit cards and charge cards to the issuers of such cards (companies in the American Express group), following default by the holders, constituted consideration for or in connection with a "financial supply" within the meaning of s 40-5 of the GST Act and reg 40-5.09(1) of the GST Regulations. Emmett J held that they did not.
The ATO says that it respectfully disagrees with the decision of Emmett J and has appealed to the Full Federal Court against the decision. The appeal is listed to be heard by the Full Federal Court on 26 November 2009. Any requests for refunds for additional input tax credits as a result of the decision will be held pending the outcome of the ATO's appeal to the Full Federal Court and any further appeal by either party.
For a copy of the Decision Impact Statement, go here