The AAT has upheld the Commissioner's approach in para 128 of GSTR 2009/4 and rejected the taxpayer's argument that, for the purposes of Division 129 of the GST Act (Changes in the extent of creditable purpose), an apportionment method based on the effective life of premises is fair and reasonable.
The AAT said, at para 27:
"GSTR 2009/4 contains a cogent explanation as to why an apportionment method based on the effective life of the premises is not considered fair and reasonable. The Tribunal adopts that reasoning and sees no need to elaborate further."
A Taxpayer and FCT  AATA 160 (AAT, Dr Hughes M, 10 March 2011).