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Legislative Instrument

Goods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017

I, Timothy Dyce, Deputy Commissioner of Taxation, make this determination under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Signed by Timothy Dyce
Deputy Commissioner of Taxation
Dated: 28/03/2017

   1. Name of determination
This determination is the Goods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017.

2.     Commencement
This determination commences on the day after its registration on the Federal Register of Legislation.

3.     Repeal of previous determination
This determination repeals and replaces determination A New Tax System (Goods and Services Tax) Act 1999 (Particular Attribution Rules for Retention Payments) Determination (No. 1) 2000 – F2006B11652, registered on 29 November 2006.

4.     Application
This determination applies to entities that:
       (a) do not account on a cash basis; and
       (b) make taxable supplies or creditable acquisitions where the contract provides for some or all of the consideration to be retained by the recipient until certain conditions under the contract are met.
  The determination is substantially the same as the previous determination that it replaces. An entity that satisfied the requirements of the previous determination and that makes taxable supplies or creditable acquisitions where the contract provides for some or all of the consideration to be retained by the recipient until certain conditions under the contract are met will satisfy the requirements of the determination.

5.     Particular attribution rule for GST payable on a taxable supply made under a contract that provides for retention of some or all of the consideration until certain conditions under the contract are met
                  (a) This particular attribution rule applies if you make a taxable supply under a contract that provides for the recipient of the supply to retain some or all of the consideration until certain conditions are met.

       (b) The GST payable on the non-retained consideration is attributable to the tax period when:
           (i) any of that consideration is received for the supply; or
           (ii) an invoice is issued relating to the supply;
        whichever is earlier.

        (c) The GST payable on a retention amount is attributable to the earlier of the tax period in which the retention amount is:
           (i) invoiced; or
           (ii) the tax period in which the retention amount is received (to the extent the GST payable on the retention amount has not been attributed to an earlier tax period).

6.     Particular attribution rule for input tax credits arising from a creditable acquisition made under a contract that provides for retention of some or all of the consideration until certain conditions under the contract are met
           (a) This particular attribution rule applies if you make a creditable acquisition