Document ID: chunk:federal_register_of_legislation:F2017L00344:body:0:p2
Version: federal_register_of_legislation:F2017L00344
Segment Type: other
Provision Reference: 
Character Range: 2778–5653

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 under a contract that allows you to retain some or all of the consideration until certain conditions are met.

            (b) The input tax credit on the non-retained consideration to which you are entitled for a creditable acquisition is attributable to the tax period when:
             (i) you provide any of the consideration for the acquisition; or
             (ii) an invoice is issued relating to the acquisition;
        whichever is the earlier.

            (c) The input tax credit 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 paid (to the extent the input tax credit on the retention amount has not been attributed to an earlier tax period).
         (d) This determination applies only if you do not account on a cash basis.

7.     GST payable on the retention amount
          (a)   GST payable on the retention amount is worked out in the following way:
        Step 1
        Identify the retention amount as a percentage of the total of the consideration.
        Step 2
        Apply that percentage to the amount of GST payable on the taxable supply – the result is the GST payable on the retention amount.

          (b)   The GST payable on the non-retained consideration is the amount obtained by subtracting the amount of GST payable on the retention amount from the amount of GST payable on a taxable supply.

8.     Input tax credit on the retention amount
          (a)   The input tax credit on the retention amount is worked out in the following way:
        Step 1
        Identify the retention amount as a percentage of the total of the consideration.
        Step 2
        Apply that percentage to the amount of the input tax credit for the creditable acquisition – the result is the input tax credit on the retention amount.
        (b) The input tax credit on the non-retained consideration is the amount obtained by subtracting the amount of the input tax credit on the retention amount from the amount of the input tax credit that you are entitled to for a creditable acquisition.

        (c) To avoid doubt, this determination is not intended to override subsection 29‑10(3) or Division 156 of the GST Act.

9.     Definitions
The following expressions are defined for the purposes of this determination:
GST payable on the non-retained consideration, in relation to a taxable supply, means the amount worked out in accordance with subparagraph 7(b);
GST payable on the retention amount, in relation to