Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017

Administered by Department of the Treasury

Legislation au F2017L00346 In force Legislative Instrument

Legislation content

Explanatory Statement

Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017

General outline of determination

  1. The determination is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
  2.  Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
  3. The determination sets out particular attribution rules where you make taxable supplies or creditable acquisitions through an agent and rely upon information from your agent to enable you to attribute the GST payable or input tax credits on those supplies or acquisitions. Further this determination also sets out particular attribution rules in regards to adjustments to these supplies and acquisitions.
  4. The determination is a legislative instrument for the purposes of the Legislation Act 2003.

Date of effect

5.      The determination commences on the day after its registration on the Federal Register of Legislation.

What is the determination about?

6.      Sections 29-5 and 29-10 of the GST Act set out the rules for attributing GST and input tax credits on your taxable supplies and creditable acquisitions.

7.      This determination provides rules for attribution of GST and input tax credits when you make taxable supplies or creditable acquisitions through an agent that you rely upon for information in order to attribute the GST payable or input tax credits on those supplies or acquisitions.

What is the effect of the determination?

Rules for GST payable on taxable supplies you make through an agent occurring before you know they have occurred

8.      Where you make a taxable supply through an agent and you are reliant upon the agent for information to enable you to attribute the GST payable on the supply, you attribute the GST payable to the earlier of; the tax period in which you become aware that any of the consideration has been received, or the tax period in which you become aware that an invoice has been issued relating to the supply.

9.      However, where you account on a cash basis, if you become aware that all, part or none of the consideration has been received in a tax period; the GST is attributable to that tax period, but only to the extent of the consideration received. 

Rules for input tax credits that arise on creditable acquisitions you make through an agent before you know they have occurred

10.  Where you make a creditable acquisition through an agent and you are reliant upon that agent for information to enable you to attribute the input tax credit, you attribute the input tax credit to the earlier of; the tax period in which you became aware that any consideration has been provided or, the tax period that an invoice has been issued relating to the acquisition.  

11.  However, where you account on a cash basis and in a tax period you become aware that all, part or none of the consideration has been provided, the input tax credit is attributable to that tax period, but only to the extent of the consideration received.

Particular attribution rules for Adjustments

12.  Where you have an adjustment that relates to a taxable supply or creditable acquisition made through an agent and you are reliant upon the agent to enable you to attribute the adjustment, the adjustment is attributable to the tax period in which you become aware of the adjustment.

13.  However, if you account on a cash basis and the adjustment arises from an adjustment event as a result of which you are liable to provide consideration, then the adjustment is attributable to the tax period or periods in which you become aware that the consideration has been provided, but only to the extent of the consideration provided in that period. 

14.  Compliance cost impact:  Minor – there will be no or minimal impact for both implementation and ongoing compliance costs. The determination is minor or machinery in nature.

Background

15. The determination replaces A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination (No. 1) 2000 - F2006B11596 (the previous determination), registered on 17 November 2006. The previous determination is repealed on commencement of the determination.

16.  The determination is substantially the same as the previous determination that it replaces.  An entity that satisfied the requirements of the previous determination will  satisfy the requirements of this determination.

Consultation:

17.  Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the rule-maker is satisfied that appropriate and reasonably practicable consultation has been undertaken.

 

18.  Broad consultation has been undertaken. The draft determination and draft explanatory statement were published on the ATO Legal database at ato.gov.au seeking feedback and comments for a period of two weeks. Notice of the draft determination was also published to ato.gov.au and subscription alerts issued. Tax professionals and tax associations regularly review both the Legal database and ato.gov.au and further promulgate advice of new drafts issued in their internal news bulletins. The major legal publishers also publish news of the drafts in their key tax alerting services - such as the Weekly Tax Bulletin (published by Thomson Reuters Australia) and Tax Tracker and Tax Week (published by CCH Australia).  Additionally, draft determinations and draft explanatory statements have been published on the ATO Consultation Hub.  Links to these drafts were published organisations and newsletters such as the Taxation News (Chartered Accountants Australia and New Zealand) weekly bulletin. No comments have been received to date.

 

Legislative References:

A New Tax System (Goods and Services Tax) Act 1999 (GST Act)

Acts Interpretation Act 1901

Legislation Act 2003

Human Rights (Parliamentary Scrutiny) Act 2011

Statement of Compatibility with Human Rights

This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
 

Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017

The Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
 

Overview of the Legislative Instrument

 

This determination provides certainty and alleviates the compliance burden relating to attribution of GST and input tax credits when you make supplies or acquisitions through an agent on whom you rely for information about those supplies or acquisitions.

 

Human rights implications

 

The Instrument does not engage any of the applicable rights or freedoms. It allows for certainty and alleviates the compliance burden in attributing the GST and input tax credits when you make supplies or acquisitions through an agent. 

 

Conclusion

 

The Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017 was enacted to provide specific rules for the attribution of GST and input tax credits in the context of taxable supplies and creditable acquisitions made through agents. This legislative instrument was created under the authority of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and is a legislative instrument as defined by the Legislation Act 2003. The primary objective of this determination is to offer clarity and reduce the compliance burden for taxpayers who rely on agents for information regarding their taxable supplies and acquisitions. This determination replaces the previous Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination (No. 1) 2000 and was developed following broad consultation with tax professionals, associations, and legal publishers. It ensures compatibility with human rights, as it does not engage any of the applicable rights or freedoms, thereby providing certainty and easing the compliance burden for taxpayers.

Scope and Application

The Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017 applies to individuals and entities that make taxable supplies or creditable acquisitions through an agent and rely on the agent's information to attribute the GST payable or input tax credits. The determination is made under the A New Tax System (Goods and Services Tax) Act 1999 and operates throughout Australia. It replaces the previous determination from 2006 and provides the same rules for attribution of GST and input tax credits for supplies and acquisitions made through an agent. The determination is a legislative instrument for the purposes of the Legislation Act 2003 and commenced on the day after its registration on the Federal Register of Legislation. The determination sets out particular attribution rules for supplies and acquisitions made through an agent, including rules for GST payable on taxable supplies and input tax credits that arise on creditable acquisitions before the supplier or acquirer knows they have occurred. It also provides rules for adjustments that relate to taxable supplies or creditable acquisitions made through an agent. The determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Goods and Services Tax: (Particular Attribution Rules for Supplies and Acquisitions made through Agents) Determination 2017 (the Determination) outlines specific rules for attributing GST and input tax credits when supplies and acquisitions are made through an agent, as per sections 29-5 and 29-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). These rules apply to situations where businesses rely on their agents for information to attribute the GST payable or input tax credits on such transactions. Section 8 of the Determination specifies that if a taxable supply is made through an agent, the GST payable is attributed to the earlier of the tax period when the business becomes aware that the consideration has been received, or when they become aware that an invoice has been issued. However, for businesses accounting on a cash basis, the GST is attributed to the tax period in which the consideration is actually received. Similarly, Section 10 addresses input tax credits for creditable acquisitions made through an agent, attributing them to the earlier of the tax period when the business becomes aware that consideration has been provided or when an invoice has been issued. For cash basis accounting businesses, the input tax credit is attributed to the tax period in which the consideration is provided. The Determination imposes specific obligations on businesses that engage agents to make taxable supplies or creditable acquisitions. It requires businesses to accurately attribute GST and input tax credits based on the information received from their agents. Section 12 further elaborates on adjustments related to such supplies or acquisitions, attributing the adjustment to the tax period when the business becomes aware of it. If the business accounts on a cash basis, adjustments related to consideration provided are attributed to the tax period when the consideration is provided, but only to the extent of the consideration provided in that period. This requirement ensures that businesses maintain accurate records and attribute GST and input tax credits correctly, which is critical for compliance with GST laws. Breaches of the provisions outlined in the Determination may result in civil or criminal consequences. Although the Determination does not specify particular penalties, violations of GST laws can lead to substantial penalties under the GST Act. For example, providing false or misleading information to the Australian Taxation Office can result in civil penalties of up to $22,200 per offence for individuals and $111,000 for corporations, as per section 177 of the GST Act. In cases of serious non-compliance, criminal penalties can also apply, potentially leading to imprisonment. These provisions underscore the importance of adhering to the rules set forth in the Determination to avoid severe legal repercussions.

Legal classification tags

Area of Law
Taxation Law
Instrument
Statutory Instrument
Concepts
Definitions & Interpretation
Compliance Obligations
Reporting & Disclosure Obligations
Catchwords
Particular Attribution Rules

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.