Legal Research
Legislations
Goods and Services Tax: Particular Attribution Rules Where Total Consideration Not Known Determination 2017

Goods and Services Tax: Particular Attribution Rules Where Total Consideration Not Known Determination 2017

Administered by Department of the Treasury

Legislation au F2017L00425 In force Legislative Instrument

Select Document

Explanatory Statement

Goods and Services Tax: Particular Attribution Rules Where Total Consideration is Not Known Determination 2017

General outline of determination

The determination is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
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 determination.
The determination sets out particular rules for attributing GST on taxable supplies and input tax credits on creditable acquisitions where the supply or acquisition occurs before the total consideration is known.
The determination is a legislative instrument for the purposes of the Legislation Act 2003.

Date of effect

5. This determination will commence retrospectively on 1 April 2017. This is to allow for reasonable and appropriate consultation to be completed.

6. Subsection 12(2) of the Legislation Act 2003 allows a retrospective application date for a Legislative Instrument. This determination aims to reduce compliance costs. A commencement date after 1 April 2017 would create unexpected compliance obligations for the intervening period. To provide certainty to taxpayers who have relied upon the previous determination and continue to rely on this determination and protect the rights of all affected taxpayers the retrospective application date is reasonable and appropriate. The retrospective application date will not adversely affect the rights of any person and will not impose a liability on any person for any act or omission before this instrument’s registration date.

What is the determination about?

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

8. As the context requires, sections 29-5 and 29-10 of the GST Act have regard to whether you have:

(a) issued or received an invoice

(b) received or paid consideration (and to what extent), and

9. This determination provides rules for attribution of GST and input tax credits where the total consideration is not known because ascertainment of that total consideration depends on a future event or events not within the control of the supplier

What is the effect of this determination?

Particular attribution rule for GST payable on a taxable supply occurring before the supplier knows the total consideration

10. Where, in a tax period, you make a taxable supply and issue an invoice which states an amount of consideration before you know the total consideration for that supply, the GST is attributable to that tax period to the extent of:

(a) If no consideration is received in that tax period - the amount of consideration stated on the invoice

(b) If the consideration received in that tax period is less than or equal to that stated on the invoice - the amount of consideration, or

11. Where in a tax period you make a taxable supply before you know total consideration and you have not issued an invoice for the supply, the GST is attributable to that tax period but only to the extent of the consideration received.

12. In subsequent tax periods, GST on any increase in consideration for the supply is to be attributed to the earlier of the tax period in which an invoice (or amended invoice) is issued for the supply or the tax period in which any of the additional consideration is received.

Particular attribution rule for input tax credits arising from a creditable acquisition occurring before the recipient knows the total consideration

13. Where, in a tax period, you make a creditable acquisition before you know the total consideration, if an invoice has been issued, the input tax credit is attributable to that period to the extent of:

(a) If no consideration is provided in that tax period - the amount of consideration on the invoice

(b) If the consideration provided in that tax period is less than or equal to that stated on the invoice - the amount of consideration stated in the invoice, or

14. Where in a tax period you make a creditable acquisition, before you know the total consideration and an invoice has not been issued, the input tax credit is attributable to that tax period but only to the extent of the consideration provided.

15. In subsequent tax periods, attribute the input tax credit on any increase in consideration to the earlier of the tax period in which an invoice (or amended invoice) is issued, or the tax period in which any additional consideration is provided.

16. This 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.

17. 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

18. The determination repeals and replaces A New Tax System (Goods and Services Tax) (Particular Attribution Rules Where Total Consideration Not Known) Determination (No. 1) 2000 - F2006B11593 (previous determination), registered on 17 November 2006. This determination is repealed from 1 April 2017.

Consultation

19. 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.

20. 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 Where Total Consideration Not Known 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

The attribution of GST and input tax credits depends on rules which may be difficult to reconcile in a circumstance where you do not know the total consideration receivable, or payable, because it depends on a future event not within the supplier’s control. The legislative instrument clarifies how much GST or input tax credit you must attribute and to which tax period.

Human rights implications

The legislative instrument does not engage any of the applicable rights or freedoms. It provides how much GST or input tax credit you must attribute and to which tax period in circumstance where you do not know the total consideration receivable, or payable, because total consideration depends on a future event or events not entirely within supplier’s control.

Conclusion

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

Overview

The Goods and Services Tax: Particular Attribution Rules Where Total Consideration Not Known Determination 2017 was enacted under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). This legislative instrument, effective from 1 April 2017, was introduced to address the problem of attributing GST and input tax credits when the total consideration for a supply or acquisition is not known at the time of the transaction. The determination was made to provide certainty and reduce compliance costs for taxpayers, particularly those who rely on such rules. It was enacted by the Australian Government and its primary objective is to ensure that GST and input tax credits are correctly attributed in situations where the total consideration is contingent on future events. The retrospective application date aims to avoid imposing unexpected compliance obligations on taxpayers while protecting their rights.

Scope and Application

The Goods and Services Tax: Particular Attribution Rules Where Total Consideration is Not Known Determination 2017 applies to entities making taxable supplies or creditable acquisitions where the total consideration for such transactions is not known at the time the supply or acquisition occurs. The determination is made under the A New Tax System (Goods and Services Tax) Act 1999 and is applicable across Australia as a Commonwealth legislative instrument. The rules set out in this determination ensure that GST and input tax credits are appropriately attributed to specific tax periods in circumstances where the total consideration is contingent upon future events outside the control of the supplier. The determination provides a framework for attributing GST and input tax credits to the relevant tax periods based on the consideration stated on an invoice, the actual consideration received or provided, and the timing of invoice issuance or receipt of additional consideration. This determination replaces the previous A New Tax System (Goods and Services Tax) (Particular Attribution Rules Where Total Consideration Not Known) Determination 2000, which was repealed from 1 April 2017, and it is expected to have minimal impact on compliance costs for those affected.

Key Provisions

The Explanatory Statement for the Goods and Services Tax: Particular Attribution Rules Where Total Consideration is Not Known Determination 2017 (the Determination) provides clarity on the attribution of GST and input tax credits when the total consideration for a supply or acquisition is not known at the time of the transaction. This is particularly relevant for supplies or acquisitions where the total consideration is contingent upon future events that are beyond the control of the supplier or recipient. Section 10 of the Determination outlines the attribution of GST payable on a taxable supply occurring before the supplier knows the total consideration. If an invoice is issued stating an amount of consideration before the supplier knows the total consideration, the GST is attributable to that tax period based on the amount stated on the invoice if no consideration is received (subsection 10(a)), or the amount of consideration received if it is less than or equal to that stated on the invoice (subsection 10(b)), or the amount of consideration received if it exceeds the amount stated on the invoice (subsection 10(c)). If no invoice is issued, the GST is attributable only to the extent of the consideration received (subsection 11). In subsequent tax periods, any increase in consideration for the supply is attributed to the earlier of the tax period in which an invoice is issued or the tax period in which additional consideration is received (subsection 12). The Determination imposes obligations on taxpayers to accurately attribute GST and input tax credits based on the provisions outlined. For example, entities must ensure that GST is correctly attributed to the appropriate tax period based on the consideration received or stated on the invoice (subsection 10). Similarly, for input tax credits, entities must attribute credits to the correct tax period based on the consideration provided or stated on the invoice (subsection 13). Entities must also ensure that any increase in consideration for supplies or acquisitions is appropriately attributed in subsequent tax periods (subsections 12 and 15). There are no specific offences or penalties outlined in the Determination itself, but non-compliance with the GST Act or the Determination could lead to penalties under the GST Act. The GST Act provides for various penalties for non-compliance, including civil penalties for serious or repeated breaches, which can be up to 100% of the unpaid GST or input tax credit (section 175-1 of the GST Act). Criminal penalties can also be imposed for fraudulent or dishonest conduct, which can include fines and imprisonment (sections 175-3 and 175-5 of the GST Act). These penalties underscore the importance of accurate attribution of GST and input tax credits as required by the Determination.

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; Offence Provisions; Reporting & Disclosure Obligations

Interactions

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.

Legislation content