{"id":"F2017L00344","name":"Goods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017","slug":"goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":96054,"registerId":"commonwealth-F2017L00344-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Goods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017","content":"Legislative Instrument\n\nGoods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017  \n\nI, 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).\n\nSigned by Timothy Dyce\n\nDeputy Commissioner of Taxation\n\nDated: 28/03/2017\n\n1.  Name of determination\n\nThis determination is the Goods and Services Tax: (Particular Attribution Rules for Retention Payments) Determination 2017.\n\n2. Commencement\n\nThis determination commences on the day after its registration on the Federal Register of Legislation.\n\n3. Repeal of previous determination\n\nThis 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.\n\n4. Application\n\nThis determination applies to entities that:\n\n(a) do not account on a cash basis; and\n\n(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.\n\nThe 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.  \n\n5. 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\n\n(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.\n\n  \n(b) The GST payable on the non-retained consideration is attributable to the tax period when:\n\n(i) any of that consideration is received for the supply; or\n\n(ii) an invoice is issued relating to the supply;\n\nwhichever is earlier.\n\n(c) The GST payable on a retention amount is attributable to the earlier of the tax period in which the retention amount is:\n\n(i) invoiced; or\n\n(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).\n\n6. 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\n\n(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.  \n\n(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:\n\n(i) you provide any of the consideration for the acquisition; or\n\n(ii) an invoice is issued relating to the acquisition;\n\nwhichever is the earlier.\n\n(c) The input tax credit on a retention amount is attributable to the earlier of the tax period in which the retention amount is:\n\n(i) invoiced; or\n\n(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).\n\n(d) This determination applies only if you do not account on a cash basis.  \n  \n\n7. GST payable on the retention amount\n\n    (a) GST payable on the retention amount is worked out in the following way:\n      Step 1\n      Identify the retention amount as a percentage of the total of the consideration.\n      Step 2\n      Apply that percentage to the amount of GST payable on the taxable supply – the result is the GST payable on the retention amount.\n\n    (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.\n\n8. Input tax credit on the retention amount\n\n    (a) The input tax credit on the retention amount is worked out in the following way:\n      Step 1\n      Identify the retention amount as a percentage of the total of the consideration.\n      Step 2\n      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.\n\n(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.  \n\n(c) To avoid doubt, this determination is not intended to override subsection 29‑10(3) or Division 156 of the GST Act.  \n  \n\n9. Definitions\n\nThe following expressions are defined for the purposes of this determination:\n\nGST payable on the non-retained consideration, in relation to a taxable supply, means the amount worked out in accordance with subparagraph 7(b);\n\nGST payable on the retention amount, in relation to a taxable supply, means the amount worked out in accordance with subparagraph 7(a);\n\ninput tax credit on the non-retained consideration, in relation to a creditable acquisition, means the amount worked out in accordance with subparagraph 8(b);\n\ninput tax credit on the retention amount, in relation to a creditable acquisition, means the amount worked out in accordance with subparagraph 8(a);\n\ninvoice for the retention amount, means a document notifying an obligation to pay the retention amount issued in relation to that amount once certain conditions specified in the contract have been met and/or following the expiry of the defects liability period;\n\nnon-retained consideration, in relation to a taxable supply or a creditable acquisition, means the amount obtained by subtracting the retention amount (or amounts) from the consideration for that supply;\n\nretention amount, in relation to a taxable supply or a creditable acquisition, means any part (or parts) of the consideration for the supply that the recipient of the supply retains under the terms of a contract which provide for the recipient to retain an amount or amounts until certain conditions specified in the contract are met;\n\nOther expressions in this determination have the same meaning as in the GST Act.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a straightforward remake of a 2000 determination with no expansion of scope. Section 4 explicitly states it is 'substantially the same as the previous determination' and ensures continuity for entities already relying on the old rules. The determination maintains its narrow focus on attribution timing for retention payments only."},"complexity_factors":["Requires understanding of accrual vs cash accounting methods for GST","Contains mirrored provisions for suppliers (section 5) and purchasers (section 6) with subtle differences in terminology ('received' vs 'paid')","Mathematical calculation requirements in sections 7 and 8 requiring percentage calculations","Cross-reference to underlying GST Act provisions (subsection 29-25(1), subsection 29-10(3), Division 156)","5 defined terms in section 9, some circularly defined by reference to calculation provisions","Conditional logic requiring identification of 'earlier of' two events for attribution timing","Clarification in section 8(c) that this determination does not override other specific GST Act provisions"],"plain_english_summary":"This determination changes when GST is reported for construction-style contracts that include retention payments: the main (non‑retained) portion is taxed when invoiced or paid as usual, but GST on retention amounts is deferred until those retention invoices are issued or paid. \n\nIt applies to businesses using accrual GST accounting (contractors and suppliers) and prevents being taxed on money still held by clients, preserving cash flow."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument repeals and replaces the earlier retention‑payments determination but is stated to be 'substantially the same' and preserves the same coverage and mechanics. It continues to apply only to non‑cash‑basis entities making taxable supplies or creditable acquisitions with contractual retention arrangements (see cl.3–4)."},"complexity_factors":["Limited scope: applies only to entities that do not account on a cash basis (cl.4; cl.6(d)), reducing applicability.","Simple timing rule: GST/input credits attributed to the earlier of invoice or receipt/payment with separate rules for retained and non‑retained amounts (cl.5(b)–(c); cl.6(b)–(c)).","Straightforward apportionment: GST and input credits apportioned by the retention percentage of the total consideration (cl.7; cl.8).","Defined operational terms: specific definition of 'invoice for the retention amount' and 'retention amount' that affect when attribution occurs (cl.9).","Interaction caveat: expressly does not override subsection 29‑10(3) or Division 156, requiring attention to other GST rules when applying the determination (cl.8(c)).","Recordkeeping and timing burden: requires tracking retained vs non‑retained amounts, invoices and receipts across tax periods (cl.5–9).","Administrative continuity: repeals and replaces an earlier determination but is stated to be substantially the same, so changes to practice are minimal (cl.3–4)."],"plain_english_summary":"This determination sets how GST and input tax credits are apportioned and timed where a contract allows part of the consideration to be retained until contractual conditions (for example, defects liability periods) are met. It applies only to entities that do not account on a cash basis and who make taxable supplies or creditable acquisitions under such contracts. GST and input credits are apportioned by the retention percentage and attributed to the earlier of invoice or receipt/payment, creating additional bookkeeping and tax‑timing obligations."}},"importantCases":[],"_links":{"self":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017","history":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017/history","analysis":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017/analysis","conflicts":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017/conflicts","importantCases":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017/important-cases","documents":"/api/acts/goods-and-services-tax-particular-attribution-rules-for-retention-payments-determination-2017/documents"}}