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A New Tax System (Goods and Services Tax) Act 1999
99‑5 Giving a deposit as security does n99‑5 Giving a deposit as security does not constitute consideration
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99‑5 Giving a deposit as security does not constitute consideration
(1) A deposit held as security for the performance of an obligation is not treated as *consideration for a supply, unless the deposit: (a) is forfeited because of a failure to perform the obligation; or (b) is applied as all or part of the consideration for a supply. (2) This section has effect despite section 9‑15 (which is about consideration).