A New Tax System (Goods and Services Tax) (Attribution Rules – Supplies of Electricity Distribution Services) Determination 2026

This is a tax rule made by the Australian Taxation Office (ATO) that changes when electricity distribution companies must pay GST on their services.

What it does: Normally, businesses must pay GST in the tax period when they either receive payment or issue an invoice (whichever comes first). However, electricity distribution businesses often use third-party "billing agents" to handle invoicing, and these agents may not immediately provide all the information needed to calculate the exact amount owed.

This determination creates a special exception for electricity distribution services. Instead of paying GST when an invoice is issued or payment received, these businesses can wait until they receive complete billing information from their billing agent before attributing the GST to a specific tax period.

Who it affects:

• Electricity distribution businesses (companies that deliver electricity to homes and businesses)
• Billing agents (third parties authorised to issue invoices on behalf of distributors, but who aren't associated with them)

Why it matters: Without this rule, electricity distributors might have to pay GST before knowing exactly how much they owe, creating cash flow problems and administrative headaches. This provides practical relief by aligning tax obligations with when they actually have the information needed to calculate their liability.