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

The Determination introduces or clarifies a small set of interlocking concepts built around timing and partial attribution of GST liabilities and input tax credits where total consideration is unknown.

• Taxable supply and creditable acquisition before total consideration known. The trigger is that the supply or acquisition occurs prior to knowledge of total consideration (s 5 heading; s 6 heading). The taxpayer is the person who either makes the taxable supply (supplier) or makes the creditable acquisition (recipient), using the instrument’s language of "you".

• Invoice presence versus absence. The rules split on whether an invoice (or amended invoice) is issued that states an amount of consideration. Where an invoice is issued, the stated amount becomes a cap on the GST attributable in that period unless greater consideration is received (s 5(1), s 6(1)). Where no invoice is issued, only amounts actually received or provided in that tax period are attributable (s 5(2), s 6(2)).

• Partial attribution. The Determination requires attribution of GST or input tax credits only to the extent of the invoice amount or the consideration received/provided in that tax period, depending on which is relevant. For suppliers: if an invoice states an amount but no consideration is received in that tax period, GST is attributable to that period only to the extent of the invoice amount (s 5(1)(a)). If consideration is received, the GST is attributable to the extent of either the invoice amount or the amount received, whichever applies under s 5(1)(b)(i)-(ii). Parallel rules apply to recipients claiming input tax credits (s 6(1)).

• Subsequent increases and attribution timing. In later tax periods, any increase in consideration is to be attributed to the earlier of the tax period in which an invoice or amended invoice is issued for the increase or the tax period in which any of the additional consideration is received (s 5(3), s 6(3)).

• Knowledge of total consideration for input tax credits. For acquisitions, there is an explicit catch-up clause: when the recipient first knows the total amount of consideration, any remaining input tax credit entitlement that has not been attributed previously is attributable to that tax period (s 6(4)). The Determination also disclaims any intent to override subsection 29-10(3) of the GST Act (s 6(5)).

• Scope limitations. The Determination applies only where you do not account on a cash basis (s 4(2)). It applies only where ascertainment depends on a future event not entirely within the taxpayer’s control (s 4(1)(b)), and only where an invoice is issued or any consideration is received or paid (s 4(1)(c)-(d)).

• Continuity with prior instrument. The instrument states it is substantially the same as the prior determination and that entities satisfying the prior instrument will satisfy this determination (s 4(3)), indicating intended continuity rather than substantive policy change.

These concepts together create a set of mechanical allocation rules that shift the attribution of GST liabilities and input tax credits from theoretical total consideration to amounts that are specified in invoices or actually exchanged in specific tax periods, with a mechanism to pick up increases later.

The Determination addresses two principal groups of taxpayers within the GST regime by reference to their roles: suppliers who make taxable supplies and recipients who make creditable acquisitions. The instrument uses the second person "you", so obligations and entitlements under the Determination fall on the taxpayer who is the relevant party to the supply or acquisition (s 4(1), headings to ss 5 and 6).

Suppliers: A supplier who makes a taxable supply before knowing the total consideration is required to attribute GST to the tax period in accordance with s 5. That affects the supplier’s reporting and GST payable calculations in non-cash accounting periods, because the extent of GST attributable in a period is limited by invoice amounts or consideration received in that period (s 5(1)-(3)). The supplier must track invoicing and receipts to apply the caps and follow the rule for subsequent increases.

Recipients: A recipient who makes a creditable acquisition before knowing the total consideration is required to attribute input tax credits in accordance with s 6. The recipient’s capacity to claim input tax credits in a tax period is capped by invoice amounts or consideration provided in that period, and there's an explicit rule that any unclaimed entitlement is attributed when the recipient first knows the total amount (s 6(1)-(4)).

Entities accounting on a cash basis: The Determination explicitly does not apply to entities that account on a cash basis (s 4(2)). For those taxpayers, different attribution rules in the GST Act would continue to govern. Therefore the Determination primarily affects taxpayers who account on an accrual or non-cash basis.

Entities with determinations under the previous instrument: The Determination states that it is substantially the same as the previous determination and that entities satisfying the requirements of the previous determination and making supplies or acquisitions as described will satisfy the requirements of this Determination (s 4(3)). That creates continuity for taxpayers who were operating under the prior instrument.

Transactions where total consideration depends on future events not entirely within taxpayer control: The Determination only applies when ascertainment of total consideration depends on a future event or events not entirely within the taxpayer’s control (s 4(1)(b)). This captures supplies and acquisitions where total price depends on future contingencies, volume, performance metrics, or other events outside the immediate control of the supplier or recipient.

Practitioners should note that the Determination binds the taxpayer in the attribution of GST and input tax credits under the specified factual situation. It does not by its terms create or alter the underlying tax liability rules in the GST Act; rather it prescribes how attribution is to be made under the statutory framework (s 1, s 7).

The Determination imposes duties on suppliers and recipients relevant to timing and quantum of GST and input tax credit attribution, and it creates attendant rights in the sense of entitlement to attribute portions of GST or claim input tax credits in specified tax periods.

Duties of suppliers (s 5):

• Attribute GST in the tax period in which a taxable supply occurs before the total consideration is known only to the extent prescribed. If an invoice that states an amount is issued and no consideration is received in that tax period, the GST is attributable only to the extent of the stated invoice amount (s 5(1)(a)). If consideration is received, the GST attributable in that tax period is limited either to the invoice amount when consideration received is less than or equal to invoice amount, or to the consideration actually received when that consideration exceeds the invoice amount (s 5(1)(b)(i)-(ii)).
• If no invoice is issued, the GST payable attributable to that tax period is limited to the consideration received in that period; if no consideration is received in that period then none of the GST is attributable in that period (s 5(2)(a)-(b)).
• In subsequent tax periods, the supplier must attribute GST on any increase in consideration to the earlier of the tax period in which an invoice or amended invoice for the increase is issued or when any of the additional consideration is received (s 5(3)).

Duties of recipients (s 6):

• Attribute input tax credits for a creditable acquisition made before knowing total consideration according to parallel rules to suppliers. Where an invoice that states an amount is issued, the input tax credit attributable to that tax period is limited by the invoice amount if the recipient provides none of the consideration in that tax period, or limited by either the invoice amount or the consideration provided depending on which is greater or lesser (s 6(1)(a)-(b)(i)-(ii)).
• If no invoice is issued, the input tax credit attributable is limited to the consideration provided in that tax period, or nil if no consideration is provided (s 6(2)(a)-(b)).
• In subsequent tax periods, increases in consideration are to be attributed to the earlier of the tax period in which an invoice or amended invoice for the increase is issued or when any of the additional consideration is provided (s 6(3)).
• Where the recipient first knows the total amount of consideration in a later tax period, the input tax credit to which the recipient is entitled for the acquisition is attributable to that tax period to the extent it has not been attributed earlier (s 6(4)). This is an affirmative right to pick up remaining credits at the point of knowledge.

Rights and limitations:

• The Determination defines the amounts that can be attributed in each tax period and so creates the right to attribute only those amounts. Suppliers and recipients cannot attribute GST or input tax credits beyond the caps set for the relevant tax period absent issuance of invoices, receipt or provision of consideration, or later knowledge of total consideration as allowed by s 6(4).
• The instrument clarifies what triggers attribution for increases in consideration: issuing an amended invoice or receiving additional consideration (s 5(3), s 6(3)). That gives suppliers and recipients a mechanism to create or accelerate attribution by issuing amended invoices or by receiving/ providing additional consideration.

Recordkeeping and procedural duties (implied by mechanics):

• The mechanics require parties to monitor invoice issuance, amounts stated on invoices, receipts or provision of consideration by tax period, and the point at which total consideration becomes known. Those procedural tasks are necessary to apply the attribution rules but the Determination does not itself prescribe recordkeeping form or retention beyond the attribution obligations (s 5-6).

Scope constraints on duties and rights:

• The Determination applies only where the taxpayer does not account on a cash basis (s 4(2)). Therefore, parties accounting on a cash basis do not have these duties under this instrument.

Authority and limits of the Determination:

• The Determination is made under subsection 29-25(1) of the GST Act (instrument heading). It states expressions have the same meaning as in the GST Act (s 7). It also disclaims intent to override subsection 29-10(3) of the GST Act with respect to input tax credits (s 6(5)). The Determination therefore sets rules within the statutory framework rather than replacing or altering substantive definitions in the GST Act.

The Determination itself sets attribution rules but does not specify penalties, sanctioning processes, or enforcement mechanics within its text. It is a legislative instrument made under subsection 29-25(1) of the GST Act and therefore operates as part of the statutory attribution framework. The Determination prescribes how GST and input tax credits are attributable to tax periods given specified facts and triggers (s 5, s 6). The instrument does not include express penalty provisions, criminal or civil sanction clauses, compliance notices, audit procedures, or administrative penalty schedules.

Consequently, enforcement and penalties for failing to attribute GST or input tax credits in accordance with this Determination would arise, if at all, under the enforcement mechanisms and penalty provisions of the GST Act and other applicable taxation law. The Determination itself signals no change to enforcement jurisdiction or penalty quantum. It is confined to specifying timing and quantum for attribution in particular factual circumstances and to clarifying the interaction with subsection 29-10(3) of the GST Act for input tax credits (s 6(5)).

Practical enforcement implications for taxpayers and advisers:

• Because the Determination prescribes discrete attribution rules, incorrect application may lead to adjustments in the taxpayer’s GST returns. Those adjustments would typically be made through the mechanisms available under the GST Act to amend returns or to assess liabilities, rather than via any new mechanism created by this instrument. The Determination, however, provides a clear benchmark against which tax administration and audit activity would measure compliance in the specified situations.

• The Determination’s silence on penalties means practitioners should treat it as a timing and allocation rule whose non-compliance exposure is mediated by the broader GST Act. The text’s reference that expressions have meanings as in the GST Act (s 7) and the non-overriding note concerning 29-10(3) (s 6(5)) both indicate that the Determination is designed to slot into the existing enforcement and adjustment architecture of the GST Act.

• Because the Determination distinguishes taxpayers who do not account on a cash basis (s 4(2)), potential disputes about whether a taxpayer is captured by the Determination could themselves become points of audit or compliance attention, with enforcement consequences determined under the GST Act.

The Determination’s lack of internal enforcement detail increases the importance of cross-referencing the GST Act for penalty and adjustment rules. The instrument itself provides the substantive attribution rules that will be applied and assessed, but any sanctions or remedial steps are to be traced to the parent statute and administrative practice outside this Determination text.

Within the text, the Determination anchors itself to the GST Act in two explicit ways. First, it is made under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as the enabling statutory head of power (instrument heading). Second, it states that expressions in the Determination have the same meaning as in the GST Act (s 7). Those two references establish that the Determination is intended to operate as a subordinate instrument within the GST Act framework.

The Determination also contains an express non-overriding clause for a specific provision of the GST Act: it states that it is not intended to override subsection 29-10(3) of the GST Act (s 6(5)). The Determination therefore deliberately leaves intact whatever rule or effect subsection 29-10(3) supplies in respect of input tax credits, and positions the Determination as complementary or clarifying rather than contradictory to that particular statutory provision.

Scope of application relative to cash basis accounting: The Determination applies only if the taxpayer does not account on a cash basis (s 4(2)). That creates an internal interaction with the statutory attribution and accounting method rules in the GST Act concerning cash versus non-cash accounting. The Determination does not itself define cash basis accounting; it assumes the statutory meanings in the GST Act as referenced in s 7.

Continuity with prior subordinate legislation: The Determination replaces and repeals the previous determination titled A New Tax System (Goods and Services Tax) (Particular Attribution Rules Where Total Consideration Not Known) Determination (No. 1) 2000, registered on 17 November 2006 (s 3). Section 4(3) states the Determination is substantially the same as the earlier instrument and that entities satisfying the earlier instrument will satisfy the requirements of this Determination. That creates continuity within the subordinate legislative corpus and suggests minimal doctrinal disruption.

Limits to interaction described in the instrument: Beyond the references above, the Determination does not set out interactions with other statutes, regulatory instruments, or administrative rulings. It does not purport to change definitions in the GST Act (s 7), nor does it purport to override other GST Act provisions beyond the explicit non-override of s 29-10(3) (s 6(5)). Because the Determination adopts statutory meanings, applying it will require practitioners to consult the GST Act for definitions of “taxable supply”, “creditable acquisition”, “invoice”, “consideration”, and other core terms.

Practical consequence: The Determination is a subordinate rule prescribing attribution timing and quantum under specific facts. It must therefore be read alongside the GST Act’s attribution, adjustment, and accounting method provisions to determine overall liability, input tax credit entitlement, return obligations, amendments, and interactions with penalties and audit procedures that are present in the principal Act.

This Determination has a concise amendment and commencement profile contained in its own text. Key dates and replacement events are as follows.

• Instrument made: The Determination is signed by Timothy Dyce, Deputy Commissioner of Taxation, and dated 12 April 2017 (instrument heading; signature block).

• Commencement: The Determination commences on 1 April 2017 (s 2). The date of the instrument is after the stated commencement date. The instrument does not include any transitional provisions other than the continuity statement in s 4(3).

• Repeal / replacement: The Determination expressly replaces A New Tax System (Goods and Services Tax) (Particular Attribution Rules Where Total Consideration Not Known) Determination (No. 1) 2000, identified by the registration reference F2006B11593 and noted as having been registered on 17 November 2006 (s 3). The prior determination is repealed from 1 April 2017, the same commencement date for this Determination.

• Continuity statement: Section 4(3) states that this Determination is substantially the same as the determination it replaces. It further states that an entity that satisfied the requirements of the previous determination and makes a taxable supply or creditable acquisition as described in this Determination will satisfy the requirements of this Determination. That clause functions as a continuity or savings statement for taxpayers already following the old instrument.

• No further amendments recorded in the text: The instrument contains no internal amendments beyond the repeal of the previous determination and contains no schedules of consequential amendments to the GST Act. It does not purport to amend other legislative instruments.

• Textual continuity and drafting observations: The Determination repeats the core attribution rules from the previous instrument in substantially similar form. It uses the same structural approach: separate provisions for taxable supplies (s 5) and creditable acquisitions (s 6), and symmetrical rules for invoice-present versus invoice-absent situations. The instrument’s own metadata is limited to its title, making date, commencement date, and repeal of the prior instrument.

Practitioners should note that the Determination’s commencement precedes its making date by a small margin on its face. The instrument does not include transitional arrangements other than the statement of substantial sameness. Any practical consequences from the timing or changeover from the prior determination would therefore be governed by this Determination together with the statutory framework in the GST Act.

The Determination itself does not record any litigation history. There are no judicial decisions, tribunal determinations, or administrative appeals referenced in the text. The instrument contains only its terms, the authority under which it is made, and its repeal of a prior determination. It does not cite any cases, nor does it attach or summarise prior rulings that apply the prior determination.

Consequences of the lack of recorded litigation history in the instrument:

• Legal uncertainty or interpretive disputes may still exist in practice even if none are recorded in this instrument. The Determination sets mechanical rules but leaves definitions and adjustment mechanisms to the GST Act by reference (s 7). Therefore interpretive questions about terms such as “invoice”, “total consideration”, and what it means to “know” the total amount remain for application against the statutory definitions and potentially for adjudication under the GST Act.

• The Determination’s note that it is substantially the same as the previous instrument (s 4(3)) suggests that any administrative or judicial interpretive history related to the old instrument may in practice be relevant to the application of this Determination. However, the Determination does not summarise or incorporate that history. Where tribunals or courts have considered the previous determination, that jurisprudence might inform disputes, but the Determination text itself contains no such references.

• Because the Determination is a subordinate instrument clarifying attribution, disputes likely to generate litigation would concern factual application to particular supplies or acquisitions, the interpretation of “know”, and the interplay with statutory provisions such as subsection 29-10(3) of the GST Act which the instrument expressly does not intend to override (s 6(5)). Absent reported cases in this instrument, practitioners must look to the GST Act, administrative rulings, and any prior jurisprudence related to the replaced instrument for guidance.

Practical advice implicit from absence of litigation history:

• Taxpayers and advisers should document the factual circumstances giving rise to uncertain total consideration, the issuance or non-issuance of invoices, amounts stated, receipts or payments by tax period, and the point at which total consideration becomes known. Such contemporaneous records are likely to be the primary evidence in any dispute because the Determination’s mechanics turn on those facts (s 5, s 6).

• The Determination’s silence on litigation does not mean disputes cannot arise; rather it places emphasis on statutory interpretation under the GST Act and fact-sensitive application. The instrument provides a framework but not adjudicative answers to every possible factual variation.

The Determination is compact but contains several features and drafting quirks that can create traps for taxpayers and advisers if not attended to carefully.

• Cash-basis exclusion (s 4(2)). The Determination applies only if you do not account on a cash basis. Taxpayers who believe the rules apply to them should first confirm their accounting method under the GST Act. Misapplying these attribution rules to cash-basis reporters will produce incorrect timing and could lead to incorrect lodgements.

• Asymmetric consequences for suppliers versus recipients. The supplier rules in s 5 and the recipient rules in s 6 are parallel but contain a key affirmative catch-up right for recipients: s 6(4) states that when the recipient first knows the total amount of consideration, the remaining input tax credit is attributable in that tax period to the extent not previously attributed. There is no directly symmetrical explicit provision in s 5 granting suppliers the same catch-up attribution for GST payable on a supply when they first know the total consideration. Instead, s 5(3) provides a rule for attributing GST on any increase in consideration to the earlier of issuing an invoice or receiving additional consideration. Practitioners should therefore not assume mechanical symmetry; the timing and entitlement to pick up remaining amounts differ between input tax credits and GST payable as drafted.

• Reliance on invoices and amended invoices (ss 5(1), 5(3), 6(1), 6(3)). The Determination treats the amount stated on an invoice as a controlling figure in the initial tax period. That elevates the operational importance of invoices. If the invoice understates or overstates amounts relative to eventual total consideration, the attribution consequences depend on whether and when invoices are amended and whether additional consideration is received or provided. Issuing or amending invoices can therefore change the tax period attribution outcomes, and parties may be tempted to manage invoices to accelerate or defer attribution. The Determination does not constrain timing of invoice issuance beyond applying the captioned rules.

• Dependence on "knowledge" and "total consideration". The phrase “before you know the total consideration” recurs in ss 5 and 6 but the Determination does not define “know” or “total consideration” beyond adopting GST Act meanings (s 7). That creates potential uncertainty in fact patterns where the taxpayer has partial information, estimates, or contingent rights. Disputes may turn on when a taxpayer is said to have known the total, a fact-sensitive enquiry not resolved in the Determination.

• Requirement that ascertainment depends on future event not entirely within your control (s 4(1)(b)). This limits the Determination to circumstances where unknown total consideration stems from future events outside the taxpayer’s complete control. If ascertainment is under the taxpayer’s full control, the Determination may not apply and different attribution rules may follow from the GST Act. Parties must assess control over contingencies; mischaracterising control may cause incorrect application.

• Typographical and drafting irregularities in the text. The instrument contains a couple of typographical errors and punctuation anomalies in the published text, for example "acquistion" in the application heading and duplicated punctuation in paragraphing lines. Those errors do not necessarily alter substantive effect but can generate interpretive friction and indicate careful attention is required when mapping the text to practical application.

• Silence on penalties and adjustments in this Determination. The Determination does not set out remedial mechanics or penalties for misapplication. Practitioners must therefore map any adjustment needs to the GST Act and broader taxation administrative rules.

• Potential mismatch between invoice amount and consideration received. Under s 5(1)(b)(ii), if consideration received exceeds the amount stated in the invoice, the GST attributable in the tax period is to the extent of the consideration received. That permits an outcome where invoice amounts are eclipsed by cash receipts. Conversely, if invoices overstate amounts and no corresponding receipts occur in the tax period, suppliers may be required to attribute GST to the extent of the invoice amount even if no cash has been received (s 5(1)(a)). That creates cashflow and reporting implications that must be managed.

• Timing anomalies around commencement and prior instrument repeal. The Determination commenced on 1 April 2017 but is dated 12 April 2017 and explicitly repeals the prior determination from 1 April 2017 (s 2, s 3). Practitioners dealing with supplies straddling that date should ensure they apply the correct instrument and document which instrument was relied upon for attribution in affected tax periods.

Compliance requires process changes and documentation to apply the Determination’s attribution caps and triggers. The Determination places determinative weight on invoices, amounts received or provided by tax period, and the point at which total consideration becomes known. The following practical steps map directly to the Determination’s mechanics.

1. Confirm accounting method and applicability (s 4(2)):

   • Verify that you do not account on a cash basis. The Determination applies only to taxpayers who do not account on a cash basis. If you are on a cash basis, these rules do not apply.

2. Identify transactions captured by the Determination (s 4(1)):

   • For each taxable supply or creditable acquisition, determine whether the supply or acquisition occurred before the total consideration was known.
   • Confirm that ascertainment of total consideration depends on a future event not entirely within your control (s 4(1)(b)). If the future event is entirely within your control, the Determination will not apply.

3. Invoice management (ss 5(1), 6(1), 5(3), 6(3)):

   • Ensure invoices are issued with clear stated amounts where appropriate. The amount stated on the invoice will cap the GST or input tax credit attributable in the initial period if no additional consideration is received or provided (s 5(1)(a), s 6(1)(a)).
   • Where increases in consideration occur, issue amended invoices promptly if you wish the increase to be attributable in the period in which the amended invoice is issued; otherwise, the increase may be attributable only on receipt or provision of additional consideration (s 5(3), s 6(3)).

4. Track consideration received/provided by tax period (ss 5(1)(b), 5(2), 6(1)(b), 6(2)):

   • Maintain records of amounts actually received (for suppliers) or provided (for recipients) in each tax period. When no invoice has been issued, only consideration received or provided in that tax period may be attributable (s 5(2), s 6(2)).
   • When an invoice is issued but consideration is received in that period, attribution follows the lesser/greater rules set out in s 5(1)(b) and s 6(1)(b).

5. Monitor the point of knowledge for total consideration (s 6(4)):

   • For creditable acquisitions, when you first know the total amount of consideration ensure you allocate any remaining input tax credit entitlement to that tax period to the extent it has not been previously attributed (s 6(4)). Record the date and evidence supporting the point of knowledge.

6. Reconcile GST returns to transactional ledger per tax period:

   • Reconcile the amounts of GST attributable and input tax credits claimed in each BAS or return period against invoices, receipts, and records of amounts provided to ensure adherence to the Determination’s caps.

7. Implement controls for amendments and adjustments:

   • Set internal procedures for issuing amended invoices and for documenting when additional consideration is received or provided. The Determination uses either an amended invoice or receipt/provision of additional consideration as the trigger for attribution of increases (s 5(3), s 6(3)). Internal controls will reduce disputes about timing.

8. Recordkeeping and evidence:

   • Keep contemporaneous records showing the invoice amounts, dates of invoice issuance, dates and amounts of consideration received or provided, and evidentiary support for when total consideration became known. The Determination’s mechanics are fact-driven and administrative review will rely on such records.

9. Cross-reference with GST Act definitions and adjustment rules (s 7, s 6(5)):

   • Because the Determination states expressions have the same meaning as in the GST Act (s 7) and disclaims intent to override subsection 29-10(3) (s 6(5)), ensure that your application is consistent with statutory definitions and adjustment mechanisms in the GST Act. Consult the Act for the definitions of “invoice”, “consideration” and related concepts to avoid inadvertently misapplying the Determination.

10. Document reliance on this Determination and continuity from prior instrument (s 4(3)):

    • If you were operating under the previous determination, record that the new Determination states it is substantially the same and that prior compliance satisfies the new instrument (s 4(3)). That documentation may be useful in audit contexts for supplies spanning the replacement date.

11. Seek clarity where control over future events is ambiguous:

    • Where it is unclear whether ascertainment depends on a future event not entirely within your control, record the basis for your characterisation. The Determination’s application hinges on that factual predicate (s 4(1)(b)).

12. Training and system changes:

    • Update accounting and ERP systems to capture invoice-stated amounts, receipts by tax period, and points of knowledge. Train staff preparing invoices and processing receipts to understand how invoice amounts and timing affect tax period attribution.

Following these steps aligns corporate process with the Determination’s prescribed attributions and provides an evidentiary trail to support positions in the event of review or enquiry. The core documentary focus should be invoices, amended invoices, and records of receipt or provision of consideration, and a clear declaration of accounting method status to establish whether the Determination applies (s 4(2), s 5, s 6).