LONG-TERM CONTRACTS
Transitional arrangements:
Whether GST is payable on contracts spanning 1 July 2000 depends on a number of factors:

the date the contract was entered into;

the classification for GST purposes of the acquirer of supplies entering into the
agreement;

the date of supply;

whether the contract includes a provision for the review of the contract or a review
opportunity has arisen; and

the payment of consideration.
The following table provides a summary of the effect of GST in relation to contracts entered into prior
to 1 July 2000 and which involve supplies to be made on or after that date.
Classification of
Acquiring Agency
Acquirer of supply
entitled to input tax
credit.
Acquirer of supply
not entitled to input
tax credit.
Date Contract
Entered Into
Prior to 8 July
1999.
Acquirer of supply
entitled to input tax
credit.
Prior to 8 July
1999.
Acquirer of supply
not entitled to input
tax credit.
Prior to 2
December 1998.
Acquirer of supply
entitled to input tax
credit.
Acquirer of supply
not entitled to input
tax credit.
On or after 8
July 1999
Prior to 2
December 1998.
On or after
December 1998.
Terms of Contract
GST
No opportunity for review.
Supply on or after 1 July 2000.
GST-Free to the extent
that the supply is made
before 1 July 2005.
All GST-Free (if not
paid in full, GST-Free to
1 July 2005).
Consideration paid in full prior
to 2 December 1998.
No opportunity for review.
Supply on or after 1 July 2000.
Opportunity for review.
Supply on or after 1 July 2000.
Consideration paid in full prior
to 2 December 1998.
Opportunity for review.
Supply on or after 1 July 2000.
Supply on or after 1 July 2000.
Supply on or after 1 July 2000.
GST-Free until earlier
of:
 Opportunity for
review; or
 1 July 2005.
GST-Free until
opportunity for review.
GST applicable from 1
July 2000.
GST applicable from 1
July 2000.
IMPORTANT DATES
2 December 1998
GST Bills introduced.
Effective commencement date of GST anti-avoidance rules.
Contracts made before this day entitled to special transitional rules.
8 July 1999
GST Legislation receives Royal Assent.
Contracts made before this day entitled to special transitional rules.
1 July 2000
Commencement of GST
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