A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-2 - Special rules mainly about supplies and acquisitions  


The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.

Division 99 - Deposits as security  

99-5   Giving a deposit as security does not constitute consideration  

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.

This section has effect despite section 9-15 (which is about consideration).

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