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

Part 5 - Special transitional rules  

19   Construction agreements made before 1 July 2000  

This section applies to the extent that a supply of goods or real property is the construction, major reconstruction, manufacture or extension of a building or of a civil engineering work by the supplier, and the goods or real property are:

(a) supplied in accordance with a written agreement made before 1 July 2000; and

(b) made available to the recipient on or after 1 July 2000.

The value of all work and materials permanently incorporated in or affixed on the site of the building or civil engineering work in accordance with the agreement must be determined, as at the start of 1 July 2000.


GST is only payable on the supply to the extent that the price of the supply (less the amount of any GST payable on the supply) exceeds the value determined under subsection (2) .

Division 29 of the GST Act and section 10 of this Act contain rules about attributing the GST to tax periods.

This section only applies to the extent that the value mentioned in subsection (2) is determined:

(a) in a manner specified by the Commissioner; and

(b) on or before the end of the supplier's first tax period after 1 July 2000, or a later day allowed by the Commissioner.

If section 13 applies to the agreement, treat the references to 1 July 2000 in subsections (2) and (4) of this section and in section 10 as references instead to the earlier of the following:

(a) 1 July 2005;

(b) the time when a review opportunity as mentioned in paragraph 13(2)(b) first arises.

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