A New Tax System (Goods and Services Tax) Act 1999
Chapter 4
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The special rules
Part 4-2
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Special rules mainly about supplies and acquisitions
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.
99-5(2)
This section has effect despite section 9-15 (which is about consideration).
Note:
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 99-5(1)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.
99-5(2)
This section has effect despite section 9-15 (which is about consideration).
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