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

Part 3 - Agreements spanning 1 July 2000  

Division 1 - General  

12   Progressive or periodic supplies  

(1)    
This section applies if:

(a) you make a supply under an agreement, or an enactment, that provides (expressly or impliedly) that the thing supplied is to be supplied:

(i) for a period; or

(ii) progressively over a period;

whether or not at regular intervals; and

(b) that period begins before 1 July 2000 and ends on or after 1 July 2000.

Note:

Section 11 does not apply to supplies covered by this section: see paragraph 11(1A)(a) .

(1A)    

However, this section does not apply to a supply of a warranty (whether express, implied or required by law) that relates to goods or a service, if the value of the warranty was included in the price of the goods or service.

(2)    
For the purposes of this Act, the supply is taken to be made continuously and uniformly throughout that period.

(3)    
For the purposes of this section, a supply by way of lease, hire or similar arrangement is taken to be a supply for the period of the lease, hire or arrangement.

(4)    

This section does not apply to a supply of a long-term lease made before 1 July 2000.

(5)    

In this section:

warranty , in relation to goods or a service, means an undertaking or obligation in relation to:

(a) the quality, performance or characteristics of the goods or service; or

(b) the provision of services that are or may at any time be required in respect of the goods or service; or

(c) the supply of parts that are or may at any time be required for the goods;

given or made in connection with the supply of the goods or service.

(6)    

If this section has an effect in relation to a supply, it has a corresponding effect in relation to the acquisition to which the supply relates.