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GST on long-term non-reviewable contracts 24.11.2005
Long-term non-reviewable contracts that were GST-free during the initial transitional period cease to be GST-free after 30 June 2005. From 1 July 2005, there are three ways to account for GST on a long-term non-reviewable contract: 
 
the supplier pays the GST on a revised contract price, as agreed with the recipient;  
 
• the supplier pays the GST on the existing contract price; or  
• the recipient (even if not registered for the GST) pays the Tax Office the GST on the existing contract price.  
 
Suppliers or registered recipients liable to pay the GST will account for it on their usual activity statements. Unregistered recipients will be subject to the same reporting and payment obligations as GST registered recipients.  
 
Editor: Please contact this office if you think you may be affected by these changes.

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