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

A supply of a right that has been or is granted on or after 2 December 1998 (other than a supply of a right granted on or after 1 July 2000) is taken to be a supply made on or after 1 July 2000 if, and to the extent that, the right could reasonably be expected to be exercised on or after 1 July 2000.

However, this section does not apply to:

a supply to which section 12 applies; or

a supply of a right that is an option to purchase, under a hire purchase agreement, goods hired under that agreement; or

a supply of a right to use software if:

the value of the right was included in the price of the software; and

the right to use the software is for an indefinite period.

This section does not apply to:

a supply of a long‑term lease made before 1 July 2000; or

a supply of a voucher made before 1 July 2000 if, on redemption of the voucher, the holder of the voucher is entitled to supplies up to a monetary value stated on the voucher.

The Commissioner may make a written ruling determining methods for working out the extent to which a right could reasonably be expected to be exercised on or after 1 July 2000 where that extent is not readily ascertainable.

This section does not affect the operation of section 13.

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.