Businesses that sell through agents, from consignment arrangements to online marketplaces and travel or ticketing intermediaries, may soon need to rethink which BAS their GST lands on. The ATO has released a draft legislative instrument that would rewrite the special attribution rules for supplies and acquisitions made through agents, replacing a 2017 version. The change is about timing rather than how much GST is payable, but timing drives Cash Flow and errors.

What the ATO has released

The draft is titled the A New Tax System (Goods and Services Tax) (Attribution Rules for Supplies and Acquisitions Made Through Agents) Determination 2027, numbered LI 2026/D20.

It is a draft only. It is not yet law, and its wording could change after consultation. If finalised, it would replace the existing 2017 Determination and would start the day after it is registered, according to a summary of the draft.

The closing date for comments on LI 2026/D20 is on the ATO's consultation page.

Why agents complicate GST timing

GST is reported period by period, so the key question is not just whether GST applies but when it is "attributed" to a tax period.

Under the general rules, a Business accounting on a non-cash (accruals) basis attributes GST on a sale to the period in which it receives any of the payment or issues an invoice, whichever happens first. A business on a cash basis attributes GST to the extent it receives payment.

When an agent sits in the middle, those triggers can happen out of sight of the business that actually makes the supply, known as the principal. The agent may collect the money or issue the invoice days or weeks before the principal finds out.

That is why the law allows the Commissioner to set special attribution rules for situations like this, and why an agents determination exists at all.

What would change under the draft

The central change is a shift in the trigger. Under the draft, attribution would occur when the principal becomes aware of the relevant facts from its agent.

It would no longer be triggered when the agent receives payment, when the agent issues an invoice, or when the agent becomes aware of an adjustment.

In practical terms, that would align the GST timing with the point at which the principal actually has the information it needs to report. A business can only put a sale on its BAS once it knows the sale happened, what was charged and whether anything has since been refunded or varied.

The draft also sets out different rules for businesses that account on a cash basis and those on a non-cash basis, so the precise outcome will depend on which method a business uses.

One thing stays the same. The requirement in s 29-20(3) relating to adjustment notes is unchanged, so businesses that rely on adjustment notes for certain decreasing adjustments do not get relief on that front.

Hypothetical example: which quarter?

Hypothetical example: a small homewares maker accounts for GST on a non-cash basis and lodges quarterly BAS. It sells through a third-party agent.

On 25 March, the agent sells a product for $1,100 including GST and collects the payment. The agent's monthly sales report does not reach the maker until 10 April.

The GST in that sale is $100 ($1,100 divided by 11).

Where the timing is driven by the agent receiving payment, that $100 would belong in the March quarter, even though the maker did not know about the sale when the quarter ended.

On the draft as described, the $100 would be attributed when the maker became aware of the sale from its agent, 10 April, putting it in the June quarter instead.

For one sale the gap is small. Across thousands of marketplace or consignment sales a quarter, the difference between reporting periods could be significant for cash flow and reconciliations. The example is illustrative and assumes the draft operates as summarised.

Who is affected, and why records matter

The draft is most relevant to principals that rely on someone else to sell or buy on their behalf. That could include producers selling through commission agents, businesses using consignment arrangements, and sellers whose sales are handled by an intermediary acting as agent.

It may also matter for acquisitions. Where an agent buys goods or services for a principal, the timing of input tax credits could be affected in a similar way.

The difference between an agent and a business that buys and resells on its own account matters. The agents rules only matter where a genuine agency relationship exists, and whether one exists depends on the arrangement.

Questions that arise include how quickly agents report sales and adjustments, whether those reports are dated, whether agency agreements set out reporting deadlines, and whether accounting systems can record the date the business learns of a transaction.

A rule built on when the principal "becomes aware" puts weight on evidence. If the ATO later reviews a BAS, a business may need to show when it received the agent's report, statement or notice.

That points to keeping agent reports with their receipt dates, setting a regular schedule for agent reporting, and staff understanding that the trigger is knowledge of the facts, not the agent's own payment or invoice timing. Refunds and other adjustments handled by the agent are also relevant.

Key dates and what to watch

  • Comment deadline: the closing date for submissions on LI 2026/D20 is on the ATO's consultation page.
  • Final instrument: if finalised, it would apply from the day after registration, replacing the 2017 Determination.
  • Thursday 5 November 2026: separately, the ATO's consultation on removing Credit cards as a payment option closes. The ATO now says cards will be accepted until 30 June 2027, which matters for businesses that pay GST on BAS by card.
  • Next BAS cycle: watch for ATO guidance on transitional arrangements once the final instrument is made.