26DSpecified trade contracts: trading relationship, annual value threshold, and other definitions

1. This section applies for the purposes of section 26C.

2. Trading relationship, in relation to a contract, means a relationship consisting of—

3. that contract; and
4. any other contract (whether current or prospective) between the same parties on the same or substantially similar terms.

5. A trading relationship—

6. first arises when the first or only contract of the relationship is entered into; and
7. exceeds an annual value threshold when the relationship first arises, in relation to the specified amount, if, at that time,—
   1. it includes a transparent term or transparent terms providing for consideration (including GST, if applicable) of at least the specified amount to be paid under it, in relation to any annual period, for the goods, services, or interest in land concerned; or
   2. consideration (including GST, if applicable) of at least the specified amount is more likely than not to become payable under the relationship, in relation to any annual period, for the goods, services, or interest in land concerned.

8. In this section,—

9. the following must be disregarded when determining whether contracts are on the same or substantially similar terms:
   1. the main subject matter of the contracts; and
   2. any upfront price (within the meaning of section 46K(2)) payable under the contracts; and
10. annual period, in relation to a trading relationship, means a period—
    1. beginning with the date on which the relationship first arises or an anniversary of that date; and
    2. ending 12 months later; and
11. GST means goods and services tax payable under the Goods and Services Tax Act 1985; and
12. specified amount,—
    1. in relation to a small trade contract, means $250,000; and
    2. in relation to a grocery supply contract, means $1 million.