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

1. This section applies for the purposes of section 26C(1)(c).

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 the annual value threshold when the relationship first arises if, at that time,—
   1. it includes a transparent term or transparent terms providing for consideration (including GST, if applicable) of $250,000 or more 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) worth $250,000 or more 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.

Notes

• Section 26D: inserted, on 16 August 2022, by section 7 of the Fair Trading Amendment Act 2021 (2021 No 32).