CHANGES TO GST ON RESIDENTIAL PROPERTY TRANSACTIONS

From 1 July 2018, if you are purchasing new residential premises or potential residential land subdivisions you will have to pay the GST directly to the ATO as part of the settlement.

These changes will apply to contracts entered into on or after 1 July 2018.

The amount of GST hasn't changed. As the Purchaser, you now pay the GST directly to the ATO instead of paying it to the developer as part of the purchase price.

You won't have to register for GST to make this payment to the ATO.

Property developers will need to give written notification to you when you need to withhold an amount for GST.

If you would like to discuss this further, please contact our office.