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, just who is required to pay the GST to the ATO. 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.
There are no changes to the sales of existing residential properties or the sales of new or existing commercial properties.
If you would like to know more about this subject, please contact us on (08) 9321 2642.
THIS INFORMATION IS PROVIDED TO YOU BY THE AUSTRALIAN TAXATION OFFICE SMALL BUSINESS NEWSROOM (4 MAY 2018)
