Property GST Withholding – Important Updates for Purchasing and Selling Your Home in 2018
The Government has introduced a new Property GST Withholding Regime to take effect from 1 July 2018. The change will affect buyers and sellers of new residential premises including new residential vacant land, newly constructed units/townhouses or newly constructed house and land packages.
From 1 July 2018 a seller must provide a notice to the buyer if the property being sold is captured by the GST Withholding Regime. The Buyer must then withhold the GST and pay the GST amount to the ATO on or before settlement.
The new regime is designed to combat phoenixing, where developers complete residential developments and then declare the company insolvent without remitting the required GST from their sales.
See: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Property/GST-at-settlement/ for further detail.
For more information regarding the GST withholding for property buying and selling, contact MAP Layers and speak to an experienced conveyancing lawyer on 1300 680 584 or email us at email@example.com and we can talk you through all the important information!