From 1 July 2018 purchasers of new residential premises or new potential residential land will remit the GST on the purchase price directly to the ATO as part of the settlement process.
- Applies to taxable supplies of new residential premises and subdivisions of potential residential land by way of sale or long-term lease.
- Supplier/developer must notify the purchaser of their withholding requirements before making the supply (i.e. normally settlement)
- For taxable supplies made under the margin scheme, a new 7% rate of withholding has been introduced.
- As always, there are some exemptions and grey areas, so please contact us to discuss before entering into these transactions.
If you have any questions regarding these changes or how it could effect you, please do not hesitate to contact us!