+07 3123 7373
Rental Results
  • Home
  • Owners
    • Why choose Rental Results?
    • Request a Rental Appraisal
    • Landlord’s Guide
    • Make the smart move to Rental Results
    • Client Reviews
    • Depreciation Calculator
    • Landlord Rights Guide
    • 4 Step Guide To Financing Your First Property
    • Access to Owner Portal
  • Properties for Rent
  • Tenants
    • Tenancy Application Form
    • Maintenance Request Form
    • Tenant Information
    • Access to Tenant Portal
    • Maintenance Log System
  • About Us
    • About Rental Results
    • Our Team
    • Useful Links
    • Privacy Policy
    • Suburbs of Interest
  • Blog
    • Blog
    • Rental Results TV
  • Contact
  • Search
  • Menu Menu
Landlord's Guide, Property Management

Draft changes for GST on new property purchases announced

After first announcing it in the 2017-18 budget, the Treasury released the draft legislation to implement the GST property integrity measure on 6 November 2017.

Included in the amendments proposed, 1/11th of the purchase price amount will be withheld and remitted directly to the Australian Taxation Office (ATO) as part of settlement. This will be a requirement for purchasers of new residential premises or land in new subdivisions. The new arrangements are due to start on 1 July 2018.

Whilst these measures are said to be detrimental only to businesses in the property development sector, the amendments proposed may also affect all suppliers and purchasers of real properties concerned, as well as lenders funding property development projects.

Here is a summary of the proposed amendments:

  • The purchaser has to be notified by an entity making a taxable residential premises or making a supply of potential land at least 14 days prior to settlement regardless if the purchaser is required to deduct a portion of the purchase price and pay it directly to the ATO. Failing to notify, including being unable to provide the complete information prescribed in the notice would subject one to a considerable amount of penalties.
  • Should there be a need to withhold, an amount equal to 1/11th of the purchase price will have to be paid by the recipient of a taxable supply of new premises or potential residential land to the ATO on or before the day of the settlement. The Commissioner should also be notified by the purchaser 5 days before the payment is made.
  • Contracts require payments by instalment but if any of the consideration is paid prior to the settlement, the withheld amount will have to be paid by the purchaser by the end of the day on which the first payment is made.
  • The entity making the taxable supply of new residential premises or potential residential land is required to report its GST liability to the ATO in its activity statement covering the tax period to which the supply is attributable.
  • The entity will have the chance to apply for a refund of the GST amount that it expects to be refunded after its BAS for the appropriate tax period has been checked, given that the supply is made under the GST margin scheme and the entity that made this supply reports its GST obligation quarterly or yearly. Particularly, the application for refund must be placed at least 14 days prior to the end of the tax period where the taxable supply is attributed, so will not lessen the cash flow disadvantage of sales settled in the last 14 days of the tax period.
2017-11-17/by Lauren Robinson
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
https://www.rentalresults.com.au/wp-content/uploads/2017/11/AdobeStock_52627712.jpeg 3744 4992 Lauren Robinson https://www.rentalresults.com.au/wp-content/uploads/2022/03/rental-result-logo-small.png Lauren Robinson2017-11-17 13:03:482017-11-17 13:14:34Draft changes for GST on new property purchases announced

Search Rental Listing

Quick Contact Us

Trustpilot


Rental Results
59 Lugg Street
Bardon QLD 4065 Australia

07 3123 7373

Fax +61 7 3036 5303

Owners

  • Why choose Rental Results?
  • Request a Rental Appraisal
  • Landlord’s Guide
  • Make the smart move to Rental Results
  • Client Reviews
  • Register for Online Agent

Tenants

  • Properties to Rent
  • Tenancy Application Form
  • Maintenance Request Form
  • Tenant Information

FOLLOW US

Awards







     

Featured On

 

Copyright © 2020 Rental Results. Sitemap | Privacy Policy
RTRA Act Amendments – Prescribed Minimum Housing Standards8 Pitfalls of Choosing the Wrong Property Manager
Scroll to top