If you are selling vacant land you must assume that GST will be payable unless your tax accountant assures you otherwise. A tax accountant will probably be more up to date on GST matters.
If the property you are selling is owned by a company, or is held by a trust, then it is even more important that you obtain advice from your accountant as other tax implications may arise. Categorised in: Uncategorized. Visa, MasterCard: On the back of the card in the top-right corner of the signature box.
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We are recruiting for student, graduate and experienced positions in our firms. Under the current law, GST is included in the purchase price of new residential premises and the developer then remits the GST to the ATO on completion of their next BAS, which can be up to three months after settlement. The measure is proposed to apply from 1 July , to supplies of new residential premises or new subdivisions of potential residential land. An exception to this rule applies where the contract for the supply is entered into before 1 July and the consideration for the supply is provided before 1 July New residential premises are defined in the GST Act and are generally premises that have not previously been sold as premises and have been built to replace demolished premises on the same land.
New subdivisions of potential residential land are intended to cover house and land packages where a purchaser may receive a taxable supply of vacant land which is the subject of a property subdivision plan. Where the supply of new residential premises is made under the margin scheme, the amount to be paid to the commissioner is 7 per cent of the purchase price. To minimise this cashflow impact, the supplier must apply for a refund of the amount of the GST that is anticipated would ultimately be refunded after their BAS for the relevant tax period.
The supplier must apply to the Commissioner in the approved form at least 14 days before the end of the tax period to which the taxable supply is attributed. What types of transactions are affected? What do purchasers of new residential property need to do? The notification may form part of the contract for sale or be provided separately. Existing contracts should be reviewed to determine if they will fall within the provisions and therefore require the appropriate notification for example, contracts that are already on foot but will not settle until after 1 July Consequently, systems should be updated to ensure the inclusion of the appropriate notices for the supply of residential land.
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