To combat the ATO failing to collect GST from property developers, recent changes now require the purchaser of new residential premises and land to withhold and remit GST to the government from 1 July 2018.
This now shifts the responsibility of GST collection from the vendor to the purchaser.
Points to note:
- The purchaser will be required to withhold and remit 1/11th of the purchase price (or 7% if the margin scheme applies) at settlement
- Vendor required to notify the purchaser whether they have a withholding obligation under new notification obligations
- A 2-year transitional rule applies on any contracts entered prior to 1 July 2018
If you would like further information, please contact Wilson Pateras on 8419 9800