29 March 2018
The Federal Government has passed legislation that will require purchasers of new residential property sales to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement.
Announced as part of last year’s Federal Budget, this reform is designed to improve the integrity of GST on property transactions. According to the ATO website, some developers were failing to remit the GST to the ATO despite having claimed GST credits on their construction costs.
The legislation specifies;
This change will take effect on 1 July 2018, however the Government have announced it will introduce a transitional arrangement to this budget measure, which will exclude contracts signed before 1 July 2018, as long as the transaction settles before 1 July 2020.
For more information about this new legislation, visit ato.gov.au.