Tax Talk: GST on settlements

From 1 July 2018 the Australian Government is shifting the responsibility of GST payment on some property transactions from the property developer to the purchaser.

Source: ATO/SBS

The new measure requires purchasers of new residential premises or potential residential land to pay the GST amount directly to the ATO.

The changes apply to contracts entered into on or after 1 July 2018.

The amount of GST hasn’t changed, just who is required to pay the GST to the ATO. The purchaser now pays the GST directly to the ATO instead of paying it to the developer as part of the purchase price.

To find out more go to www.ato.gov.au/gstatsettlement, or have a chat with your tax agent, conveyancer or solicitor.