Buyers to Adjust and Pay GST for Purchase of new Properties

Buyers to Adjust and Pay GST for Purchase of new Properties

The Federal Government have recently announced that it will require purchasers of newly constructed residential properties or new subdivisions to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. These Laws will be effective from 1 July 2018 and it will require your Solicitor or Legal firm undertaking your buying a property to collect the GST from the Seller.
These changes will mean for purchasers a further requirement to calculate and have a cheque payable from the purchase price for the amount of the GST which we assume would be 1/11 of the purchase price (subject of course to the GST scheme or arrangement undertaken by the seller) and for property developers or sellers the requirement to calculate and determine probably prior to the sale of a property the GST which is payable on each sale.
Call Joe OHare on 32668999 to discuss how this will impact you in buying or selling a property. See https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Property/GST-at-settlement/.

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