Share on LinkedInShare on LinkedIn

ARTICLE · 31 JANUARY 2018

New GST rules affecting property transactions - ATO cracking down on developers who avoid paying GST

Pointon Partners
Explore more from Pointon Partners

These draft rules will shift the obligation to remit GST from developers to the purchasers of "new residential land".

AustraliaTax
Ted Vlahos
Ted Vlahos
Andrew Power
Andrew Power
Krysten Laletas
Krysten Laletas
Author LinkedIn connections

How these new obligations will affect both developers and purchasers

Treasury has released draft legislation which proposes a new process for the remittance of GST to the ATO for property transactions that relate to the supply of "new residential premises".

Why the Changes

The purpose of these new rules is to shift the obligation to remit GST from developers onto purchasers to alleviate the ATO's concerns with developers liquidating their companies prior to remitting their GST on sales.

Summary of Withholding Obligations for Purchasers

  • Generally, most purchasers of "new residential land" and "potential residential land" (Such as the subdivision of land into residential lots and the sale of home and land packages) will be responsible for withholding and remitting 1/11th of the purchase price directly to the ATO at settlement.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a
AustraliaTax
Holding Redlich
Holding Redlich
Article

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.
AustraliaTax
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

Federal Budget 2026–27: Key Tax Changes And What Clients Need To Know

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.
AustraliaTax
Bartier Perry Solicitors
Bartier Perry Solicitors
Article

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth
AustraliaTax
Holding Redlich
Holding Redlich
Article

The ATO’s Firmer Approach To Small Business Debt Collection

The Australian National Audit Office's recent review of the ATO's management of small business collectable debt reveals significant findings that will reshape how tax authorities approach debt recovery. With small business debt reaching $35.9 billion and the ATO accepting all eight recommendations for reform, advisers and business owners face a new landscape of firmer collection activity and heightened accountability. Understanding these changes and their implications for unpaid tax liabilities, director pe
AustraliaTax
Worrells
Worrells
Article

Counterfeit Imports – Tougher Penalties At The Border

Australia strengthens its response to counterfeit goods importation through new legislation that creates strict liability offences and enables infringement notices at the border. The amendments aim to make counterfeit importing unprofitable by ensuring penalties and seized goods exceed potential profits. How will these changes impact intellectual property rights holders and importers operating in Australia?
AustraliaIntellectual Property
Pointon Partners
Pointon Partners