ARTICLE · 14 FEBRUARY 2018

New GST withholding on residential property

Sparke Helmore Lawyers

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New GST provisions will apply to purchasers of new residential property and potential residential property.

AustraliaTax

Peter Charteris

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Last Wednesday 7 February 2018, the Commonwealth Government introduced the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018, which contains new GST provisions that will apply to purchasers of new residential property and potential residential property (Schedule 5).

The proposed changes will impact vendors and purchasers by requiring purchasers to remit to the Commissioner an amount on account of GST and entitling the purchaser to deduct this amount from the settlement monies. Vendors will be entitled to a credit for this amount but will need terms as to how the GST will be paid, so that they can be certain they will be entitled to the credit at time of settlement.

What are the changes to be introduced?

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