Purchaser’s obligation to pay an amount for GST on taxable supplies of certain real property
“Schedule 5 of Treasury Laws Amendment (2018 Measures No. 1) Act 2018 (the Act) introduces provisions that require a purchaser of certain types of real property to make a payment to the Commissioner that represents the GST payable by the vendor. As a consequence, the purchaser then does not have a liability to the vendor for that amount.
Subject to certain exclusions a purchaser’s liability arises on taxable supplies by way of sale or long-term lease of certain new residential premises, or certain potential residential land that is included in a property subdivision plan.
The vendor will then be entitled to a credit for the amount paid to the Commissioner by the purchaser. The credit arises when the vendor’s net amount is assessed on its GST return.”
The DRAFT Ruling can be viewed in entirety HERE or accessed via the ATO website HERE
AICWA was unable to secure a fifth ATO GST information session for mid-May however we are currently negotiating to film the session. Once completed a link to a secure YouTube site will be shared with members.
REIWA have advised that an annexure to the Joint Form of General Conditions will shortly be ready and PEXA are very confident that an enhancement to the platform will be ready in time to accommodate the remittance to the ATO.
Source:27th April AICWA e-Newsletter