Review of the GST at settlement measure
Now that the GST measure has been operating for 6 weeks the ATO have put together a Process Review Document HERE
ATO invite interested parties to be part of a Webinar: GST at settlement – Process guidance and common questions - Thursday 6 September 2-3pm
This webinar will focus on the GST at settlement process for purchasers and suppliers. We will also cover some of the issues we have identified with forms received so far and the queries received from industry since the measure has come into effect. Register HERE.
ATO have experienced some issues with despatching the three automated emails for the GST measure. This has resulted in some delays in these emails being issued. If you have any queries relating to your transaction please contact us on 13 28 66 (fast code 3, 4)
Listed, Sold or buying a property market value of $2 mil. or over?-ATO clearance certificate is required!
Contracts dated 1 July 16 on wards, will have the new requirements on ALL transactions with market value of $2 million or over.
Unless the Seller provides an Australian Taxation Office (ATO) 'clearance certificate' for each registered proprietors name (matched to the title) to the buyer 2 business days prior to settlement (-timing subject to REIWA special condition).
Then the Buyer must withhold 10% of the Purchase price (more specifically the 'First element of the cost base'-Capital Gains Tax defined term) from the Seller and apply for an ATO Payment Reference Number (PRN) then remit that payment to the ATO once settled, and before Title registration.
Even if Selling or Buying a percentage, where a total property value (aggregated/extrapolated) $2 million or more would likely impact that transaction.
Designed to catch Tax evaders, the new law places liability on the Buyers to withhold payment from the Seller unless they are given a clearance certificate, or exempted by approved variation.
Watch this presentation for an overview of the proposed strata reforms.
The WA Government has given Landgate responsibility for delivering reforms to Western Australia's Strata Titles Act 1985.
The proposed reforms aim to provide more flexible and sustainable housing options to benefit developers, strata owners, investors, residents and tenants. They aim to improve the way strata schemes work but not to change current strata owners' land titles and boundaries.
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