From 1 July 2018, purchasers of new residential premises or potential residential land will be required to withhold and remit GST to the ATO. A summary of the rules can be found at: https://viccaca.com/property-settlements-the-new-gst-withholding-regime/ or https://www.ato.gov.au/business/gst/in-detail/your-industry/property/gst-at-settlement/
The new rules require Purchasers to pay the GST amount on behalf of the Vendors using online forms. Purchasers can find these forms at https://www.ato.gov.au/business/gst/in-detail/your-industry/property/gst-property-settlement-online-forms-and-instructions/
Purchasers must generate 2 online forms to comply with the new GST settlement requirements:
- The GST property settlement withholding notification form: Used to advise the ATO that a contract has been entered into for new residential premises. This form can be submitted any time after a contract has been entered into but prior to the settlement date.
- The GST property settlement date confirmation form: Used to confirm the settlement date and can be submitted at the time of settlement and when the payment has been made to the ATO.
Purchasers are required to submit one set of forms for each property transaction. For further information on how to pay the GST to the ATO go to https://www.ato.gov.au/business/gst/in-detail/your-industry/property/gst-property-settlement-online-forms-and-instructions/?anchor=howtopay#howtopay
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