The New World – ATO and OSR to be a party to property settlements

What?

Amendments to the GST laws now require purchasers of new residential property or subdivision of potential residential land to withhold an amount from the contract price and remit it to the ATO on or before settlement.

Why?

Some developers are failing to remit the GST collected from purhcasers from taxble sales of these type of properties to the ATO?

When?

This will take effect from 1 July 2018.

This does include a transitional arrangement which excludes sale contracts entered into before 1 July 2018 as long as the property transaction settles before 1 July 2020.

For more information, please click here or, as always, please feel free to contact our offices on 07 3879 3303.