Changes to GST payments at settlement

Changes to GST payments at settlement


Buyers of new residential premises or subdivisions of potential residential land will need to pay the GST component of the purchase price to the Australian Tax Office (ATO) as of 1 July 2018.

The amount of GST will not change. This change does not affect the sales of existing residential properties or the sales of new or existing commercial properties.

Buyers will need to split the amount of GST from the total purchase price, pay the GST component directly to the ATO by a disbursement at settlement and pay the GST exclusive purchase price to the vendor.

It is important to note settlements will not be conditional on the payment of GST to the Tax Office.

It is the property developer’s responsibility to provide written notice to the buyers when they need to withhold.

The liability for GST remains with the property developer.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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