Purchasers of new residential properties to remit GST

Purchasers of new residential properties to remit GST

Purchasers of newly constructed residential properties or new subdivisions will be required to remit the GST directly to the ATO as part of settlement from 1 July 2018.

Under the current law, the developer remits the GST to the ATO where the GST is included in the purchase price.  Some developers are failing to remit the GST to the ATO despite having claimed GST credits on their construction costs. The new measure is an integrity measure to strengthen compliance with the GST law.

Source: Budget Paper No 2, p 38.

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