On 29 March 2018 the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018 (the Bill) received Royal Assent and will take effect from 1 July 2018.
The Bill passed the House of Representatives and the Senate unchanged from its original form, meaning that purchasers of new residential premises or subdivisions will be required to remit the GST payable on the purchase price directly to the ATO (vs. to the vendor). See the HWLE Taxation Group’s previous Tax Insight on the new rules here.
The new rules will significantly change the process of accounting for GST on property transactions (including under margin scheme sales and under development agreement ‘payment waterfalls’) and both vendors and purchasers must comply with new obligations.
Please contact a member of our National Taxation Group to discuss how these changes may impact you.
This article was written by Nima Sedaghat, Partner.
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