GST on Residential Property

February saw the introduction of the Treasury Laws Amendment (2018 Measures No 1) Bill to the House of Reps. The proposed rules introduce measures to strengthen GST compliance, shifting the obligation to remit GST on new residential property, subdivision and land transactions from the developers to the purchasers. The introduction of a new compulsory notification regime will have a significant impact on the settlement process, and applies to all residential property transactions from 1 July 2018. Significant penalties apply to both vendors and purchasers for failure to comply with both the GST remittance obligations and the new notification requirements. A transitional period applies for contracts entered into prior to 1 July 2018 and settled before 1 July 2020. Read further: