The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
ResidentialStaff WriterTue 05 Sep 17

GST Changes to New Residential Premises

gst-tax

In May 2017 the Federal Government Budget included proposed measures to shift the responsibility for remitting GST on the sale of new residential premises from property developers to purchasers. 

No further commentary or guidance has been released since the budget announcement, however the proposed changes are intended to take effect from 1 July 2018.

With the risk that any put and call option arrangements entered into in late 2017 will cover supplies of new residential premises post 1 July 2018, developers should be mindful of what the proposed measures mean for them.

Below is a summary of the proposed measures, and an outline of what actions developers should consider taking to protect their interests.
What transactions will be affected
The proposed changes simply refer to developers of "new residential premises".  Therefore all developers, irrespective of the scale of development activities, should be conscious of the proposed changes to the law.
Why the change


The government is concerned that there is a risk to GST revenue in circumstances where developers claim input tax credits during the life of a project, but go into liquidation on the completion of a project leaving unpaid GST liabilities owing to the Australian Taxation Office (ATO).  By implementing this measure the government aims to increase GST revenue collections by $660 million over the next four years.
When are the proposed measures to take effect?
Whilst the budget papers refer to the measures taking effect from 1 July 2018, it is not yet clear how the new rules will apply to:

  • existing off-the-plan contracts where settlement will occur after 

    1 July 2018

    ,

  • contracts entered into between 9 May 2017 (budget night) to 

    1 July 2018

     where settlement will be after 

    1 July 2018

    , or

  • put and call options which are exercisable after 

    1 July 2018

    .

How could the changes be introduced
There is currently no draft legislation, however it is thought that the proposed changes could be implemented in one of two ways:


ResidentialOfficeAustraliaPolicyLegalPolicy
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
Pishoy Gobran probably didn’t set out to add ‘disruptor’ to his CV, but he’s created a niche in a crowded Sydney propert…
LATEST
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
4 Min
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
3 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/gst-changes-new-residential-premises
SHARE
print
Print
TOP STORIES
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
View All >