GST and property

New residential premises 'off-the-plan'

An off-the-plan purchase occurs when you enter into a contract to purchase new residential premises before the construction is completed. At this stage you are purchasing a contractual right to have the premises built.

Generally, you pay a deposit and sign a contract with the developer. You pay the balance of the purchase price on settlement.

On settlement, you are purchasing new residential premises and the purchase price will include GST.

However, if you sell the contractual right before settlement you are not selling new residential premises, and GST may apply if the sale of the contractual right forms part of your GST registered business.

The sale of an off-the-plan property may be an enterprise in its own right and may form part of your GST registration threshold.

For more information about selling new residential premises and adjusting for GST credits, refer to: GSTR 2009/4 Goods and services tax: new residential premises and adjustments for changes in extent of creditable purpose GSTR 2003/3 Goods and services tax: when is a sale of real property a sale of new residential premises? GSTR 2000/24 Goods and services tax: Division 129 - making adjustments for changes in extent of creditable purpose Property and Construction Industry Partnership - issues register section 11 - non-commercial residential premises section 04 - adjustments for input tax credit claims section 12 - off-the-plan sales.

Sections within Residential premises

• New residential premises
• If you rent new residential premises before you sell them
• New residential premises 'off-the-plan'
• Existing residential premises
• Rent or bonds from residential premises