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  • Paying the withholding amount

    Your supplier should notify you of the withholding amount by issuing the required notice (rounded down to the nearest dollar).

    When settlement occurs, you pay both:

    • the withheld amount of GST direct to us
    • the balance of the sale price of the property, minus the withholding amount, to the supplier.

    The amount you must withhold and pay to us is generally either:

    • 1/11th of the contract price (for fully taxable supplies)
    • 7% of the contract price (for margin scheme supplies)
    • 10% of the GST-exclusive market value of the supply (for supplies between associates for consideration less than GST inclusive market value).

    If the contract includes non-monetary consideration (for example, land swaps) the withholding amount is calculated as a proportion of the monetary consideration (including GST), plus the GST inclusive market value of the non-monetary consideration. This is the 'price for the supply' in GST law.

    Administrative penalties apply if you fail to pay the withholding amount to us and general interest charges (GIC) may also apply.

    See also:

    Once we have received payment

    Once we have received and processed your payment, we send an email to the email address listed on Form two: GST property settlement date confirmation. It may take 24 to 48 hours to receive this.

    Payment of the withholding amount to us discharges you from your contractual obligation to pay your supplier the withholding amount as part of the consideration for the supply.

    Ensure you keep your proof of payment.

    For more information see After payment has been made.

      Last modified: 05 Jul 2021QC 56253