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  • Paying the withholding amount

    How to pay

    If you are acquiring the property as a tenant in common you may pay your share of the withholding amount to the ATO separately or together with the other purchasers. Each purchaser must use the same PRN.

    Next steps:

    Once payment has been received

    Once we have received and processed your payment, we will send an email to the address listed on your GST property settlement withholding notification.

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

    What happens if the supplier has provided the incorrect amount to withhold in the written notification?

    If you have concerns about the accuracy of the amount of withholding notified to you by the supplier, seek confirmation from your supplier of the correct amount to withhold before withholding and making a payment.

    If the incorrect amount is paid to the ATO

    If you have underpaid the withholding amount you will need to pay the balance of the amount to us as soon as you detect the error, using the PRN received when you lodged the GST property settlement withholding notification form.

    A general interest charge (GIC) may apply to amounts that are paid late.

    If you have overpaid the withholding amount your supplier may be entitled to a refund. In exceptional cases a purchaser may be entitled to the refund rather than the supplier (for example, if the overpayment relates to a non-taxable supply and the supplier has already received all they were entitled to under the contract).

    Supplier your agent for payment of withholding amount

    Rather than pay the withholding amount to us directly you may agree to give the supplier a bank cheque made out to the Commissioner of Taxation for your supplier to give to us.

    In those circumstances your supplier will be acting as your agent. You must provide your supplier with your GST withholding slip and payment reference number (PRN).

    You will not be discharged from your withholding obligation until your supplier has given us the cheque, although you will be protected from penalties.

    See also:

    Example: Payment by bank cheque at settlement

    On 15 September 2018, James enters into a contract with ABC Company Pty Ltd (ABC) for the purchase of new residential premises. ABC notifies James that a withholding obligation applies to the supply.

    James completes the GST property settlement withholding notification (Form 1) online and obtains a PRN and lodgment reference number (LRN).

    Settlement occurs on 25 November 2018. At settlement, James lodges the GST property settlement date confirmation (Form 2) using the PRN and LRN.

    At settlement, instead of paying the withholding amount directly to us, James provides ABC with a bank cheque made out to the Commissioner of Taxation together with a payment slip including the PRN.

    ABC mails the cheque and payment slip to the ATO. James will be discharged from his withholding obligation when we have received and processed the cheque. Once ABC has lodged its Business Activity Statement (BAS) it will receive a credit for the withholding amount.

    If the credit is greater than the BAS net amount for the period, ABC will receive a refund of the difference (subject to our normal refund processes).

    End of example
      Last modified: 07 Aug 2018QC 56253