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  • Supplier credit and email confirmation

    The credit for the amount withheld is allocated to your GST property credit withholding account. If there are multiple suppliers, the credit will be the equivalent proportion of the withheld amount.

    Viewing GST property credits

    Once the purchaser has paid the withholding amount, it's credited to your GST property credit account and you will receive an email confirmation to the email address on your activity statement account. The email includes identifiers for the property transaction and confirms the credit has been received.

    You can view the GST property credit account:

    • ATO online services for individuals and sole traders
    • ATO online services for agents
    • Business Portal.

    To view the GST property credits account select Activity Statements in the menu then select the GST property credits hyperlink on the Activity Statement list screen.

    Check the credits available before lodging your BAS.

    If a credit isn't showing two weeks of settlement or you identify the credit has been allocated to the incorrect entity, you should contact us.

    See also:

    What to report on your BAS

    The GST liability on the taxable supply remains with you. There are no changes to what you report on your business activity statement (BAS).

    Reporting

    Report the taxable supply together with:

    • any other supplies
    • acquisitions
    • GST liabilities
    • GST input tax credits.

    Completing your BAS

    You are liable for the GST of the property transaction in the period that settlement occurred. Report:

    • label G1 Total sales – report all property sales
    • label 1A GST on sales – report the actual GST on sales and account for the margin scheme if applicable
    • label 1B GST on purchases – report the total amount of GST credits (including any adjustments) the supplier is eligible to claim.

    Don’t report the GST property credit on your BAS.

    Once you lodge your BAS, a credit for the withholding amount will be transferred from the GST property credit account into your activity statement account and be applied against the BAS net amount.

    You will be refunded surplus credits from the activity statement account, subject to normal GST refund processes.

    If you make an error on your BAS, including incorrectly reporting or omitting property sale information, you must amend the BAS to avoid penalties.

    See also:

    Margin scheme

    The margin scheme enables GST to be calculated on a concessional basis and the rules depend on when a property was first purchased.

    Only apply the margin scheme if the sale of a property is taxable and ensure it is written in the contract.

    Generally the GST is based on the difference between

    • the price the you paid for the property when you first purchased it
    • the subsequent sale price of the property.

    See also:

      Last modified: 26 Mar 2020QC 56252