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  • Purchaser hands you the cheque for the withholding amount

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

    This means, you are acting as the purchaser's agent and they must provide you with a GST withholding payment slip and payment reference number (PRN).

    The purchaser won’t be discharged from their withholding obligation until you have given us the cheque, although they will be protected from penalties.

    Ensure when you make the payment to us you use the GST withholding payment slip and PRN.

    If you don't supply the GST withholding payment slip and PRN, it may cause delays in the GST property credits being allocated into your GST property credit account.

    See also:

    Example 3: 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 Form one GST property settlement withholding notification online and receives a payment reference number (PRN) and lodgment reference number (LRN).

    Settlement occurs on 25 November 2018 and James lodges Form two GST property settlement date confirmation using the LRN and PRN.

    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 us and it is processed.

    James is discharged from his withholding obligation as we have received and processed the cheque.

    James receives an email to say the withholding payment has been received.

    ABC gets an email to say a credit has been allocated to their GST property credit account. ABC can view this on the Business Portal GST property credit account.

    ABC lodges their BAS and a credit for the withholding amount is transferred to their activity statement account. 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: 10 Oct 2019QC 56252