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  • Payment and online forms

    If your purchaser has a withholding obligation they will be required to:

    • complete a GST property settlement withholding form online
    • complete a GST property settlement date confirmation form online, and
    • pay the withholding amount to us.

    We will email your purchaser, or their representative, when we have received and processed the withholding amount (if they have provided us with an email address).

    We will also email you as the supplier, or your representative, when we have allocated the withholding amount to your GST property credit account (if you have provided us with an email address for your activity statement account).

    Note: You can update your details online using our online services for individuals and sole traders (you'll need a myGov account linked to the ATO), or through our Business Portal.

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    On this page:

    Purchaser's contractual obligation

    When your purchaser pays the withholding amount to us they will be discharged from their contractual obligation to pay that amount to you as part of the consideration for the supply.

    In effect they will be taken to have paid you the withholding amount.

    Supplier an agent of the purchaser if given a bank cheque for withholding amount at settlement

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

    In those circumstances you must either mail the cheque to us or deposit the cheque into the Commissioner of Taxation's bank account.

    As you will be acting as an agent of your purchaser to discharge the purchaser's withholding obligation you must use the purchaser GST withholding slip and payment reference number (PRN) provided to you by the purchaser.

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    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 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

    Has the purchaser lodged the required forms?

    You can ask your purchaser to provide you with evidence they have submitted the forms (for example, a copy of an email notification from us).

    You can choose to make this a contractual requirement.

    The purchaser has withheld incorrectly

    If a purchaser has withheld an amount in error and paid it to us you may be able to seek a refund.

    The amount that may be refunded to you is the amount that was withheld in error. This may be all or part of the amount paid to us by your purchaser.

    If your purchaser has not paid the withheld amount to us you should contact the purchaser or their representative. If you cannot resolve the issue together you can contact us on 13 28 66 (then press 3, then 4).

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      Last modified: 07 Aug 2018QC 56252