Show download pdf controls
  • Transitional arrangements ended 30 June 2020

    The GST at settlement transitional arrangements ended 30 June 2020.

    From 1 July 2020 contracts entered into before 1 July 2018 for new residential premises or potential residential land may be subject to the withholding obligations under GST at settlement.

    When lodging Form one for a property with a contract entered into before 1 July 2018 and settlement is after 30 June 2020, complete the form either through:

    • our website – with a contract date of 1 July 2018 to allow the form to be lodged.
    • Property Exchange Australia (PEXA) – enter the actual contract date.

    Example: End of transition period

    On 11 May 2018, Rachael enters into a contract to purchase a new home unit from developer Watson Home Co for a contract price of $650,000. Rachael pays a 10% deposit of $65,000.

    As the supplier of the property, Watson Home Co must notify Rachael that she has to withhold $59,090 (1/11th of $650,000) and pay it to the ATO at settlement.

    Rachael completes and lodges the two online forms to the ATO. Even though she entered into the contract earlier, she enters 1 July 2018 on Form one to allow it to be lodged via our website. (If she was using the PEXA website, she would enter the actual contract date of 11 May 2018.)

    Rachael’s property is finished and the settlement date is 2 July 2020.

    At settlement on 2 July 2020, Rachael withholds and pays:

    • $59,090 to us – the withholding amount
    • $525,910 to Watson Home Co – the balance of the contract price.
    End of example

    The GST at settlement process doesn't apply to contracts entered into before 1 July 2018. This is where any payment or consideration for the supply (other than a deposit) is provided before 1 July 2020 (that is, settlement is before 1 July 2020).

    See also:

    • LCR 2018/4 Purchaser's obligation to pay an amount for GST on taxable supplies of certain real property

    Return to:

      Last modified: 05 Jul 2021QC 55431