• Reporting mistakes on GST and property transactions

    Change of your business use or the 'creditable purpose' of your property

    If you are a property owner, developer or are registered for GST and you use your property differently from the way you planned to, you may have to report a GST adjustment.

    For example, if you decide to rent out rather than sell new residential premises, you have changed the business use or the 'creditable purpose' of your property. This means you may have an increasing adjustment that you must record in your June activity statement.

    An adjustment is required even if you intend to sell the premises at a later date or are in the process of marketing the property.

    If you later sell the new residential premises, you may then have a decreasing adjustment.

    How to report a mistake

    If you find you have a creditable purpose adjustment for property transactions that you did not report, you can let us know by completing a Voluntary disclosure rather than revising your activity statement.

    If you take this opportunity to review your activity statements and report any mistakes voluntarily, you will not have to pay any shortfall penalties and any general interest charges (GIC) will be reduced to the base rate.

    This applies if:

    • your adjustment relates to property
    • you tell us about your mistake before we tell you we will conduct an audit
    • what you tell us relates to an honest mistake.

     If we find mistakes as part of an audit, shortfall penalties can be as high as 90% of your additional liability.

    To discuss a mistake you have made with us:

    • phone us on 13 28 66.

    See also:

      Last modified: 06 Jul 2016QC 21331