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  • If you are selling property

    If you are selling residential premises or potential residential land you must:

    • notify the purchaser in writing (supplier notification)
    • advise whether they need to pay a withholding amount – or not – from the contract price for the property
    • state the withholding amount.

    This can be included in the sales contract or in a separate document, prior to settlement. Most states have updated their standard contracts to include this information.

    If you realise you have made a mistake on the notification, you are obliged to provide the purchaser with an amended one.

    You may incur penalties if you fail to provide the required notice.

    The purchaser pays the withholding amount directly to the ATO at the time of settlement – instead of to you.

    Reporting obligations

    The standard elements of selling a property and reporting the GST on your sales apply.

    You must still report all property sales at label G1 and the GST on sales at label 1A on your business activity statement (BAS). See Step 8 Supplier lodges BAS.

    You will receive a credit in your GST property credits account. This is equal to the withheld amount paid by the purchaser or, if there are multiple suppliers involved in the property transaction, your portion of the withheld amount.

    This credit is transferred from the GST property credits account into your activity statement account when you lodge your BAS for the relevant period.

    If you're unsure of the correct GST treatment of the supply, we recommend you seek advice from us or your tax professional.

    Conveyancers and real estate agents are not able to provide GST advice unless they are registered tax or BAS agents. However, they can assist purchasers to complete the forms.

    See also:

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      Last modified: 22 Oct 2019QC 55431