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  • Withholding obligation

    A purchaser will have a withholding obligation if they are the recipient of a taxable supply, by sale or long term lease and they provide any consideration (other than a deposit) on or after 1 July 2018, of either:

    • a new residential premises
    • potential residential land included on a property subdivision plan.

    Note: residential premises cease to be new residential premises if they have been used for a period of at least five years since they were constructed solely for renting.

    Transitional arrangements apply to contracts entered into before 1 July 2018.

    See also:

    Excluded supplies

    There is no withholding obligation in respect of the following supplies of new residential premises or potential residential land:

    • new commercial residential premises (for example hotels and motels)
    • existing premises that have been substantially renovated
    • potential residential land that contains a building that is currently in use for a commercial purpose – for example, a factory or shop being operated in an area where local zoning permits mixed use
    • potential residential land supplied to a GST registered entity for a creditable purpose.
      Last modified: 08 Aug 2018QC 55431