Compliance and penalties
If you made a mistake or forgot to include information on a form or lodge one, contact us and we will help you fix that issue.
For more information see GST property settlement online forms and instructions.
If you're concerned someone is doing the wrong thing, you can tell us about it confidentially.
Your information gets to the right area if you mention some key words, such as:
- GST at settlement
- sale of property
- Form one
- Form two.
For more information see Report fraud, phoenix, tax evasion, shadow economy activity, or unpaid super.
We regularly receive data from state and territory land title offices and revenue agencies with details that include sales and transfers of real property.
Penalties may apply for suppliers or purchasers:
A supplier who fails to provide a supplier notification to a purchaser may incur one of the following penalty types:
- Strict liability offence – 100 penalty units, which may be prosecuted before the court
- Administrative penalty – 100 penalty units (not applied if the strict liability offence is prosecuted).
Penalties won't apply if you:
- reasonably believed you weren't required to meet the notice requirements
- made an honest and reasonable mistake about how the notice requirements apply to a particular supply.
There are two types of penalties for purchasers:
- If a purchaser fails to withhold or pay an amount required, the administrative penalty is equal to the amount the purchaser was required to pay. Exceptions to this include when
- there's been reasonable reliance on the supplier's notice
- the purchaser has given the supplier a bank cheque payable to the Commissioner of Taxation for the withholding amount.
- If a purchaser fails to notify us they must withhold (that is, they haven't lodged the two online forms)
- Failure to lodge administrative penalty – one penalty unit for each 28-day period (up to a maximum of five penalty units)
- higher penalty units may be applied to entities based on turnover.
For more information see Penalties.