GST May be Applicable on Property Transaction

GST at settlement may apply when buying or selling new residential premises or potential residential land.

If your income making activities includes selling property and they make $75,000 or more in a year, even if it’s from a one-off property transaction, you need to register for GST.

Once you are registered, GST at settlement may apply when they sell new residential premises or potential residential land.

If GST at settlement applies to the sale of your property, you need to notify the buyer before settlement occurs that it applies, state the amount the buyer needs to withhold and when to withhold.

The buyer withholds the GST amount from the contract price to pay it to the ATO when settlement occurs.

Report your property sales at label G1, and GST on these sales at label 1A on their Business Activity Statement (BAS) in the period that settlement occurs.

You will receive a credit for the GST amount paid by the buyer in their GST property credits account.

The GST credit for the sale will move into your BAS account and offset against any GST they owe after their BAS has been lodged.

To view your GST property credits and see if they’ve made any property sales access your MyGov account.

I can share this videoExternal Link with you on how GST at settlement works or they can visit www.ato.gov.au/gstatsettlement.