GST on new property

Saurabh Gupta

From July 1, purchasers of new residential premises or new residential subdivisions will have to remit the GST on the purchase price directly to the Australian Taxation Office as part of the settlement process.

The new measure are set out in Treasury Laws Amendment (2018 Measures No1) Bill 2018. The Bill defines “new residential premises” as premises that have not previously been sold as residential premises, have been created through substantial renovation of a building or have been built to replace demolished premises on the same land.