Sladen Snippet - Property purchasers become the new ‘taxman’ – new laws passed by Parliament

As previously reported in February 2018 (see here), the Commonwealth Government introduced into Parliament legislation that would require purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land to pay either 1/11, or 7% if the margin scheme applies, of the purchase price to the Australian Taxation Office (ATO) at settlement.

On 29 March 2018 this legislation, which was passed by the House of Representatives on 27 February 2018, was passed by the Senate.

Subject to application of the relevant transitional rules (which we discussed in our previous report), this legislation will apply from 1 July 2018.

Taxpayers and other affected stakeholders will need to ensure they are in compliance with the new legislation as from 1 July 2018.  Furthermore, with the application of this legislation, developers will no longer have use of the GST part of the purchase price between settlement and their BAS lodgement instead purchasers will be required to remit the GST amount at settlement to the ATO.

To discuss this further or for more information please contact:

Sam Campbell
Associate / Business Law
Sladen Legal
M +61 423 515 454 | T +61 3 9611 0135
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia
scampbell@sladen.com.au

Neil Brydges
Special Counsel | Accredited specialist in Tax Law
Sladen Legal
M +61 407 821 157 | T +61 3 9611 0176
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia  
nbrydges@sladen.com.au