A new system of GST withholding will start from 1 July 2018.
Although a purchaser will be responsible for withholding the GST, the legislation will make the developer do the hard work to identify whether GST has to be withheld, and if so, how much.
Treasury identified $1.8 billion in missing GST over five years because of phoenix activity. The new rules and penalties reflect a hardline response to this issue that will be detrimental to compliant developers.
Source Mondaq
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