The GST property decision tool is designed to assist you to determine the GST implications for your property-related transactions.
The tool can be used if you are buying, selling, or leasing real property across a broad range of property types.
The tool includes:
- a series of questions to help buyers, sellers and lessors determine the GST classification of real property transactions
- links to additional information
- assists with eligibility of the margin scheme and calculating the margin
- guidance on claiming GST credits and making GST free supplies
- identifies if GST at settlement applies to sales of new residential premises or potential residential land
- provides guidance and explanations to work through the tool.
You must complete the questions in one session. You can’t save your responses to be completed at a later time.
Note: We don’t record any of your personal information and you will remain anonymous.
Information you need
The information you need to use the tool includes:
- the purchase price of the new residential property or land
- the date the property was acquired and the date of sale (settlement date)
- the amount you paid to acquire the property or valuation details (and selling price)
- past transactions of the property and if or how GST was applied, even if you weren’t a party to those transactions, for example deceased estates and GST groups
- whether you need to be registered for GST.
GST decision that will be generated
A GST decision will be generated that contains:
- a decision advising if GST is payable on the purchase
- a decision advising if GST is payable on the sale
- an estimate of the amount of GST payable when applying the margin scheme
- a decision advising if you’re eligible to claim input tax credits.
What the tool doesn’t address
The GST property tool doesn’t address:
- retirement villages
- partitioning of land
- amalgamated land
- easements, restrictive covenants and options
- mixed supply
- dual purpose (you intend to rent a property while trying to sell it by actively marketing it for sale)
- grants of land by governments
- body corporate issues
- failure to pay full consideration (GST Groups)
- adjustments relating to bad debts
- development lease arrangements
- calculating adjustments for changes in creditable purpose (for example new residential property intended for sale being leased to tenants, which is an input taxed supply).
Note: The application of GST to property related transactions can be complex. Your registered tax or BAS agent can provide GST advice for your property transactions.
Next step
- Access the GST property decision tool
Public and private advice and guidance
We offer a range of products to help you understand how the law applies to you. This includes public and private advice and guidance.
Public advice and guidance applies to a range of situations. If you can’t find public advice to cover your situation, you can ask us for private advice that explains how the law applies to your particular circumstances.
Private rulings
A private ruling is binding advice that sets out how a tax law applies to you in relation to a specific scheme or circumstance.
If you would like to discuss your issue with us prior to applying, you can submit an early engagement (for advice) request.
Source: gov.au
