What happens at (electronic) settlement?November 2, 2019
What are material facts?January 7, 2020
If you’ve bought a new residential property since 1 July 2018, or one that that has been substantially renovated, then GST usually forms part of the selling price (unless the vendor is not registered for GST).
As a purchaser in cases like this, you are now obligated to withhold at settlement the embedded GST payable, and remit it directly to the Australian Taxation Office. The GST is either 1/11 of the selling price, or 7% if the margin scheme applies to the Contract. To do this, your conveyancer will need to submit the following two forms to the ATO on your behalf, and correctly set up the vendor payment to the ATO in the electronic settlement workspace:
- The GST property settlement withholding notification, before settlement.
- The GST property settlement date confirmation, after settlement.
More information is available at https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Property/GST-property-settlement-online-forms-and-instructions/
If you are looking for a 5-star conveyancer in Melbourne, contact Glenferrie Conveyancing on 03 9815 2351 for more information.