New GST withholding tax for new residential property – developers face cash flow and compliance issues
28 Nov 17 |
WEEKLY TAX BULLETIN
Issue: Issue 48, 17 Nov 2017
Pages: pp. 6-8
From 1 July 2018, purchasers of new residential premises and lots in residential subdivisions will generally be required to make a payment of 1/11th of the purchase price directly to the ATO at settlement. This could create cash flow and compliance issues for developers who need to start planning now in preparation for the new rules.
This new GST withholding tax was originally announced in the 2017 budget, and is targeted at the problem of developers claiming GST credits throughout the construction phase and then failing to remit GST when the new premises and lots in residential subdivisions have been sold and settled.
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Peter Scott, Peter Scott practices in Arnold Bloch Leibler’s taxation group. Peter provides strategic and technical tax advice to a diverse range of Australian and international clients, public corporations, private groups, and high-net-worth individuals. He advises across most areas of tax with a particular focus on corporate and international tax, deals, employee share schemes, trusts, and tax controversy matters. Peter graduated from the University of Tasmania in 2013 with a Bachelor of Business (Accounting) and Bachelor of Laws with first class honours in law. Peter worked as a tax analyst at a Big 4 accounting firm before joining the firm as a lawyer in early 2015. Peter was admitted to practice in August 2014.
- Current at
12 February 2019
Paul is a partner and the national taxation practice leader at Arnold Bloch Leibler. Paul advises clients, including high-net-worth individuals, large private groups and public entities in tax reviews, audits, disputes and litigation, and in domestic and international transactions. Paul is a regular speaker and writer for the Tax Institute, and other organisations and publications. He actively contributes to tax policy, legislative, technical and administrative development and debate. In March this year, Paul won The Tax Institute’s 2019 Chartered Tax Advisor of the Year Award.
- Current at
19 June 2019