In media release No 2011/135, issued 23 September 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced that previously announced changes to the application of GST to newly constructed residential premises will not apply prior to 27 January 2011.
The Assistant Treasurer released exposure draft legislation to ensure GST is payable on the full value added to newly constructed residential premises by developers.
The Assistant Treasurer confirmed that the legislation would not apply to sales of residential premises constructed under eligible arrangements entered into prior to 27 January 2011. An eligible arrangement is an arrangement or agreement that is enforceable by legal proceedings.
The measure also will not apply to supplies of residential premises made on or after 27 January 2011 if the supply is because of a property subdivision plan lodged before that date.
Consultation will close on Friday 21 October 2011.