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02 May 1313 Property and Development Working Group

On Monday 29 April 2013, Andrew Howe CTA (Greenwoods & Freehills) and Tax Counsel Stephanie Caredes CTA attended a meeting of the ATO’s Property and Development Working Group. Participants at the meeting discussed a number of issues affecting the property and development industry, including:

  • The Tax Institute lead a discussion concerning the appropriate GST treatment of rebates and incentives provided in respect of sales of new residential premises. The ATO advised the GST treatment would generally come back to the particular contractual terms and, for non-cash incentives, the nature of the item being supplied. However, the ATO agreed to consider the issues raised further and also how they might provide certainty for taxpayers;
  • The ATO noted its continuing concerns with disengaged property developers and how the ATO will be targeting these taxpayers to ensure their compliance obligations are met;
  • The ATO provided a technical update on GST and property-related rulings and case law; and
  • The ATO provided an update on the main GST issues affecting retirement villages, noting that there are two current cases in the AAT on GST apportionment in DMF villages.

Members seeking further detail in relation to the above are encouraged to contact us at Tax Policy.