Attention: From 1 July 2018, purchaser of new residential premises and new residential subdivisions will generally be required to withhold the GST on the purchase price at settlement and pay it directly to the ATO.
According to ATO, purchaser will need to:
- split the amount of GST from the total purchase price
- pay the GST component directly to us by a disbursement at settlement
- pay the GST exclusive purchase price to the property developer (vendor)
Property developers will also need to give written notification to purchasers regarding whether or not they need to to withhold. However, the GST liability still remains in property developer.