In Australia, if you sell new residential property or potential residential land, you might need to handle GST differently now. Let's break down what this means for you:
Who needs to pay GST? If you're selling new residential premises or land in Australia, you might need to deal with GST (Goods and Services Tax) if:
Important: GST on One-Off Sales Even if you're not running a business, you could still be liable for GST. The GST law defines a business broadly to include any profit-driven activity, which can even include one-time transactions. For instance:
These activities can be considered business under GST law, meaning GST might apply.
When and how to pay GST? If your sale of new residential premises or land is subject to GST, you need to report and pay this GST in your next Business Activity Statement (BAS). This could be up to three months after the sale is finalized, depending on whether you report GST monthly or quarterly.
Need more information? If you have any questions or need guidance, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545, or book a time directly through our online calendar.