Even if your property meets the criteria for GST withholding, there are exceptions you should know about:
1. Long-term Rentals: Residential premises aren't considered "new" if they've been continuously rented out for at least five years since they became new. This continuous period isn't interrupted by short vacancies between tenants, as long as the property is actively marketed for rent. But keep in mind, periods when the property is used privately or left vacant without rental attempts don't count towards the five years.
2. Renovations and Commercial Properties: GST withholding rules don't apply to:
3. Vacant Land Clarification: According to the ATO, selling vacant land isn't considered selling "residential premises" because it doesn't provide basic living facilities. However, if the land is considered "potential residential land," GST withholding may still apply.
Important Note: There are additional technicalities and exceptions outlined in the GST Act, but they may not apply broadly and are not discussed here.
Need help understanding these rules? For any questions or clarification, reach out to Tax Ideas Accountants & Advisers at +61 2 83181545, or schedule an appointment through our online calendar.