bg-imgs

Topics on CGT and GST for property buyers (27)

0 Comments

 

TAX TIP – Withholding when no supplier notification is received 

Where a buyer (of residential premises or potential residential land) has not received a supplier notification (and is uncertain about their GST withholding obligations), they are generally recommended to withhold (and pay to the ATO) an amount from the purchase price. This avoids the risk of penalties should the GST withholding rules be found to apply. 

Importantly, if it is discovered that an amount was withheld in error (i.e., the GST withholding rules did not apply), the buyer is not subject to penalties for the amount incorrectly withheld. 

Step Two – Complete and lodge ‘Form One’ 

A buyer with a GST withholding obligation is required to complete and lodge Form One: GST property settlement withholding notification online. Form One notifies the ATO that the buyer has entered into a contract for which a GST withholding obligation will arise. The form is completed based on information contained in a supplier notification, and may be lodged at any time after the contract has been entered into (up to the due date for payment of the withholding amount). 

An online confirmation screen is displayed upon lodgment of Form One providing details of the buyer’s lodgment reference number (‘LRN’), payment reference number (‘PRN’), expected settlement date and total withholding payment. A downloadable payment slip with barcode and copy of the form are also available, and may be printed from the confirmation screen. An email confirming lodgment of Form One (including the LRN, PRN and downloadable payment slip) is issued by the ATO to the email address provided. 

 

 

  • Should you have any queries, please contact Tax Ideas Accountants & Advisers on +61 2 83181545 
  • Alternatively, you can book an appointment in our live calendar 

 

 

Written by Panbo Ye

I help people discover POWERFUL unknowns in Tax Ideas | Wealth Strategies | Retirement Planning | Finance Solutions!

Leave a Reply

    Growth Is Just One Click Away

    Don't feel like calling? Just share your goals and situation & our expert will get in touch.

    Schedule A Meeting with "The Ideas"!

    How long would you like the meeting to be?