Step Three: Complete and Lodge 'Form Two'
Buyers must inform the ATO of the confirmed settlement date by completing and lodging 'Form Two: GST property settlement date confirmation' online. This form is submitted using the LRN and PRN obtained upon lodging Form One. Generally, it's required within two business days before, on, or after settlement, with adjusted deadlines for properties acquired under instalment contracts. Do not lodge Form Two if the contract remains incomplete (i.e., settlement doesn't occur).
Step Four: Pay the Withholding Amount
Buyers must remit the withholding amount to the ATO by settlement day (for standard land contracts) or the day of the first instalment payment (for instalment contracts). Payment can be made directly to the ATO through:
Alternatively, buyers can pay indirectly through the seller acting as their agent. To do this, provide the seller with the GST withholding payment slip, PRN, and a bank cheque made payable to the ATO, which the seller then submits to the ATO. Retain proof of payment (e.g., receipts, bank statements) and expect a payment confirmation via email if an address was provided on Form Two.
For detailed payment instructions, refer to the ATO's factsheets 'GST property settlement online forms and instructions' (QC 55781) and 'GST at settlement – a guide for purchasers and their representatives' (QC 56253).
For inquiries, contact Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment via our live calendar.