Changes to proposed legislation on the treatment of GST for developers who supply new residential premises have softened the earlier proposal. However, the rules will still have far-reaching implications.
In February 2018 the Government introduced draft legislation to Parliament changing the GST treatment of the sale of ‘new residential premises’. This gives effect to the measures initially announced in the 2017 federal budget and follows Exposure Draft legislation released late last year.
The changes represent a fundamental departure from the current treatment of GST on the sale of new residential premises.
The headline aspects are:
These changes present developers with practical, logistical and legal issues. It will be critical to obtain tax, accounting and legal advice to ensure property development activities are carried out in the most tax effective manner.
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