ATO Update: You may now need to report when you purchase a new residential property or residential land to the ATO by lodging two forms and withholding the amount of GST from the sale.
You will now need to obtain a ‘supplier notification’ which will state if you have a withholding obligation or not. These are often part of the sale contract but make sure you obtain a copy for yourself if you have to provide this to the ATO. A representative, such as your accountant, can also manage this for you on your behalf.
As a purchaser, it is your responsibility to make sure that the forms and payments made to the ATO are correct. Your accountant can help you to complete these forms to ensure they are correct.
The two forms include:
When you sign the contract – Lodge Form One
GST Property Settlement withholding notification using information from the supplier notification Form
When the property settles – Lodge Form Two
GST Property Settlement date confirmation Form
Link to Online Forms and Instructions: https://www.ato.gov.au/business/gst/in-detail/your-industry/property/gst-property-settlement-online-forms-and-instructions/?page=1#Steps_to_complete_and_lodge_forms
Then be sure to:
Pay the GST withheld amount
If Form Two had any mistakes, contact the ATO to have it cancelled before lodging a new Form Two
If you have any questions or would like our help to navigate completing these forms, please do not hesitate to contact us today.