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GST and development

Discussion in 'Development' started by Xsi, 17th Apr, 2016.

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  1. Xsi

    Xsi Member

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    17th Apr, 2016
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    Melbourne
    I know that there are already a few threads on this topic, but hopefully someone can answer my specific scenario.

    I have an IP that I bought about 1.5 years back. I have a long term plan to redevelop into 3 townhouses. I am not a developer/builder(ie not registered for GST to that effect). If/When I redevelop, my current plan to retain all 3 townhouses. My understanding is that GST does not apply if I sell after 5 years of development. My questions are-

    1. Will GST apply on sale if I sell one or more townhouses prior to 5 years(sale due to change in personal circumstances)?
    2. When does this 5 year period start(guess is from date of issue of occupancy cert)?

    GST would change my rough calculation for the planned development and hence the questions. Thanks in advance.
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Look up GST margin scheme for a good start.
     
  3. thydzik

    thydzik Well-Known Member

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    18th Jun, 2015
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    Perth
    Speak to an account to confirm, but I believe
    Yes, GST will apply, given it is an IP.
    It needs to be 'continuously rented for five years', so would start when it is tenanted.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Leo2413 and Perthguy like this.