GST on developmemt

Discussion in 'Accounting & Tax' started by MTR, 1st Jan, 2021.

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  1. MTR

    MTR Well-Known Member

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    Hi All
    Currently Building 3 villas, will be holding all. Therefore will not claim GST on build costs

    However, is this correct if I decided to sell prior to 5 years... I am up for GST?
    So assume for account purposes if selling accountant would offset GST on build costs against GST when selling using margin scheme
    hope this makes sense
     
    MTR, 1st Jan, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes if you sell you could claim GST on costs.
     
    Terry_w, 1st Jan, 2021
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    MTR likes this.
  3. Hamish Blair

    Hamish Blair Well-Known Member

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    How far back can she claim - if she sells say 4 1/2 years after completion, I understand GST would be payable on sale; can the GST paid be claimed and offset?

    Is the GST payable on sale under margin scheme at 4 1/2 years adjusted at all?
     
    Hamish Blair, 4th Jan, 2021
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't know off the top of my head, but this is known as a change in creditable purpose and covered in
    GSTR 2009/4 GST: New residential premises and adjustments for changes in extent of creditable purpose
     
    Terry_w, 4th Jan, 2021
    #4