New Granny Flat rules after 1st July... comments?

Discussion in 'Granny Flats' started by atomicsushi, 23rd Jun, 2018.

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  1. atomicsushi

    atomicsushi New Member

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    hello!

    I am thinking of building a granny flat and doing research, then came across this!

    Anyone have any comments around the new tax rule? I’m sure it is still worth building a GF.... but trying to weigh up its pros/cons at the moment.


    “Property investors who build popular "granny flats" in their backyards might need to apply for an Australian Business Number (ABN) and pay goods and services tax (GST) on its sale under controversial new tax rules intended to stop fraud in the building industry.”
     
    atomicsushi, 23rd Jun, 2018
    #1
  2. Propertunity

    Propertunity Well-Known Member

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    I’m unaware of the new tax rule you mention. Do you have a link?

    The sale of new property has always been subject to GST since its introduction. But I’m unsure how this would apply to the sale of a granny flat (secondary dwelling) as it cannot be subdivided off from the house, being on the same Title.
     
    Propertunity, 23rd Jun, 2018
    #2
  3. David Shih

    David Shih Mortgage Broker Business Member

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    David Shih, 28th Jun, 2018
    #3
    Propertunity likes this.
  4. neK

    neK Well-Known Member

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    The author of that article seems to think you can build a granny flat, subdivide, then sell it off.

    In NSW you can't.
     
    neK, 28th Jun, 2018
    #4
    AlbertWT, Bender12, thatbum and 1 other person like this.