Sales of Properties MUST include GST Notification from 1 July

One of the requirements from 1 July 2018 is that a vendor must notify a purchaser in writing of certain matters in relation to that supply

The notification requirements are not limited to taxable supplies . They apply to the sale of old residential properties as well. Make sure your lawyer or conveyancer is up to date with this change. You must provide this notice in writing from 1 July 2018

Penalty for failure to provide a notice in writing is $21,000 for individuals and a maximum penalty of $105,000 for companies

it is also a offence under the Criminal Code (eek) but wont be subject to the offence if they can show they have made an honest mistake (phew)

1 July 2018 is just around the corner. Make sure your contracts for sale include the written notice or you may find yourself liable for penalties. I dont think this is well known in the property industry.

 

Interesting... Is gst applicable go old property now. What if the vendor isn't registered for gst and can't legally collect gst on a sale? Is 1/11 payable on all transactions or it's there Now a compulsory nomination that gst does/doesn't apply?

 

Scott

No GST wont generally apply to old property but there is a requirement for a compulsory notification to be provided as such.