Home » E-News » News

Categories

Accountant Aged Care Allied Health Annuity Asset Finance Asset Planning Asset Protection Asset Protection Strategies Assets Assets and Risks Ato Bas Binding Death Benefit Nominations Binding Financial Agreement Bonds Brexit Budget Budgeting Business Business Registrations Business Support Business Tax Deduction Business Value Capital Gains Tax Capital Protection Catherine Frost Cgt Checklists Commercial Property Community Corporate Trustee Cryptocurrency Death Benefit Nomination Debt Debtors Deceased Estate Depreciation Director Director Id Divorce Economic Update Economy Emily Kermac Employees Estate Planning Executor Fbt Federal Budget Finance Finances Financial Advice Financial Plan Financial Update Franking Credits Government Grants Gst Home Office Hybrid Unit Trust Individual Ownership Information Session Insolvency Insurance Interest Rates Investment Loan Investment Loans Investment Property Investments Janet Kohan Jobkeeper Jobmaker Joint Ownership Ken Burk Land Tax Lending Market Update Mortgage Broking Mygov Negative Gearing Overseas Gifts Parental Leave Paris Financial Pat Mannix Payg Payg Variation Pension Practice Practice Valuations Private Wealth Property Rebecca Mackie Record Keeping Research & Development Retirement Retirement Planning Retirement Savings Salary Sacrifice Scams Self Managed Superannuation Self Managed Superannuation Fund Self Managed Superannuation Fund Borrowing Shares Small Business Smsf Smsf Borrowing Smsf Self Managed Superannuation Fund Strategic Business Structuring Structures Succession Plan Superannuation Superannuation Fund Tax Tax Benefits for Super Tax Concession Tax Deduction Tax Losses Tax Offset Tax Planning Tax Savings Temporary Full Expensing Tenants in Common Tfe Training Trust Trusts Will Working from Home

Going once, going twice; get your GST right at settlement

Going once, going twice; get your GST right at settlement

If your income producing activities include selling property and you make $75,000 or more in a year from selling property, even if it’s from a one-off property transaction, you may need to register for GST.

Once you’ve registered, GST at settlement may apply when you sell new residential premises or potential residential land.

If GST at settlement applies to the sale of your property, you need to notify the buyer before settlement occurs, state the amount they need to withhold and when to withhold.

The buyer then needs to withhold the GST amount from the contract price to pay it to the ATO when settlement occurs.

Remember to report your property sales at label G1, and GST on these sales at label 1A on your Business activity statement (BAS) in the period that settlement occurs.

You’ll receive a credit for the GST amount paid by the buyer in your GST account.

The GST credit for the sale will move into your BAS account and offset against any GST you owe after your BAS has been lodged.

You can view your GST property credits online through Online services for business or Online services for individuals and sole traders.

Remember, our tax team can help, get in touch today!

Visit the ATO’s website for more information on GST at settlement.

 

Source: ATO Newsroom


Tags: GST | Property |