Hi All, my fiance and I bought a property (2005) with the intention of living there until we knocked down and rebuilt using the entire block. Three+ years later we decided we didn't need such a big block/house and decided to subdivide, sell one block and build on the one we kept. We've sold one block now and are getting ready to build but our accountant has advised we may have to pay GST on the block we sold. I knew we would have to pay CGT on the sale but didn't think about the possibility of GST applying as well. We used the house as our PPOR until we had the demolish the house to complete the subdivision process.
Our accountant is looking into the matter and possiblities but he only works parttime and the suspense is killing me. Can anyone help or have any related links as I haven’t found any examples, etc. on the ATO website that matches our situation?
It wasn't easy to find but here goes
http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20033/NAT/ATO/00001
Point 40I found this from another site but this might help http://www.somersoft.com/forums/archive/index.php/t-26302.html
But I suggest you ask advice from professionals regarding your problem.
Thanks for the replies so far
We've got an accountant who specialises in property looking into our situation at the moment but we won't hear back from him until later next week so I'm trying to find out everything I can in the meantime.
In hindsight we should have consulted more before and less after the fact. In the worst case scenario we're going to be a lot poorer for the experience.
Unless you are classified as being in the enterprise of developing land, GST will not apply.
Julia Hartwell at Bantics Accountants always has some good information available on her website so have a look at the following link and you should find a suitable download.
http://www.bantacs.com.au/booklets.php
Richard Taylor | Australia's leading private lender
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