All Topics / Legal & Accounting / GST paid on a retain, build and sell residential subdivision

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  • Profile photo of macka5macka5
    Participant
    @macka5
    Join Date: 2015
    Post Count: 3

    Could someone give some insight into paying GST on a retain, build and sell residential subdivision.
    Is GST payable on the retained dwelling or just the newly constructed dwelling?
    Is GST exempt if the dwelling is held for a specific amount of time?
    Thanks in advance.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    If you retain a property you will not have to pay GST as you won’t be selling. but you won’t be able to claim input tax credits either.

    If you sell a new residential property you will need to remit 1/11th of the price to the ATO if:
    you are registered or required to be resisted for GST,
    you are carrying on an enterprise
    etc

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of macka5macka5
    Participant
    @macka5
    Join Date: 2015
    Post Count: 3

    Thanks for your reply Terryw, although im still confused.

    How long would I have to hold the property before selling, to not pay GST?

    What are input tax credits?

    Will I pay GST if im not registered to pay GST?

    Under what circumstances would I not have to be registered to pay GST?
    -purchased in a personal name?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    5 years possibly
    credit for GST you pay
    Perhaps
    If you don’t sell, if you are not classed as an enterprise, if you are not required to register for GST

    It doesn’t really matter what entity owns the property.

    You need specific tax advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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