GST on Property Transactions

Quinn & Scattini Lawyers’ Property Law Team aims to take the worry out of perplexing Property Law issues for our clients.  GST is one such area where clients need the guidance to handle emerging complexities.

Ongoing changes in ATO legislation make the administering of GST complex for individuals and developers alike.  We tackle the GST implications at the commencement of a transaction, so that the GST treatment is properly set up to deal with both the purchase of the property and subsequent development and/or sale.  We will often work with a client’s accountant to ensure that the correct GST treatment is formulated.

Both sellers and buyers need to consider whether:

  • GST is payable,
  • the purchase price is inclusive of GST,
  • the purchase price is exclusive of GST,
  • the margin scheme is to apply,
  • the going concern provisions are to apply,
  • the farmland exemption is to apply, and
  • GST is to be paid at the full taxable rate.

Whether any of these treatments of GST can be applied in any given circumstance needs to be considered as does the overall GST effect of the client.  This needs to be determined before the contract is entered into otherwise there could be significant cost if the wrong GST treatment is applied.

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