The proposed amendments will ensure that new residential premises constructed under development lease arrangements since 3 October 2007 are treated as taxable supplies, rather than input taxed supplies, where the premises are sold by developers to home buyers or investors. This amendment will contain a transitional provision that will operate to ensure that no one is inadvertently disadvantaged by the retrospective application of the amendment.
From 1 July 2000, other proposed amendments will ensure that:
the granting of individual strata lot leases over newly constructed residential premises is not sufficient by itself to make future supplies of the premises input taxed and the subsequent sale of the newly constructed strata-titled premises will be taxable supplies of new residential premises
any change in property title arrangements, such as the subdivision of surrounding land or registration of a strata plan title over existing residential premises, will not result in the premises once again becoming new residential premises and being subject to GST if they are subsequently sold.
For more information, refer to Press release No 020/2011 issued on 27 January 2011 by the Assistant Treasurer.
By bruce|2019-08-06T20:37:23+10:00February 17th, 2011|Uncategorized|Comments Off on GST On New Residential Properties