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New GST Rules: Purchase of New Build Residential Property

From 1 July 2018, if you buy a new build residential property or subdivision of potential residential land, you will be required to withhold an amount representing the GST and remit it to the ATO.

Why the change?

Basically, it boils down to non-compliance by property developers. Prior to 1 July 2018, it was the responsibility of the property developer to remit the GST component of any sale to the ATO. As a result of a high level of non-compliance by property developers, where developers were collecting the GST, dissolving their business and as a result not remitting the required GST to the ATO.

If you’re a seller:

  • Determine if what you’re selling is subject to the GST changes.
  • Calculate the GST amount applicable on the sale.
  • Notify the buyer.
  • Calculate and remit any GST to the ATO after taking into account any credit for the amount sent to the buyer.

If you’re the buyer:

  • Contact the ATO advising them a contract of sale has been entered into that requires GST withholding.
  • Confirm to the ATO settlement has taken place.
  • Remit the GST portion of the sale transaction to the ATO.

 

What Next:

If you enter into a contract of sale and your unsure whether the changes apply, please contact us in the first instance so that we can discuss your individual situation.

The ATO has advised they will be issuing penalties for non-compliance.

 

SIMMONS LIVINGSTONE & ASSOCIATES GENERAL ADVICE WARNING This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Simmons Livingstone & Associates and Infocus Securities Australia Pty Ltd strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

Kris has over 16 years' experience in the business advisory, accounting and taxation industry. His initial years were spent with WHK Group and PKF before founding Simmons Livingstone & Associates in 2013.

As Managing Partner, Kris has steered the firm to success, being instrumental in expansion of the firms client base and subsequent recruitment to increase the professional team size.

He brings his extensive experience within a variety of areas of business services and compliance, and has a proven track record of success with clients from a variety of sectors. Not only is Kris a an exceptionally valuable asset to the firm, his business advice is invaluable for professional service clients, from a financial perspective.

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Kris is a forward thinking person who is dedicated to providing his clients with the best possible outcome in all situations. With a keen eye for detail, he ensures nothing is overlooked, so that client outcomes are maximised.

Kris has a young family and outside of work, when he’s not spending valuable time with the family, you’ll find him on the golf course or sampling a brew with the guys.

Simon began his career at PKF and several boutique accounting firms. He has established his reputation for excellent accounting consultancy, which has spanned over 13 years.

Simon is a passionate business advisor, specialising in:

 

Simons personable service and attention to detail ensures his professional relationships remain strong.  As a partner at Simmons Livingstone, Simon has lead the substantial growth of the firms large corporate space.

Through his sporting connections, Simon also has a strong reputation as an industry leader for professional sports men and women, representing sporting players and companies involved in various professional sporting federations and leagues.

Simon is a former representative golfer, and still enjoys a round most weeks. An avid sports enthusiast, you’ll find him kicking back with a red wine if there’s a good game on.

Tom joined the Simmons Livingstone & Associates team to head the financial planning division in 2015. 

Tom has a passion for providing quality advice and exceptional service.

He is driven to:

His approachable and trustworthy demeanour makes his service enjoyable and ensures a relaxed environment for decision making about financial matters.

Tom's extensive network of allied professional services provide the same level of outstanding consultancy, so clients can be assured that any financial problem or opportunity will be addressed with Tom's help.

Outside of work, Tom likes to be outdoors. He plays football and golf amongst other things. You will also find him enjoying good food and good beer with good friends.

Sam is our newest Partner to the Simmons Livingstone & Associates team, working with Tom in our Financial Planning division. 

Sam has a strong passion to educate and inform his clients about the importance of financial planning and getting started early. 

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Sam's greatest asset is his ability to support his clients to better financial wealth using his extensive network. 

 

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