ATO GST Withholding Form one & Form two

[Saysa]

Updated: 11 May 2021

Jurisdictions: All

Overview

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Most purchasers of new residential premises or potential residential land are required to withhold an amount from the contract price for payment to the ATO.  Purchasers who are required to withhold an amount must complete and lodge GST Withholding Form one and Form two with the ATO.

• Form one: GST property settlement withholding notification

• Form two: GST property settlement date confirmation

Incoming Proprietors can now create and lodge GST Withholding Form one and Form two within the PEXA platform, rather than complete these externally on the ATO website. This enables existing PEXA Workspace details to be used to complete the GST Withholding Forms.

Steps

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In this section:

• Creating Form one & Form two 
• Editing Form one & Form two 
• Removing Form one & Form two 
• Lodging Form one & Form two 
• Confirming Form one & Form two 
• Settling 

 

Prerequisites

You have prepared a Transfer Workspace in your jurisdiction:

1. Created a Workspace.
2. Represented your clients.
3. Created a Transfer document and:
   • A Notice of Sale instrument (NSW only).
   • A Notice of Acquisition instrument (VIC only).

Creating Form one and Form two

Once the Workspace and required documents are created, the Incoming Proprietor can create the GST Withholding Forms:

1. From the left navigation menu, select ATO.
2. Click Create Form one & Form two.
   Tip: Alternatively, you can click the Create GST Withholding Form one & Form two link displayed in the ATO section on the Workspace Summary screen.
3. Form one - populate ATO GST Withholding Form one:
   • Contact details
   • Property details – up to 10 properties can be added
   • Transaction details
   • Purchaser details – up to 10 purchasers can be added
   • Supplier details – up to 10 suppliers (vendors) can be added
   • Declaration (Form one)
4. Form two – Would you like PEXA to lodge Form two on your behalf at settlement?
   • Select Yes if you would like PEXA to lodge Form two automatically at settlement.
   • Select No if you would like to manually lodge Form two on the ATO Website, outside of PEXA.
5. Save the form.
6. Lodge ATO GST Withholding Form one:
   

   You may lodge Form one at any time prior to settlement. 

7. Confirm ATO GST Withholding Form one:
   

   One day prior, or on the day of settlement, a notification displays when you open the Workspace to verify whether any details on Form one has changed since lodgement, excluding the settlement date.
   Confirmation can also be done on the ATO menu, by clicking ‘Confirm’ on Form two.

8. Upon settlement, the ATO GST Withholding Form two will be lodged to the ATO.

Editing Form one and Form two

You can edit the details on Form one at any time prior to it being lodged within PEXA.

1. On the ATO screen, select Edit from the Actions column next to GST Withholding Form one.
2. Update the required details then click Save.
   Upon saving, a re-verification will automatically be carried out between PEXA and the ATO. PEXA will automatically refresh once information is received from the ATO and the Form status will move from Verifying to Prepared.

Removing Form one and two

You can remove Form one or Form two at any time prior to settlement.

1. On the ATO screen, select Remove from the Actions column next to the GST Withholding Form you wish to remove.
   Note: If you chose to remove Form one, and Form two also exists, then both Forms will be removed, as well as the auto-created GST withholding destination line item (if created).
2. Click Yes to confirm the removal.

If Form one has already been lodged, PEXA will automatically notify the ATO.

Lodging Forms one and Form two

You may lodge Form one at any time prior to settlement.

• On the ATO screen, select Lodge from the Actions column next to GST Withholding Form one.
  Form one lodgement is automatically carried out between PEXA and the ATO. PEXA will refresh after information is received from the ATO, and the Form one status will move from Lodging to Lodged.

Upon successful Lodgement of Form one:

• If a single Proprietor On Title subscriber exists, then a destination line item for the withholding amount is automatically generated and is associated to the Proprietor On Title subscriber. This requires the Proprietor On Title to also sign off on the destination line item.
  
  Note: If there is no Proprietor On Title, or more than one Proprietor On Title subscriber in the Workspace, the line item will NOT be generated.

Form statuses:

• Form one status will move to Lodged
• Form two will move to Pending Confirmation

Confirming Form one and Form two

One day prior, or on the day of settlement, a notification displays when you open the Workspace to verify whether any details on Form one has changed since lodgement, excluding the settlement date.

• Select one option:
  • Yes if changes have been made since lodgement.

    PEXA will automatically remove Form one & Form two and notify the ATO.

    A warning message displays notifying you that you must completed and lodge Form one again with the new details.

  • No if no changes were made since lodgement.
    • Click Confirm to finalise Form one and Form two.
• Confirmation can also be done via the ATO menu, by clicking ‘Confirm’ on Form two.

Settlement

Upon settlement, the ATO GST Withholding Forms will be lodged and PEXA will automatically supply the ATO with the following details:

• Contact details
• Confirmed settlement date
• Payment reference number (PRN)
• Lodgement reference number (LRN) 

Form statuses:

• Successful lodgement
  If you have supplied an email in the Contact details of Form one, the ATO will send a payment confirmation once Form two is lodged and payment is processed.
  
  
• Unsuccessful lodgement
  You will receive an email from PEXA advising that Form two was unable to be lodged at the ATO. You will need to manually lodge Form two directly with the ATO.