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.
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.
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.
On the ATO screen, select Edit from the Actions column next to GST Withholding Form one.
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.
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).
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 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.
Upon settlement, the ATO GST Withholding Forms will be lodged and PEXA will automatically supply the ATO with the following details:
Confirmed settlement date
Payment reference number (PRN)
Lodgement reference number (LRN)
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.