08-06-2018 01:38 PM - edited 08-06-2018 02:44 PM
When dealing with new residential premises or potential residential land, purchasers are now required to pay the GST on the purchase price directly to the Australian Taxation Office (ATO), in a legislation change effective 1 July 2018. Previously, developers were responsible for this payment.
The new legislation applies to land contracts in effect on or after 1 July 2018. This has been introduced to increase transparency in the GST collection process and prevent illegal phoenix activity. The amount of GST payable remains the same. Transfer of title is not conditional on payment of the GST withholding amount to the ATO by the purchaser.
PEXA provides a simple method for completion of this task, offering practitioners greater efficiency and visibility around GST. Clarity around the payment of GST will be also beneficial to developers.
The vendor is entitled to GST input tax credits for the withheld amount the purchaser pays. If the purchaser withholds an amount from the supplier, but does not pay it to the Commissioner, the supplier will not be entitled to input tax credits.
As part of PEXA’s Release 8.0, a new disbursement line item category has been added in the Financial Settlement Schedule titled GST Withholding to complete this action. This category is available to the Incoming Proprietor and Proprietors on Title.
Upon selection of the category GST Withholding:
An overview of the process can be found below.
on 23-07-2018 11:36 AM
As you know there is an additional form 2 which is required to be sent to ATO following GST withholding payment having been made.
Is this form set up on PEXA now for use.
on 25-07-2018 04:18 PM
PEXA is working with the ATO to build the capability to share data for the purposes of FRCGW (Foreign Resident Capital Gains Withholding) and GST withholding.
In essence providing the data for the forms you mention.
Understandably, the ATO are wanting to bed down the GST withholding process before advancing on integration design. That said, we are well progressed with ATO.
We will provide more information when available.
05-05-2020 05:50 PM - edited 05-05-2020 06:16 PM
Suggest allowing files & maybe conversations (At least regarding ATO forms) to still be uploaded and communicated to the Settled Workspace after settlement.
Allows Secure communication & confirmation of the ATO Form 2 being done.
BTW would be nice to have a direct link to generating the appropriate ATO form as well! #HintHint