From 1 July 2018, the obligation to remit GST on the purchase of new residential premises will be on the purchaser.
Usually, the vendor would be required to remit 1/11th of the sale price for new residential premises, however the change now requires the purchaser to lodge an ATO approved form on settlement.
The change is due to non-compliance from developers in the calculation and remittance of GST. A general transition rule will be in effect for contracts entered into before 1 July 2018, with settlement prior to 1 July 2020.
