From 1 July 2018, the obligation to remit GST on the purchase of new residential premises will be on the purchaser.

Purchaser To Remit GST On Property Transactions

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.