GST and residential development

  Significant changes to GST will impact all residential developers from 1 July 2018, with the collection of GST being shifted from developers to purchasers.   Background The new rules were announced in last year’s federal budget and legislated earlier this year. It is not a new tax but shifts the burden of who pays the ATO from the developer to the purchaser.  Further background is included in the attached advocacy alert on the legislation.    The Property Council has been working with the ATO and our National GST Committee on the implementation of the new measure.    Our national team has received feedback from members regarding the challenges with preparing for the new regime, including impacts for the sales processes – from what needs to be included in sales contracts to changes in settlement processes and the timings of various steps that need to happen.  This is more than just a tax issue, and members are changing processes for their sales teams, conveyancing/legal teams etc.      We need your help We are keen to hear your practical experiences in preparing for this change.  This will feed this into discussions happening at a national level with the regulator.    Link to ATO presentation on the GST changes:    Can you please contact Rachael Champtaloup with any feedback[email protected] or 9426 1203.