Need to know rules for new conveyancing businesses - ATO - triSearch

Need to know rules for new conveyancing businesses – ATO

Latest advice and guidance for conveyancers calculating the withholding amount of GST.

The ATO is sharing several need-to-know reminders through the Australian Conveyancer as the sector heads towards June 30.

With a raft of new firms being set up by entrepreneurial conveyancers before the end of the financial year, it is timely advice for those getting to grips with the dos and don’ts of withholding GST.

When GST at settlement applies to the sale of new residential premises or potential residential land, the purchaser must pay both the:

  • withholding amount of GST to the Australian Taxation Office (ATO)
  • balance of the contract price of the property (minus the withholding amount) to the supplier.

If you’re representing the purchaser, the GST amount you need to withhold and pay to the ATO will be either:

For contracts that include non-monetary consideration (for example, land swaps), see price of the supply for calculating the withholding amount.

When calculating the withholding amount, round it down to the nearest whole dollar and enter this exact same amount in both GST property settlement forms you lodge for the purchaser:

Check out the ATO’s website for examples of withholding at settlement or visit their website for more information about paying the withholding amount of GST.

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