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Impact of GST on Residential Property | Property Lawyer Sydney

Did you know what are the impacts of GST on residential properties for both developers & buyers. after actual implement ion of GST this july, 2018 in Australia. Property lawyer explains all of the impacts that arises after its implementation in this document. MUST READ!! Source: https://michaelbirch.com.au/

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Impact of GST on Residential Property | Property Lawyer Sydney

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  1. MICHAELBIRCH.COM.AU IMPACT OF GST ON RESIDENTIAL PROPERTY DEVELOPMENT

  2. IMPACT OF GST ON RESIDENTIAL PROPERTY DEVELOPMENT GST ON RESIDENTIAL PROPERTY SALES Sales of new residential properties (i.e. new units and land) are considered a taxable supply At present, merchants get the full price tag at settlement, and after that remit the GST to the ATO when they present their next BAS return. The proposed administration hopes to guarantee the ATO gets monies to cover GST specifically from settlement, limiting the danger of non-payment by a developer HOW DOES THE NEW REGIME WORK? Under the new administration, at settlement of another private property deal, purchasers will be required to withhold from the vender 1/eleventh of the price tag and afterward pay it to the ATO quickly after settlement. This commitment will abrogate any legally binding commitment expecting purchasers to pay the full price tag to the vender. . WWW.MICHAELBIRCH.COM.AU

  3. IMPACT OF GST ON RESIDENTIAL PROPERTY DEVELOPMENT EFFECTS FOR DEVELOPERS: Unfortunately Developer will nor get the advantage of 1/11th of the acquisition price for settlement and lodgement of their next BAS.   EFFECTS FOR BUYERS: The essential effect on purchasers is that they should conform to the necessity to transmit 1/eleventh of the price tag to the ATO from their buy of new residential property. WHEN DOES THIS IMPLIES? The actual date of implies the new regime or proposed legislation for new residential land from 1 July 2018, WHAT ABOUT MARGIN SCHEME? After, all these goes  to be happened one question is always arise that can developer of residential properties still get the margin scheme or not. This one be the good new for developer that the margin scheme . during this whole process remains unaffected. WWW.MICHAELBIRCH.COM.AU

  4. POINTS TO BE REMEMBER FOR DEVELOPER  To protect both parties sales contracts have to contain suitable provisions. income conjectures for influenced advancements consider the monies that will be transmitted to the ATO from settlement. feasibility forecasts for affected developments with finance facilities take into account additional interest charges payable. joint ventures or structures involving multiple parties (land owner/developer) take into account the revised requirements for dealing with proceeds from settlement. If you have any query regarding property developments & settlement the contact Michael birch, an expert real estate or property dispute . lawyer with 32 year of experiences in legal practices.   WWW.MICHAELBIRCH.COM.AU

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