GST query

[Bricks & Mortar]

We just recently sold a residental unit in Victoria held in a hybrid trust
I received a Goods Statement for Residential Land form from our solicitor
basically it's a form which goes with the land transfer to the SRO.

Included was a section relating to GST on the sale of the unit
As the unit was a single residental unit, and not a commercial property
I was under the impression that no GST was applicable
Is that correct

 

[Ausprop]

it applies to resi if you deal in land or if you created 'new residential premises'.... what's the background here?

 

[Bricks & Mortar]

Hi Ausprop,

Nothing newly built, nor subdivided,
just bought the unit approx 4 years on site of 13 units
required a renovation to enable it to get tennants as the previous owner had to go into aged care and the place was dive.
Units were built back in the 70's

We needed to sell due to illness.

 

[Ausprop]

oh right - doesn't sound like the property would attract GST to me

 

[Jack321]

Hi Bricks,

Simple set of questions....

1. Is the vendor (you, your company etc), as the supplier under the agreement, registered for GST?
2. Is the supplier making the supply in the course of the supplier's enterprise?
3. Are the residential premises new residential premises (ie have not been previously sold as residential premises and have not previously been subject to a long term lease OR have been created through substantial renovations of a building OR have been built or contain a building that has been built to replace demolished premises on the same land BUT excludes residential premises existing on or before 2 December 1998 AND residential premises that has been leased for 5 years or more.)


If you answered YES to 1, 2 and 3, then GST will be payable on the supply of the residential property and settlement adjustments will affect the GST payable.

If you answered no to 1, 2 or 3 (or any one or more of them), then no GST is payable on the supply. Settlement adjustments will affect the total consideration provided for the residential premises, but will not have any GST impact on them.

This is a very general/simplified guide when considering GST on residential property, and you should not rely upon it in any way. Seek professional advice. GST is particularly tricky. Some different considerations apply for commercial property.

Hope this helps.