GST Registration for finance
- Thread starter apapworth
- Start date
Hi Terry
It's not and it's not.
Perhaps you may care to check your memory - details are important!
Regards
Kristine
It's not and it's not.
Perhaps you may care to check your memory - details are important!
Regards
Kristine
Just checked my memory and it wasn't PMI but Genworth with RAMS that have recently required GST registration of the applicant is declaring an income, from business, of over $75,000.
Here is a quote from an email received from RAMS in July this year:
"Please remember, RAMS uses three mortgage insurers. This requirement only affects RAMS low doc loans underwritten by Genworth. It is not a requirement for loans underwritten by either PMI or Prime."
Here is a quote from an email received from RAMS in July this year:
"Please remember, RAMS uses three mortgage insurers. This requirement only affects RAMS low doc loans underwritten by Genworth. It is not a requirement for loans underwritten by either PMI or Prime."
In summary then it looks like you can't get away from not registering which means that from now if you went low-doc, you can't buy develop IPs and sell within 5 years or you'll have to remit the GST. Hmmm, nice little problem to have. Might have to bend more truths to stick to full docs a while longer yet. ... 
I don't think that is the case asdf.
There are low doc lenders that do not require GST registration.
And the ABN held to prove self employment doesn't necessarily have to be for the same entity that will own your property.
eg. You could have an ABN for a company and be buying a property in a brand new trust with a brand new ABN.
There are low doc lenders that do not require GST registration.
And the ABN held to prove self employment doesn't necessarily have to be for the same entity that will own your property.
eg. You could have an ABN for a company and be buying a property in a brand new trust with a brand new ABN.
Are Property Investors required to be registered for GST?
I have a client that has multiple businesses and earns over $300K per annum and is not registered for GST. I am trying to get a 40% Low Doc Loan but it appears all the lenders are insisting that my client be registered for GST yet I have an extract that apparently indicates otherwise.
“We only deal in existing residential properties which fall into the ‘input taxed’ category for GST purposes.
Our business is not required to be registered for GST and cannot either charge GST or claim any input GST.
Our ‘GST Turnover’ is zero”
This is an extract from the ATO website (http://www.ato.gov.au/businesses/PrintFriendly.aspx?doc=/content/00198744.htm)
Existing residential premises
You cannot claim GST credits for anything you purchase for the sale of existing residential premises and you are not liable for GST on the sale.
If you sell residential premises, they are input taxed unless the property is new (see New residential premises).
If you own premises and they are used for residential and commercial purposes, GST may apply (see Commercial residential premises).
If you purchase existing residential premises, the sale is input taxed, so you cannot claim a GST credit on the purchase.
Can someone that truly knows the answer to this please respond. I do not want hypotheticals, I want answers.
I have a client that has multiple businesses and earns over $300K per annum and is not registered for GST. I am trying to get a 40% Low Doc Loan but it appears all the lenders are insisting that my client be registered for GST yet I have an extract that apparently indicates otherwise.
“We only deal in existing residential properties which fall into the ‘input taxed’ category for GST purposes.
Our business is not required to be registered for GST and cannot either charge GST or claim any input GST.
Our ‘GST Turnover’ is zero”
This is an extract from the ATO website (http://www.ato.gov.au/businesses/PrintFriendly.aspx?doc=/content/00198744.htm)
Existing residential premises
You cannot claim GST credits for anything you purchase for the sale of existing residential premises and you are not liable for GST on the sale.
If you sell residential premises, they are input taxed unless the property is new (see New residential premises).
If you own premises and they are used for residential and commercial purposes, GST may apply (see Commercial residential premises).
If you purchase existing residential premises, the sale is input taxed, so you cannot claim a GST credit on the purchase.
Can someone that truly knows the answer to this please respond. I do not want hypotheticals, I want answers.
It depends on what the client does. If all their income comes from residential rents, then GST registration is not required. However, if the source of their income is business then this is input taxed and they must be GST registered if turnover is over $75,000. I don't see how this is in dispute??? If you are going lo-doc then if you declare you have BUSINESS income of $300k then you have to be registered for GST for sure. Perhaps don't go lo-doc......
I get the impression they are deliberately setting up multiple businesses, each with less than $75k turnover, to avoid paying gst as each entity is under the threshold.
