Will I pay the GST?

I have recently subdivided off the back half of my PPOR. I have approved plans for the construction of a 3 bed townhouse, which I am selling off the plan for $249,000.

Will I pay the GST on the $249,000? Gasp, thats twenty five grand.
 
Thanks ausprop, read a number of the booklets (wouldn't call them booklets!!) but I am still no better off.

Does anyone know the answer? If you require more information to give an accurate answer then ask away.
 
I'm not an accountant but I would have thought that to collect GST you'll need to be registered for GST?

Your builder will pay GST on the materials he'll buy and will get tax credits etc, he will charge you GST for the new house he's going to build for you
but I don't believe that you can pass on that GST cost to your buyer.

So IMO if you agreed to sell the property for $250K thats' it
but since we are on the issue of tax, have you considered CGT??
 
Here's a link and some navigation there may help:

http://www.ato.gov.au/businesses/content.asp?doc=/Content/00198744.htm&page=7&H7

I am not an accountant, however am under the impression if you just sub-divided the back yard and sold off, no GST as there is no new dweliing applicable in the sale.

However on the sale of brand new (OTP) it appears GST will be payable upon finished product being settled.

Ask your accountant.......or several.
Ring the ATO.

Hope that link helps. :)
 
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