Working out GST on a new build - help please!

Discussion in 'Accounting and Tax' started by Red Star, 3rd Oct, 2007.

  1. Red Star

    Red Star Member

    Joined:
    4th Jul, 2007
    Messages:
    30
    Location:
    Brisbane, Qld
    Hi, I am looking at purchasing a property which has a house on 2 blocks. My plan is to keep the existing house and build either 1 new house on the other block or a duplex.

    From what I ahve read, if we plan to do this we need to register for GST and charge this on the price of the house. Is that correct? What happens if we decide to sell the original house as well - would that incur CGT? If so, how would this be worked out given that the set up is differnt to when we bought it?

    Thanks in advance
    Shona
     
  2. julia

    julia Member

    Joined:
    6th Jul, 2004
    Messages:
    485
    Location:
    Beachmere Qld
    Yes you do have to charge GST on the new place but not the old place (unless you substantially renovate it and are still registered for GST at the time) because the old place is not the first sale of a new house.