From 1 July 2018, purchasers of new residential premises or potential residential land are required to withhold and remit GST to the ATO. The new rules require purchasers to pay the GST amount on behalf of the vendors using online forms.

GST Property Settlement Online Forms

Property transactions of new residential premises or potential residential land that require an amount to be paid directly to the ATO on or before settlement require purchasers (or their representatives, such as conveyancers or solicitors) to use the following online forms to advise the ATO of a purchase:

  • Form 1: GST property settlement withholding notification

           Link: https://www.ato.gov.au/gstpropertysettlementform1/

  • Form 2: GST property settlement date confirmation

           Link: https://www.ato.gov.au/gstpropertysettlementform2/

The online forms provide the details of:

  • the contact person;
  • the property;
  • the GST withholding amount; and
  • the purchaser and the supplier (vendor, seller, etc.).

When to submit the forms

The two online forms are required to be submitted to the ATO after the purchaser enters into the contract of sale and has received the written notification requirements from the supplier (e.g., where the property transaction is a taxable supply of new residential premises and the supplier has provided written notification to the purchaser that they need to withhold from the contract price and remit that amount to the ATO).

  • The GST property settlement withholding notification form (Form 1) is used to advise the ATO that a contract has been entered into for new residential premises or potential residential land that requires a withholding amount. This form can be submitted any time after a contract has been entered into and prior to the settlement date.
  • The GST property settlement date confirmation form (Form 2) is used to confirm the settlement date, and can be submitted at the time of settlement and when the payment has been made to the ATO.

Who can complete and submit

Purchasers are required to complete and submit the two online forms. However, in most cases, a purchaser will authorise a representative (e.g. their Solicitor or Conveyancer) to submit the forms on their behalf by giving them a signed declaration. Depending on the state or territory the property is located in, the purchaser’s representative can include a Conveyancer, or a Solicitor.

Please note that if you are a property supplier, you are NOT required to submit these online forms. Only purchasers are required to submit one set of forms for each property transaction.

Need help?

If you would like any further information on GST Property Settlement Online Forms, please do not hesitate to contact our accountants at The Quinn Group on (02) 9223 9166 or fill out an online enquiry form today.

Enquire today and we will get back to you next business day.