Goods and services tax treatment of new residential premises
1 December 2011
The government intends to amend the goods and services tax (GST) law to clarify how GST applies to sales of new residential premises to home buyers and investors by builders and developers as of 27 January 2011.
The proposed amendments to the legislation will not apply to:
sales of residential premises constructed under eligible arrangements entered into prior to 27 January 2011
sales of residential premises made on or after 27 January 2011 if the supply is because of a property subdivision plan lodged before that date.
The amendments will ensure that the sale of newly constructed residential premises to home buyers and investors is subject to GST even though there may have been an earlier 'wholesale supply' of the premises.