The Australian Goods and Services Tax, commonly known as GST, only applies to registered sellers of certain property types. Some examples of these property types are vacant land, new residential properties, and commercial properties.
The GST treatment varies depending on the type of property and the purpose.
Find out if you need to register
If you’re considering selling these types of properties for profit, you may be required to register for GST even if you are not a business.
Some scenarios where you may be required to register would be:
- Your GST turnover (gross income minus GST) from your property transactions is more than the GST registration threshold of $75,000 in a year ($150,000 or more for non-profit organisations)
- You purchase property with the intention of developing it for immediate resale at a profit, or other activities that would regard you as an ‘enterprise’
- You are a business and you provide a paid taxi, limousine service or a ride-sourcing service for passengers
- Businesses or enterprises that want to claim fuel tax credits
If these don’t apply to your situation, then you may not need to register for GST. However, if you choose to register, you can file for GST when you first register your business or at any later time.
What if I don’t register for GST?
If you are required to register for GST but fail to do so, you may have to pay GST on the transactions that you have made regardless if you included GST in your prices or not. The Australian Taxation Office’s (ATO) penalties and interests may also apply.
However, you may also be entitled to claim GST credits for things that you had to acquire to develop your property.
How to register for GST
You can register for GST by either going to the ATO’s website or by calling them at 13 28 66, or through a registered tax agent such as your friendly Chan & Naylor property tax accountant here, and we’ll call you.
We’ll examine your records to provide you with more detailed advice that’s specific to your situation, simplify for you the complexity of GST, and show you all applicable credit claim options that you may be entitled to. We hope to talk to you soon!
Aside from GST assistance, have a look at our other accounting and advisory services that we do to help you achieve greater success.
Chan & Naylor Group has nationwide offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your property and GST as well as any other business or personal tax enquiry that you may have. Contact us today.