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Important GST Withholding Legislation

On 1 July 2018, a new regime of GST withholding obligations comes into effect and is set to create considerable change to property transactions which property lawyers should be aware of.

Where a supplier (the vendor) makes a taxable supply of new residential premises or a subdivision of potential residential land by way of sale or long term lease, the recipient of the supply (the purchaser) is required to withhold an amount from the contract price and remit it to the Australian Taxation Office on or before settlement. [...]  READ MORE →

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Case Update – Prior landlords potentially liable for past GST

MBI PROPERTIES PTY LTD V COMMISSIONER OF TAXATION [2013] FCAFC 112

Federal Court of Australia

The Australia Taxation Office (“ATO”) has appealed to the High Court the decision in the case of MBI Properties Pty Ltd v Commissioner of Taxation. If the High Court is to grant the appeal, GST liability could potentially transfer from the current landlord to the landlord at the time the lease was contracted. The Federal Court holds the view that the landlord who contracted the lease, should be liable for the GST, irrespective of the land being sold. [...]  READ MORE →