Goods and Services Tax

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  • The Goods and Services Tax (GST) does not apply to sales of existing residential properties. However, where being sold in furtherance of an enterprise, GST can apply to the sale of:

    • new residential properties: these are properties that have not been previously sold as residential premises or have undergone substantial renovations, and they must be sold within five years of completion; and

    • vacant land: if you have an issue with the GST (as this area can be very complex), it is strongly recommended that you obtain professional advice from your accountant.

  • If GST applies to the sale of a residential property, the buyer may be required to withhold the GST and pay it to the Australian Taxation Office (ATO) at settlement. A vendor’s solicitor or conveyancer must advise a buyer if they are required to withhold GST.

Goods and Services Tax

Chapter: 6.2: Buying or selling a house

Contributor: Laura Vickers, Director, Nest Legal; Accredited Property Law Specialist

Current as of: 1 September 2024

Law Handbook Page: 497

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