All Topics / The Treasure Chest / gst on commercial property

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of G-MAN007G-MAN007
    Member
    @g-man007
    Join Date: 2003
    Post Count: 37
    June 25, 2003 - 6:16 am

    I just wanted to clarify gst on commercial property. If it is not included in the initial purchase price, does this mean i have to pay an additional 10% + stampduty when i settle?

    Regards

    greg

    Profile photo of truebluetrueblue
    Member
    @trueblue
    Join Date: 2003
    Post Count: 142
    June 25, 2003 - 6:47 am

    No, it doesn’t mean that at all. When you buy a commercial property, it either has GST or no GST. As a guide, a vacant commercial property normally has GST tagged on. Hence if the property costs $500,000; the price inclusive of GST will be $550,000 & you need to pay stamp duty on $550,000.

    However, if the property was tenanted, the price will only be $500,000 & you’ll pay stamp duty on $500,000. Stamp duty is paid to the state & not the Commonwealth Govt.

    Hope this helps.

    Profile photo of scottscott
    Member
    @scott
    Join Date: 2003
    Post Count: 110
    June 25, 2003 - 9:39 am

    Hi,
    I’m a little confused here, so if any one in the know can clear it up I’d really appreciate it.
    When I went to buy a commercial property recently I was charged gst in the contract price even though it was tennanted. Was this the agents error or is there some loophole that I should know about.
    Any info would be great.

    Thanks
    Scott S

    P.S. Thank god for get out clauses I was being ripped of to the tune of 100K, goes to show know your market befrore you buy!!!

    “Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
    -anon

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281
    June 25, 2003 - 9:42 am

    If GST registered is selling to GST registered, no GST payable, and if its tenanted.
    If selling to non GST registered, you, the buyer, have to pay GST.
    It is recommended you get a valuation and i believe any capital gain incurred after the intro of GST in 2000, is subject to GST.
    Its therefore an advantage to be registered for GST in commercial property.

    Profile photo of drewboy2drewboy2
    Member
    @drewboy2
    Join Date: 2003
    Post Count: 5
    June 26, 2003 - 11:02 am

    Regina,

    Very simply how do you become GST registered?

    Do I need to set up either a trust or company so as to obtain an ABN.

    I am presently doing my homework so as to invest wisely into the commercial property market. I am meeting with my accountant next week to discuss an appropriate structure.

    I look forward to your reply.

    Thanks

    Drewboy.

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    June 26, 2003 - 11:11 am

    Hi Drewboy,

    Any entity (including individuals, trusts or companies) that are carrying out a business and that have annual turnover in excess of $50,000 a year must register for GST. Otherwise it is optional. For more info check out http://help.abr.gov.au/content.asp?doc=/content/17576.htm&placement=ABH/OTH/GPO&usertype=BC

    You become registered when you register for an ABN at http://www.abr.gov.au

    -Nick

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281
    June 27, 2003 - 9:23 am

    my account organised all ABN’s for each trust and GST registration, if relevant.
    I think you can register the trust for GST.

Viewing 7 posts - 1 through 7 (of 7 total)

The topic ‘gst on commercial property’ is closed to new replies.