All Topics / Help Needed! / Do you pay GST on a PPOR?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Ali GAli G
    Participant
    @ali_g
    Join Date: 2004
    Post Count: 99
    August 23, 2004 - 1:33 pm

    Hi everyone,

    I have just seen an apartment that I am considering buying as a PPOR. Someone told me that I need to ask the REA if the vendor is GST registered or not. Apparently, if they are, I have to pay GST on the purchase.

    Could someone please clear this up for me? An extra 10% would certainly be a rude shock if this is all correct!! [anxious]

    Thanks in advance,

    Ali G

    Profile photo of siaccisiacci
    Member
    @siacci
    Join Date: 2003
    Post Count: 53
    August 24, 2004 - 8:08 am

    To the best of my knowledge NO.The advertised price should be GST incusive. You dont pay it the builder does.

    Dave

    Profile photo of Ali GAli G
    Participant
    @ali_g
    Join Date: 2004
    Post Count: 99
    August 24, 2004 - 3:32 pm

    Thanks for your reply Dave.

    When you say that the builder pays it, what if it is already an established property? I gather the builder only comes into the equation if you are purchasing a new property?

    Cheers,

    Ali G

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    August 25, 2004 - 1:29 am

    I think the builders will be paying GST on all materails etc used in construction and this should reflect in the higher price of new property. established property wouldn’t be effected. I think

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kpkp
    Member
    @kp
    Join Date: 2004
    Post Count: 509
    August 25, 2004 - 1:01 pm

    No GST payable on established residential property..
    Only time it applies is for newly constructed residential, and then it is only due for the first sale of that property. ( ie build and keep and no GST is due)
    In this case the vendor is liablefor the GST
    Purchaser does not pay GST for residential prop.

    The advise you may have been given applies to commercial property, which has a number of categories and the GST payable varies from zero to part, to full depending on the circumstances of the sale.

    Hope this helps…
    KP

    Profile photo of Ali GAli G
    Participant
    @ali_g
    Join Date: 2004
    Post Count: 99
    August 26, 2004 - 3:24 am

    Thank you so much everyone for all of your advice.

    Unfortunately someone beat me to the property with a really high offer (which was naturally accepted) but this advice is great for the future.

    Thanks again.

    Ali G

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.