All Topics / Legal & Accounting / gst on new house

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  • Profile photo of fernfurnfernfurn
    Member
    @fernfurn
    Join Date: 2005
    Post Count: 139
    June 19, 2006 - 7:53 pm

    I have just sold a townhouse I built as owner-buillder, having paid gst on everything i bought to build it. I know I have to pay gst on agents commission (a service) but do I have to pay gst on the sale price as it is my ppr and I have lived in it for 18mths

    Fern

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 19, 2006 - 11:46 pm

    Hi there
    On the basis that you owned and occupied the property as your Principal place of residence then you will not be required to pay GST on the sale as it will not be classified as a new home but a second hand dwelling.

    Had you built the house as an investment then the answer would be Yes. You would however probably applied the Margin Scheme and claimed all of your GST credits along the way.

    Richard Taylor
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    Profile photo of truebluetrueblue
    Member
    @trueblue
    Join Date: 2003
    Post Count: 142
    June 21, 2006 - 6:39 am

    My understanding is that residential houses are input taxed ie no GST is payable on sale. Hence investment properties which are for residential purposes have no GST on them.

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