All Topics / Help Needed! / Need help with some GST?? :)

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of milkshaker_emilkshaker_e
    Member
    @milkshaker_e
    Join Date: 2010
    Post Count: 5
    March 22, 2010 - 9:00 am

    Hi guys and gals,

    Firstly I would like to welcome myself and wish I had found this site earlier…

    I am looking at purchasing an old block of units (about 40 years) in Sydney. We are buying this with our family trust and I wanted to know if this would attract any GST?

    My understanding is that it would not as it’s a residential property but I wasn’t sure if that changes when it’s an investment.

    If anyone has the time to help that would be great.

    Thanks again,

    Matt

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 22, 2010 - 11:22 am

    i don't think it would apply to residential property, unless brand new.

    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 YoungInvestorYoungInvestor
    Participant
    @younginvestor
    Join Date: 2003
    Post Count: 377
    March 22, 2010 - 11:24 am

    hi milkshaker,

    Terry is right – no GST in your example.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 22, 2010 - 11:37 am

    No GST on the purchase but be careful if you renovate the property, strata the block and the look to onsell this is where you could trigger GST.

    Richard Taylor | Australia's leading private lender

    Profile photo of Ryan McLeanRyan McLean
    Participant
    @ryan-mclean
    Join Date: 2010
    Post Count: 547
    March 24, 2010 - 1:18 am

    Seems I have been beaten to the punch by Richard. If you buy it with the intention of onselling it for a higher price (by renovating and selling, or subdividing and selling) then you may incur GST. As far as I am aware it depends on your intention when you buy the property.

    If you buy it, then immediately create strata titles and onsell it might be hard to convince the government that it was never your intension to sell for a higher price when you bought it.

    Ryan McLean
    http://CashFlowInvestor.com.au
    Positive Cash Flow Properties Are Just a Click Away

    Ryan McLean | On Property
    http://onproperty.com.au
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    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 24, 2010 - 1:34 am
    ryan mclean wrote:
    Seems I have been beaten to the punch by Richard. If you buy it with the intention of onselling it for a higher price (by renovating and selling, or subdividing and selling) then you may incur GST. As far as I am aware it depends on your intention when you buy the property. If you buy it, then immediately create strata titles and onsell it might be hard to convince the government that it was never your intension to sell for a higher price when you bought it. Ryan McLean http://CashFlowInvestor.com.au Positive Cash Flow Properties Are Just a Click Away

    This is not correct.

    GST only applies to new or substantially new residential property. By undertaking extensive renovations the building could be classed as substantially new.

    Intention of selling for a higher price has nothing to do with the application of GST.

    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

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

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