No GST on residential properties built before January 2011

The Assistant Treasurer, Bill Shorten has announced that the previous changes to the GST treatment of newly built residential premises will not apply to contracts entered into prior 27 January 2011.

The previously announced changes ensure that new residential properties constructed under development lease arrangements are treated as taxable supplies. Currently, they are treated as input taxed supplies.

The changes come in the form of amendments to the A New Tax System (Goods and Services Tax) Act 1999, and only apply where the residential property is sold by developers.

Related Links

• Exposure draft bill

• Explanatory memorandum

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