Planning on developing property?

The ATO website can help you ascertain what your GST entitlements and responsibilities are if you are developing property

Did you know that if you build and sell new residential premises you pay GST on the sale? And you can generally claim GST credits for your construction costs and purchases related to the sale. There are different rules about developing property depending on whether you are deemed to be a personal property investor, engaged in a profit-making activity of property renovations, or carrying on a business of renovating properties.

We are identifying and contacting developers early on in the planning process to help you understand your GST entitlements and responsibilities.

When a new development starts we sometimes verify significant refund claims. We may do this if you:

  • lodge a BAS without reporting property transactions, or
  • have an outstanding BAS.

If you haven’t lodged your BAS we’ll remind you so you don’t get behind. When we do this we can assist you with any questions you may have.

If you need advice from the ATO about the tax treatment of how you are developing property you can lodge a request for a private binding ruling.

The relevant ATO website page has further details about how they will assess your development for tax purposes.

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