Yesterday the Commissioner published draft Law Companion Guide LCR 2018/D1 – Purchaser’s obligation to pay an amount for GST on taxable supplies of certain real property which sets out the Commissioner’s view on how the new GST withholding provisions are to apply. When finalised, the guide will operate as a public ruling with effect from 1 July 2018. Comments on the draft are due by 25 May 2018.
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Hi Chris.
It is interesting that the withholding obligation is placed (in the amending Bill) on the “recipient” of the supply of residential premises – not the “purchaser” as is referred to in the EM and this draft LCR. One wonders what entity is the purchaser is a number of common circumstances. E.g.:
– and/or nominee contracts; or
– where the title is passed to a bare trustee.
Thanks Michael – I agree. There are a number of wrinkles in the legislation that will need to be ironed out before 1 July 2018. I understand that the various State legal bodies are working with the ATO on amendments to the standard form contracts to address the withholding obligation.