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Your Property and GST

GST in general and GST related to property in particular include such a broad spectrum of information that it is beyond the scope of Melbourne-Valuer.com.au to include everything.

Only a general overview of GST and property is covered here.

GST in general

GST or Goods and Services Tax is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

GST and Property

GST will apply to most types of property transactions. However, the treatment of property for GST purposes depends on whether it is a private residential, commercial residential, commercial property or farm.

GST will also apply to repairs or renovations to an existing property or farm. Charges for water supplies and sewerage services and drainage are GST-free.

Supply to be "connected with Australia"

A supply of real property is connected with Australia  if the real property, or the land to which the real property relates, is in Australia.

Real property includes interest, right or licence

  • any interest in or right over land, or
  • a personal right to call for or be granted any interest in or right over land, or
  • a licence to occupy land or any other contractual right exercisable over or in relation to land.

GST Margin Scheme

The GST Margin Scheme provides some relief in relation to property transactions and allows for a reduced amount of GST to be paid. 

The GST Margin Scheme can only be applied:

If the supply is taxable, such as:

If the current vendor acquired the property:

  • Before 1 July 2000
  • On/After 1 July 2000 where the supply was input taxed
  • On/After 1 July 2000 from a registered entity/vendor using the Margin Scheme