Your Property and
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 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 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
Supply to be "connected
A supply of real property is
connected with Australia if the real property, or the land to which the real property relates, is in
Real property includes interest, right or
any interest in or right over land, or
a personal right to call for or be granted any interest in or right over
a licence to occupy land or any other contractual right exercisable over
or in relation to land.
The GST Margin Scheme provides some relief
in relation to property transactions and allows for a reduced amount of GST to be
The GST Margin Scheme can only be applied:
If the supply is taxable, such as:
If the current vendor acquired the property: