PHOTO: Home buyers already face high stamp duty and GST charges. Source: Supplied
Under new federal laws, buyers of new properties now have to ensure that the GST owed (on the property purchased) by the developer of the project, was paid to the Australian Taxation Office. The changes introduced July 1 mean buyers will likely fork out more money for conveyancing.
Real Estate Institute of Australia president Malcolm Gunning said the recent changes were another example of the ATO outsourcing responsibilities of tax collection.
“The changes make solicitors no different to a tax collector, as they will have to ensure that everything is now paid at the point of sale,” he said. “Of course, it means there will be more work for them to do, which will mean it is likely some buyers may have to pay more.”
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