Goods and Services Tax (GST) is a 10% tax that is applied to most goods and services sold in Australia. However, there are some exceptions, including the sale of certain property.
GST is not payable on the sale of pre-existing residential property. This means that if you are buying a home that has already been lived in, you will not have to pay GST.
However, GST is payable on the sale of new residential property. This means that if you are buying a home that has never been lived in before, you will have to pay GST on the purchase price.
GST is also payable when you purchase commercial property and when you buy vacant land.
The GST is payable on the purchase price and may be added to the purchase price (plus GST) or included in the purchase price (GST inclusive).
If you are buying a new residential property, vacant land or commercial property, you may be able to claim a GST credit. This is a refund of the GST that you paid.
As always if you have any queries or if we can be of any assistance, please don’t hesitate to reach out to our friendly team at Bond Conveyancing Property Lawyers.
Contact us on:-
1300 039 559