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问过AI,这种房子属于要交GST的那种,但是合同里GST的选项是NO。
1. The "Substantial Renovations" Rule
Under the GST Act 1999, "New Residential Premises" include properties that have been created through substantial renovations.
For a renovation to be "substantial," it must:
Affect the building as a whole.
Involve the removal or replacement of all or most of the structural or non-structural components (e.g., removing walls, adding a floor, replacing the roof and wiring).
Since you mentioned 80% of the house is new and a first floor was added, it almost certainly meets the ATO’s definition of "substantial renovations."
2. The 5-Year Rule
New residential premises (including those substantially renovated) remain "new" for GST purposes until they have been used solely for residential accommodation for a continuous period of at least 5 years since the completion of the work.
Your situation: The owner has lived there for 3 years.
The Risk: Because it has been less than 5 years, the property is still legally considered "New Residential Premises." Therefore, the sale is generally a taxable supply, not an input-taxed sale.
3. The Owner-Builder Factor
The ATO is particularly vigilant when the seller is a builder or has a construction company.
If the builder renovated the property as part of their "enterprise" (business), they are required to be registered for GST and charge GST on the sale.
If the seller claims it was a private hobby or just a "one-off" family home, the ATO may still argue it was a profit-making undertaking, especially given the owner's professional background.
4. Contract Discrepancy & Risks
The contract says the sale is Input Taxed (Section 40-65). This is the standard selection for "second-hand" residential property. However, if the renovations were "substantial," this selection is likely incorrect.
Risks for the Seller:
GST Liability: The ATO may demand 1/11th of the total sale price as GST. If the contract didn't specify that the price was "plus GST," the seller must pay this out of their own pocket.
Penalties: Interest and penalties for failing to report a taxable supply.
Risks for the Buyer:
GST Withholding: In Australia, buyers of "new residential property" must withhold the GST component (usually 1/11th of the price) and pay it directly to the ATO at settlement. If the buyer relies on the seller’s "No GST" declaration and the ATO later determines GST was due, it can create significant legal and administrative headaches, though the primary financial liability usually rests with the seller. |
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