This form of taxation, effective from 1 July 2000, applies to certain types of property transactions. Everyday residential sales and purchases will mostly remain outside the scope of GST. Some residential properties can attract a GST consideration, where the property:
- has not previously been sold as residential premises;
- has been created by substantial renovation of a building; or
- has been built to replace demolished premises on the same site.
However, it can be stated that GST will not apply to residential land sales and purchases, provided the seller sells and the buyer buys the property as residential land and it is zoned accordingly.
If you have an issue with GST (and this area can be very complex where property is concerned) it is strongly recommended that you obtain professional advice from someone qualified in tax or law who is competent to advise on GST.