Purchasers of new residential properties to remit GST
From 1 July 2018, purchasers of newly constructed residential properties or new subdivisions will be required to remit the GST directly to the ATO as part of the settlement.
Under the current law (where the GST is included in the purchase price and the developer remits the GST to the ATO), some developers have been failing to remit the GST to the ATO despite having claimed GST credits on their construction costs. The new measure is an integrity measure to strengthen compliance with the GST law and will ensure the relevant GST amounts will be remitted.
Double taxation of digital currency removed
Starting on 1 July 2017, the GST treatment of digital currency (such as Bitcoin) will be aligned with the GST treatment of money. This measure will ensure purchases of digital currency are no longer subject to GST.
Digital currency is currently treated as intangible property for GST purposes. Consequently, consumers who use digital currencies as payment can effectively bear GST twice: once on the purchase of the digital currency as it is currently treated as subject to GST, and again on its use in exchange for other goods and services that are subject to GST.
Removing double taxation on digital currencies will remove an obstacle for the financial technology (fintech) sector to grow in Australia.
Contact our Tax Consulting experts
If you have any questions about the above article, please contact our Tax Consulting experts:
B.COM, LLB, LLM, M.TAX, CTA
B.BUS, M.TAX, CA
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