The Exposure Draft Legislation and Explanatory Materials released by the ATO on 6 Novemeber 2017 has shed some light on how this arragement will be applied in practice:
- Property sellers must provide purchasers with a written notice informing them of their obligations to remit the GST at least 14 days prior to settlement;
- Failure to notify purchasers of the obligations will result in various degrees of penalties;
- Sellers’ entitlements to claim tax credits will be dependent on buyers remitting the GST.
Source: https://treasury.gov.au/consultation/c2017-t220266/
Credit: Susie Lu