ATO helps on GST and property

This morning, the ATO distributed the following note to NTLG GST members concerning the new “GST Property tool”

To access the tool, go to the ATO GST property tool page and click “start”.

GST property tool

On the 7 November 2011, the ATO released a new GST property tool on ato.gov.au.

The tool was developed in response to industry feedback and research findings that indicated that the application of GST to property can often create difficulties for both taxpayers and their tax practitioners.  It has been identified that some taxpayers are unaware of their GST obligations and are therefore failing to advise their tax practitioner of their property activities.

The GST property tool is an easy-to-use interactive product that will help taxpayers correctly treat and report GST on property sales and other transactions.

It will also support tax professionals and other intermediaries by offering them a tool which will enhance their own knowledge and guide clients through their GST obligations and entitlements related to property.
The GST property tool uses a suite of topic driven decision-making modules, based on a series of questions and answers, to identify the correct GST treatment of property transactions.
The topics covered include:

1. sale, lease or purchase of real property, including
   1. residential premises
   2. commercial residential premises
   3. commercial premises,
   4. vacant land
2. claiming GST credits
3. margin scheme eligibility
4. GST-free supplies of real property.