Will a developer have to pay additional GST and/or CGT if the sold property has been assigned to a new buyer at a higher price?
I understand that Assignor will have to pay CGT on the profit but the developer is not liable for any additional GST to CGT burden.
Could someone please please clarify that matter?
Thanks
A developer would be paying GST according to supplies actually made,
but not CGT because developers are taxed as a business.
Hard to make a sensible answer without all the facts.
A developer would be paying GST according to supplies actually made,
but not CGT because developers are taxed as a business.
Hard to make a sensible answer without all the facts.
Thanks for your reply. I will give you a scenario and that might help you answer the question:
A developer sold a piece of land for $150,000 including GST. Since it had an option of the nominee in the contract, an assignment of contract (the legal document that replaces the original contract in certain matters) was created and passed on the land to a new buyer at $160,000 making a $10,000 profit.
I understand the assignor (who passed on the land to a new buyer) will have to pay CGT $10000 less conveyancing expenses and other fees and charges.
My question was, does the developer's tax obligation (CGT or GST) increase because of this?
Thanks
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
380 views
3 replies