GST on the sale of a newly developed home

 Author: JayATO(Community Support)Community Support

31 Mar 2026

Hi @deancampbell,

Whether GST applies to the sale of the newly developed home depends on whether your activities amount to carrying on an enterprise. This isn’t determined by whether you’re GST‑registered or whether the development was a one‑off. The key issue is whether the subdivision and construction have the character of a business activity or an adventure or concern in the nature of trade.

An enterprise can exist even for private individuals where land is subdivided, and new residential premises are constructed for sale. While your original purchase of the property was for private use, the later activities involved in subdividing the land and building two new homes (with one now being sold) can indicate business‑like or commercial activity. If you’re carrying on an enterprise and selling new residential premises, the sale will generally be a taxable supply, requiring you to register for GST and report the GST on settlement.

If GST applies, you may be able to use the margin scheme, provided the eligibility requirements are met and the scheme is agreed in writing with the purchaser before settlement. The margin scheme isn’t limited to builders or property developers – it applies to the supply itself, not the type of supplier. GST registration can be completed in your individual capacity, and GST would be reported in the BAS covering the settlement period.

If the development was genuinely private and doesn’t amount to an enterprise, GST wouldn’t apply. This is a fact‑dependent determination, and given settlement is approaching, you should urgently confirm the GST treatment with your adviser or conveyancer.

If certainty is required and time permits, a private ruling can provide a binding outcome, but this may not be practical before settlement.

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