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miyamia(Initiate)Initiate
24 Oct 2023

I am doing a business of development of property and registered for GST. Then I built a property 5 years ago. When I built the property, I claimed GST credits on all my building expenses. During the five years, I didn't rent out the property and keep actively marketing for sale, but didn't successfully sold the property. On the six year, I sold the property, but because the property was built more than 5 years ago, it's not consider as a new property anymore, so the selling price not including GST. Do I need to return the GST credit that I claimed before?

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386 views
1 replies

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Most helpful reply

AlliATO(Community Support)Community Support
26 Oct 2023

Hi @miyamia


New residential premises only cease to be new if they have been previously sold or used solely for renting for a period of at least five years since they were constructed.


GST would apply to the sale as it was still a new residential premises, check out our GST at settlement page it provides our description of what is new residential premises and info on what to do if you are selling property.


Because you’re in business developing properties and have claimed the GST credit and now sold the property without adding GST you will still be liable for the GST on the sold contract price. The GST portion will need to be included on your BAS.

All replies

Most helpful reply

AlliATO(Community Support)Community Support
26 Oct 2023

Hi @miyamia


New residential premises only cease to be new if they have been previously sold or used solely for renting for a period of at least five years since they were constructed.


GST would apply to the sale as it was still a new residential premises, check out our GST at settlement page it provides our description of what is new residential premises and info on what to do if you are selling property.


Because you’re in business developing properties and have claimed the GST credit and now sold the property without adding GST you will still be liable for the GST on the sold contract price. The GST portion will need to be included on your BAS.

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