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Re: Do ATO care what price the land is sold

Newbie

Views 111

Replies 3

Hi 

 

Boguht land off the plan at that time the price of the land is very low due to unexpected growth the value of land has increased. 

 

Now for settlement will ATO demand to pay GST as per to the market price or the price for which the contract is made ? Do ATO really care at what price the land is sold.

 

In summary do ATO really care about selling price .

 

Thanks

 

 

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hello @Abuyer

 

GST is paid on the contract price and needs to be included in the contract. CGT is worked out when you lodge your tax return.

 

Smiley Happy

3 REPLIES 3

ATO Community Support

Replies 2

Hello @Abuyer

 

The selling price isn't important to us, only the GST and tax implications.

 

If the land is being sold as part of a business or enterprise, GST will likely apply, so I recommend having a read about GST and property on our website.

 

You may also want to have a read about capital gains tax.

 

Let us know if you have any questions about the info in the links above.

 

Smiley Happy

Newbie

Replies 1

Thanks for the clarification.

One more 

GST/CGT  to be paid on contract price or ATO will ask to pay as per to the current market value.

 

 

Thanks 

 

Most helpful response

ATO Community Support

Replies 0

Hello @Abuyer

 

GST is paid on the contract price and needs to be included in the contract. CGT is worked out when you lodge your tax return.

 

Smiley Happy