Accounting and Tax

5 situations that might trigger a GST adjustment if you bought, sold or rented a property

Katerina Siamatas
4 June 2021
2 min read

4 June 2021

If you’re a taxpayer who is registered for GST and you have bought, sold or rented a property, you may need to make a GST adjustment. This adjustment may need to be in included in your June Business Activity Statement (BAS) that is due either on 21 July for monthly reporters or on 28 July for quarterly reporters of GST.

To help you ascertain if this applies to you, here are five examples of situations that may trigger a GST adjustment:

  1. You constructed new residential properties premises with the intention of selling these immediately after construction. However, because you were unable to find a suitable buyer, you decided instead to rent out the properties or use the properties as your home, until a buyer could be found.

  2. You constructed new residential units solely to rent out once they were completed, but subsequently received an offer too good to refuse and therefore sold those units rather than renting them out.

  3. You purchased a property GST-free as a going concern, but used the property for a purpose other than to make taxable sales or GST-free sales.

  4. You purchased a residential rental property as part of the acquisition of a GST-free going concern and continued renting out the property.

  5. You purchased farmland GST-free but then decided to use part of the land for an activity that involves making supplies that are not solely taxable or GST-free.

If you believe any of the above (or similar) situations may apply to you, please speak to your adviser or get in touch with the Findex Tax Advisory team.

Author: Katerina Siamatas | Associate Partner

Katerina has over 20 years’ experience in providing domestic and international indirect tax consulting services to government entities, multinational companies, large private businesses and not for profit entities. In her role as a specialist tax adviser, Katerina has advised on complex indirect tax matters, including: providing specific transactional advice; undertaking prudential reviews; undertaking impact studies; preparing voluntary disclosures, as well as private ruling and refund requests and liaising with the relevant revenue authorities in relation to these; assisting clients with Australian Taxation Office and other revenue authority reviews and audits, and negotiating on their behalf; advising in relation to mergers and acquisitions (including due diligence reviews); conducting training sessions; and assisting clients with indirect tax governance and risk management, including documenting and improving their policies and procedures. She is well known for working collaboratively with her clients and for providing commercial solutions.