The new law provides that new home buyers must ensure that developers pay GST. (CNN picture)
According to Australian News Network, under new federal law, buyers of new homes must ensure that project developers pay the Australian Inland Revenue Authority (Australian Taxation Office) the property's goods and services tax, (GST). The move, which took effect on July 1, means that property transfer fees for property buyers will rise.
Gunning (Malcolm Gunning), head of (Real Estate Institute of Australia), the Australian real estate research institute, said the latest law was another example of the tax collection responsibilities outsourced by the Australian Inland Revenue Authority.
He said: "The changes made the lawyers the same as the tax collectors, both of which must ensure that all the goods were paid at the time of the sale. This means, of course, that the lawyer's work will increase, as some buyers may have to pay more."
Gunning added that many of the changes would not immediately attract buyers' attention. "the aim is to ensure that the government receives taxes," he said. The changes introduced keep the pace of real estate in line with that of commercial property. In commercial real estate, you have to pay all the taxes, or you can't settle them. "
Gunning said this is the real estate industry recently ushered in another law.
In the fiscal year 2007-2018, the federal government announced the change, aimed at cracking down on non-compliance with the goods and services tax laws in the real estate development industry.
联邦政府的数据显示，在2015-2016财年中，控制逾1.3万套房产的355家开发商实施了号称“凤凰涅槃”（phoenixing）的行动。
"Phoenix Nirvana" refers to developers deliberately end business, avoid debt repayment behavior, often appear in the real estate industry. Developers charge home buyers a tax on goods and services, but close their companies before they need to pay such taxes. In the five-year period to November 2017, the practice lost A $1.8 billion in goods and services tax revenues.
Gunning said that while the new changes have increased the complexity of the tax, but these changes are mainly targeted at developers. "I think this change is a good thing, blocking property developers from filing for bankruptcy and avoiding such misconduct in taxes."
