GST applies to which type of property sales in Australia?
Correct Answer
C) New residential premises and commercial property sold by a GST-registered seller.
GST at 10% applies to sales of new residential premises and of commercial property made by a GST-registered seller in the course of an enterprise. Sales of existing residential premises are input-taxed under section 40-65 of the GST Act, so no GST is charged. A commercial property can be sold GST-free as part of a going concern, but that concession is for a business being sold, not a home.
Why This Is the Correct Answer
Under the A New Tax System (Goods and Services Tax) Act 1999, a GST-registered seller who sells new residential premises or commercial property in the course of an enterprise makes a taxable supply. Existing residential premises are input-taxed, so no GST is charged on them.
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