Treasury Laws Amendment (2018 Measures No. 1) Bill 2018
What changes have been made to the GST law?
On 13 February 2018, the NSW Government introduced the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018 (Bill) that proposes to change the way GST is paid for particular real property transactions. The Bill will not become law until it has received Royal Assent.
The proposed amendments were introduced to address non-compliance by vendors who avoid payment of GST through a process known as ‘phoenixing,’ whereby the vendor would dissolve their business prior to lodgment of their next BAS statement.
As part of the settlement process, purchasers will be required to remit the GST applicable to the sale directly to the Australian Taxation Office (ATO), as opposed to the current framework whereby the vendor is responsible for remitting the GST.
