Notice to Property Practitioners   GST at Settlement – Communication from the ATO


Review of the GST at settlement measure

Now that the measure has been operating for 6 weeks, we are reviewing the GST at settlement administrative process and are seeking feedback from industry.  This review will examine the process from the perspective of purchasers and vendors and is being undertaken with a view to identifying what is working well and what could be improved.

Please see the attached discussion paper for further information.

How to be involved?

The ATO will be holding phone hook ups with industry. If you are interested please contact me by 31st August 2018 and I will arrange a time to talk to you.

If you would like to provide written feedback please email me at, by 5th September 2018.

Webinar: GST at settlement – Process guidance and common questions – Thursday 6 September  2-3pm

This webinar will focus on the GST at settlement process for purchasers and suppliers. We will also cover some of the issues we have identified with forms received so far and the queries received from industry since the measure has come into effect. Register here.

Feedback on GST at settlement webpage

For the GST at settlement – a guide for purchasers and their representatives page (QC 56253) and  GST at settlement – a guide for suppliers and their representatives page (QC 56252) we are seeking feedback or improvements about these webpages, and whether or not it meets your needs. These pages are currently open for consultation until Friday 7 September 2018 via Let’s Talk.

ATO administration

We have experienced some issues with despatching the three automated emails for this measure. This has resulted in some delays in these emails being issued. We appreciate your patience, these issues are nearly resolved which will result in timely email confirmation.

If you have any queries relating to your transaction please contact us on 13 28 66 (fast code 3, 4)

Key issues identified in filling out the two forms (Forms instructions)

  1. Incorrect supplier details on form 1:
  • Some vendors are providing incorrect notification to the purchaser on the supplier details to be entered into the form.
  • The supplier/s is the entity that has the GST liability and will be entitled to the GST property credit.
  • An example of the issue we are seeing is notifying the supplier as ABC Pty Ltd (which doesn’t have a GST role) whereas it should be The trustee for the ABC Unit Trust.
  1. Incorrect timing of the lodgement of form 2
  • There have been a number of transactions where the purchaser/representative are incorrectly lodging form 2 before settlement. The purpose of Form 2 is to confirm the settlement date and to add the liability to the purchasers account. Form 2 should be lodged at settlement or as soon as practical thereafter.