Memo from the ATO – GST at Settlement

GST at settlement draft law changes:

Treasury have released a Miscellaneous amendments to Treasury portfolio laws 2018 exposure draft Bill and Regulations:

The draft changes to the GST at settlement law are as follows:

  • Notification by suppliers of residential premises: To assist the purchaser with identifying who is ultimately liable to GST on the supply, and therefore who the payment to the ATO should be made in relation to, the amendment to subparagraph 14-255(1)(b)(i) refers to the person who is liable to pay the GST on the supply, rather than the entity that made the supply.
  • Refund by Commissioner of amount withheld from payment in respect of a supply of real property: Where a payment is made purportedly under section 14-250, the supply to which the purported payment relates may not be a taxable supply. For example, if it is of existing residential premises, then that supply will be input taxed and not a taxable supply. To remove doubt that a payment can be made in relation to a purported payment under section 14-250 where the supply to which it relates is later discovered not to be a taxable supply, Schedule 1 to the exposure draft Bill removes the word ‘taxable’ from the section
  • Machinery provisions applying to administrative penalties under Subdivision 14-E: The amendment updates section 298 5 to ensure administrative penalties imposed under Subdivision 14 E in Schedule 1 to the TAA 1953 are covered by Division 298.

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.


Inquiries about supplier credits

We are also experiencing some credit allocation/transfer issues that we are addressing, so if a vendor/supplier needs to inquiry about their GST property credits they can email their inquiry to and provide the following details:

  • Details of the inquiry
  • Supplier name
  • Supplier ABN
  • Purchaser name/s
  • Credit amount
  • Lodgement reference number (LRN) or payment reference number (PRN)
  • Property details
  • Settlement date
  • Preferable contact name and number

This email address is only to be used for GST property credit inquiries, other inquires need to go through 13 28 66 (fast code 3,4).


Government, Law Assurance & Not for Profit Branch
Indirect Tax
Australian Taxation Office