Proposed changes to GST rules on Land Sales

[Findspace]

The Government is planning some changes on how GST can be claimed on land sales.

You can view the media release HERE!

[Rosco]

Watch the possible change to claiming land/building on the invoice basis. They are trying to change it, so that you have to make payment before the claim is allowed for property deals with delayed settlements over a certain amount ($250k of the top of my head).

With any government or IRD proposals, always wait until they are actually law, as quite often nothing or very little changes.

Ross

[Dean@Massiveaction]

It's sad that they are hell bent on punishing a mythical group of evaders. It's like legislating against the tooth fairy. Why don't they work on benefit fraud or offshore money launderers

[Winston001]

Actually I struggled to make sense of that announcement by Peter Dunne. The law already says that if you sign a contract with settlement more than 365 days away, the Vendor must immediately account for GST.

Maybe IRD are encountering Vendors who owe GST on a sale but are insolvent. It would be possible to set that up.