Should I be GST registered if dealing in property?

If the total income from your property development activities is more than $75,000 per year and those activities are regarded as an 'enterprise', you may need to register for GST.

Your activities may be regarded as an enterprise if, for example, you buy vacant land to subdivide with the intention to sell at a profit, or you develop new residential premises and sell them. Even a one-off property transaction may be an enterprise.

Property can be:

• land

• land and buildings

• an interest in land, rights over land or licence to occupy land.

When working out your income (turnover) for GST, you do not include:

• the sale of a residence that is not new residential premises

• property sales you make that are private and are not connected to your enterprise (such as your family home)

• residential rental income.

How to register for GST

You can register for GST:

• online via the Business Portal with either

  • your AUSkey

  • through Manage ABN Connections if you have a myGov account linked to ATO, Centrelink or Medicare

• through a registered tax or BAS agent.

Please contact us on (08) 9459 7155 if you seek further assistance. 

Source : ATO Small Business February 2018 
Reproduced with the permission of the Australian Tax Office. This article was originally published at: https://www.ato.gov.au/Newsroom/smallbusiness 

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