The Government has released exposure draft legislation on the application of a goods and services tax (GST) on newly constructed residential premises.
Under the changes, GST will not apply to any new residential premises constructed prior to 27 January 2011. Any new constructions after this date will be subject to tax, stated Minister for Financial Services and Superannuation Bill Shorten.
According to the announcement, the proposed legislation will not apply to supplies of residential premises made on or after 27 January 2011 if the supply is because of a property subdivision plan lodged before that date.
"The measure contained in the draft legislation will ensure GST applies as intended to sales of new residential premises to home buyers and investors by builders and developers," Shorten said.
The draft legislation and explanatory memorandum are available on the Treasury website and open to public consultation until 21 October 2011.
