GST & Property: Key Issues in Practice– a recorded lunchtime online conference

Duration: Approximately 2.5 Hours

Hear from the experts at this online conference. You can watch it on your computer or on your portable electronic device from anywhere.

The conference will be based on our highly successful video webinar technology: there'll be a chairperson and presentations.

One registration can be shared by colleagues within the same firm utilising the same login.

THE PROGRAM

Session 1: GST and the Margin Scheme: Calculations and other Curly Conundrums

The margin scheme is an option to use for calculating GST on the taxable supply of real property, including granting or selling a long- term lease. When opting to use the scheme, a recent AAT case highlights the importance of getting the calculation method right at the outset. This session drills down on the calculation methods to use, including:

• When to use the valuation method and when to use the consideration method
• For the consideration method:

• How are settlement adjustments treated?
• How are Government charges treated?

• When a valuation is required and the requirements of MSV 2020/1
• What if the vendor incurred costs as a condition of the original purchase? Can those costs form part of the margin calculation? (WYPF v FC of T [2021] AATA 3050)
• What costs incurred pursuant to a contract are considered to be non-monetary consideration? (PBR 1051828236054)
• Practical examples of margin scheme calculations

Session 2: GST Free Farmland: More to It than Meets the Eye

Selling the farm can avail the participating parties to the GST free farmland concession. However, there is more to it than just opting for the concession to apply. There are conditions for both buyer and seller and when those conditions include future use, there are bound to be uncertainties. This session explores the GST free farmland rules to assist practitioners in getting it right, along with a heads up on what can go wrong, including:

• The conditions for:

• The seller
• The buyer
• Subdivided farmland

• What if the farming business or equipment is sold with the land?
• What if the farmland has a residential property on it? (GSTA TPP 092)
• The pros and cons of using:

• The GST free farmland provisions
• The GST free going concern provisions, if eligible
• Treating the sale as a taxable supply

• What if the buyer intends to operate a farming business, however:

• Can’t get farming approval
• Uses the property for agistment
• The ATO considers the activity is more akin to a hobby farm

• Who is liable for any increasing GST adjustments that may arise?
• Is there any documentary evidence required to support the purchaser’s intention to carry on a farming business?
• Case studies

Session 3: GST and the Build-to-Rent Model

The build-to-rent (BTR) model is gaining traction as an emerging asset class. The GST implications for this model are vastly different to those of a build-to-sell (BTS). This session explores the GST treatment of the BTR property development model, including:

• A background to the BTR model
• The distinction between the GST treatment of a BTR project and a BTS project, including the implications for:

• Construction costs
• Ongoing costs relating to the leasing of the property
• Selling the property

• What if a BTR project is considered to be the constructing of commercial residential premises?
• BTRs and the interaction of the five year continuous rental rule for new residential premises
• What if there is an intention to sell part or all of the property in an indefinite time in the future? (GSTR 2009/4)
• GST implications for purpose BTR projects, including:

• Retirement villages
• Student accommodation

• Practical examples