Recorded Webinar: GST Issues for Amateur Developers

Inexperienced developers undertaking their first project may include private individuals who see a great opportunity to capitalise on a particular block of land, or an investor who decides to undertake a one-off development project with the intention to only sell enough units to cover the cost of development and to hold the rest as investments. This session considers the specific GST issues that arise with these types of taxpayers, including:

• Does the taxpayer need to register for GST?
  • Is the taxpayer carrying on an enterprise - is there an adventure or concern in the nature of trade?
  • Pros and cons of registering voluntarily
• If registration is required, when should it be done?
  • Advantages of leaving registration as late as possible if margin scheme is available in relation to the property
  • Claiming construction costs
• Key GST issues to consider:
  • Should they use the margin scheme?
  • Potential adjustment events if property is held rather than sold
  • How long can the development be held for before it stops being new residential premises, and what are the consequences?