Will GST apply to the sale of the family home?
No. In most cases GST does not apply to the sale price of existing residential real estate, including the family home.
Will GST apply to agents fees and advertising costs incurred when selling my property?
Yes. GST applies to agent's fees and advertising costs itemised by the agent before the Appointment of Real Estate Agent (Sales and Purchases) PAMD Form 22a is signed by the seller. Both parties must sign the advertising schedule agreeing to the advertising and marketing items and their costs.
Will GST apply to the sale of new homes by developers?
Yes. GST applies to the sale of newly constructed residential properties by a developer who is registered for GST. The margin scheme (see later) may provide significant savings in this regard.
Will GST apply to the sale of a residential investment property?
Generally, GST does not apply to the sale price of any existing residential property irrespective of whether it is a family home or an investment property. GST will however apply to the sale price of newly constructed homes, including investment properties, which are sold by a developer who is registered for GST.
Will GST apply to the sale of vacant residential land?
GST applies to the sale of vacant residential land notwithstanding that it may have been sold previously, if the entity selling the land is registered or required to be registered for GST, the supply is made in the course or furtherance of the entity's enterprises, the entity makes the supply for consideration and the supply is connected with Australia (s9-5 GST Act). However, the parties to the sale of the land may consider the application of the margin scheme to reduce the amount of GST payable on the sale.
What are chattels?
Chattels are normally removable items in a property, such as a washing machine, and are not included in the sale unless specifically listed.
What does CMA for?
Comparative Market Analysis – a research document based on recent comparable sales produced by the agent to assist the owners establish a price for the property. Section 574A of the Property Agents and Motor Dealers Act definition: CMA for an offered property means a document comparing the offered property with at least three properties sold within the previous six months that are of a similar standard or condition to the offered property and are within 5km of that property.
What is a conjunction?
Where an agent subject to the owner’s instructions in the agent’s appointment allows another agent to introduce a buyer to the property. In this instance both agents share the commission and are acting in conjunction.
What is the exclusive agency method of sale?
Where the sale of the property is in the hands of only one party. This selling method saves the seller the time and money involved in advertising and marketing costs when a number of agents are trying to sell the property.
What are fixtures?
The term fixtures refers to the items affixed to the structures of land, usually in such a manner that they cannot be independently removed without damaging the property. Pool equipment such as filters and pumps are fixtures; while vacuum hoses, Creepy Crawlies and the like which can be detached are normally not regarded as fixtures. If these items are included in the sale they should be separately listed. At the time of listing a salesperson should ascertain whether these items are to be included in the sale and note this on the listing form accordingly.
What is an inventory?
An inventory is a list of items included with the sale of a property including furniture, furnishings and other moveable items.
