5 situations that might trigger a GST adjustment if you bought, sold or rented a property

Katerina Siamatas

If you’re a taxpayer who is registered for GST and you have bought, sold or rented a property, you may need to make a GST adjustment. This adjustment may need to be in included in your June Business Activity Statement (BAS) that is due either on 21 July for monthly reporters or on 28 July for quarterly reporters of GST.

To help you ascertain if this applies to you, here are five examples of situations that may trigger a GST adjustment:

  1. You constructed new residential properties premises with the intention of selling these immediately after construction. However, because you were unable to find a suitable buyer, you decided instead to rent out the properties or use the properties as your home, until a buyer could be found.
  2. You constructed new residential units solely to rent out once they were completed, but subsequently received an offer too good to refuse and therefore sold those units rather than renting them out.
  3. You purchased a property GST-free as a going concern, but used the property for a purpose other than to make taxable sales or GST-free sales.
  4. You purchased a residential rental property as part of the acquisition of a GST-free going concern and continued renting out the property.
  5. You purchased farmland GST-free but then decided to use part of the land for an activity that involves making supplies that are not solely taxable or GST-free.

If you believe any of the above (or similar) situations may apply to you, please speak to your adviser or get in touch with the Crowe Tax Advisory team.