09 May 2017

Australian Federal Budget 2017-18: Goods & Services Tax (GST)

This article was written by Stuart Courtney

The only surprise GST announcement in the Budget is the introduction from 1 July 2018 of a requirement for purchasers, rather than vendors to remit GST directly to the ATO on the sale of newly constructed residential premises.

Purchasers of newly constructed residential premises to pay GST directly to the ATO

From 1 July 2018, the purchaser of newly constructed residential premises will be required to pay GST directly to the ATO instead of the vendor.

This measure is being introduced due to concerns that the vendors of new property developments are not remitting GST on sales even though the vendors claim input tax credits in respect of their expenses.

It is likely that this measure will also result in a reduction in the amount of stamp duty payable by the purchaser as the GST should not be consideration for stamp duty purposes.

Removal of double taxation on digital currencies

As announced in last year’s Budget, the Government intends to remove the double taxation of digital currency. This measure will take effect from 1 July 2017.

The ATO has issued rulings which state that digital currency is not money for GST purposes. When digital currency is exchanged for goods and services this results in GST being payable on the supply of the digital currency and on the supply of the goods and services. The GST legislation will be amended to remove the double taxation by treating the supply of digital currency in the same way as ordinary currency.

Supplies of gold, silver and platinum

The Budget also confirms the announcement made in March this year that the Government will amend the GST legislation with effect from 1 April 2017 to require the purchasers of gold, silver and platinum to remit GST directly to the ATO.


For a full analysis of this year's Budget measures, please see Australian Federal Budget 2017-18.

Key contacts

Data Central

Have you checked out our new Data Hub? Data Central contains a range of resources to help our clients minimise the legal, regulatory and commercial risks this data-driven environment presents and ensure that its full value is being realised.

Download our analysis as a PDF

Our full Australian Federal Budget analysis is also available in a PDF format.

Share on LinkedIn Share on Facebook Share on Twitter
    You might also be interested in

    The rules regarding an employer’s use of “default” superannuation funds are about to change.

    29 October 2021

    Indonesia’s parliament has introduced a new “omnibus” law – known as the Harmonized Tax Law.

    25 October 2021

    Yesterday, the International Consortium of Investigative Journalists (ICIJ) released the “Pandora Papers”, 11.9 million leaked files (2.94 terabytes of data) that date back to the 1970s, detailing...

    05 October 2021

    Over the course of almost a decade, the ATO has been consistently focused on ensuring foreign income of Australian residents is taxed correctly in Australia.

    27 September 2021

    You may also be interested in...

    Legal services for your business

    This site uses cookies to enhance your experience and to help us improve the site. Please see our Privacy Policy for further information. If you continue without changing your settings, we will assume that you are happy to receive these cookies. You can change your cookie settings at any time.

    For more information on which cookies we use then please refer to our Cookie Policy.