The Property Council of Australia has welcomed Assistant Treasurer Bill Shorten’s announcement of new rules that declare sales of homes built under de
16/10/2011Residential development lease arrangements are used by government to partner with the private sector to supply housing on publicly owned land.
On 27 January 2011, the Federal Government announced new rules that applied GST to the sale price of all homes built under development lease arrangements over the past 11 years.
Following the decision the property industry raised concerns about the retrospective application of the proposed rules.
Minister Shorten last week (23 September) announced that the Federal Government’s rules will not be retrospective and will apply to sales of homes under development lease arrangements that were contracted after 27 January 2011.
In line with Property Council recommendations, further transitional relief will be available for some apartments sold after that date.
“The Federal Government has listened to our industry’s concerns and scrapped retrospective rules that would have unfairly punished developers operating in good faith,” Property Council Chief Executive Peter Verwer said.
“The announcement balances the Government’s need to clarify GST rules for sales of homes built under development lease arrangements and industry’s need for certainty and equity,” he said.
Source: Rei
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