News

May 2017 | Ken was quoted by the AFR in two articles on May 17 and May 21 which focused on the likely negative impact of Government changes to GST on property developers.

From 1 July 2018 buyers of new residential homes and residential lots will pay the GST directly to the ATO, instead of to the developer. Ken told the AFR this change will have a significant negative cash flow impact for property developers. 

“It could have the effect of putting additional financial pressure on all residential developers and might even end up causing more financial failures,” Ken said.

AFR subscribers can find the full stories by following these links:

Developers face cash-flow crunch from 'terrible tax' warns GST adviser

Property developers warn GST changes beginning to bite 12 months early

Non-subscribers can download a copies of the stories by following these links   May 17 article    May 21 article

The impact of the proposed change is currently unclear in relation to transitional arrangements for contracts entered into before 1 July 2018, responsibility and penalties for calculation errors, whether it will apply to broad acre land acquired ultimately for residential development, preferential payments, financier covenants, etc.

If you are concerned about the impacts that the change may have, then do not hesitate to contact Ken.