Developing property in Warrnambool? Read this before you sign your contracts

Posted on 24/11/2021 by Sean Delaney in General News, Mortgage Broking
Sean Delaney
Sean Delaney is an Accounting and Taxation Principal based the Sinclair Wilson Warrnambool office. He visits our Colac office every Wednesday. Sean specialises in providing his clients with Succession and...

There are many factors that contribute to the success of a Warrnambool property development; some you can control. Others will always be beyond your control.

One factor that can always be within your control, AND make a big difference to your profits is understanding how the GST works in relation to your planned development.

As property specialists, Sinclair Wilson has intricate knowledge of how to ensure the GST plays to your advantage to ensure you get the most from your plans, your land and your investment.

Below is a list of the two most important ways GST can impact how successful your property development could be:

  1. Your initial purchase contract.

How you buy the property can impact on how much GST you have to pay when you sell the property.  Different GST outcomes will result whether you buy the property as:

  • A taxable supply
  • A supply of farm land or a going concern
  • A purchase from an unregistered supplier

Getting this right on the initial purchase contract can be critical and, depending on the size of the transaction, can save you significant dollars.

If you are able to successfully negotiate the GST terms in the purchase contract, it can sometimes be a win-win arrangement with the vendor.

We have had a number of transactions with clients where we have been able to help negotiate a favourable outcome for both parties.

  1. When it comes time to sell

Are you eligible to use the margin scheme?

Can you sell as a going concern?

Are you still required to be registered for GST?

Again, understanding your options can have a big impact on the bottom line. This is where tapping into expert advice is critical.  No two transactions are ever the same.

Before you sign a contract, touch base with Sinclair Wilson to discuss the best way forward for the situation at hand. Our Property and Development specialists deliver a unique blend of experience, local knowledge and industry networks