If the total income from your property development activities is more than $75,000 per year and those activities are regarded as an ‘enterprise’, you may need to register for GST.
Your activities may be regarded as an enterprise if, for example, you buy vacant land to subdivide with the intention to sell at a profit, or you develop new residential premises and sell them. Even a one-off property transaction may be an enterprise.
Property can be:
- land and buildings
- an interest in land, rights over land or licence to occupy land.
When working out your income (turnover) for GST, you do not include:
- the sale of a residence that is not new residential premises
- property sales you make that are private and are not connected to your enterprise (such as your family home)
- residential rental income.
If you are not sure if you need to register for GST feel free to contact our tax specialists to receive the right advise specific for your situation.