*"GST on property transactions is often incredibly complex, and calculating the GST payable can be a difficult job for even the most experienced of accountants. The compliance burden is now on real estate agents, conveyancers, legal advisers, vendors and purchasers to ensure the amount of GST the ATO requires, as well as when it is payable is done correctly.
Additionally, these new rules mean the ATO is now first in line for settlement proceeds, meaning the Commissioner, in effect, has priority over all creditors, including secured creditors. This may be of concern to investors and financers in real estate developments.
With specific notification timelines, real estate professionals, particularly conveyancers and solicitors, will need to be more prepared to ensure this increased administration is timely and efficient, and that a process is in place to minimise impacts on days on market, settlement timeframes and ultimately business cash flow."*