Understanding GST When Selling on the Gold Coast
If you’re asking, “Do I need to pay GST when selling my Gold Coast property?” the short answer is no for most residential sellers. If you’re selling an existing home or your primary residence, GST doesn’t apply.
But if the property is new, part of a development, vacant land, or commercial, GST rules could affect your contract, price, and profit. Knowing where you stand before listing is essential.
GST and Residential Property Sales
When GST Usually Doesn’t Apply
- You’re selling an existing residential property.
- It’s your main place of residence.
- The sale is a private transaction, not a business activity.
When GST Might Apply
- The property is new residential premises (never lived in or sold).
- You’re a developer or builder selling new homes.
- The property is held in a business entity (company or trust).
- The sale is part of regular property activities (e.g., flipping).
GST and Commercial Property
Selling commercial property on the Gold Coast? GST typically applies.
However, the sale may be GST-free as a going concern if:
- The business is operational at the time of sale.
- Both buyer and seller are registered for GST.
- All business assets (property, lease, stock) are transferred together.
What Is the Margin Scheme?
The Margin Scheme allows GST to be calculated only on the profit margin (sale price minus purchase price or valuation) instead of the full sale price.
Example:
- Buy: $900,000
- Sell: $1.6 million
- Margin: $700,000
- GST Payable = 1/11 of margin ($63,636)
✅ Must be agreed in writing in the contract.
❌ Cannot be applied retroactively.
This scheme benefits developers or businesses selling new property, reducing GST liability.
Main Residence and GST
If the property is your main residence and wasn’t used to run a business or earn income (e.g., Airbnb), GST generally won’t apply.
However, partial business or rental use may trigger GST on part of the sale.
GST Registration and Withholding Rules
- You must register for GST if your annual turnover from taxable property activities is $75,000+.
- Since 1 July 2018, buyers must withhold a portion (typically 7%) of the contract price and pay it directly to the ATO for certain new property sales.
Example Scenarios for Gold Coast Sellers
- No GST Payable: Selling your lived-in family home in Broadbeach.
- GST Payable: A Burleigh Waters developer sells new duplexes.
- GST-Free Going Concern: Selling a Coolangatta café with premises, stock, and lease as a business package.
FAQs: GST When Selling Property
Does GST apply to my family home?
Not usually — if it’s your main residence and wasn’t used for business or rental, GST doesn’t apply.
What is the Margin Scheme?
It lets you pay GST on the “margin” (profit difference) instead of the full sale price.
Do I need to register for GST as a property seller?
Yes, if your property sales turnover exceeds $75,000 and it’s considered a business activity.
How is GST shown in my contract?
Contracts must state if the price is GST-inclusive or GST-exclusive, and whether the Margin Scheme applies.
Can I avoid GST on commercial property?
Yes, if sold as a going concern and both parties are GST-registered.
Why Professional Advice Matters
Misunderstanding GST can cost you thousands in unexpected tax or penalties. Before listing:
- Speak with a tax advisor or solicitor.
- Confirm GST status early.
- Ensure contracts clearly state GST treatment.
👉 At Gold Coast Real Estate Agents, we work with trusted conveyancers and accountants to make sure your sale is compliant and profitable.