Check whether the price includes GST and whether a going-concern retention applies
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the contract choices, record whether the sale is a going concern, whether the margin scheme is to apply, whether the sale is not a taxable supply, or whether it is a taxable supply in full or to an extent. If it is a going concern, record whether the purchaser is registered by the date for completion. Do not calculate a withholding amount, and do not decide that the supply is a going concern.
- What the lawyer must review
- The lawyer decides which GST choice applies. Normally GST is not added to the price or any other amount. If the contract says the sale is a supply of a going concern, the parties agree that it is, the vendor carries on the enterprise in a proper and business-like way until completion, and if the purchaser is not registered by the date for completion the purchaser pays on completion a retention sum of the price multiplied by the GST rate, held by the depositholder. If within 3 months of completion the purchaser serves an Australian Taxation Office letter stating registration with a date of effect on or before completion, the depositholder pays the retention to the purchaser; otherwise to the vendor. If the vendor serves a letter stating the vendor has to pay GST, the purchaser pays the assessed GST on demand. Normally the vendor promises the margin scheme will not apply. If the contract says it applies, the parties agree that it does. If the contract says the sale is not a taxable supply, the purchaser promises and represents about use, and pays the price multiplied by the GST rate on completion if the sale is a taxable supply because of a breach of that promise or something else known to the purchaser but not the vendor. If the contract says the sale is a taxable supply in full and does not say the margin scheme applies, the vendor pays the purchaser on completion one-eleventh of the price if the sale is not a taxable supply in full or the margin scheme applies. On completion the vendor normally gives a tax invoice, but not if the margin scheme applies. The GST rate is the contract's term. This check is not the withholding calculation. Confirm the printed edition.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the contract choices, record whether the sale is a going concern, whether the margin scheme is to apply, whether the sale is not a taxable supply, or whether it is a taxable supply in full or to an extent. If it is a going concern, record whether the purchaser is registered by the date for completion. Do not calculate a withholding amount, and do not decide that the supply is a going concern. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Normally GST is not added. A going-concern retention arises only if that choice is marked and the purchaser is not registered by the date for completion.
- The retention is released on an ATO letter served within 3 months, or it is paid to the vendor.
- The one-eleventh payment in clause 13.8 is a vendor-to-purchaser adjustment. It is not the withholding figure.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.
A later edition was not opened. Do not convert this check into the withholding calculation.