---
title: "Work out GST withholding on new residential premises or potential residential land"
url: "https://ailawframework.com/practice/residential-conveyancing-and-property/work-out-gst-withholding-on-new-residential-premises-or-potential-reside"
type: "task"
site: "AI Law Framework"
id: "A9-OB20261022-1"
practice_area: "Residential Conveyancing & Property"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Work out GST withholding on new residential premises or potential residential land

> From the contract and the supplier's notice, record the contract price, any adjustment before settlement, whether the margin scheme is agreed in writing, whether the purchaser is registered and acquiring for a…

Canonical page: https://ailawframework.com/practice/residential-conveyancing-and-property/work-out-gst-withholding-on-new-residential-premises-or-potential-reside  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Residential Conveyancing & Property](https://ailawframework.com/practice/residential-conveyancing-and-property.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the contract and the supplier's notice, record the contract price, any adjustment before settlement, whether the margin scheme is agreed in writing, whether the purchaser is registered and acquiring for a creditable purpose, and how the purchasers hold the land. Set out the withholding figure the notice states and the figure produced by one-eleventh, or by 7 per cent, rounded down to the nearest dollar. Do not decide that withholding applies. |
| What the lawyer must review | The lawyer decides whether the supply is excluded, whether the margin scheme agreement is effective, what must be withheld, and that a clearance-certificate obligation is a separate question. The lawyer confirms the edition of any standard contract that carries the notice. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer decides whether withholding applies and checks the rounded amount against the supplier's notice.

- What the AI does: From the contract and the supplier's notice, record the contract price, any adjustment before settlement, whether the margin scheme is agreed in writing, whether the purchaser is registered and acquiring for a creditable purpose, and how the purchasers hold the land. Set out the withholding figure the notice states and the figure produced by one-eleventh, or by 7 per cent, rounded down to the nearest dollar. Do not decide that withholding applies.
- What the lawyer does: The lawyer decides whether the supply is excluded, whether the margin scheme agreement is effective, what must be withheld, and that a clearance-certificate obligation is a separate question. The lawyer confirms the edition of any standard contract that carries the notice.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Use 7 per cent only where the margin scheme is agreed in writing before settlement.
2. Round down to the nearest dollar.
3. Do not treat a clearance certificate as answering this question. Both withholdings can apply.
4. Read the exclusion for potential residential land acquired by a registered business for a creditable purpose before stating that withholding is due.

## Notes

- 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.

## Sources

- [ATO, GST at settlement](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-at-settlement) (checked 2026-10-22)
- [Law Society of NSW and REINSW, Contract for the sale and purchase of land, 2022 edition sample](https://www.lawsociety.com.au/sites/default/files/2022-09/Sample%20with%20watermark_2022%20Land%20Contract_0.pdf) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/residential-conveyancing-and-property/work-out-gst-withholding-on-new-residential-premises-or-potential-reside/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*