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ATO warns developers over GST payments

Dec 03, 2018 - Australian Financial Review

The ATO has issued a taxpayer alert on GST and certain land deals involving government agencies known as "development lease arrangements".

The concern is that some projects, government agencies and developers may be inconsistently applying GST, resulting in a big GST benefit, and that this will have a material impact on GST revenue for state governments.

Developers are being able to inflate their cost bases, reducing the GST payable on the sales of new residential premises (GST is pa...