Taxation Administration Act 1953

You must not make a *supply, by way of sale or long‑term lease (within the meaning of the *GST Act), of *residential premises or of *potential residential land to another entity unless, before making the supply, you have given to the other entity a written notice stating:

whether the other entity will be required to make a payment under section 14‑250 in relation to the supply; and

if the other entity will be required to make such a payment in relation to the supply:

the name and *ABN of the entity that is liable to pay the *GST on the supply; and

the amount that the other entity will be required to pay to the Commissioner under section 14‑250 in relation to the supply; and

when the other entity will be required to pay that amount; and

if some or all of the *consideration for the supply will not be expressed as an amount of *money—the *GST inclusive market value of so much of the consideration as will not be expressed as an amount of money; and

such other matters as are specified in the regulations.

However, subsection (1):

does not apply to a supply of *commercial residential premises; and

does not apply to a supply of *potential residential land to another entity if the other entity:

is registered (within the meaning of the *GST Act); and

acquires the land for a *creditable purpose.

To avoid doubt, a failure to comply with subsection (1) does not affect the other entity’s obligation to make a payment under section 14‑250.

You must not fail to give a notice required under this section.

An offence against subsection (4) is a strict liability offence.

For strict liability, see section 6.1 of the Criminal Code.

You are liable to pay the Commissioner a penalty of 100 penalty units if you fail to give a notice required under this section.

Division 298 contains machinery provisions for administrative penalties.

However, you are not liable to a penalty for failing to meet the requirements of paragraph (1)(b) in relation to a supply if, at the time you gave the notice, you reasonably believed that you were not required to meet those requirements in relation to that supply.