GST at Settlement: Common Errors & e-Conveyancing

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Did you know that the ATO corrects approximately 45,000 forms a year?

The ATO has noticed common form errors being submitted by purchasers and suppliers. It’s important to recognise the common mistakes to provide correct information and prevent processing delays.

If you are a purchaser or a supplier, review the identified list of errors below to prevent mistakes when you submit your ATO notification form:

  • Errors made by purchasers (or their representatives)
    • Form two not lodged successfully including, multiple Form two’s being lodged.
    • Payment made not equalling to the total withholding amount provided on Form one.
  • Errors made by suppliers (or their representatives)
    • ABN details provided has expired or does not have an active GST role.
    • GST group head details inaccurately filled with GST group members.
    • GST branch number is not provided on Form one where the supplier has multiple GST roles.

Failure to complete the forms accurately and provide the correct details can delay form processes including payment, payment confirmation correspondences to purchasers, and GST property credits transfers to suppliers.

E-conveyancing platforms that have been digitally integrated with the ATO, can easily prevent these errors by reducing:

  • duplication of data entry for purchasers and their representatives (pre-populated information for Form one)
  • spelling mistakes, typos and incorrect details
  • payment errors including duplication, incorrect total withholding amounts and payments made.

This software has a functionality embedded within the platform that allows the creation and lodgment of forms, including direct payment to the ATO for GST at Settlement purposes. Suppliers and their representatives will also have visibility of when the forms and payment are made, including the information provided to the ATO. Purchasers or their representatives will have the ability to cancel Form one without manual intervention.

This makes the GST at Settlement process more efficient, less time consuming and greatly reduces the possibility of delays in the supplier receiving their GST Property Credits.

 

Loretta Bishop-Spalding
Director, GST Real Property (All client experiences)

Australian Taxation Office