Online property exchange network Property Exchange Australia (PEXA)has bolstered the capabilities of its digital conveyancing platform to reflect recent legislative changes to Goods and Services Tax (GST) at settlement.
The changes, which took effect last July, require property purchasers to pay GST on the price of new residential premises or potential residential land or potential residential land, straight to the Australian Taxation Office (ATO).
PEXA modified its digital conveyancing system to simplify the management of GST payment to uphold transparency and retain confidence for everyone involved in property settlement.
The new legislation is primarily designed to lower the $1.8bn unsettled GST payments to the federal government, and to eliminate “phoenixing”, a practice in which a company declares bankruptcy then takes on a new name to avoid paying debts and taxes.
“The PEXA platform provides transparency for all parties and added assurance that the new process has been adhered to. The ability to complete GST at settlement through an e-Conveyancing transaction provides certainty for all involved in property exchange,” PEXA group executive, customer and revenue, Mike Cameron said in a statement.
Australian Institute of Conveyancers national president Shane Jacob considers PEXA’s efforts as “a best practice for the industry that is both fast and efficient.”
"Through PEXA, we have the clarity we don’t get in the paper-based world that the GST for relevant properties had been captured,“ he said.
Digital property transactions jump 25%
ASX aims to take on electronic settlement