When purchasing a new property including through an SMSF, a purchaser may have a GST withholding obligation.  The ATO define new property as property that has not previously been sold and not created through substantial renovation.  The supplier (vendor) needs to provide a purchaser with written notification which could be incorporated into the contract of sale (or a separate notice) advising if the purchaser has a GST withholding obligation.  Once notified the purchaser prior to settlement must notify the ATO by completing a GST property settlement withholding notification, online.  The ATO sends back a withholding number to the purchaser.  The supplier will then notify the purchaser how much to withhold from the settlement monies prior to settlement.  Upon settlement the purchaser withholds the advised amount and sends to the ATO quoting their withholding number.  The above process is usually handled by the purchasers’ lawyers/conveyancers.  The obligation was introduced to prevent vendors (developers) from liquidating their companies prior to paying their GST obligations.  The developer now receives a GST credit against any further GST liabilities which are calculated when preparing the developer’s business activity statement.