Generally, the sale of a residential property in Victoria does *not* attract Goods and Services Tax (GST). However, there are exceptions, primarily relating to new residential premises or substantial renovations. As of December 2025, understanding these exceptions is crucial for a smooth transaction.
Currently in Melbourne, GST typically applies if you are selling a newly constructed home, or a significantly renovated property within four years of completion of the renovations. ‘New’ includes properties that have undergone extensive structural changes. In the Eastern Suburbs, where we often see substantial renovations to established family homes in areas like Balwyn and Doncaster, sellers need to be aware of this. If GST is applicable, it’s usually 10% and is added to the purchase price. Sellers registered for GST must remit this amount to the ATO. Fletchers’ experienced team can help identify if GST applies to your specific property, factoring in the timing and scope of any recent works. We routinely advise clients on how this impacts their marketing strategy and potential buyer expectations. The process of determining GST applicability often involves reviewing building contracts and renovation invoices. In 2026, we anticipate continued scrutiny of these rules by the ATO.
Understanding GST implications is a key part of preparing your property for sale, ensuring transparency and avoiding potential complications during the settlement process.