Combustible Cladding, GST Withholding and Lapsing PPSR Registration

Combustible Cladding

New Regulations requires all building owners of certain classes of building to complete a checklist by 29 March 2019. Depending on the outcome of that checklist further steps may be required. Penalties apply if the initial checklist and any further required steps are not completed by the dates stated in the Regulation.

After 1 October 2018, sellers of buildings subject to the Regulation are required to disclose (using the approved form) whether the seller has complied with the relevant provisions of the Regulation and hand relevant documents to the buyer prior to settlement.

If you are a buyer of a class 2-9 building or a lot in a community titles scheme it will be important to check about any notices given to them and to strongly recommend searching Body Corporate records to ascertain if combustible cladding is present. There may be cost exposures for you in this case.

GST Withholding

After 1 July 2018, buyers of new residential premises or potential residential land will be required to withhold an amount from the price of the supply for payment to the ATO.

The withholding amount is due on or before the day that consideration for the supply (other than a deposit) is first provided.

Sellers will be required to assist their buyers to comply by notifying them whether or not they have a withholding obligation on supplies of certain kinds of residential premises and potential residential land. Where there is a withholding obligation, the seller must notify the buyer of the amount they must withhold and when they must pay it to the ATO.

Some PPSRs about to expire

The regime for registration of security interests in relation to consumer property or property described by a serial number, such as vehicles and boats, that began when the Personal Property Securities Act 2009 (PPSA) commenced in 2012 may be expiring soon (if the property was registered for the 7 year minimum period).

If your registration expires, your personal property may no longer be valid security for your loan or other financial instrument.

By Steve Grant LLM, LLB, F FIN, CTA

Merthyr Law

Recent Posts

See All

ASIC Should Withdraw Its SMSF Factsheet

The Australian Securities and Investments Commission (ASIC) should withdraw its Self-Managed Superannuation Fund (SMSF) factsheet because it contains “an array of seemingly deliberate inaccuracies”, a

SMSFA Points To ASIC Fact Sheet Inconsistencies

The SMSF Association has criticised the corporate regulator’s focus on the risks of SMSFs in its mailout campaign targeting new trustees, saying the data sources used in its fact sheet are inconsisten