Browse Forums Home Finance 1 Nov 16, 2011 7:09 pm The home construction costs includes 10% GST and this always show on the progress payments that we submitted to the bank for payment to the builder. When the bank pays this, can they claim 10% GST on this? If so, why they have to include the 10% GST to our home loan? example: Home contract price is $250,000 (GST Inclusive) The bank pays the same amount to the builder $250,000 (GST Inclusive) The total costs should only be $227,272 (GST Exclusive) But we're paying $250,000 plus the current interest rate Any info please? Thanks. Re: Home Construction Costs (GST Inclusive) 3Nov 16, 2011 10:31 pm If this is bought under a personal name; then you can not claim the GST back. However if it's under a company or certain trust structure then yes the GST can be claimed and given back. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Home Construction Costs (GST Inclusive) 4Nov 17, 2011 8:08 pm Thanks for the reply. Can the bank claim the GST that they have paid to the builder? Because if they can claim the 10% GST back why the bank includes that to our loan? Thanks. Re: Home Construction Costs (GST Inclusive) 5Nov 18, 2011 7:41 am You claim it back from your company Tax return. Got nothing to do with the banks. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Home Construction Costs (GST Inclusive) 6Dec 04, 2011 1:00 pm melbournevicau Thanks for the reply. Can the bank claim the GST that they have paid to the builder? Because if they can claim the 10% GST back why the bank includes that to our loan? Thanks. It is nothing to do with the bank. They are just supplying thre money to you to pay to the builder and pay it directly to the builder on your behalf. The GST is not relevant to the bank at all. The GST cannot be claimed back by any entity ( individual, trust, company) on a residential dwelling unless the property is being built to be sold. If the property is being built to be sold and the GST cliamed back then 1/11 of the sales proceeds must be paid to the ATO ( subject to a few adjustments depending on the circumstances). If the residential property is being built to rent out then no GST can be claimed back. Slab Down: 2/6/11 Moved in 13/3/2012 Current Status : Waiting for the garden to grow. My build thread : viewtopic.php?f=31&t=47031 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18896 Hi Mrboh Just wondering if you have any BAL or flame zone issues on your block, as getting compliance with BAL requirements whilst doing bearers and joists is tough. Not… 1 8343 1 7926 |