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Financial 5% GST payable to property agent?, Is this implemented?

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TSvnishimura
post Jul 4 2010, 07:26 PM, updated 16y ago

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Need to know when we dispose our property thru property agents, according to the agents, there is a 5% GST Fee which we have to pay. I have not heard or read in the papers about this. Need forumers views to enlightened me about this.
sonerin
post Jul 4 2010, 07:38 PM

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Depend on how long you already own the property. If your property that you are selling is more than 5 years, then you do not need to pay for the tax. This is called the "property gain tax"
TSvnishimura
post Jul 4 2010, 07:42 PM

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Yes my property is more than 5 years. But why does the agent insist I need to pay? It's not property gain tax. This is govt service tax on top on the 2 % commision paid to the property agent.
Wingz33
post Jul 4 2010, 07:43 PM

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yeah, That is true. Sell or Rent property. There is a form name is "Appoint agent forms", which the landlord appoint an agent to run and sell their property with allow to do advertising.Secondly, the Commission rates stated in the forms too. It is to avoid arguement in between landlord and agents. Because some of the landlord, They break their promise to reduce commission.

In the forms, There is 5% government tax charges to landlord.

Some agents willing to pay for the landlord. It seems like 5% government tax not that much except those 5million property worth. 5 millions to 5%, it is quite pricey.. biggrin.gif
sonerin
post Jul 4 2010, 07:48 PM

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Sorry I misunderstood your question. The 5% goverment tax is a must. Just like buying fast food also got 5% goverment tax.
TSvnishimura
post Jul 5 2010, 09:08 AM

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but according to SOLICITORS, This has not been implemented. Therefore I need to know must we pay the 5% GST?
The agents are very witty these days, most of the time the 2% earners deposit will be kept by them but these days they keep 3% and before they return the 1% they deduct the 5% GST

sonerin
post Jul 5 2010, 10:56 AM

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I am not aware if is a must to pay 5%. If your solicitor said that then most propably he is right.

 

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