What is the distinction between section 19 of the GST Transition Act and Division 75 of the GST Act?
ATO Position Section 19 of the A New Tax System (Goods and Services Tax) Transition Act 1999 (‘the Transition Act’) and Division 75 are not alternative methods of valuing property in a particular situation. Section 19 applies to certain construction agreements which span 1 July 2000, and requires a valuation of work and materials permanently affixed to the construction site as at the start of 1 July 2000, or a later date as determined by the Commissioner This valuation, which does not include land, means the builder will be subject to GST only on the work and materials supplied and permanently affixed on the site on and after 1 July 2000. For more information on section 19 of the Transition Act, see GST Bulletin 2000/D3, entitled ‘How to determine the value of construction work-in-progress’. Under Division 75, the need for a valuation as at 1 July 2000 or later date only arises where a freehold interest in land, a stratum unit, or a long term lease which is acquired or held before 1 Ju
