How to prepare Form one and two for GST settlement using PEXA

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The ATO has identified form errors for those who use the e-conveyancing PEXA platform to complete GST property settlements.

If using PEXA, the lodgment of Form two is not automatic. You must select ‘yes’ when prompted for PEXA to lodge Form two automatically at the time of settlement. If ’yes’ is not selected, Form two will not be lodged and the form will need to be lodged manually via the ATO website.

Follow these instructions to prevent this error from occurring:

  1. Select ATO, from the left navigation menu
  2. Click create Form one and Form two
    • Another method is you can click the Create GST Withholding Form one & Form two link displayed in the ATO section on the Workspace Summary
  3. Form one will appear, and the details will pre-populate
    • You can edit these details if required before Form one is submitted.
  4. Once completed you will be required to select Form two to be automatically lodged
  5. The platform will ask, ‘Would you like PEXA to lodge Form two on your behalf at settlement?’
    • Select Yes if you want PEXA to lodge Form two automatically to the ATO at settlement.
    • Select No if you want to lodge Form two manually on the ATO website. If nothing is selected, you will need to lodge Form two manually on the ATO website.
  6. Save the form
  7. Lodge Form one any time prior to settlement
  8. Confirm the details for Form one prior, or on the day of settlement
    • A notification will be prompted asking you to verify whether any details on the form have changed since lodgement.
  9. On settlement, if you have selected Yes for PEXA to lodge on your behalf, Form two will be sent to the ATO. If you selected No or haven’t made a selection, you will need to visit the ATO’s website and lodge.

To read more about online form instructions on the ATO website, visit GST property settlement online forms and instructions. You can also refer to a webinar presented by PEXA for further information on how to create and lodge both forms on their platform.

Thank you to the Australian Taxation Office for preparing this blog on behalf of the Australian Institute of Conveyancers.