A new building is residential premises that is one of the following:
- has not previously been sold or transferred as residential premises (e.g. purchasing a new home directly from a developer)
- has been built, or contains a building that has been built, to replace demolished premises on the same land
- has been created through substantial renovations.
Substantial renovations are generally renovations in which all, or most, of the structural or non-structural components of a building are removed or replaced.
Most of the rooms in the previous building must have been affected, and the renovations must have affected the building as a whole.
The sale of substantially renovated residential premises generally attracts GST.