The Assistant Treasurer has released exposure draft legislation and explanatory material to ensure GST is payable on the full value added to newly constructed residential premises by developers and builders.

The legislation will not apply to sales of residential premises constructed under binding contracts entered into prior to 27 January 2011.

The measure also will not apply to supplies of residential premises made on or after 27 January 2011 if the supply is because of a property subdivision plan lodged before that date.