5% GST
GST is taxed on any new home or development, and is paid by the builder or new purchaser of the home. On a 1 million dollar sale, the decrease in GST from 6% to 5% is $10,000. The general summary of new rules state that if possession is transferred after January 1st 2008, then the 5% GST rate will apply. If, for example, an agreement for sale of a presale apartment was signed between May 2nd 2006 but before October 30th 2007 (while GST=6%) but possession was after January 1st 2008 (while GST=5%), purchasers are eligible for transitional rebate of approximately 36% of the GST payable. Your accountant has details.