Registering for GST - Trust or Trustee?

I'm buying a property which generates enough income to be required to register for GST. I'm buying the property in trust using a corporate trustee

both the trust and trustee have ABN's but currently only the trust is registered for GST. Does the corporate trustee need to be registered for GST?

 

in that case you are not buying the property. The trustee is. But the trust is considered the relevant taxpayer if the trustee will hold it as trustee. It will need some tax advice to determine whether to register for gst or not

 

Sorry should have stated, I am the sole director of the trustee pty ltd.

It has rent coming in which is over 75K PA.

So if I understand correctly, the trustee doesn't need to be registered only the trust as it receives the income

 

That is irrelevant for this question really.

You should seek your own tax advice. If a trust is going to register for GST it would need a separate registration to that of the trustee.

 

the trust and trustee both have ABN and TFN's already. The trust is registered for GST but the trustee isn't.
the confusion is coming from the conveyancer solicitor I'm using is asking me if the trustee is registered which I didn't 't think it needed to be, only the trust

 

Yes they should be asking of the trust is registered. Probably confused because a trust is not a legal entity, but it is a tax entity.

 

Register the trust

 

There is insufficient information to determine IF the trust is able to lawfully register for a ABN or for GST.

If the trust proposes to own residential real estate GST is not a factor and no ABN is needed. If the premises are non-residential then its likely required for the trust to have registered or be able to do so. The matter of GST should be given tax advice. Then the contract should be checked by the solicitor to ensure the correct clauses concerning GST are addressed. This may include the margin scheme, going concern, GST that is non creditable, fully or partly creditable and the matter of tax invoices. If GST is an element of the purchase price it is not normal for the lender to consider the GST in any finance and this must be funded by the buyer. You dont want to fall short at settlement.

A trustee acts to regsiter the trust for tax urposes. The trustee is not the tax entity. The trust is. However isn all capacities the trustee acts for the trust and the ATO will still address atters to "The trustee for..."" although the taxpayer name will be ABC Trust.

 

sometimes i wonder why accountants cant just keep things succinct. id agree

 

Why write an essay when a few words will do - if someone requires the full explanation, then it's personal or tailored to the situation.

 

some of the responses are like reading a masters thesis.

 

If this is alluding to the length of my post being the longest in the thread I refute the slur. Not all trusts can apply for or hold a ABN and its a tax offence to do so. As a registered tax adviser my post elaborated on the issue ignored by others, including tax advisers, who in the absence of further information extenral to this thread may have made an assumption that the property and or trust income is commercial rent. One third of new trusts that come to me established have a ABN and even GST registration when they hold resi property and shares etc and have no plan to make taxable supplies. I can only suspect they read posts and dont know better and self assesssed the wrong solution. I hope someone learns of the issue from this thread.

 

i was referring to thread being confusing before ross made his post when it really didnt need to be.

i wasnt referring to your post which was made after ross.