Rental income & GST

Discussion in 'Accounting & Tax' started by devank, 16th Jun, 2017.

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  1. devank

    devank Well-Known Member

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    Are there any changes to the rental income rules? Do we need to pay GST if the turnover is more than 75K even if properties are own by individuals?
     
    devank, 16th Jun, 2017
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Plenty of changes all the time.

    But are you receiving rents from commercial properties?
     
    Terry_w, 16th Jun, 2017
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    • Is it residential? Exempt but input taxed.
    • Commercial? Payable
     
    Scott No Mates, 16th Jun, 2017
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  4. Phantom

    Phantom Well-Known Member

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    Residential rental income is input taxed. Are you referring to commercial perhaps?
     
    Phantom, 16th Jun, 2017
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    When people say input taxed that means
    1. No GST on the rental income and
    2. No entitlement to the GST on outgoings

    Residential rent is input taxed. Commercial and commercial-residential rents (CRR) are taxed if turnover by the owners exceeds $75K. CRR means hotels, motels, boarding houses, caravan parks etc.... So despite it being residential use the commercial nature imposes slightly different tax rules. These tax rules may allow a GST rate of 5% too
     
    Paul@PAS, 19th Jun, 2017
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Is there a reference?
     
    Scott No Mates, 19th Jun, 2017
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    s87.5 ANTS. (Div 87 election) where the accom is predominantly long term accom. This means 28 days or more. So doesnt apply to hotels, motels and similiar
     
    Paul@PAS, 19th Jun, 2017
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  8. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Where does that put Airbnb operators of multiple properties?
     
    Ace in the Hole, 19th Jun, 2017
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    They could be seen a commercial residential but would need to increase the scale and frequency beyond one or two places. ie a small block with lots of beds perhaps and a more commercial impact AND let for 28days or more to get the GST concession. I cant see that with Airbnb but there are some rental disrupters coming that have tweaked my interest. It will soon become a issue I suspect. The GST Ruling explains features here. Most airbnb seem just resi.
     
    Paul@PAS, 19th Jun, 2017
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