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What happens when you have to register for GST?

Discussion in 'Accounting & Tax' started by Thread, 7th Apr, 2016.

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  1. Thread

    Thread Member

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    It seems that once you've got 2 or 3 properties rented out, you're likely to hit the GST threshold on the rental income received.

    Curious how you deal with this. Do you try to stay below $75,000, so you don't have to register? Without many GST inputs (except property management GST I guess) to offset, it seems like all bad news to me?
     
  2. HUGH72

    HUGH72 Well-Known Member

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    You don't have to register.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Residential property rent is exempt from GST.
     
  4. Thread

    Thread Member

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    Oh fantastic - well that was easy!
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Residential rent is not a taxable supply unless its commercial residential premises. Sale of new residential premises within 5 years may be taxable if sold however.
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

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    When you say commercial residential premises, does that mean residential investments under a company structure?
     
  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    No. But it may be. Or a trustee or even humans owning it.

    Think of a serviced apartment in a resi building. You own one of them but together all owners (or some) have it managed by Accom Online Pty Ltd and they call it serviced apartments. They do all the cleans, manage desk and reception etc

    Its commercially rented but its residential property for short / medium stay.