 |
| Main Menu |
|
| GST - Basics |
|
Lessors cannot charge GST on rental income they receive from tenants of residential properties.
The supply of the residential property by a lessor to a tenant is an input taxed supply.
Input taxed supplies are not subject to GST.
Residential lessors pay GST on some property expenses, such as insurance premiums
and repairs and maintenance but cannot claim a refund of the GST included in the cost of these items.
The lessor is treated as the final consumer who pays the GST.
The renting of commercial properties is a taxable supply. Commercial rents are subject to GST, and GST included
in the expenses of commercial renting can be claimed back as an input tax credit.
So Where the lessor rents a residential property and commercial property the expenses and rents relating to residential
property must be separately recorded.
Only the rentals and expenses from commercial property rentals are recorded in the Business Activity Statement (BAS).
§ Where commercial property is rented for residential use, the rent is not subject to GST, and GST included
in the expenses can not be claimed back as an input tax credit;
§ GST is payable on rents from a residential property rented for commercial use, and GST included
in expenses relating to that property can be claimed back as an input tax credit.
§ Special provisions apply to caravan park owners and to the proprietors
of certain classes of rooming houses.
It is notable that residential rents are free of GST,
but residential lessors can't claim GST paid on expenses.
But doctors and dentists, whose fees are also GST free can
claim back the GST paid on their expenses.
|
|
|
| Advertising |
|
Advertising space for services for property owners
is available both on this website and in our newsletter.
Phone 04 13 99 52 06
We will place on our website free of charge the business card
of enterprises offering discounts to our members.
| |
|
|
USEFUL LINKS
|
|
| The POAVIC is one of the member societies
of the Property Owners
Association of Australia (POAA). The POAA has six members,
comprising the six Australian State and Territory
Property Owners' Associations.
|
![]() |
|
 |
Property Owners' Association of
ACT Inc. |
|
|
Property Owners' Association of
NSW Inc. |
|
|
Property Owners' Association of
Queensland Inc. (including the Northern
Territory). |
|
|
Landlords' Association of SA
Inc. |
|
|
Property Owners' Association of
Victoria Inc. (including Tasmania). |
|
|
Property Owners' Association of
WA Inc. |
Links to the Property Owner Associations in other states may be found on the website of
The Property Owners
Association of Australia (POAA) website,
Click Here. (Opening in a new window.)
| |
| Join the POAVIC Now |
|
The POAVic offers its members seminars, training, an opportunity to meet and
exchange ideas, and a source of reliable information on issues affecting
the owners of residential property - including not only houses and apartments,
but boarding houses and backpackers. By joining -- your support will enhance
and strengthen our scope to influence governement (and opposition) policies
that affect us. We supply practical help and advice on the various issues affecting property
management. Its wise to join now in advance of any sudden issues.
Click here to download our brochure.
as a PDF.
|
|
| Notes on the Retail Leases Act |
What is included in the RLA?
The Act covers far more than shops --
it covers any business that sells a good or service, so it can include all retail premises, most offices and some industrial.
Security Bonds/Deposits
These monies must be held in a specific interest bearing account and the interest needs to be partly distributed to the tenant. Statements need to clearly show the interest paid.
Land Tax is excluded
Land Tax is not recoverable under the Act and to attempt to do so is in fact now an offense.
Leases and Disclosure Statements
A draft lease and disclosure statement needs to be provided to a prospective tenant as soon as negotiations commence.
This is a chore -- but keeping to the book avoids later problems.
Outgoings
Either budgeted itemised outgoings for both the year past and upcoming and copies of outgoings invoices are to be supplied to the tenant.
Lease periods under 5 years
If the lease term and the first option period are under 5 years you must request permission from the Small Business Commission.
Compliance Issues
Whether the paperwork required under the RLA is appropriate or ultimately workable is immaterial.
This new regime is the law. Penalties are substantial and the mediation process is very time consuming. It is a lot easier to comply.
Acknowledgement
These notes are derived in part from remarks made by Mr
Richard O'Callaghan Chairman of the C&I Chapter of the REIV.
|
| Combined Residential/Retail |
|
The above is a pix of two typical suburban shop cum dwellings.
It is possible for the owner to become embroiled in dealing with
both the Residential Tenancy Tribunal and the Retail Tenancy Tribunal
in dealing with such a property - despite leasing
the combined shop and dwelling to a single
occupier. The POAVIC aims to both inform members as to present issues
and to make representaions on their behalf as to ways in which regulations etc can be improved and clarified.
Land tax relief doesn't soothe
Download this Jun 1 2006 article from the Herald-Sun.
|
| |
A member of POAA
network |
Property Owners Association of Victoria Inc.
PO Box
620, South Yarra, Victoria 3141
General Enquiries: 0403 008 090
|
|
| Useful links |
|
