ATO ID 2002/969: GST and the supply of accommodation in a university residential college to non-students
Date of decision: 30 August 2002
Business line: Indirect Tax

Issue
To the extent that the university residential college is used to provide accommodation to non-students, is it 'commercial residential premises' as defined in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Decision
Yes, to the extent that the university residential college is used to provide accommodation to non-students, it is 'commercial residential premises' as defined in section 195-1 of the GST Act.

Facts
The university supplies accommodation in its residential college to both students and non-students. The accommodation is hostel-style accommodation (consisting of board and lodging).

Reasons for decision
Summary: Under paragraphs (a) and (f) of the definition of 'commercial residential premises' in section 195-1 of the GST Act, a hotel, motel, inn, hostel, boarding house or anything similar to those types of premises is 'commercial residential premises' for the purposes of the GST Act. The terms 'hotels', 'motels', 'inns', 'hostels' and 'boarding houses' are not defined in the GST Act. Paragraph 75 of Goods and Services Tax Ruling GSTR 2000/20 provides that they take their ordinary or common meaning subject to context. The Macquarie Dictionary defines the term 'hostel': '1. A supervised place of accommodation, usually supplying board and lodging provided at a comparatively low cost, as one for students, nurses, or the like. 2. ... ' The accommodation in the university residential college is hostel-style accommodation (consisting of board and lodging). This meets the ordinary meaning of the term 'hostel'. Therefore, the university residential college is 'commercial residential premises' as defined in section 195-1 of the GST Act. However, section 195-1 of the GST Act excludes from the definition of 'commercial residential premises', premises to the extent that they are used to provide accommodation to students in connection with an education institution that is not a school. The university is an education institution and not a school. This means the exclusion in section 195-1 of the GST Act would apply to the extent that the accommodation in the university residential college is provided to students. In this case, the accommodation in the university residential college is supplied to non-students. This means that the exclusion does not apply. Therefore, to the extent that the university residential college is used to provide accommodation to non-students, it is 'commercial residential premises' as defined in section 195-1 of the GST Act.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 195-1
Related public rulings and determinations: Goods and Services Tax Ruling GSTR 2000/20
Related ATO interpretative decisions: ATO ID 2002/970 | ATO ID 2002/971
Other references: The Macquarie Dictionary,1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales.
Subject references: Goods and services tax GST education Student accommodation - tertiary GST property & construction GST commercial residential premises GST long term accommodation GST residential premises GST residential rents GST long term accommodation GST residential premises