Private ruling: GST - short-term lease of residential premises
Date of advice: 28 November 2025
Published: 12 January 2026
Ruling period: DDMMYYYY to DDMMYYYY
Date scheme commenced: DDMMYYYY

Ruling: Q1: Are you, the taxpayer, making an input taxed supply under section 40-35 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you supply short-term accommodation in the X properties (the Properties)? | A1: Yes, you are making input taxed supplies of residential premises in accordance with section 40-35 of the GST Act. This is because the Commissioner considers the Properties are to be used predominantly for residential accommodation and the Properties do not satisfy as commercial residential premises.

Relevant facts and circumstances: You, the taxpayer, operate an enterprise in providing short-term accommodation. You are currently registered for GST and have been registered since DDMMYYYY. The short-term accommodation is provided within X properties (the Properties). You do not own the Properties. You have leased the Properties from their respective owner(s). You have an agreement with each owner to sublet the Properties for short-term accommodation using a digital platform. The first property was acquired on DDMMYYYY. The Properties are all separate dwellings under freehold titles. Each of the Properties is a self-contained dwelling with bedroom(s), bathroom(s), kitchen, toilet(s), living area and laundry facilities. The Properties are made available to guests via a digital platform. All bookings are exclusively managed by a digital platform and payment of the tariffs are received through a digital platform. You do not manage any bookings outside of the digital platform. Any commissions received by the digital platform are calculated and deducted automatically. You do not include GST on the tariffs you charge to the guests, however, since it was assumed that the supply of the short-term accommodation is a taxable supply, GST has been reported and paid in quarterly BAS until recently. Similarly, you have claimed input tax credits for the acquisition/expenses that are related to make the supplies of short-term accommodation until recently. The reporting of GST is an error and you are seeking a private ruling before you amend any previous BAS and income tax returns. You commenced listing your Properties on a digital platform on DDMMYYYY. The entire property is provided to one booking party at a time. The average stay at the Properties is X nights. The guests have exclusive possession of the Properties during their stay. You do not provide the following services at the Properties: • On-site reception or management • Room service or daily cleaning during stay • Food or beverage service • Concierge, tour booking, or similar hotel-style services • Shared facilities typical of commercial residential premises (conference rooms, gyms, pools etc.). Cleaning of the Properties and linen change only occur between guest stays. All guest communication is made via online platform or by phone. The guests check in to the Properties by themselves and access to the Properties is provided via a key secured in a lockbox. The Properties are used solely for guest accommodation in the manner described. The rights of the guests staying at the Properties are set out by the standard agreement issued by the digital platform as you do not enter into direct agreements with the guests. Aside from providing short-term accommodation at the Properties, you also conduct a standard property management business where GST is collected and paid on commission received, and GST credits are claimed on management related expenses.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 40-35 | A New Tax System (Goods and Services Tax) Act 1999 paragraph 40-35(1)(a) | A New Tax System (Goods and Services Tax) Act 1999 paragraph 40-35(2)(a) | A New Tax System (Goods and Services Tax) Act 1999 section 195-1