Private ruling: GST and accommodation
Published: March 2015

Ruling: Q1: Are your supplies of accommodation at the property taxable supplies? | A1: No, you are making input taxed supplies of residential premises. | Q2: Are you entitled to claim input tax credits in relation to accounting and audit fees, property management fees, leasing and maintenance fees. | A2: No, you are making are input taxed supplies by way of lease of residential premises. Consequently, you are not entitled to the input tax credits on expenses incurred in providing those premises.

Relevant facts and circumstances: You are registered for GST. Your property consists of x self-contained double occupancy apartments. The Property is managed by a real estate agency. The Property is approved, under the relevant state guidelines for use as a boarding house. The apartments have an ensuite and kitchen facilities. There are no communal facilities. There is a foyer and an outdoor common area. Your rental agreements have the following features: • the tenants sign agreements for 6 month periods • you and the occupant document the condition of the premises in a 'Condition Report'. The premises are also photographed as a record. The record is signed by the tenant • your agent holds a bond to cover cleaning and/or repair costs • after obtaining agreement, tenants are able to alter part of the premises, such as by attaching hanging devices on a wall • the tenants are permitted to have pets, although none of the current tenants has a pet. Two of the units have yards which could accommodate pets • the tenants must separately arrange and pay for the connection of telephone, electricity and water services • the tenants are responsible for the cleaning and minor maintenance of their units • the tenants provide their own furniture, refrigerator and washing machine You do not provide any food or services to the tenants. You do clean the foyer and outdoor areas. This is arranged through your agent. You have claimed the input tax credits for expenses incurred on construction of the premises.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1 | A New Tax System (Goods and Services Tax) Act 1999 section 40-35