Document ID: chunk:federal_register_of_legislation:C2025C00126:section:7:p6
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 7 (pt 6/63)
Character Range: 258422–261144

40‑5  Financial supplies
 (1) A *financial supply is input taxed.
 (2) Financial supply has the meaning given by the regulations.

Subdivision 40‑B—Residential rent

40‑35  Residential rent
 (1) A supply of premises that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is input taxed if:
 (a) the supply is of *residential premises (other than a supply of *commercial residential premises or a supply of accommodation in commercial residential premises provided to an individual by the entity that owns or controls the commercial residential premises); or
 (b) the supply is of *commercial accommodation and Division 87 (which is about long‑term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87‑25.
 (1A) A supply of a berth at a marina that is by way of lease, hire or licence (including a renewal or extension of a lease, hire or licence) is input taxed if:
 (a) the berth is occupied, or is to be occupied, by a *ship used as a residence; and
 (b) the supply is of *commercial accommodation and Division 87 (which is about long‑term accommodation in commercial premises) would apply to the supply but for a choice made by the supplier under section 87‑25.
 (2) However:
 (a) the supply is input taxed only to the extent that the premises are to be used predominantly for residential accommodation (regardless of the term of occupation); and
 (b) the supply is not input taxed under this section if the lease, hire or licence, or the renewal or extension of a lease, hire or licence, is a *long‑term lease.

Subdivision 40‑C—Residential premises

40‑65  Sales of residential premises
 (1) A sale of *real property is input taxed, but only to the extent that the property is *residential premises to be used predominantly for residential accommodation (regardless of the term of occupation).
 (2) However, the sale is not input taxed to the extent that the *residential premises are:
 (a) *commercial residential premises; or
 (b) *new residential premises other than those used for residential accommodation (regardless of the term of occupation) before 2 December 1998.
Note: For sales of residential premises that are new residential premises, the recipient of the supply must pay an amount representing the GST on the supply to the Commissioner under section 14‑250 in Schedule 1 to the Taxation Administration Act 1953, and the entity liable for the GST on the supply is entitled to a credit for that payment under section 18‑60 in that Schedule.

40‑70  Supplies of residential premises by way of long‑term lease
 (1) A supply is input taxed if:
 (a) the supply is of *real property but only to