The GST treatment of services for the preparation of tax returns containing income or deductions that relate to an Australian rental property.
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This information only applies to services supplied on or after 1 April 2005.
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When we say:
- you, we are referring to you as a tax agent
- rental property, we are referring to a residential rental property situated in Australia
- sale or purchase, we are referring to the GST terms supply and acquisition, and
- GST credit, we are referring to the GST term input tax credit.
From 1 April 2005, tax return preparation services you supply to a non-resident owner of a rental property are subject to GST if the owner intends to:
- rent the property, or
- sell the property (excluding the sale of new residential premises).
These services are subject to GST regardless of whether:
- the owner's tax return includes income or deductions from other sources or activities
- part of the property is commercial premises.
You must include GST on tax invoices you provide to non-resident property owners and report the GST you are liable to pay on your activity statement.
Example
Caroline, a non-resident of Australia, has owned a building in Australia since 1995. The building has two levels with commercial premises on the ground level and residential premises on the upper level.
During the financial year ending 30 June 2005, Caroline leases both the commercial and residential premises and derives income and incurs deductions in relation to the property. As a result, Caroline is liable to pay income tax in Australia.
In August 2005, Caroline engages Jim (a GST registered tax agent) to prepare her Australian income tax return for the year ending 30 June 2005. Jim takes into account Caroline's income from both commercial and residential leasing when he prepares her tax return.
Jim's supply of tax return preparation services to Caroline is subject to GST. Jim must pay GST on the whole of his services, not just those aspects of his services relating to the residential part Caroline's building.
Caroline may be entitled to register for GST and claim a partial GST credit for the GST she pays in the price of Jim's services that relates to the leasing of the commercial part of the building.
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More information
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To obtain a copy of our publications or for more information you can:
- visit our website at www.ato.gov.au
- phone 13 28 66
- send an email to GSTnrlandlord@ato.gov.au, or
- write to us at
If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call.
If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 13 36 77. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.
Last Modified: Wednesday, 21 March 2012