Applying benchmark market values

What are benchmark market values

Benchmark market values are amounts we consider are reasonable GST-inclusive market values for accommodation, board and quarters and meals.

The benchmark market values are updated annually. The new values take effect from 1 July each year.

Eligible organisations and supplies

You may use benchmark market values if you are an endorsed charity and supply one of the following types of supplies:

• supported accommodation and community housing (long-term accommodation rates)
• crisis care (short-term and long-term accommodation as appropriate)
• accommodation in a retirement village that doesn't meet the definition of 'retirement village' in section 195-1 of the GST Act (long-term accommodation)
• residential housing (long-term accommodation)
• university halls and residential colleges
• meals on wheels, charity soup kitchens meals or meals to the frail, homeless or needy (meals).

If you're eligible to use the benchmark market values but choose not to, you must use the market value guidelines or get an independent market valuation.

Ineligible organisations and supplies

The benchmark market values don't apply for the following:

• campsite accommodation
• boarding schools
• non-residential buildings, such as halls and offices
• meals supplied through a school tuckshop.

How to use the benchmark market values

The benchmark market value for each type of supply is the GST-inclusive market value.

You cannot average the benchmark market value when you provide different service types or provide services across a range of locations, for example:

• you cannot use short-term accommodation benchmark market values for a capital city and other country centres to get an average value for all short-term accommodation
• you cannot use long-term accommodation benchmark market values for a 1-bedroom unit, a 2-bedroom unit and a 3-bedroom unit in the same building to get an average value for all accommodation in that building.

You cannot use benchmark market values if you have an independent market valuation for the supply within the last 4 years unless the transitional arrangements for market valuations apply.

Benchmark values for types of supplies

See how to use the benchmark market values for the following type of supply:

• Short-term accommodation benchmark market values
• Short-term board and quarters benchmark market values
• Long-term accommodation benchmark market values
• Long-term board and quarters benchmark market values
• Meals benchmark market values
• Charging one fee for accommodation and food

Short-term accommodation benchmark market values

The supply of short-term accommodation by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 75% of the relevant benchmark market value.

See our short-term accommodation and meals tables for the benchmark market values.

Short-term board and quarters benchmark market values

If you supply short-term full board, it's made up of 2 components – accommodation and meals (food). There are different rates to measure nominal consideration for each of these components. You will need to apportion the fee to the accommodation and food components. See Charging one fee for accommodation and food.

Long-term accommodation benchmark market values

The supply of long-term accommodation by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 75% of the relevant benchmark market value.

From 1 July 2018, we updated how we determine the benchmark market values for long-term accommodation to provide more detailed information:

• If your organisation satisfies the requirements of the transitional arrangements for long-term accommodation, you can use either the    
  • transitional benchmark market values, or
  • detailed benchmark market values.
• If your organisation does not meet these requirements, you can only use the detailed benchmark market values.

Transitional arrangements for long-term accommodation

The transition period to 30 June 2023 for moving to the detailed benchmark market values depends on the situation.

You can use either the transitional benchmark market values or detailed benchmark market values if you were either:

• providing long-term accommodation in those premises before 1 January 2019
• commercially committed to the construction of premises before 1 January 2019 (meaning you entered into a legally binding contract with a builder for construction before 1 January 2019) that will be used to provide long-term accommodation.

The detailed benchmark market values and transitional benchmark market values may increase or decrease from year to year depending on market conditions.

You may use the relevant benchmark market value for the period between entering into the tenancy agreement or undertaking a rent review and the date of the next rent review date. If the benchmark market value increases, you can use the higher value from the date it applies to determine if your supply of long-term accommodation is GST-free.

If you are eligible to use the transitional benchmark market values, you can only use them until 30 June 2023. From 1 July 2023, you must use the detailed benchmark market values. This is regardless of when the tenancy agreement was entered into or when the rent review was undertaken.

If you're not eligible to use the transitional benchmark values, you can only use the detailed benchmark market values.

Detailed benchmark market values

The detailed long-term accommodation tables provide detailed benchmark market values for different types of long-term accommodation in different zones in the states and territories.

The benchmark market values may increase or decrease from year to year depending on market conditions.

You can use the detailed benchmark market values published at the time you enter into the tenancy agreement for the duration of the tenancy agreement.

Long-term board and quarters benchmark market values

If you supply long-term full board, it is made up of 2 components – accommodation and meals (food). There are different rates to measure nominal consideration for each of these components. You will need to apportion the fee to the accommodation and food components. See Charging one fee for accommodation and food.

Meals benchmark market values

The supply of meals by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 50% of the relevant benchmark market value.

If your organisation supplies meals to another organisation, such as a hospital, you can't use the benchmark market values. This is because your organisation does not provide the meals to the frail, homeless or needy.

If your organisation purchases food and then provides it to someone else, the market value is the cost of the food you purchased, rather than the benchmark market value for meals.

The benchmark market values for meals not purchased at board and lodging establishments are shown in our short-term accommodation and meals tables.

Charging one fee for accommodation and food

When one fee is charged for both the accommodation and food, apportion the fee to the accommodation and food components. You then compare the individual components to the benchmark market values for accommodation and food respectively. This is to determine if either, or both, the supply of accommodation or food is GST-free.

The supply of the:

• accommodation is GST-free if the consideration for that component of the supply is less than 75% of the relevant benchmark market value
• food is GST-free if the consideration for that component of the supply is less than 50% of the relevant benchmark market value.

If your organisation purchases food and then provides it to someone else, the market value is the cost of the food you purchased, rather than the benchmark market value for meals.

How to apportion your fee

You can use any reasonable method to apportion the fee between the food and accommodation components. We have set out a method below that you may choose to use:

1. Add together the applicable benchmark market values for food and accommodation to get a total benchmark market value. If you are supplying long-term accommodation, check if the transitional arrangements apply.
2. Calculate the benchmark market value for accommodation and the benchmark market value for food as a percentage of the total benchmark market value.
3. Use these same percentages to apportion the total fee charged between food and accommodation.

For short-term accommodation, you may also use the rates in the short-term accommodation and meals tables as the benchmark market value for emergency or crisis accommodation, where the supply is a combination of short-term accommodation and meals.