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  • 3.4.3 Where an owner of a strata titled apartment leases the apartment to a manager who aggregates it with other apartments for letting out as commercial residential premises, what are the GST implications for the owner?

    For source of ATO view, refer to GSTR 2012/6 Goods and services tax: commercial residential premises.

    ATO position

    When the owner of the strata titled apartment leases the apartment to the manager, the owner is making an input taxed supply under section 40-35 of the GST Act. Even though the apartment takes on the character of commercial residential premises when it is aggregated with the other apartments by the manager, it does not by itself have the characteristics of commercial residential premises. Because the owner is making an input taxed supply, the owners cannot claim input tax credits for any acquisitions in relation to that supply.

      Last modified: 19 Jun 2015QC 16478