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  • 3.1 General

    3.1.1 Do all the main characteristics of 'commercial residential premises' have to be satisfied?

    For source of ATO view, refer to paragraphs 11-12 of GSTR 2012/6 - Goods and services tax: commercial residential premises.

    ATO position

    The main characteristics should be shown to some degree.

    Issue 3.1.2 is now obsolete. The explanations provided at Issue 3.1.2 should not be relied upon as a public ruling for the purposes of Division 358 of Schedule 1 to the Taxation Administration Act 1953.

    This issue is now superseded by Goods and Services Tax Ruling GSTR 2012/6 - Goods and services tax: commercial residential premises.

    This issue previously stated:

    3.1.2 Are all boarding houses treated as 'commercial residential premises'?

    Item 3.1.2 is a public ruling for the purposes of section 105-60 of schedule 1 to the Taxation Administration Act 1953

    ATO position

    The definition of 'commercial residential premises' in paragraph 195-1(a) of the GST Act specifically includes a 'boarding house'. However, in some States of Australia the State legislation requires the guest and provider to enter into a Residential Tenancy Agreement, in some circumstances. In such cases, the premises exhibit characteristics that take them out of the class of 'boarding houses' for the purposes of paragraph (a) of the definition.

    Although they bear the name, 'boarding house', they are not. In effect they are very similar to residential flats. It is noted in GSTR 2000/20 that 'guests' have the right to occupy and enjoy the premises, but not to the extent of having a legal interest in the premises. However, if a residential tenancy agreement exists, the individuals would have a legal interest in the premises and do not have the status of 'guest'. Furthermore, the managers do not have 'control' over those parts of the premises that are subject to the residential tenancy agreements.

      Last modified: 19 Jun 2015QC 16478