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  • 3.1.3 Does the rental of weekend cottages and other different styles of accommodation by a central manager satisfy the characteristics of 'commercial residential premises'?

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

    ATO position

    GSTR 2012/6 provides that if you supply accommodation in a single detached or semidetached home on its own land, where the guest is granted the right to use the entire premises, they are not commercial residential premises, regardless of the length of stay. These premises are not in the nature of a hotel, motel, inn, hostel or boarding house. Where accommodation of different styles is managed and let centrally and offered by an entity across a range of locations (and not through an agent for others), the various premises must be classified individually using the characteristics that each premises exhibits. It is unlikely that the 'multiple occupancy' characteristic would be satisfied in this case. However, where separately titled adjacent cottages or villas are combined and then offered for letting by an enterprise, they can form commercial residential premises. Adjacent, in this context, means on adjoining or abutting land. Residential premises making up commercial residential premises by being aggregated and let in this manner are similar to offering resort style accommodation. These forms of accommodation are more or less self contained accommodation offered within the larger precincts of the resort.

      Last modified: 19 Jun 2015QC 16478