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  • 3.2.5 Will GST concessions apply to fees and charges related to commercial accommodation?

    For source of ATO view, refer to GSTR 2012/7 - Goods and services tax: long-term accommodation in commercial residential premises

    ATO position

    The GST concessional treatment applies to taxable supplies of 'commercial accommodation' that are provided in commercial residential premises and provided as long-term accommodation (section 87-5 of the GST Act). The meaning of 'commercial accommodation' under section 87-15 of the GST Act means the right to occupy the whole or any part of commercial residential premises, including, if it is provided as part of the right to so occupy, the supply of:

    (a) cleaning and maintenance, or
    (b) electricity, gas, air-conditioning or heating, or
    (c) telephone, television, radio, or any similar things.

    It does not include the provision of meals, personal laundry, drinks, cost of telephone calls or service charges. Any service that is provided separately to that which is supplied as part of the tariff is unlikely to be considered part of commercial accommodation and therefore the GST concession will not apply, for example, the provision of separately metered electricity, mini bar items, personal laundry or dry cleaning charges, meals and phone calls. These items will attract the full rate of 10% of the value.

    For further information on this issue refer to ‘Commercial residential premises’ in GST and property (NAT 72957).

      Last modified: 19 Jun 2015QC 16478