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  • 3.2.6 Does the guest in commercial residential premises have to be present at all times during the whole long-term stay to satisfy the continuity requirement?

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

    ATO position

    Section 87-20 of the GST Act specifically provides that 'long-term accommodation is provided to an individual if commercial accommodation is provided, for a continuous period of 28 days or more'. A guest who is provided with long-term accommodation in a hotel, motel, inn, hostel, boarding house, caravan park, camping ground or similar premises does not need to physically occupy the premises for the entire duration of the stay for the stay to be continuous. For example, a guest who occasionally leaves the premises overnight to travel, will maintain continuity of the stay provided they are charged for the days they are absent and their suite or room may not be let in their absence. If management moves a guest to another room either when a guest is present or away and charges for the new room, this will be treated as one continuous stay.

    In relation to caravan parks, the right to occupy is granted when a site is hired for a caravan, even if the caravan is left unoccupied for most of the time. The continuity of the stay is not broken. Where the operator moves a caravan from one site to another, but effectively maintains the bookings, this is a continuous site rental. However, if the owner of a caravan and the park operator agree to 'store' the caravan in another area of the park for an agreed fee, the continuity of the site rental ceases when the caravan is moved. The storage breaks the continuity of the stay as the storage of the caravan is a separate supply, subject to the basic rules (section 9-5 of the GST Act).

      Last modified: 19 Jun 2015QC 16478