• 2.2. Are mortgage repayments subject to GST?

    Non-interpretative – other references (see GSTR 2002/2External Link - Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions)

    No. A principal repayment of a mortgage is a consequence of a financial supply and no GST will be payable. A repayment of interest on the mortgage represents consideration for a financial supply and no GST will be included.

    This is in accordance with item 3 in the table in subregulation 40-5.09(3) of the GST Regulations.

      Last modified: 24 Jun 2015QC 16359