Build-to-rent property developments

The term ‘build-to-rent’ is a broad concept and includes all premises that have been built with the intention of renting or leasing. Different GST treatments apply depending on what type of premises is supplied.

How it applies

If you rent out residential premises for residential accommodation, your rent is input taxed.

Build-to-rent property developments (also referred to as multi-family developments) provide residential rental accommodation. If you are an endorsed charity, gift deductible entity or government school making non-commercial of residential accommodation, your rent is GST-free.

The lease of commercial residential premises is subject to GST.

Commercial residential premises include:

• hotels, motels, inns
• hostels, boarding houses
• caravan parks, camping grounds
• other establishments that provide similar services to the above.

The lease of commercial property subject to GST. Developments may include a mix of build-to-rent and build-to-sell, or a mix of different build-to-rent properties with different GST treatments.

If you are unsure of the correct GST treatment for your build-to-rent property development, we recommend you seek advice from your tax adviser or contact us.

For more information on build-to-rent property developments, see:

• Goods and Services Tax Ruling GSTR 2012/5 Goods and services tax: residential premises
• Goods and Services Tax Ruling GSTR 2012/6 Goods and services tax: commercial residential premises
• Goods and Services Tax Ruling GSTR 2012/7 Goods and services tax: long-term accommodation in commercial residential premises