• What is the GST property tool?

    The GST property tool is designed to help you determine the GST implications for property-related transactions you make. It is an interactive decision making tool based on questions and answers. It will assist you to correctly treat and report GST on property sales and other transactions.

    The topics covered within the tool include:

    • sale, lease or purchase of real property, including
      • residential premises
      • commercial residential premises
      • commercial premises
      • vacant land
    • claiming GST credits
    • margin scheme eligibility
    • GST-free supplies of real property.

    Next step:

    When GST applies to a property transaction

    In most property transactions there is a vendor (seller) and purchaser. If either is registered or required to be registered for GST, there will be GST consequences.

    Property types

    Term

    Definition

    Apartment

    A home unit within a building occupied or intended to be occupied as a residence.

    Bed & Breakfast

    A place, usually a home, at which board and lodging are provided for a fee on a short term basis.

    Boarding house

    A place, usually a home, at which board and lodging are provided for a fee.

    Caravan park

    Premises where guests are provided with sites with or without a caravan, demountable home or permanent cabin to occupy for a fee.

    Commercial premises

    The term 'commercial premises' is generally used to describe property that is not residential or commercial residential and includes shops, factories, warehouses, showrooms and depots.

    Commercial residential premises

    Premises such as hotels, motels, inns, hostels, boarding houses, marinas, caravan parks and camping grounds or premises similar to these types of premises.

    Factory

    Refer to: Commercial premises.

    Farmland

    Land upon which a farming business has been carried on.

    Hostel

    A supervised place of accommodation, usually supplying board and lodging provided at a comparatively low cost, as one for students, young people, nurses or the like.

    Hotel

    A building in which accommodation, food and alcoholic drinks are available from a central management.

    House

    Free standing building occupied or intended to be occupied as a residence.

    Inn

    A small hotel that provides lodging, food and/or refreshments for travellers and others.

    Long Term Lease

    A lease for at least 50 years, which is expected to continue for at least 50 years and, unless the lessor is an Australian Government agency, the lessee has substantially the same rights to the premises as those enjoyed by the lessor.

    Marina

    A boat harbour offering dockage and other services for small craft.

    Motel

    A roadside hotel which provides accommodation for travellers in self-contained, serviced units, with parking for their vehicles.

    New residential premises

    Premises that have not previously been sold as residential premises, including premises substantially renovated or built to replace demolished premises other than premises that have been rented out as residences for a period of at least five years.

    Part office/shop - part residential

    Premises that consist of both commercial and residential premises.

    Partly developed property

    Property where building development works are not complete.

    Residential premises

    Premises such as a house, apartment or unit occupied or intended and capable of being occupied as a residence or for residential accommodation.

    Serviced apartment

    Apartments offered for hire with some level of service provided. As a minimum regular cleaning and security are offered. In other cases full hotel services are offered, but self-catering facilities are provided.

    Shop

    Refer to: Commercial premises.

    Showroom

    Refer to: Commercial premises.

    Vacant land

    Land upon which there are no buildings or land where any previously existing buildings have since been degraded or demolished.

    Warehouse

    Refer to: Commercial premises.

    See also:

    Last modified: 05 Apr 2017QC 25064