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  • Benchmark market values

    Benchmark market values are amounts that we consider are reasonable GST-inclusive market values for accommodation, board and quarters and meals. We publish updated benchmark market values each year.

    On this page:

    Eligible organisations and supplies

    You may be able to use benchmark market values if you are an endorsed charity and you supply one of the following types of supplies:

    • supported accommodation and community housing (long-term accommodation rates)
    • crisis care (short-term and long-term accommodation as appropriate)
    • accommodation in a retirement village that doesn't meet the definition of 'retirement village' in section 195-1 of the GST Act (long-term accommodation)
    • residential housing (long-term accommodation)
    • meals on wheels, charity soup kitchens meals or meals to the frail, homeless or needy (meals).

    If you are eligible to use the benchmark market values but choose not to, you must use the market value guidelines or get a market valuation.

    See also:

    Ineligible organisations and supplies

    The benchmark market values do not apply for the following types of organisations or supplies:

    • campsite accommodation
    • university halls and residential colleges
    • boarding schools
    • non-residential buildings, such as halls and offices
    • meals supplied through a school tuckshop.

    Also, if you have an independent market valuation that is less than four years old, you cannot use the benchmark market values unless the transitional arrangements for market valuations apply.

    See also:

    How to use the benchmark market values

    The benchmark market value for each supply type is the GST-inclusive market value.

    You cannot average the benchmark market value when your organisation provides different service types or provides services across a range of locations, for example:

    • you cannot use short-term accommodation benchmark market values for a capital city and other country centres to arrive at an average value for all short-term accommodation
    • you cannot use long-term accommodation benchmark market values for a one bedroom unit, a two bedroom unit and a three bedroom unit in the same building to arrive at an average value for all accommodation in that building.

    You cannot use benchmark market values where you have an independent market valuation for the supply within the last four years unless the transitional arrangements for market valuations apply – see Market valuations.

    The benchmark market values are updated annually and new values take effect from 1 July each year.

    The following explain how to use the benchmark market values for each of the following types of supplies:

    Using short-term accommodation benchmark market values

    The supply of short-term accommodation by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 75% of the relevant benchmark market value. See Short-term accommodation and meals tables to determine the benchmark market value for short-term accommodation.

    Using short-term board and quarters benchmark market values

    If you supply short-term full board, it is made up of two components – accommodation and meals (food). As there are different rates to measure nominal consideration for each of these components, you need to apportion the fee to the accommodation and food components. See Charging one fee for accommodation and food.

    Using long-term accommodation benchmark market values

    The supply of long-term accommodation by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 75% of the relevant benchmark market value.

    From 1 July 2018, we updated how we determine the benchmark market values for long-term accommodation to provide more detailed information:

    Transitional arrangements for long-term accommodation

    You may have a transition period to 30 June 2023 for moving to the detailed benchmark market values, depending on the situation.

    You will be able to use either the transitional benchmark market values or the Detailed benchmark market values if you were either:

    • providing long-term accommodation in those premises before 1 January 2019
    • commercially committed to construction of premises before 1 January 2019, which means you entered into a legally binding contract with a builder for construction before 1 January 2019, that will be used to provide long-term accommodation.

    The detailed benchmark market values and transitional benchmark market values may increase or decrease from year to year depending on market conditions.

    You can, but are not required to, use the relevant benchmark market value for the period between entering into the tenancy agreement or undertaking a rent review and the date of the next rent review date. If the benchmark market value increases, you can use that higher value, from the date that the higher value applies, for determining if your supply of long-term accommodation is GST-free.

    If you are eligible to use the transitional benchmark market values, you can only use these up until 30 June 2023. From 1 July 2023, you must use the detailed benchmark market values regardless of when the tenancy agreement was entered into or when the rent review was undertaken.

    If you are not eligible to use the transitional benchmark values, you can only use the Detailed benchmark market values.

    Detailed benchmark market values

    The Detailed benchmark market values provide market values for different types of long-term accommodation in different zones within the states and territories.

    The benchmark market values may increase or decrease from year to year depending on market conditions.

    You can use the detailed benchmark market values published at the time you enter into the tenancy agreement for the duration of the tenancy agreement. See Long-term accommodation tables.

    Using long-term board and quarters benchmark market values

    If you supply long-term full board, it is made up of two components – accommodation and meals (food). As there are different rates to measure nominal consideration for each of these components, you need to apportion the fee to the accommodation and food components. See Charging one fee for accommodation and food.

    Using the meals benchmark market values

    The supply of meals by an eligible organisation can be treated as GST-free if the consideration for the supply is less than 50% of the relevant benchmark market value.

    If your organisation supplies meals to another organisation, such as a hospital, you cannot use the benchmark market values. This is because your organisation does not provide the meals to the frail, homeless or needy.

    If your organisation purchases food and then provides it to someone else, the market value is the cost of the food you purchased, rather than the benchmark market value for meals.

    The benchmark market values for meals not purchased at board and lodging establishments are shown in Short-term accommodation and meals tables.

    Charging one fee for accommodation and food

    When one fee is charged for both the accommodation and food, you need to apportion the fee to the accommodation and food components. You then compare the individual components to the benchmark market values for accommodation and food respectively to determine whether either, or both, the supply of accommodation or food is GST-free.

    The supply of the:

    • accommodation component will be GST-free if the consideration for that component of the supply is less than 75% of the relevant benchmark market value
    • food component will be GST-free if the consideration for that component of the supply is less than 50% of the relevant benchmark market value.

    If your organisation purchases food and then provides it to someone else, the market value is the cost of the food you purchased, rather than the benchmark market value for meals.

    How to apportion your fee

    You can use any reasonable method to apportion the fee between the food and accommodation components. However, we have set out a method below that you may choose to use, as follows:

    • Add together the applicable benchmark market values for food and accommodation to get a total benchmark market value. If you are supplying long-term accommodation, check if the transitional arrangements apply.
    • Calculate the benchmark market value for accommodation and the benchmark market value for food as a percentage of the total benchmark market value.
    • Use these same percentages to apportion the total fee charged between food and accommodation.

    For short-term accommodation, you may also use the rates in Short-term accommodation tables as the benchmark market value for emergency or crisis accommodation where the supply is a combination of short-term accommodation and meals.

    Example

    During 2019–20, Emergency Community Care provides emergency accommodation in their Albury hostel. In addition to the accommodation, they provide breakfast and dinner. Their clients make a contribution of $132.00 per day.

    Emergency Community Care looks up the short-term accommodation table for Albury in New South Wales:

    • The accommodation rate for Albury is $134.00.
    • Breakfast $25.20 plus dinner $49.60 for Albury equals $74.80.

    The total benchmark market value for a day in Albury is therefore $208.80 ($134.00 + $74.80).

    The accommodation component is 64.18% of the total benchmark market value ($134.00 ÷ $208.80 × 100) and the meals component is 35.82%.

    Emergency Community Care apportion their charges for Albury as follows:

    • accommodation component is 64.18% × $132.00 = $84.72
    • meals component is 35.82% × $132.00 = $47.28.

    Emergency Community Care compare their apportioned charges with the benchmark market values:

    • The accommodation component ($84.72) is 63.22% of the benchmark value ($134.00), so accommodation in Albury is GST-free.
    • The meals component ($47.28) is 63.21% of the benchmark value ($74.80), so meals in Albury are not GST-free. They are a taxable supply.
    End of example
      Last modified: 15 Aug 2019QC 32370