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Commercial property

Last updated 14 December 2022

If you sell, lease or rent commercial property, consider you GST obligations like methods of purchase and GST credits.

Selling commercial property

You can claim GST credits on purchases made relating to selling a property, for example the GST included in real estate agent fees.

You may also sell commercial property:

If you purchase commercial property to use in your GST-registered business, you can claim the GST included in the purchase price. You may also be able to claim GST on other expenses relating to buying the property, for example the GST included in solicitor fees.

You can't claim GST credits if:

  • the seller used the margin scheme to work out the GST included in the price
  • you're not registered or required to be registered for GST
  • the seller wasn't registered or required to be registered for GST.

Leasing or renting commercial property

If you lease out a factory or shop, and you're registered or required to be registered for GST, you:

  • are liable for GST on the rent you charge
  • can claim GST credits on purchases made relating to leasing your property, for example the GST included in the managing agent’s fees
  • you may be able to claim the GST included in rent you pay.

For more information, see GSTR 2000/35 Goods and services tax: Division 156 – supplies and acquisitions made on a progressive or periodic basis (paragraphs 58 to 65).

QC60250