Strata title bodies corporate are treated as public companies under the tax law and must lodge a tax return for any year in which they derive assessable income. If your body corporate only derives amounts that are subject to the principle of mutuality, then you do not need to lodge a tax return. These amounts are not assessable income.
You cannot use the Strata title body corporate tax return 2019 if your body corporate:
- has net capital gains
- has received franked dividends
- has losses brought forward from earlier income years claimed as a deduction
- has tax offset refunds
- has overseas transactions or interests, or
- needs to make an interposed entity election.
In the above situations you must use the Company tax return 2019.
Capital gain or capital loss
If your strata title body corporate has made a capital gain or a capital loss from a transaction in respect of all or part of the common property, the gain or loss is not included in the tax return for the body corporate. Each proprietor or unit owner must include their share of the capital gain or loss in their own tax return based on their proportion of the lot entitlements.
- Taxation Ruling TR 2015/3 Income tax: matters relating to strata title bodies constituted under strata title legislation.