You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1051250955879

Date of advice: 13 July 2017


Subject: The Trustee for the Family Trust


Will your supply of accommodation in the houses you own, be an input taxed supply pursuant to section 40-35 of the GST Act?


Yes. This is because the premises are not commercial residential premises. Therefore, your supply of accommodation in the premises is input taxed pursuant to section 40-35.

Relevant facts and circumstances

You are not registered for GST. You own a number of houses and supply short term accommodation in these houses.

You employ an individual and his family to perform the daily tasks of your accommodation business in the houses.

Each house is fully furnished and is only available for single bookings at any one time. You supply short term accommodation and most of the stays range from a few days to a couple of weeks. None of the stays exceed 28 days.

You provide all central management and services. The services include linen and laundry of linen. You do not provide meals to guests, however, wine and other condiments are provided as a gift upon arrival.

You undertake all cleaning of the properties after each guest stay, as well as weekly maintenance of lawns and gardens and general repairs and maintenance.

Cleaning of each property is undertaken once or twice a week as well as after each guest stay. The family members also assist in the bookkeeping, day to day banking and payment of accounts for council and water rates, insurances, electricity, gas and other operating costs.

You are responsible for the marketing of the short stay accommodation and have established your own website to advertise the properties. The properties are also advertised on other websites.

Guests are required to pay a deposit to confirm the booking.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 9-5

A New Tax System (Goods and Services Tax) Act 1999 40-35

A New Tax System (Goods and Services Tax) Act 1999 195-1