| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. 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 private advice
Authorisation Number: 1051589211499
Date of advice: 4 October 2019
Ruling
Subject: GST and claiming input tax credits
Question
Can Individual A (the Owner) claim an input tax credit for the acquisition of the residential apartment (the Apartment)?
Answer
No. As the Owner is not registered or required to be registered for GST they are not entitled to claim any input tax credits on the acquisition of the Apartment.
This ruling applies for the following period(s)
1 July 2019 to 31 December 2022
Relevant facts and circumstances
Individual A (the Owner) purchased an apartment which consists of residential premises (the Apartment).
The Owner purchased the Apartment under a contract from Entity A (the Vendor). This contract (on page 2) includes a heading 'Tax information' and in the line "GST: Taxable supply" there is an X inserted in the box against the words "yes in full".
The Apartment is located with a resort (Holiday Resort), where each apartment is individual owned.
The Owner acquired the Apartment for the purpose of leasing out the premises.
The resort is currently managed by a manager and the Owner can choose to either appoint the current manager (for booking purposes only) or manage the Apartment in their own right.
The Owner has chosen to enter into an agreement with the manager under which the manager has been appointed to act as the on-site accommodation letting agent. A copy of this agreement has been provided as part of this request.
Strata by-Laws prohibit the use of the Apartment as a permanent residence or for any other purpose than tourist accommodation.
The Owners GST turnover is less than $75,000 annually.
The Owner is not registered for GST or required to be registered for GST.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 11-20