A point of clarification, when I said that “Levy Contributions are then shown as GST Inclusive on Tax Invoices” I mean’t under the scenario described – not that I was doing that, as our Plan’s not GST Registered.
Further, when I said that Plans receiving income from sources other than from Proprietors’ (levy) contributions “should” pay company tax, that was a subtle reference to the fact that many don’t!
When our Plan parted company with its Strata Manager 6 years ago, as Secretary / Treasurer I inherited all the records, including financial statements and external audits that suggested all was well.
Then I found out that all income other than that from Proprietors’ contributions was not covered by the ATO’s ruling under the principle of mutuality, and that we should have been submitting Company Tax Returns for years. So much for audits !!
As for whether or not the ATO “cares about non-mutual income” (Ben's post), I’d suggest that it cares about simply everything, and that Strata Plans who don’t declare non-mutual income such as interest are risking fines and back-tax assessments, but….as a non-accountant / Secretary & Treasurer of our self-managed Plan I’d like to see some definitive information about the tax obligations of Strata Plans from the experts.