Topic: Are we paying too much GST on strata levies? – FLAT CHAT

This topic has 2 replies, 2 voices, and was last updated 8 years, 10 months ago by .

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02/11/2017 at 6:16 pm #11435 Reply | Quote
JCH
If an owners corporation is “registered for GST”, it must pay GST to the tax office.

However, does that mean our strata levies raise by 10% from last year?

Even before the OC was registered for GST, a 10% GST was already included in the strata levy as the OC pays for GST-inclusive Electricity, services from tradespeople, and most other costs in running a strata – so, should we be paying an additional 10% on top of the GST we were already paying previously, just because the OC is now “registered for GST”?

Moreover, a large proportion of strata levies go toward paying for water, which is a GST-free supply, so, should we be paying 10% GST for this water just because the payment is made indirectly through an OC in the form of strata levies?

How should strata levies be properly calculated after the OC registers for GST? I’d like to hear your thoughts.
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Reply To: Reply #28568 in Are we paying too much GST on strata levies?

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