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We are a small Strata Plan of eight lots. Our annual turnover (ie the total sum of our Strata levies, fees, interest charges etc) is less than the 75,000 dollars per annum threshold. Also, when I receive my quarterly Strata Levy invoice, GST on my Levy is not listed as a separate item so I think I can safely assume our Strata Plan is not a registered GST business, as listing GST separately when payable on an invoice is normally required by law when applied. Does this mean that if a contractor is performing work on our building we can ask them not to add GST to the bill? And if they do add it that we can get it refunded at the end of the FY?
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I think you are confusing GST registration with liability to pay GST. I am no accountant or tax lawyer, so do not take my thoughts as definitive advice.
I think you are correct in that your strata plan does not need to be GST registered, as your turnover is under the threshold (which is actually $150,000 for non profit entity) .
Being registered for GST has no impact on the requirement to pay GST when you purchase goods/services from an entity that is GST registered (eg the tradesman who perform work at your strata plan) . Just like you as individual, you are not registered for GST, but you still pay it when you buy fuel, care servicing, clothes etc. You do not avoid GST by not being registered for GST.
Have a look at the ATO website here
Thanks. this sums it up perfectly.
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You do not avoid GST by not being registered for GST.
Really important to know
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If your plan is not registered for GST, your strata levies are not an invoice for “goods and services”. You are basically just transferring money from your bank account into a “joint account” managed by the OC.
If your plan is not registered for GST, your strata levies are not an invoice for “goods and services”. You are basically just transferring money from your bank account into a “joint account” managed by the OC.
Hi Boronia, it might seem like that, but the owners corporation is a separate legal entity from the owners, with its own Australian Business Number, Tax File Number and tax responsibilities. And it doesn’t matter whether the OC is registered for GST. Its bank account is either in the name of the OC or, if you use a strata managing agent, it may be a trust account operated by the agent. It is not a “joint account” and owners do not have direct access to it and will only be recorded in the account if they are signatories on behalf of the OC.
Yes, but the owners will be taxed on their share of any income or profit the strata scheme makes (apart from levies). Just saying.
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