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I believe that in a scheme where all units in the Strata are residential and not commercial then interest received from the Sinking Fund is exempt from tax. Can you please confirm that this is true and, if so, correct the misleading statement above from this podcast?
I can’t confirm that’s true because it isn’t, at least according to this factsheet and this website.
In short, levies are not taxable, but interest earned, as well as penalty fines and late levies penalty interest are (or may be).
You might also have a look at this Strataman page and this webpage from Bannerman Lawyers.
It’s complicated, especially when you get into GST. Hence my comment in the podcast that some strata schemes put their sinking funds into non-interest earning accounts because the interest they earn is less than the cost of filing a tax return (especially these days).