#52287
Paul Morton
Flatchatter

    It’s likely that the loan was approved by a majority of owners in a general meeting.

    You are correct that there’s no GST on a “financial supply”.  However, my understanding is that the financial supply is between the lender and the owner corporation, not the lender and each owner (and not between the owner corporation and each owner).  It’s an interesting question and I’m not a tax adviser and can’t give tax advice so you must seek your own advice on this one.  While you’re doing so, if you’re an investor, you might ask your adviser about the impact of the strata loan on your after-tax cost of funds.

    Regards

    Paul Morton

    CEO Lannock Strata Finance