#25165

Hi Dudley,

You are only required to report income that is non-mutual income, such as interest earned on a bank account.  Since your only income is Strata Levies, this is considered mutual income, therefore not reportable to the Tax Office and no tax need be paid.

Link to explanation of non-mutual income – https://www.ato.gov.au/law/view/document? DocID=TXR/TR20153/NAT/ATO/00001

This is a tax ruling showing what a strata corporate body should include as income.  Just for your information.

As for the requirement to lodge a return each year, you can order a paper copy from the tax office – you can use the online ordering service, ring up or go into a tax office store front and ask for a paper copy of the 2016 Strata Tax Return.  Link – https://www.ato.gov.au/forms/strata-title-body-corporate-tax-return-and-instructions-2016/?page=1#How_to_obtain_this_publication.

What I would do (to sort it out once and for all), is get a copy of the form, find the ABN of the Strata Company – (Google search “ABN Lookup”), get the TFN for the Strata (you may need to ask the Strata Manager) and fill out the return as all zeroes.  On the front page of the form it will ask you “Final Tax Return”, put a Y for Yes in this box.  When and if you situation changes and you have mutual income, you can then lodge a tax return if required.  Until this happens the Tax Office will assume you have no requirement to lodge a tax return and you will not need to or be hassled by the Tax Office to lodge a return.  Make sure you make a copy of the form.  The Tax Office may send you out a statement of income tax account, it will simply show the return as lodged with no tax due.  

I understand you may need to talk to the EC or OC about this but it is the best and easiest option, rather than every year going through the hopes with the strata manager. 

I work as a Tax Accountant and we prepare Strata Tax Return for a strata that requires a return to be lodged each year.  However it really is only 5 minutes work.  If you strata manager is outsourcing this job to an accounting firm they maybe changing you hundreds of dollars for something that takes minutes.

Hope this helps