@Lady Penelope said:
I am not an accountant. Perhaps you should seek advice from an accountant.
Our strata management firm (one of the largest in Victoria) does use accountants for this. It’s those accountants that registered the OC where I live and chair for GST last year when it appeared that the OC’s projected levy income would temporarily exceed $75,000 in a 12 month period (due to special and unpaid levies). They are adamant that this the correct GST threshold for OC/BCs.
I don’t think there’s any doubt that OC/BCs must register for and pay GST once the GST turnover threshold is exceeded. And it’s clear on the ATO’s website that the turnover includes levies:
turnover must include levies on unit owners
All my other (larger) OC/BCs are registered for GST.
What appears to have happened recently is the ATO ruling that OC/BCs are now considered “for profit” organisations. That now sets their GST threshold to $75,000 (not $150,000 as it might have been previously).
AFAIK when OC/BCs spend their income on goods and services, which is what they usually do, they receive GST credits on that expenditure. So, eventually, GST becomes an almost neutral tax for most OC/BCs.
Except that it needs administration (BAS reports etc). And funds raised for long term maintenance might not see any GST credits for many years.
When to exit (cancel the registration) the GST system, as my OC can now do if it so chooses, is another matter! On that we are seeking accountancy advice.