Commercial Property and GST

Viewing 4 posts - 1 through 4 (of 4 total)

Salaberge
Member
@salaberge
Join Date: 2003
Post Count: 7
October 4, 2003 - 9:58 am
Hi Everyone,
I was thinking of starting to look at commercial properties as some of these seem to have higher returns achievable than residential.
Would I need to obtain an ABN and be registered for GST with the ATO if I did this? And would I have to put in a BAS every three months if I invested in commercial property? [xx(]
Kind Regards
Salaberge
creach
Participant
@creach
Join Date: 2003
Post Count: 6
October 5, 2003 - 1:43 am
Hi Salaberge
To claim the GST portion of the purchase price back YES you will need to register for GST and lodge a BAS. Remember than any rent you colect on a commercial property is subject to GST and will need to be declared on a BAS, best to consult a Accountant on this as it can get commplicated.
Regards
Creach
Salaberge
Member
@salaberge
Join Date: 2003
Post Count: 7
October 5, 2003 - 11:21 am
Thanx Creach,
I thought commercial rent attracted GST. I was just hoping there was a way around it. Nothing spells fun like putting in a BAS![]
I might leave the commercial stuff alone for a while then – no need to over complicate things too early!
Salaberge
Elysium-M
Member
@elysium-m
Join Date: 2003
Post Count: 259
October 5, 2003 - 4:19 pm
Hi Salaberge,
As a general rule, I believe that if the turnover of your enterprise is less than $50,000 per year, there is no need to register for GST.
If you’re not registered for GST, you don’t have to remit any GST on your rental income. Therefore, you don’t have to (and in fact CANNOT) charge your tenants GST on the rent they pay you. ie your commercial rental property is essentially GST-free.
The downside, as creach pointed out, is that you can’t claim back any credits on GST which you have to pay (eg on the purchase price, on managing agents’ fees, etc).
Cheers
M