I understand that developers have to charge GST on new residential apartments, however its not necessarily 10%, usually less because of the margin scheme (GST is only charged on the development, not the land).
Can this GST be fully claimed back if you buy the property as an investment which is held in a Trust structure (with an ABN etc)?
e.g. The property is $330k, GST is $15k, can you get $15k back making the property effectively $315k after your GST rebate?
I know this is possible on commercial property but on commercial property you also have to charge GST on rent, so its completely different. I have also heard that it may be possible for retirement living but you should get a private tax ruling.
I believe (and I am no authority) you may only claim GST back if you actually charge GST in the rent. It is your choice.
This certainly applies with a company structure I am not 100% sure with trust.
Reckon you cant have your cake and eat it too!!
I hope this is of some small assistance.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
vexil,
My understanding is since you don’t charge GST on the rent, you can’t claim GST on residential expenses.
Rhys
hi all
I’m no accountant either thats why I have robert but who said you don’t charge gst on rent any thing over $50.00 (and I hope your rent is more then $50.00)is subjected to gst.
The trust should have a company above it so this process can be done.
You also need it for the running of the investment and a whole lot of other reasons.
I don’t get involved in it I leave the accountant to that.
But with respect to gst there is no difference between resi or comm they are seen the same and both use margin scheme I hold and develop both.here to help
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