All Topics / Legal & Accounting / Do I apply to be GST Registered

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  • Profile photo of HelenaMHelenaM
    Join Date: 2009
    Post Count: 16

    Hi everyone

    Glad to finally be entering your world.

    Im a newby with my first investment property loan approval..woohoo
    Im ready to delve deep into the world of wonder but am wondering do i register for gst now before i start looking.
    I am a self employed mobile bookeeper with abn and no gst registration due to earning under $75g.
    I advised my accountant that im now starting property investing as well as my bookkeeping and should i register for gst now so i can claim all expenses and he said no because its only residential???

    Can anyone shed some light as to what i should do here?


    Profile photo of Scott No MatesScott No Mates
    Join Date: 2005
    Post Count: 3,856

    Generally, you do not need to be registered for gst if you are a sole trader/partnership dealing in residential property however if you were a company it may be a different situation (although the $75k threshold would apply).

    You would be claiming the 'grossed up' ie actual amount paid for your expenses ie the $11 dollars that it may cost not the $10 and offsetting any gst inputs against gst claimed.

    Profile photo of FletcherTaxFletcherTax
    Join Date: 2009
    Post Count: 31

    Hi Helena

    You cannot claim GST on residential property expenses and you would not issue any tax invoices with GST from a residential property either.

    Hence if your bookkeeping business is under the $75k mark – save yourself all the admin involved of being GST registered as you will be lodging NIL statements all the time. Hence you will claim the entire rental income received and entire rental expenses paid, via your Tax Return at year end.

    If you were investing in a commercial property – then GST would apply on both income received and paid/incurred.

    Fletcher Tax Accountants

    Profile photo of HelenaMHelenaM
    Join Date: 2009
    Post Count: 16

    thanks guys for your quick response that clears it up straight away

    hope you dont mind more annoying questions further down the track

    thanks again

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

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