Boarding house GST
Question from Shawn updated on 13th December 2017:
I'm looking to start a boarding houses business. What I plan to do is to rent large properties from landlords and sublet them (with permission from the landlords) on a room by room basis. Will I be liable for GST on the rent received from this type of business?
Our expert Mark Withers responded:
Typically, yes. Whilst the supply of accommodation in a dwelling is GST exempt there is a distinction with a commercial dwelling like a boarding house, motel, hotel or hospital. Supply of accommodation in a commercial dwelling is a taxable activity for GST and registration is compulsory if supplies exceed $60000 pa.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.