GST on residential rental property
Question from kausalya updated on 27th February 2007:
Our expert responded:
Residential rental property is exempt from GST, so it follows that you cannot claim GST on the purchase price. Only developers and property traders who are buying property with the intention of on-selling it may claim GST on residential rental property under the second-hand provisions of the GST Act.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.