Tax clarity for serviced apartment operators

On 6 April 2016, the Commission for Taxation issued an addendum to GST Ruling GSTR 2012/3. 

This ruling explains the GST treatment of care services and accommodation which is provided to people living in a retirement village serviced apartment or privately funded nursing homes and hostels.  

The ruling provides that to be a ‘serviced apartment’, the apartment must have certain characteristics including ‘common corridors’. The addendum to the ruling updates the definition of ‘serviced apartment’ by broadening the Commissioner’s view on the meaning of the term ‘common corridor’. 

The Commission’s clarification, which follows extensive advocacy efforts by the Retirement Living Council Tax Committee, provides greater certainty to taxpayers, and may enable more retirement village units to be classed as serviced apartments and relevant supplies treated as GST-free.

The addendum can be downloaded here.