Does GST Apply On Investment Property Rent?

10 May 2018 | GST, Investment Property, Tax

A common question we field from clients with a property portfolio is: Does GST apply on investment property rent?

The short answer is no, but there are some tax deductions you should be claiming (see below) so it’s worth speaking to an Accountant.

Stellar Accounts are experts at dealing with property tax implications, including GST on rental property expenses. Call us today on 0428 887 104 for professional, friendly, expert advice.

GST on Residential Rent

Income from renting out part of a residential property is typically considered “input-taxed”. This means that hosts (the property owner/or owners) should not charge GST on the rent that they earn from guests.

Conversely, hosts cannot claim input tax credits for any rental expenses that they incur, but you are entitled to claim the GST inclusive amount of any rental expenses as a tax deduction.

However, be aware that GST may apply if host is taken to provide “commercial residential premises” – which includes, among other things, accommodation that is a hotel, motel, inn, hostel or boarding house. Remember also that being registered for GST is subject to the host exceeding the $75,000 turnover threshold.

Investment Property Tax Advice

If you need to speak to a Certified Practicing Accountant with expertise in Investment Properties, call Stellar Accounts on 0428 887 104 or drop us a quick note here.

Accountant Chermside 4032 - Stellar Accounts

Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.

With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.

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