Is there any relief available if the owners refuse to reimburse for the 10% increase in levies?
ATO Position Under the Goods and Services Tax (‘GST’) legislation, the obligation to remit GST rests on the supplier (s. 9-40 A New Tax System (Goods and Services Tax) Act 1999). It is the supplier who is liable for the GST. GST of 10% is payable on taxable supplies. For entities registered for the GST, input tax credits are available for the GST included in the price of goods and services acquired. Supplies made to the Body Corporate/Owners’ Corporation may be creditable acquisitions and therefore Input Tax Credits may be claimed. There is no provision in the legislation placing an obligation upon the owners to reimburse for the GST that must be remitted. Recovery of the GST which must be paid is determinant on the powers granted under the State of Territorial legislation regulating the Body Corporate/Owners Corporation.
