Should property investors obtain an ABN and register for GST?
The common view is that owners of residential premises do not need to obtain an ABN nor register for GST purposes. After all, an exclusively residential tenant will usually not be in a position to withhold 48.5% PAYG where the owner/landlord has not quoted an ABN. Further, residential rental income is not subject to GST and the owner/landlord is usually not entitled to input tax credits or any benefits from buying or selling property GST-free as a going concern. By contrast, owners of commercial premises are usually wise to obtain an ABN or GST registration. They face the risk that tenants may withhold 48.5% PAYG if they do not quote an ABN. If their annual turnover from commercial rentals and other taxable activities is $50,000 or more, they will be required to be registered for GST and charge GST on commercial rentals. By not registering, they lose potential input tax credits for the GST charged on agency fees, management fees, maintenance, etc. An owner will not be required to obtai
The common view is that owners of residential premises do not need to obtain an ABN nor register for GST purposes. After all, an exclusively residential tenant will usually not be in a position to withhold 46.5% PAYG where the owner/landlord has not quoted an ABN. Further, residential rental income is not subject to GST and the owner/landlord is usually not entitled to input tax credits or any benefits from buying or selling property GST-free as a going concern. By contrast, owners of commercial premises are usually wise to obtain an ABN or GST registration. They face the risk that tenants may withhold 46.5% PAYG if they do not quote an ABN. If their annual turnover from commercial rentals and other taxable activities is $75,000 or more, they will be required to be registered for GST and charge GST on commercial rentals. By not registering, they lose potential input tax credits for the GST charged on agency fees, management fees, maintenance, etc. An owner will not be required to obtai
