What is the GST property tool?

Buying, selling, leasing or developing property?

Our interactive property tool can help you understand your taxationobligations and entitlements. It’s quick to complete and you will be provided with a summary of your situation and how GST applies to your property transactions.

What is the GST property tool?

The GST property tool is designed to help you determine the GST implications for property-related transactions you make. This product is an interactive decision making tool based on questions and answers. It will assist you to correctly treat and report GST on property sales and other transactions.

The topics covered within the tool include:

  • sale, lease or purchase of real property, including

  • residential premises

  • commercial residential premises

  • commercial premises

  • vacant land

  • claiming GST credits

  • margin scheme eligibility

  • GST-free supplies of real property.

To understand how GST applies to your real property transactions, use the GST property tool.

End of further information

When does GST apply to a property transaction?

In most property transactions there is a vendor (seller) and purchaser. If either is registered or required to be registered for GST, there will be GST consequences.

Property types

Term

Definition

Apartment

A home unit within a building occupied or intended to be occupied as a residence.

Bed & Breakfast

A place, usually a home, at which board and lodging are provided for a fee on a short term basis.

Boarding house

A place, usually a home, at which board and lodging are provided for a fee.

Caravan park

Premises where guests are provided with sites with or without a caravan, demountable home or permanent cabin to occupy for a fee.

Commercial premises

The term 'Commercial premises' is generally used to describe property that is not residential or commercial residential and includes shops, factories, warehouses, showrooms and depots.

Commercial residential premises

Premises such as hotels, motels, inns, hostels, boarding houses, marinas, caravan parks and camping grounds or premises similar to these types of premises.

Factory

Refer to: Commercial premises

Farmland

Land upon which a farming business has been carried on.

Hostel

A supervised place of accommodation, usually supplying board and lodging provided at a comparatively low cost, as one for students, young people, nurses or the like.

Hotel

A building in which accommodation, food and alcoholic drinks are available from a central management.

House

Free standing building occupied or intended to be occupied as a residence.

Inn

A small hotel that provides lodging, food and/or refreshments for travellers and others.

Long Term Lease

A lease for at least 50 years, which is expected to continue for at least 50 years and, unless the lessor is an Australian government agency, the lessee has substantially the same rights to the premises as those enjoyed by the lessor.

Marina

A boat harbour offering dockage and other services for small craft.

Motel

A roadside hotel which provides accommodation for travellers in self-contained, serviced units, with parking for their vehicles.

New residential premises

Premises that have not previously been sold as residential premises, including premises substantially renovated or built to replace demolished premises other than premises that have been rented out as residences for a period of at least five years

Part office/shop - part residential

Premises that consist of both commercial and residential premises.

Partly developed property

Property where building development works are not complete.

Residential premises

Premises such as a house, apartment or unit occupied or intended and capable of being occupied as a residence or for residential accommodation.

Serviced apartment

Apartments offered for hire with some level of service provided. As a minimum regular cleaning and security are offered. In other cases full hotel services are offered, but self-catering facilities are provided.

Shop

Refer to: Commercial premises

Showroom

Refer to: Commercial premises

Vacant land

Land upon which there are no buildings or land where any previously existing buildings have since been degraded or demolished.

Warehouse

Refer to: Commercial premises

For more information on property types, refer to the GST and property guide.

More information

For more information:

  • visit our website at www.ato.gov.au/property

  • phone us on 13 28 66

  • write to us at PO Box 9935 in your capital city.

If you do not speak English well and need help from us, phone the Translating and Interpreting Service on 13 14 50.

If you are deaf, or have a hearing or speech impairment, phone us through the National Relay Service (NRS) on the numbers listed below:

  • TTY users, phone 13 36 77 and ask for the ATO number you need

  • Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need

  • internet relay users, connect to the NRS on www.relayservice.com.au and ask for the ATO number you need.

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