GST o)n Rent charged

[bradje]

GST on Rent charged

Hi,
New tenant just signed for 12 months
Agent charging 1 months rent + GST, + Letting fees (160+16+75)

Do these figures seem reasonable compared to other agents?
Thx,
JB

 

[geoffw]

It depends on the rent.

1 month's rent on letting fees sounds very steep. But your figures can't be right. $160 = 1 months rent? Surely this must be 1 WEEKs rent?

GST on letting fees (including letting fee of 1 weeks rent) is fine. Not sure about the $75?

GST on rent is not OK, and I would be sure it would not be charged..

 

[skater]

Geoff is right. You would only charge GST for rent on commercial properties.

 

[Aulyna]

???

Geoff is right. You would only charge GST for rent on commercial properties.

Realy? I do pay GST for my ip which is not a commercial one.

Anyone else?

 

[jaycee]

Copied from property manger's monthly statement

Rent $1170.00

* Management Fees $ 99.46
* Postage & Petties $ 7.00
Plus GST on items marked * $ 10.66
Transferred to your bank account $1052.88

GST SUMMARY:
GST collections reported above $ 0.00
GST payments reported above $10.66

 

[thedon]

Definitely no GST on residential rent.

If you were registered for GST then it is considerd an input taxed sale and shown at G4 on BAS (G3 if no G4 on your BAS!)

Only GST on commercial rent.

There is GST on the management fees and other costs though.

Don

 

[bradje]

Thankyou all. Have taken it up with the agent..Shall await reply.
Appreciate the help,

JB

 

[Ausprop]

confusion is setting in here.. just because the agent is charging you a fee that happens to be the same as your rental rate doesn't mean they are charging you rent... they are charging you a fee of $x and GST will apply to that. the fact that you can't charge that GST on to your tenant is part of the joy of resi IP. just bear in mind the big picture, you are after cap gain because your revenues wiull be negligible in this field

 

[bradje]

confusion is setting in here.. just because the agent is charging you a fee that happens to be the same as your rental rate doesn't mean they are charging you rent... they are charging you a fee of $x and GST will apply to that. the fact that you can't charge that GST on to your tenant is part of the joy of resi IP. just bear in mind the big picture, you are after cap gain because your revenues wiull be negligible in this field

Thx Ausprop,
yes, the agent explained things and it is as u say. It was MGT fee that was being charged GST.... just happens to equal the monthly rent in this case for a 12 month lease.
Thx again,
JB