gst payable on a security deposit?

is gst payable on a security deposit for a commercial lease? also, the deposit doesn't need to be lodged anywhere does it?
 
No

but if the prop owner claims the bond,(due to default etc)
then uses the bond for repairs u can claim back the gst spent on purchases to make right
and
No,
the deposit bond can be kept with owner,agent or solicitor
 
Sorry Uncle, I disagree with the answer to the first part of the question. Typically, the security bond is to cover a specified period of rent, ie 3 months etc, and it is usual, that the tenant pay GST additionally to the rent, so GST should be included in the bond. Also, when the LL claims the bond, it is considered income, so is GST effected.
 
Sorry Uncle, I disagree with the answer to the first part of the question. Typically, the security bond is to cover a specified period of rent, ie 3 months etc, and it is usual, that the tenant pay GST additionally to the rent, so GST should be included in the bond. Also, when the LL claims the bond, it is considered income, so is GST effected.

You beat me to it Peterw. The security bond/bank guarantee amount should be inclusive of GST, as this will need to be paid by the LL.

Boods
 
Far out sorry guys for the wrong advice !

I just had a tenant leave in a CP and the (well reputationed) RE agent
who was managing it told me that there was no gst included in the security deposit on these.
I know this for next time as i manage them myself now.

kind regards
 
Far out sorry guys for the wrong advice !

I just had a tenant leave in a CP and the (well reputationed) RE agent
who was managing it told me that there was no gst included in the security deposit on these.
I know this for next time as i manage them myself now.

kind regards

The agent was correct, it's just a matter of perspective.

GST is payable only if (and when) the deposit is forfeited.
If the tenant is refunded the deposit at the end of the lease, then no GST is payable.

Therefore, when commercial landlords calculate the required deposit at the start of a lease they should use GST inclusive figures - because at some point in the future they may claim the bond. However, the landlord wouldn't immediately issue a tax invoice or include the amount on their BAS.

The ATO made GST ruling 2006/2 which explains this well.
 
GST is the Good & services tax. GST will be payable if a security deposit must
be forfeit-able by the payer if the payer defaults on the agreement.
 
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