Does an owners corporation need to charge GST on special levies?

Yes, if the owners corporation is registered for GST, special levies will generally include GST in the same way as standard levies. This may apply when raising funds for major repairs, maintenance projects, or unexpected building expenses. Committees should ensure levy notices and financial reporting are handled correctly to avoid compliance issues.

Can an owners corporation backdate GST registration?

In some situations, the Australian Taxation Office may require an owners corporation to backdate its GST registration if it exceeded the threshold earlier than expected. This can affect levy calculations, BAS reporting, financial statements, and GST obligations for previous periods.

Does GST apply differently to smaller owners corporations?

Smaller owners corporations may not need to register for GST if their annual turnover remains below the applicable threshold. However, turnover calculations can still become complex where levies, interest income, or additional revenue sources are involved. Committees should regularly review their financial position to ensure they remain compliant with ATO requirements.

What Is The GST Threshold For Body Corporates / Owners Corporations?

Key Takeaways:

Body corporates must register for GST if turnover exceeds $75,000 (for-profit) or $150,000 (non-profit), with levies included.
Non-profits that don’t distribute profits or interest income enjoy a higher GST threshold before needing to register.
Registered bodies must add GST to levies but can also claim credits on expenses like electricity, cleaning, and maintenance.

The Australia Taxation Office has issued this statement in relation to GST as applicable to Body Corporates / Owners Corporations:

A body corporate (now known as an owners corporation in Victoria) is a group of individual owners responsible for maintaining and administering property held in common, for example, a block of strata titled home units.

If you are a body corporate, for GST purposes, you are carrying on an enterprise. You must register for GST if:

you are considered to be a non-profit body and your turnover is more than $150,000 (turnover must include levies on unit owners)
you are not considered to be a non-profit body and your turnover is more than $75,000 (turnover must include levies on unit owners).

You may be considered to be a non-profit body if you do not have the intention to distribute interest income or profits from rental or other activities to your members.

The fees or levies you charge your members will include GST, for example, car parking or administration.

You can claim GST credits on purchases you make that relate to maintaining and administering the property held in common, including: