Goods and Services tax (GST) is a tax of 10% on most goods, services and other items sold in Australia.
Based on our experience, the costs involved in lodging and preparing the annual or quarterly GST return for an SMSF often outweighs the benefits of registering a Fund for GST. Therefore, we do not register our new Funds with GST unless instructed by the Trustees.
An SMSF is generally required to be registered for GST if it owns a commercial property and the annual turnover exceeds $75,000. If a Fund is registered for GST, it is required to charge GST on the rental income from leasing the commercial property. It is also important to note that once a Fund is registered for GST, it will need to lodge an annual or quarterly GST return with the ATO.
For more information on the expenses that can be claimed for GST in an SMSF, please refer to the drop downs below:
For a summary of the ATO guideline regarding the table above, please click on the button below:
If a SMSF is registered for GST then it may claim some of the GST in relation to the expenditure and remit GST in relation to certain receipts.
If you are one of our clients and would like us to register your Fund for GST, please let us know and we will action your request with the ATO. However, please be mindful that Trustees will need to lodge their annual or quarterly GST returns themselves and we will assist the Trustees in lodging the annual income tax return with the ATO.