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.
Commercial Property
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:
- Commercial property purchase, including legal fees
- Commercial property expenses
- Supplies purchased by the SMSF such as stationary or a dedicated computer used solely by the SMSF
- Actuarial fees
- Administration fees (excluding annual return preparation fees)
- Broker fees
- Investment management fees
- Accounting fees
- Audit fees
- Bank charges
- Fees to prepare tax returns & activity statements
- Residential property purchase & expenses
- Financial planner advice fees
For a summary of the ATO guideline regarding the table above, please click on the button below:
