Under the Unit Titles Act 2010, new GST registration rules for body corporates will apply.

New rules give more choice to body corporate to register or to not register for GST. Supplies to members are not included in the body corporate’s total supplies for GST threshold as stated in section 51(1B) of the Goods and Services Act 1987. Body corporates will have to register for GST if their total supplies to third parties exceed the threshold of $60,000.  However, whether GST registration is compulsory or voluntary, output tax is payable on the total value of taxable supplies, to both members and third party.

So from 26 February 2015:

•   Specific rules apply to effective registration and deregistration date

•   Funds and assets held at date of registration are treated as payment for services

•   Common property held on date of deregistration is valued at zero

•   Body corporates registered under the new rules must remain GST registered for at least 4 years.

{proforms 1}

gc