The Australian Taxation Office (ATO) has released draft changes to two GST rulings that could significantly impact how residential premises are treated for tax purposes. These updates follow the Administrative Appeals Tribunal’s decision in Domestic Property Developments Pty Ltd v Commissioner of Taxation and are now open for consultation until 8 August 2025.
Key Updates in the Draft Rulings
GSTR 2009/4 – Clarifies how “used” and “applied” are interpreted under Division 129 of the GST Act. If premises are applied for a creditable purpose (e.g., held for sale), they may also be considered “used” for a non-input taxed supply — potentially affecting GST adjustments.
GSTR 2003/3 – Defines what counts as “new residential premises” for GST purposes. A continuous five-year rental period no longer includes time when the property is held or marketed for sale.
Impact on Your GST Obligations
If you develop, sell, or lease residential property, these changes could alter whether:
- Your property qualifies as “new” for GST purposes.
- You can claim GST credits.
- GST adjustments are required when circumstances change.
Guidance on Container Deposit Scheme Refunds
The ATO also clarified that material recovery facility operators may be liable for GST when they receive refunds under container deposit schemes in exchange for recycling activities.
How Boa & Co. Can Help You Stay Compliant
At Boa & Co. Chartered Accountants, we help property developers, recycling operators, and other GST-affected businesses stay ahead of complex tax changes.
We can:
- Review your GST positions on property sales and rentals.
- Assess your eligibility for GST refunds under container deposit schemes.
- Provide step-by-step guidance to ensure compliance with ATO rulings.
- Liaise directly with the ATO on your behalf.
Boa & Co. Chartered Accountants can help you assess the impact of these rulings, review your GST positions, and engage with the ATO before the changes are finalised.
📞 Call 1300 952 286 or email [email protected] to protect your business from GST surprises.