Summary

Not all Strata Companies need to register for GST, but any Strata Company may elect to register. Strata Companies that collect more than $150,000 in income over a 12 month period must immediately register for GST under current regulations.  

Strata Companies & GST

Goods and services tax (GST) is a broad-based tax of 10% applied on most goods and services in Australia

There is a common misconception that Strata Companies are exempt from GST. They are not. 

Strata Companies that are projecting or currently earn $150,000 or more in income over any 12 mont must immediately register for GST under current regulations. The Strata Company needs to register within 21 days of your GST turnover exceeding the relevant threshold.

If the Strata Company is not earning $150,000 in income you still have the opportunity to register the Strata Company for GST.

 A Strata Company may not de-register for at least 12 months since the date of registering for GST. 

When a Strata Company is registered for GST they are required to lodge BAS (Business Activity Statement) quarterly with the ATO. This means outlining your total sales, GST collected and GST paid. Also if applicable PAYG tax installments and PAYG tax withheld.  A registered tax or BAS agent can help you lodge your activity statements.

What does this mean for the strata company?

Any Strata Company that is registered for GST must meet the ATO BAS Return reporting requirements. ESM can assist by engaging a BAS agent to carry out this function. 

The Strata Company will sign an agent nomination form which will allow the BAS agent to lodge the BAS on behalf of the Strata Company. 

Please refer to this link for information from the ATO website: ATO website link: Strata schemes and real estate agent services.