"The introduction of the GST made changes to your strata - but don't worry - the summary below will give you an idea as to the difference it made and what you need to do.

Also, the Strata Schemes Management Act 1996(NSW) has certain requirements regarding the preparation of annual accounts so don't forget to have a read of the small section on Accounting and audit at the bottom of the page."

GST commenced on 1st July, 2000.  From that time onwards there was an increase in administration and accounting paperwork for all Owners Corporations around the country.

Self-managed schemes should seek advice from specialist strata accountants and, if the increased administrative and accounting work is not welcomed, seek assistance from a professional strata managing agent who can administer all the affairs of the Owners Corporation.

There are many traps in dealing with GST requirements.  The Owners Corporation has to address such things as:

• whether they are required to register with the Australian Taxation Office if total levy and other income is below $50,000
• whether registration is the preferred option
• whether owners can claim input tax credits
• how to deal with suppliers who do not have an ABN
• withholding tax for non-ABN suppliers
• lodgments of Business Activity Statements
• general GST requirements and many other issues.

Owners Corporations should look carefully at all their suppliers determining whether they have an ABN and whether they are registered, as this will impact on the Owners Corporation.

The GST issues affecting an Owners Corporation are very complex.  Further information can be obtained from the Australian Taxation Office internet site.

Whether your strata scheme is managed by the owners or by a professional strata managing agent, there are many benefits for the strata scheme in having its accounts examined by an independent auditor.

TIP - Make sure you talk to an accountant experienced in the intricacies of strata scheme finances as it can be a veritable minefield if you don't get the right advice.