THE GST AND TAXATION
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:
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whether they are required to register with the Australian Taxation Office if total levy and other income is below $50,000
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whether registration is the preferred option
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whether owners can claim input tax credits
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how to deal with suppliers who do not have an ABN
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withholding tax for non-ABN suppliers
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lodgments of Business Activity Statements
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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.
TAXATION
Taxation implications for a strata scheme involve: div>
The Strata Schemes Management Act 1996(NSW) has certain requirements regarding preparation of annual accounts. Unless your strata scheme is managed by a professional strata managing agent, professional accounting advice should be sought. Apart from compliance with legislation, intending purchasers of units in the strata scheme would require that the records be correctly maintained.
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.

DISCLAIMER: All information on this website is of a general nature and is intended as a guide only. Readers should check all information obtained from this website for accuracy from other sources and seek professional legal advice before taking any action based on any information obtained from this website. Information on this website should not be substituted for proper legal advice. The owners of this website will not be held responsible for any action taken as a consequence of same.
EXTERNAL SOURCES: The owners of this website do not make any warranty or representations regarding the information, products, services or qualifications of any external sources listed on this website. Readers should make their own appropriate enquiries regarding accuracy, qualifications, licences, etc. The owners of this website will not be responsible or liable in any way for any representations made by any external sources listed on this website.
IMPORTANT NOTE: This website deals with strata matters in NSW, Australia only. Legislation varies in different states and territories and in other countries. For information pertaining to places outside of NSW, Australia please refer to the appropriate legislation for your region.
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