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Charities & Not-For-Profits Law in Australia

GST Ruling–Accommodation Bond Retentions & Accommodation Charges

Posted in Compliance, General, Liability & Risk, Tax Exemptions & DGR Status

SUMMARY :  The Tax Office has clarified the GST status of bond retentions

The Commissioner of Taxation has issued a Determination GSTD 2011/4  on the issue of whether GST is payable on accommodation bond retention amounts or accommodation charges paid by residents of an aged care facility covered by the Aged Care Act 1997 that is otherwise supplying GST free services.

Aged Care Facitlity

The Commissioner has ruled that:

  • accommodation bond retention amounts and accommodation charges paid by residents of a residential care facility (low care and high care facilities) that is supplying GST free services are themselves GST free.
  • periodic payments of an accommodation bond that are retained by the approved provider and not refunded when a resident leaves are also GST free supplies.

This ruling is helpful and provides further clarity to the residential aged care sector.