GST Registration

Generally speaking, super funds do not have to register for GST. The reason is that most funds do not have sufficient “turnover” to be forced to register. In the case of super funds, “turnover” is limited to rent from commercial property.

Super funds can voluntarily register for GST to recover input tax credits. However, if a fund does register voluntarily and if it owns commercial property, then the rent must have GST added, even if the rent is below the turnover threshold.

The claiming of input tax credits falls into 3 groups – fully claimable, 75% claimable and not claimable. A list appears below, although it is not exhaustive.

GST Claimed In Full 75% Of GST Claimed No Claim
Commercial property purchase, including legal fees Administration fees (except audit and tax return fees Audit Fees
Commercial Property Expenses Investment management fees Fees to prepare tax returns
Actuarial Fees Fees to prepare activity statements
Brokerage Bank charges
Residential property purchase and expenses

If a super fund owns commercial property where turnover is below $75000 and the decision is taken not to register voluntarily, then care needs to be exercised in terms of the turnover reaching the $75000 threshold. That threshold is calculated in advance by adding the previous month’s rent to the next 11 months of rent. Hence as soon as monthly rent reaches $6250, registration will be compulsory. As a precaution, we would recommend close monitoring once rent passes $6100, since GST will be payable to the Tax Office as soon as the threshold is reached. The fund will have to then add GST to the rent.

Please also note that if the fund is registered for GST, then GST must also be added to outgoings if these are charged to the tenant. Outgoings include expenses such as rates and body corporate fees.

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