Are the premises commercial residential premises within the definition contained in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
No, the premises do not meet the definition of commercial residential premises.
You are not currently registered for GST. You currently own the property located at [address] which you purchased in [date]. The premises consists of 3 cottages and 1 studio (collectively, the premises ). Accommodation at the premises is offered to members of the public. You intend to live off the profits from supplying accommodation at the premises. The cabins and studio can each be rented out to separate unrelated guests. The premises can also be rented to one party for the entire accommodation. You advertise via Airbnb and bookings and stay agreements are made through Airbnb. You currently do not live on site but intend to live on site in whichever cottage/studio is unoccupied. If all of the premises are occupied you intend to live in the boatshed. You will greet guests and provide them with the key to the premises. The guests will largely look after themselves but you will be on site to provide assistance if required. You have a caretaker who camps on site and in return performs six hours of maintenance work a day and works full time. Parking spaces are provided to guests on the site and the Longhouse has a carport.
Linen and towels are provided at the beginning of the stay but not changed daily. The cabins are not cleaned daily. There is no room service facility provided. There are basic kitchen facilities provided in each cabin. There are no meals (food and drink) provided. Guests provide their own food and cook their own meals in the kitchen facilities provided. Upon request, home cooked meals such as quiches and lasagne can be prepared by an onsite manager using home-made ingredients. There are outdoor showers provided in the 3 cabins and one cabin has a walk-in in-door shower. Wi Fi is provided in each cabin. HDTV is provided in one cabin, there is no TV provided in the other cabins. Pets are allowed in the cabins subject to manager approval. There is no common reception area or dining area for the guests. Bikes, surfboards, firewood and catering are provided to guests for an additional cost. Rubbish collection is offered at an additional cost, after the first bag. Wine delivery is offered at an additional cost. A description of the respective premises has been sourced from the Airbnb as follows: [listing details removed] The premises are listed with pictures and floorplans as follows:
[pictures and floor plans removed]
Section 9-5 A New Tax System (Goods and Services Tax) Act 1999 Section 40-35 A New Tax System (Goods and Services Tax) Act 1999 Detailed reasoning Section 9-5 of the GST Act provides: You make a taxable supply if: (a) you make the supply for consideration (b) the supply is made in the course or furtherance of an enterprise that you carry on (c) the supply is connected with the indirect tax zone (essentially Australia), and (d) you are registered or required to be registered for GST However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. None of the GST-free provisions in the GST Act apply in this instance. In this case, your supply of the cabins is made for consideration, in the course or furtherance of an enterprise that you carry on and is conne