Tax
The ATO may require an owners corporation to have a tax file number, ABN and/or be registered for GST.
The ATO will also issue a tax file number when the owners corporation applies for an ABN.
Oowners corporations must lodge a tax return for any year in which it receives assessable income (income from leasing common property; interest from investments; fees for issuing owners corporations certificates and copies of the register and records; sale or rentals of common property or personal property; fees for servicing lots).
Assessable income does not include annual fees or other special fees and charges as these are considered ‘mutual income’.
If an owners corporation earns income from common property, it must notify each lot owner of their portion of the assessable income by 14 July. This amount should be included in lot owners’ personal tax returns.
Owners corporation’s with income (incl fees) exceeding $75,000 p.a, must register for GST.
