Residential care as defined in aged care legislation
Retirement villages don't include residential care, within the meaning of the Aged Care Act 1997, by an approved provider (within the meaning of the Aged Care Quality and Safety Commission Act 2018).
Main ruling about income tax and retirement villages
Our Taxation Ruling TR 2002/14 – Income tax: taxation of retirement village operators provides comprehensive advice on the application of income tax to retirement village operators.
Guidance on buying, selling and leasing arrangements
Guidance on GST and buying or selling
We have an addendum for purchasers and vendors: GSTR 2004/9 – Goods and services tax: GST consequences of the assumption of vendor liabilities by the purchaser of an enterprise – GSTR 2004/9A2 Addendum.
Guidance on loan-lease arrangements
Our published ruling is Goods and Services Tax Ruling GSTR 2011/1 – Goods and services tax: development, lease and disposal of a retirement village tenanted under a ‘loan-lease’ arrangement.
Guidance on sales of new residential premises
See Goods and Services Tax Ruling GSTR 2003/3 – Goods and services tax: when is a sale of real property a sale of new residential premises?
Guidance on GST-free supply of a going concern
Our published ruling is Goods and Services Tax Ruling GSTR 2002/5 – Goods and services tax: when is a ‘supply of a going concern’ GST-free?
Guidance on GST and exit payments
See:
- Goods and Services Tax Ruling GSTR 2012/4 – Goods and services tax: GST treatment of fees and charges payable on exit by residents of a retirement village operated on a leasehold or licence basis.
- Goods and Services Tax Ruling GSTR 2006/4 – Goods and services tax: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose.
Guidance on making capital growth payments to exiting residents
See Practical Compliance Guideline PCG 2016/15 – Effects of the Addendum to Taxation Ruling 2002/14 for guidance on making capital growth payments to exiting residents.
Guidance on supplies, acquisition and services
Rulings about GST on supplies and acquisitions
Our guidance on financial supplies and related supplies and acquisitions includes:
- Goods and Services Tax Ruling GSTR 2002/2 – Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions
- Goods and Services Tax Ruling GSTR 2003/9 – Goods and services tax: financial acquisitions threshold
- Goods and Services Tax Ruling GSTR 2004/1 – Goods and services tax: reduced credit acquisitions.
Guidance on GST and communal facilities
See GSTR 2007/1 – Goods and services tax: when retirement village premises include communal facilities for use by the residents of the premises.
Ruling on GST treatment of care services and accommodation
Work out if you can or can't claim GST credits – Goods and Services Tax Ruling GSTR 2012/3 – Goods and services tax: GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels.
Alert about on-selling services and input tax credits
We have issued this alert– Taxpayer Alert TA 2010/7 GST - Retirement Village operators who on-sell services to residents in an attempt to claim greater input tax credits.
Rulings about GST adjustments for change in creditable purpose
Our rulings on GST adjustments for change in creditable purpose include:
- Goods and Services Tax Ruling GSTR 2006/4 – Goods and services tax: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose
- Goods and Services Tax Ruling GSTR 2000/24 – Goods and services tax: Division 129 – making adjustments for changes in extent of creditable purpose.
- Goods and Services Tax Ruling GSTR 2009/4 Goods and services tax: new residential premises and adjustments for changes in extent of creditable purpose.
Industry partnership notes
GST and maintenance fees
We have issued Goods and Services Tax Industry Issues: Retirement Villages Industry Partnership: GST treatment for maintenance fees.
Input taxed and taxable supplies
We have issued useful examples about input taxed and taxable supplies in Goods and Services Tax Industry Issues: Retirement Villages Industry Partnership:
Issues register
Our issue register is GST issues registers: Retirement villages industry partnership: Retirement Villages Industry Partnership – issues register.
Guidance on income tax deductions for capital expenditure
For guidance on income tax deductions for capital expenditure, see:
- the provisions in Division 43 of the Income Tax Assessment Act 1997
- Taxation Ruling TR 97/25 Income tax: property development: deduction for capital expenditure on construction of income producing capital works, including buildings and structural improvements.