Tag Archives: leasehold village operators

ILN Today Post

GST on exit fees payable to leasehold retirement village operators

The ATO recently released for public consultation draft GST ruling GSTR 2012/D2 on the GST treatment of exit fees payable to leasehold village operators and in doing so, seeks to embellish what is ‘an input taxed supply’ in a village.  The draft ruling affirms and expands on the ATO views expressed in Interpretative Decision ATO ID 2001/634.  It also supplements the ATO’s ruling on interest-free loan arrangements for leasehold villages.

The ATO’s preliminary views expressed in the draft ruling could act as a disincentive to developers of leasehold villages seeking to recoup GST on their development costs.  However, long-term operators may welcome some aspects of the draft ruling. More…

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