Financial Services

Accommodation

Accommodation provided for students of the University incorporates several classes of fees, some of which are taxable while others are input-taxed.

Long-term accommodation provided for students during semesters is classed as the supply of non-commercial residential premises and is therefore input-taxed in accordance with Division 40-B.

Division 87 applies to commercial residential premises. However, section 195-1 states that "commercial residence" does not include accommodation for students in connection with an educational institution and therefore Division 87 is not available to the University.

Long-term accommodation provided to non-students (provided that at least 70 per cent of the guests stay for longer than 27 days) is:

  • subject to GST on 100 per cent of the full value of the first 27 days
  • subject to GST on 50 per cent of the GST-inclusive price of the supply (had the supply been taxable) for the period after the first 27 days.

Short-term accommodation (less than 28 days) is generally for non-students between semesters and is subject to GST.

Other fees (if included in the accommodation charge) are considered as part of the accommodation and therefore follow the GST status of the accommodation itself. These fees include:

  • cleaning and maintenance
  • electricity/gas/air conditioning/heating
  • telephone/television/radio.

Outputs regarded as out of scope of GST include:

  • receipt of refundable deposits
  • sale of telephone cards (vouchers):
    • Telephone cards are purchased and held in stock. No input tax credits may be claimed by the University on the purchase of the cards, as there is no taxable supply. The transaction is merely an exchange of currencies. The cards are then sold to residents and once again are not subject to GST as there is no taxable supply. A taxable supply only occurs when the student uses the card.
  • inputs:
    • Most costs incurred from external entities will include a GST component. These input tax credits are generally claimable for costs incurred in producing the non-input-taxed revenue. Input tax credits are not available for costs incurred in producing input-taxed revenue such as long-term student accommodation. An apportionment of those costs directly and indirectly related to input-taxed income must be performed so that input tax credits are not erroneously claimed.
  • catering costs
    • If a contractor is hired to perform catering functions including the purchase of the food directly then all catering charges are subject to GST. If food is purchased directly by the University, GST will not be incurred on the purchases of basic foods (GST-free).

Commercial accommodation

Rental of commercial accommodation is subject to GST and includes:

  • commercial property rentals
  • accommodation provided to staff
  • educational premises let out as short-term (less than 28 days) holiday or conference accommodation.

Residential accommodation

GST will not be levied upon the rental of residential accommodation.

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