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GST Applied to Strata Properties

GST Applied to Strata Properties

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GST Applied to Strata Properties

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This situation will not apply in all of cases, as the annual turnover must normally exceed $50,000 .

 

Where it does apply you will need to:

Increase the levy amount accordingly.
Enter the date from which levies included GST on the property page.
When entering creditors' invoices enter the inclusive total plus the GST amount for each item.

 

There is a GST Hold Amount that works as follows

Whenever a Tax inclusive levy or any other GST inclusive amount is receipted from the Lessor tenant receipt, the GST amount is added to the GST Hold Amount and will appear on the Lessor Details Page in the Balances section.
Whenever a creditor invoice amount is paid, the GST amount is subtracted from the GST Hold Amount.

 

This amount is maintained so that the user cannot pay bills and leave insufficient funds to pay the GST at the end of the period. As payments to the tax office will normally only be made quarterly, the system needs to hold the total GST Hold Amount until it is paid. Hence, during End of Period rollover, the amount, less GST paid for fees and charges, is accumulated in the Amount to Hold field on the Payment subpage of the Lessor Page.

 

After a 3 month period, and directly after EOM processing, the Amount to Hold field should contain the net amount due to the tax office. This can be confirmed by printing an Lessor history statement, which will detail all GST collected and Credits due.

 

The Creditor payment and Lessor charges processing have been modified so that the net GST amount for the prior months plus the net GST amount for the current month is retained in the Lessors account and the user cannot use these funds for payments.

 

Only Strata Lessors with an ABN and at least one property with a GST start date on the rent will be treated in this way.

 

To Pay the GST to the tax office, use the Property Disbursement function, or the Accounts from Lessors Funds function to make the payment. The user will need to have a disbursement code called GST Payment. It must have this exact description. This will reduce the Hold amount to zero and the system will start accumulating the net GST to this field in the next Month End.

 

Note: The Hold Amount field may be manually modified, and may need to be on some occasions. This may be:

Starting up this system as it may not be correct at the outset.
If the GST amount on a history transaction is modified, then the hold amount will need to be manually adjusted by the same amount. In the current month, the GST Hold Amount is automatically recalculated.

 

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