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RachSelect(I'm new)Registered Tax Professional
4 Sept 2023

My understanding is that GST is not claimable on residential property.

Can you please confirm if I am correct.

A company uses a Director's home office and claims a portion of the electricity as a deduction through the company.

Can the company claim a GST credit for the electricity relating to the residential property?

I have always said no. Now I am being questioned and I am unable to find a specific ruling to be able to quote and refer to.

Please help

Thank you

1,927 views
1 replies
1,927 views
1 replies

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Most helpful reply

AlliATO(Community Support)Community Support
4 Sept 2023

Hi @RachSelect


You are correct. Leased residential properties are not subject to GST. You can not charge GST on the rent or claim GST credits for anything you purchase or import the lease the property.


The Goods and Services Tax Ruling GST 2012/5 Goods and services tax: residential premises


The home office is a little bit different.


If the company Director is using a home office to run his business from and the company is registered for GST they are able to claim GST on the apportioned amount of occupancy expenses and running expenses.


They do need to remember the GST goes on the BAS and the GST exclusive amount of the expense goes on the income tax return.


If you have a look at our Deductions for home-based business expenses page, you can find the details there. 

All replies

Most helpful reply

AlliATO(Community Support)Community Support
4 Sept 2023

Hi @RachSelect


You are correct. Leased residential properties are not subject to GST. You can not charge GST on the rent or claim GST credits for anything you purchase or import the lease the property.


The Goods and Services Tax Ruling GST 2012/5 Goods and services tax: residential premises


The home office is a little bit different.


If the company Director is using a home office to run his business from and the company is registered for GST they are able to claim GST on the apportioned amount of occupancy expenses and running expenses.


They do need to remember the GST goes on the BAS and the GST exclusive amount of the expense goes on the income tax return.


If you have a look at our Deductions for home-based business expenses page, you can find the details there. 

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GST on residential home office electricity | ATO Community