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Re: Can the estate agent charge GST on Water Rates, even though Wtaer is GST Free?

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ATO Community Support

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Hello @PilDEF1234

 

Although water services are GST-free, the on-charging for these services by a business, landlord or other, is not GST-free. This is because the payment made by the tenant is considered a payment for the supply of the rental property, not for the supply of water.

 

For example, the payment attracts GST if a landlord satisfies the following:

  • The landlord is registered for GST
  • The landlord receives a water bill payable in the landlord's name
  • The landlord passes on the water bill to their tenant as 1 of the costs of renting the premises that the tenant must pay

 

Hope this helps,

 

Tony

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hello @PilDEF1234

 

Although water services are GST-free, the on-charging for these services by a business, landlord or other, is not GST-free. This is because the payment made by the tenant is considered a payment for the supply of the rental property, not for the supply of water.

 

For example, the payment attracts GST if a landlord satisfies the following:

  • The landlord is registered for GST
  • The landlord receives a water bill payable in the landlord's name
  • The landlord passes on the water bill to their tenant as 1 of the costs of renting the premises that the tenant must pay

 

Hope this helps,

 

Tony