16 Aug 12 GST treatment of exit fees paid by retirement village residents - GSTR 2012/4
On 15 August 2012, the ATO issued GST Ruling GSTR 2012/4 entitled "Goods and services tax: GST treatment of fees and charges payable on exit by residents of a retirement village operated on a leasehold or licence basis".
It was previously released in draft form as GSTR 2012/D2.
The Ruling explains the GST treatment of amounts which a resident becomes liable to pay to the operator of a retirement village when the resident's interest in the village terminates.
In this context, the resident's 'interest' is a right to possession of residential premises under a lease or licence with a right to use the communal facilities of the village.