With significant appreciation in the property market over the last few years, and growth of the NDIS sector, Specialist Disability Accommodation (SDA) is emerging as an area for continued private sector and not-for-profit investment. However, the convergence of the two areas can give rise to complex GST issues in the relation to the development, sale and provision of SDA. Failure to consider those issues can result in unexpected GST outcomes, including denial of input tax credits, increasing adjustments and GST liabilities. This session explores those critical issues that need to be considered in order to structure SDA investments effectively, including:
- Requirements to qualify for GST-free treatment under section 38-38
- Characterisation as residential vs commercial residential premises and why it matters
- Issues arising on the sale of a going concern of SDA; and
- Use of agency arrangements in provision of SDA and GST implications recovery of input tax credits.