New GST arrangements for retirement villages with serviced apartments

The Australian Taxation Office (ATO) has advised retirement village operators of a favourable new arrangement that can be adopted from 1 October for determining if their serviced apartment residents are eligible to receive GST-free services and accommodation.

They state that as well as accepting as evidence of a ‘continuing need’ for certain care services, the ATO will also accept a once-only assessment by an independent medical practitioner on completion of a Serviced Apartment Care Assessment (SACA) form. This will remove the need for ongoing six monthly assessments.

Both existing and new serviced apartment residents can adopt this new approach, without waiting until the next six monthly assessment.

The ATO has included the new Care Assessment form, a letter for residents explaining the change in their letter to operators which should have now been received.

A Tax office fact sheet on the changes (NAT 12761) is available at www.ato.gov.au or by phoning 13 28 66.