Q: A client owns a serviced apartment, managed by a motel chain. They got an offer to sell it to another investor. Will they have to pay GST on the sale?
A: It depends. According to GST Rulings, if the client's property is considered commercial residential premises and their GST turnover from it is $75,000 or more annually, they'd need to be registered for GST. If they're registered, the sale would be taxable. But if they're not registered, selling the property wouldn't require them to register for GST. This is because the sale proceeds from capital assets like property don't count toward GST turnover.
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