Superannuation and GST
1. Can I build a Rooming House with my superfund?
Yes, you can build a Rooming House with your superfund. There are many benefits to having a Rooming House in super.
2. What tax will I pay on my Rooming House in my superfund?
You will typically pay 15% instead of 30% company tax or higher income tax.
3. Can I draw equity out of my Rooming House in my superfund?
Generally no. Please seek advice from your finance broker and accountant here if you plan to.
4. Are the interest rates better for my Rooming House in a superfund?
No they are typically the same as if owned by a natural person or a trust.
5. Can I sell a Rooming House in my superfund?
Yes you can. The Selling Entity will have to be affirmed by your lawyer to be correct. A skilled and experienced agent who handles sales of commercial real estate or residential going concerns can adequately report on the sale to properly disclose facts of the property to prospective buyers and their advisors.
6. Can I sell part of a Rooming House in my superfund?
Not that we are aware of. You will need specific accounting and legal advice if selling part of an asset in or out of your super.
7. Can I claim tax depreciation on my Rooming House in a superfund?
Yes you can, and you should get a tax depreciation report to effectively do so. This is a huge benefit that makes Rooming Houses one of the most high yield assets in the residential niche.
8. Can I claim GST input credits on my Rooming House in a superfund?
You should be able to and most do. Please seek accounting advice to carry this out.
9. When I develop land, do I pay GST?
Typically yes. If you are unsure of this, we recommend you engage a project manager who is experienced in this space.
10. When I build a Rooming House, do I pay GST?
Builders typically advertise prices inclusive of GST here.
11. When I pay outgoings as a lessor, can I claim GST as input credits?
If registered for GST, then yes you can and you should. Please seek accounting advice to carry this out.
12. When I maintain the property, can I claim the GST as input credits?
If registered for GST, then yes you can and you should. Please seek accounting advice to carry this out.
13. When I upgrade the property, can I claim the GST as input credits?
If registered for GST, then yes you can and you should. Please seek accounting advice to carry this out.
14. If I'm building a Rooming House to sell, do I have to pay GST?
Typically developers of rooming houses do pay GST, however if selling as a going concern, it has been done before. You will need accounting and legal advice to carry this out.
15. Can I get the buyer to pay my GST on a new build Rooming House?
No. This is unlawful. The GST is the Seller's responsibility.
16. Can I get the buyer to pay my GST on the land component of a house and land package?
No. This is unlawful. The GST is the Seller’s responsibility.
17. Who can help me set up a self-managed superfund?
Companies like Supavest can.
18. Can I buy a finished Rooming House for my self-managed superfund?
Yes absolutely. Many have and it is a great match.
19. Do I have to be GST registered to own a Rooming House?
No, however it is a great idea to be. Most Rooming House owners do claim GST on their property.
20. Do I have to have a trust or company to own a Rooming House?
No, you do not need to have a trust or company to own a Rooming House, however most owners have this structure to mitigate tax, protect themselves financially and limit liability.