GST and rental guarantees — a new ATO determination

By Matthew Cridland

The Australian Taxation Office (ATO) has issued a new goods and services tax (GST) determination, GSTD 2014/3, relating to GST and rental guarantee arrangements. The new determination replaces an earlier draft, which had been released in April of this year. The determination confirms that the ATO’s view in relation to qualifying rental guarantee payments is as follows:

The payments, which may be made by a vendor to a purchaser following a sale of a property, are a reduction in the purchase price for the property.

The purchaser does not make a supply to the vendor in consideration of the payments and is not liable for GST…

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