These Public Rulings consider the GST treatment of supplies of properties by landlords to organisations for use in the Ministry of Housing and Urban Development’s Transitional Housing Programme. BR Pub XX/XX applies to a supply of a property that will be an exempt supply on the basis that the property will be used for the principal purpose of accommodation in a dwelling.  BR Pub YY/YY and BR Pub ZZ/ZZ apply to supplies of a property that will not be exempt supplies. The commentary to these Rulings assists in determining whether the supply will be exempt. 

CA ANZ’s comments are as follows: 

• If the rulings are to be finalised, there should be an end to end analysis, not just an analysis of the treatment of the head lease, because the GST treatment of the head lease depends on what is being provided to the ultimate lessee. 
• We do not agree with the narrow interpretation of “additional services” and believe it could lead to confusion in practice. 
• We agree with the conclusion that the property is most likely to be the main home of the ultimate tenant. 
• The analysis of the requirement for “quiet enjoyment” is logical but highlights the difficulty of applying the rules and we recommend that this issue is referred to Inland Revenue Policy and Regulatory Stewardship (PaRS) for their consideration.
• We recommend that the items are not finalised until PaRS has considered whether the current policy settings are appropriate, as the practical result of the rulings may be to require additional tax from housing charities.