The draft concerns the GST treatment of supplies made to and by a unit-titled body corporate (UTBC). The document notes that most UTBCs are able to register for GST but do not have to do so because they will be under the registration threshold once supplies between the UTBC and its members are ignored.

Overall, CA ANZ agrees with the comments made in the draft Statement. In practice, most UTBCs are able to choose whether or not to register for GST. However, there may be some that will have material income outside of member levies – for example, billboard advertising, or leasing common property to third parties (e.g. carparks). If a UTBC has third party income over the GST registration threshold it will be required to register. Whether or not the UTBC registers, the treatment should be GST-neutral for an unregistered unit holder. There may also be UTBCs with GST registered unit holders – for example, because the property, or some of the property, is a commercial building. In that case, the member can only recover the GST on the costs incurred by the UTBC if the UTBC registers for GST. For completeness, these points should be covered in the statement.

CA ANZ suggests some other aspects of the item be reviewed and clarified with additional references.