Under Australian Tax Law, your strata property must fulfill certain financial obligations. Tax returns
Australian Tax Law requires that bodies corporate lodge a tax return for their assessable income in the financial year. The rate and threshold of taxation applied to bodies corporate is the same as that for public companies.
Examples of assessable income include:
Other money gained from the investment of funds (e.g. sinking fund)
Your strata property may claim as deductions any expenses incurred in carrying out its administration role.
Strata property keep their own accounts according to their unique financial year, but they must prepare returns based on the 1 July to 30 June financial year. Who can help?
Your committee is responsible for ensuring all statutory obligations are met, but SSKB can help. As we manage your financial details, we collect and store details of income, interest and expenses for the financial year period. If your body corporate nominates SSKB as their tax agent, we will fill out and submit your tax return. If your body corporate nominates another tax agent, we will provide them with the financial data necessary to complete the tax return. GST Filings
The ATO has classified bodies corporate to be ‘not-for-profit’ entities. This means the GST registration threshold for strata property has increased.
If your strata property intends to distribute profit or interest earned between its members, it is not considered ‘not-for-profit’ and the previous $75,000 threshold will apply. This will rarely be the case.
If your strata property is currently registered for GST, but is considered ‘not-for-profit’ with a GST turnover of $150,000 or less, you may:
Cancel the current GST registration
Remain voluntarily registered and report annually
Continue with current reporting and lodgment requirements
Who can help? If your strata property has a GST turnover in excess of $150,000, or is considered to be a ‘for profit’ entity, SSKB will calculate and pay your GST obligations quarterly.
If your strata property nominates another agent, or decides to look after the GST filing itself, the following options are available:
Calculate GST and report quarterly
Calculate GST quarterly and report annually
Pay GST instalment amount quarterly and report annually.
The SSKB Accounts Team is experienced and knowledgeable in this area and is available to answer your questions to answer your questions or concerns. Contact the team through your Community Manager. Australian Business Number (ABN)
Your ABN is a unique number which identifies your business or entity to the tax office and other government departments.
Strata property that need to register for GST must have an ABN. Otherwise, an ABN is not compulsory, but it allows you to:
Complete a Business Activity Statement (BAS)
Claim GST credits
Obtain an Australian domain name
Avoid Pay As You Go (PAYG) tax on payments you receive
Who can help?
Our Development Consulting Team (DCT) manages all ABN applications online for new schemes. Audit
The requirement for a strata property to be audited differs between states:
Who may perform the audit? Your strata property may not be audited by a committee member, body corporate manager or any associate of these persons.
In addition to these requirements, and in line with New South Wales and Victorian legislation, the person undertaking the audit must be:
Registered as a company auditor
A member of the CPA Australia
A member of the Institute of Chartered Accountants, or
A member of the National Institute of Accountants
You must ensure your auditor provides the committee with their audit findings. In Queensland, a report must be sent out with the next annual general meeting notice. In Victoria, the audit is presented to the committee at their next meeting.
Who can help?
SSKB can provide your strata property with a selection of auditors from which to choose. Appointment of a Public Officer
Law requires that for each entity that conducts business or earns income, a Public Officer must be appointed. This person’s role is to be the liaison between the ATO and the entity in tax matters. The Public Officer must ensure the entity complies with all obligations, and is liable for penalties should this fail to happen.
A body corporate must appoint a public officer within three months of its commencement. The person appointed must: