GST CONCESSIONS FOR RETIREMENT VILLAGES TO BE PROTECTED
16 September 2004
The Government has indicated that it will legislate some minor amendments to the New Tax System to remove public uncertainty in relation to the GST treatment of retirement villages.
Today, a government official confirmed that the Government’s policy in relation to GST treatment of serviced apartments in retirement villages has not changed.
According to these sources It has always been the Government's intention that GST-free treatment apply where residents require daily living or nursing assistance.
The policy remins as follows: Residents of serviced apartments in retirement villages that are assessed as requiring daily living and nursing assistance will receive these services GST free. The serviced apartments will be required to provide the daily living and nursing assistance in line with the Quality of Care principals under the Aged Care Act 1997.
The facts are:
Residential care as defined under the Aged Care Act (aged care services and/or accommodation for those who need nursing or daily living assistance) is GST-free. The Government is absolutely committed to that concession – and will further entrench it with an amendment specifying what constitutes residential care, to whom it applies and what the level of service is to meet the test of “daily living assistance”.
Retirement village residents in serviced apartments and independent living units that do not receive nursing services or 'assistance with daily living activities' are not eligible for GST free treatment of their accommodation or services and never have been.
Those in the charitable sector receive GST concessions if they meet certain guidelines, and always have. The new legislation will protect that treatment.
This legislation will be effective from July 2000. This will protect the Government’s policy intent and provide for certainty in the industry and aged residents.