Property Management Fees? 5/2.5 and GST?

[cmpalmer]

Friends!

I am working on a property management agreement and I thought rent collection was exclusive of GST?

I know they are required to split Management Fees, and Rent Collection into two categories. However I had an agreement in 2004 where rent collection was exclusive of GST so I asked the question and the property manager said they would find out. Which is odd because I would assume its off the top of their head, or should be.

Any way does anyone have some info?

Chris

 

[cmpalmer]

My Mistake, the wording is so confusing!

Rentcollect , "includes GST"

Management Fees, "plus GST"

Chris

 

[Marko]

So there is GST on rent collection??

because I'm just negotiating an agreement and it is 5% + GST and management fee 2.5% + GST.

Also letting commission is 1 weeks rent + GST is that right?

Thanks.

 

[Kevin Hockey]

So there is GST on rent collection??

because I'm just negotiating an agreement and it is 5% + GST and management fee 2.5% + GST.

Also letting commission is 1 weeks rent + GST is that right?

Thanks.

Yes, GST is applicable on all those.

cmp - you are also right, it is confusing. I have no idea why one is incl GST and why the other isn't.

Kev
www.gogecko.com.au

 

[TommyR]

Hi folks,

I think if you check with an accountant or the ATO you will find there is no GST charged on rent but only on the services provided by your property manager, eg if the rent is $100 and the PM fee is 5% you will have to pay GST on the 5% ie 10% 0f $5. so if my maths is correct you would end up with $94.50 of the $100


TommyR

 

[Kevin Hockey]

Correct Tommy, which begs the question...Why does the agreement say it Incl GST when it is not applicable.

Kev
www.gogecko.com.au