I was reminded this month of the situation of Bodies Corporate and GST obligations. Bodies Corporate are considered to be non-profit bodies for GST purposes, providing that they do not have any intention to distribute interest or other income to members. A new Body Corporate that satisfies this test need not register for GST unless the GST turnover is greater than $150,000. Existing GST registered Bodies Corporate that are under this threshold and that satisfy the test, can take one of three actions –
- take no action and continue with current reporting
- cancel their GST registration
- report GST annually