Investing in National Disability Insurance Scheme (NDIS) properties can provide both financial returns and contributing to the community. An important aspect of this investment is understanding how to claim Goods and Services Tax (GST) input tax credits (ITCs).
Acquiring or building an NDIS residential property does not necessarily entitle you to claim ITC and it is important to obtain appropriate GST advice. Failing to obtain appropriate GST advice can lead to disallowed ITCs.
What is GST Input Tax Credit?
GST ITC is the amount you can claim back for the GST included in the price of goods and services you buy.
Why NDIS Residential Investment?
The NDIS provides support to Australians with disabilities, their families, and carers. Investment properties developed under the NDIS scheme are designed to offer high-quality, accessible housing for people with disabilities. These properties often attract long-term tenants and government-backed rental income, making them an attractive option for investors.
GST and NDIS Properties
When investing in NDIS properties, you might be eligible to claim ITCs on certain expenses related to your investment. These could include construction costs, property management fees, and other associated expenses.
Common Pitfalls to Avoid
The most common pitfall we see with investments in NDIS residential investment are:
clients not understanding the GST tax laws and the conditions required to claim ITCs; and
incorrect advice given that the investor is automatically entitled to the ITCs.
GST tax laws are complex , and it would be wise to consult with a tax professional who is familiar with NDIS investments.
Conclusion
Claiming ITCs on NDIS residential investments can significantly enhance your investment returns by reducing your overall costs. Getting the wrong advice can result in disallowed ITCs.
At PV Legal we can assist investors navigate the complexities of ITC claims effectively and complying with GST tax laws.
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