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ATO Seeking Feedback on Benchmark Market Values

Mark Fowler
17 March 2017

The Australian Tax Office (ATO) is conducting a review on ‘GST and non-commercial rules – benchmark market values’ with a particular focus on Long Term Accommodation.

The benchmark values are an important means by which charities are able to ensure their compliance with the requirements for establishing market value under s 38-250(1) of the GST Act. This provision enables charities to claim input tax credits on supplies made pursuant to the provision of affordable accommodation. The underlying rationale for the provision is that charities should not pay GST on non-commercial transactions.

The benchmarks represent the ATO’s view on what constitutes suitable market values for long term supplies of accommodation.

The weekly accommodation rates in Table 5 are provided to assist those in the industry by relieving the administrative costs associated with obtaining independent market valuations and are one option that may be used to determine the GST status of supplies of long term accommodation.

The ATO has clarified that, notwithstanding the review, the rates contained in Table 5 remain current for 2017.

Feedback is due by 31 March 2017 and can be provided as a submission or as answers in response to specific questions posed by the ATO.

If you require assistance in providing feedback to the ATO, please do not hesitate to contact Mark Fowler from our office on (07) 3837 3600.

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