The Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill states that bodies corporate will not be required to register for GST.

It also includes revised rules, which provide assurance to bodies corporate that their past GST positions are correct, and gives them the option of registering for GST in future - if they so choose.

Revenue minister Todd McClay said that the extensive consultation process confirmed that requiring bodies corporate to be GST registered would result in excessive administration costs on them.

The bill proposes an approach whereby registered bodies corporate are able to remain registered, and those that are not registered are not required to do so, but may.

This means the majority of bodies corporate will not have to take any action at all, which should be welcomed by residential and commercial bodies corporate alike, the minister said.

“Due to concerns about compliance costs, the new measures proposed in the bill are simple to apply and targeted at keeping compliance costs to a minimum.”

There are special rules to ensure that GST is neutral for bodies corporate that decide to register and that output tax is not payable on common property held by a body corporate if it decides to deregister.

Strata Title Administration managing director Brent Williams said the announcement essentially maintained the status quo.

“Bodies corporate shouldn’t really have to pay GST, although some do, and these measures have simply confirmed that – on the back of an oversold and bizarre consultation process.”

However, tax practitioners have welcomed the bill for its clarification of the relevant law.