Why Include GST on Commercial Residential Premises?

Commercial Residential Premises, such as caravan parks, camping grounds, and boarding houses have traditionally provided affordable accommodation for city and regional holidaymakers, retirees and also low income residents. This paper examines the GST application for commercial residential premises, and will focus on the consequential treatment of the accommodation as either an input tax supply or a taxable supply. The research explores the effectiveness of the present taxation system and compares this to the Governments interpretation of commercial residential premises classification within the GST regime. It is argued that property investors have exploited the commercial residential premises classification for their benefit, with little regard to the occupier of these premises. The paper concludes with a recommendation for the government to introduce the concept of a mixed use category, within the classification of commercial residential premises