Do SMSFs Need to Worry About GST in 2025?
- georgia3841
- May 19
- 2 min read
Understanding how GST applies to your SMSF can help you avoid unnecessary registration, reduce compliance costs, and potentially claim back GST credits where eligible.
Many trustees assume that all SMSFs must register, but that’s not always the case. Missing out on GST credits, especially if your SMSF owns commercial property, could mean leaving money on the table.
What You Need to Know About GST and SMSFs
Let’s break it down:
1. Do SMSFs Need to Register for GST?
Only if their turnover exceeds $75,000. For SMSFs, “turnover” usually refers to income from activities that are subject to GST. Typically, this means rent from commercial property.
If your SMSF only earns income from investments like dividends or residential rent (which are not subject to GST), then you probably don’t need to register.
Best practice: If your fund owns or plans to acquire commercial property, it’s worth getting professional advice about GST registration.
2. What Can an SMSF Claim as a GST Credit?
If your SMSF is registered for GST, it can potentially claim back the GST portion of expenses such as:
Property management fees
Repairs and maintenance on commercial properties
Accounting and audit services
But only where those expenses relate to GST-taxable income. Residential properties? No GST credits allowed.
3. What About Selling a Property?
If your SMSF sells a commercial property and it’s registered for GST, the sale may attract GST.
Don’t forget:
You may need to apply the margin scheme
You must issue a tax invoice if GST applies
The buyer could withhold part of the payment under GST withholding rules
It’s technical, so this is one to run past your accountant or adviser before you sign anything.
4. Common Mistakes Trustees Make
Registering for GST when not required (and creating extra admin!)
Forgetting to lodge BAS even when no activity occurs
Claiming GST on residential property expenses
Not seeking advice before major transactions like property purchases or sales
Still unsure if your SMSF should register for GST?
Book your free 15-minute discovery call today, and we’ll help you work through it no jargon, just straight answers.