Shire of Noosa, Queensland
Business Accountant in Noosa Heads
A guest who stays past day 28, and a staff party under $300 a head
GST, FBT and business compliance for Noosa Heads accommodation, hospitality and retail businesses, from a CPA practice.
Noosa Heads' main street, Hastings Street, runs directly behind the seashore, and the beach has been a popular tourist attraction since the 1890s. In the 2021 Census, Cafes and Restaurants employed 8.0% of the suburb's working residents and Accommodation 5.2%, the two largest industries, followed by Real Estate Services and Clothing Retailing.
Noosa Heads in brief
A shire of its own and a national park on the doorstep.
Noosa Heads is in the Shire of Noosa; between 2008 and 2013 it was part of the Sunshine Coast Region. The northeast of the locality lies inside Noosa National Park, where Noosa Hill rises to 146 metres. Of the suburb's 3,491 private dwellings in 2021, 1,201 were unoccupied on Census night.
Accommodation and hospitality: three questions
Guests who stay 28 days or more
Why it happens
A hotel, motel or serviced apartment business takes a booking for a month or longer.
Why it matters
In commercial residential premises, a stay of 28 or more continuous days is long-term accommodation. For premises that aren't predominantly long-term, full GST applies to the first 27 days and from day 28 GST is calculated on half the GST-inclusive price. In the ATO's example, a $220 nightly rate drops to $211 from day 28.
How we help
Lomandra Accounting delivers Accounting Services on the Sunshine Coast for individuals, families and businesses that want reliable numbers, timely lodgements and practical guidance.
Premises that are mainly long-term
Why it happens
Most of a property's guests stay for weeks or months rather than nights.
Why it matters
Premises are predominantly long-term when at least 70% of guests stay 28 days or more, and GST is then calculated on half the price from the start of each stay. A supplier can instead treat long-term stays as input-taxed, charging no GST and claiming no credits on the related costs.
How we help
Track the length of every stay in your booking system so the 28-day and 70% tests can be shown.
The staff Christmas party
Why it happens
A cafe or hotel puts on an end-of-year function and gives staff a gift.
Why it matters
A party on a working day, on the business premises, for current employees only is generally free of FBT for food and drink. Off the premises or with partners, there is no FBT if the cost is under $300 a head and it would be unreasonable to treat it as a fringe benefit. A gift is tested separately against the $300 threshold. If the party isn't subject to FBT, its cost isn't tax deductible.
How we help
Keep the invoice and the guest list, with how many employees and partners attended.
Frequently asked questions
How is GST charged on long stays at a Noosa Heads hotel?
Full GST for the first 27 days, then GST on half the GST-inclusive price from day 28, unless the premises are predominantly long-term, in which case the half-price basis applies from the start.
Is our staff Christmas party subject to FBT?
Not if it is held on a working day, on your premises, for current employees only. Elsewhere or with partners, it is generally exempt if it costs under $300 a head.
Can we claim the party as a tax deduction?
Not if it is exempt from FBT. The deduction and the FBT go together.
Where to next
Have a question?
Before the next long booking
We will review your position, highlight immediate wins and provide a clear plan for bookkeeping, BAS, payroll, tax returns, cloud accounting and SMSF administration.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm