What has changed
The Australian Taxation Office has issued an addendum to GST Ruling GSTR 2007/1, which covers when retirement village premises include communal facilities for GST purposes. The addendum updates the ruling to reflect changes introduced by the Aged Care and Other Legislation Amendment Act 2025, which commenced on 1 November 2025.
Change to the retirement village definition
The key change affects paragraph (d) of the definition of 'retirement village' in the ruling. That paragraph previously referred to 'residential care' under the Aged Care Act 1997. The updated ruling now refers to an 'approved residential care home' under the Aged Care Act 2024. The earlier reference to the Aged Care Act 1997 has been removed.
Removal of third-party industry views on communal facilities
The previous version of GSTR 2007/1 included industry views on the meaning of 'communal facility', sourced from a third-party website. That website is no longer available. The addendum removes those industry views. The Commissioner's own interpretation in the ruling is now the only relevant guidance on the meaning of 'communal facility'.
Other corrections
The addendum also makes a number of minor formatting and citation corrections throughout the ruling.
When the ruling applies
The ruling applies both before and after its issue date, subject to when each relevant amending Act commenced. The definition change in paragraph (d) took effect on 1 November 2025 under the Aged Care and Other Legislation Amendment Act 2025.
Key actions
- Read the updated consolidated version of GSTR 2007/1 at the ATO website to confirm how the updated 'retirement village' definition applies.
- Check whether any premises previously classified under the old Aged Care Act 1997 reference are affected by the new Aged Care Act 2024 reference, and whether this changes their GST treatment.
- If you previously relied on the industry views about 'communal facilities' in the old version of GSTR 2007/1, note those views have been removed - the Commissioner's own interpretation is now the only relevant guidance on that term.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.