GST and owner expenses: What short-term rental managers need to know

If you’re a short-term rental manager, understanding how GST applies when you’re dealing with owner expenses can feel confusing 😕 But it doesn’t have to be. There are two common scenarios, and the GST treatment depends on how you’re handling the expense.

Let’s break it down.

Scenario 1: You’re paying on behalf of the owner (with no markup)

In this case, you’re simply acting as an agent. You receive an invoice (like cleaning, linen or maintenance), pay it on behalf of the owner, and then recoup the exact amount—no markup, no admin fee.

GST Treatment:

• On the expense: If the supplier is registered, they will include the GST in the original invoice – e.g. $110 which includes $10 GST.
• On the funds received from the owner: You’re just passing on the cost, so no GST is charged to the owner.
• In your accounting software:  Record both the supplier payment and the owner reimbursement as “Out of Scope” or “BAS Excluded” —because these aren’t business expenses or income for you.  Avoid using any GST tax codes because you’re just passing the money through.
• In your BAS: You don’t claim the GST on the supplier invoice and don’t include the reimbursement in your BAS. You’re not the one “using” the service—you’re just facilitating it.

📌 Quick tip: You’re not “selling” anything in this scenario. You’re just reimbursed for a payment you made on someone else’s behalf.

Scenario 2: You’re incurring the cost yourself and charging the owner (with or without a markup)

In this scenario, you’re not just passing on a supplier invoice—you’re incurring the expense in your business and then billing the owner to recover it. This might include a markup or admin fee, but even if it’s a straight recharge, it’s treated as part of your taxable activity.

GST Treatment:

• On the expense: You can claim GST on the supplier invoice because the expense is part of your business costs.
• On the funds received from the owner: You’re supplying a service, so you must charge GST on the full amount you invoice them (including any markup).
• In your accounting software: You’ll apply GST to the expense (if charged by the supplier) and you will also add GST to the amount you invoice the owner as it’s part of your taxable income.
• In your BAS: You claim GST on the expense and will also report GST on the amount charged to the owner.

📌 Example: You pay $110 for a repair job (incl. GST), then charge the owner $120. You would claim $10 GST and collect $10.91 GST from the owner – both amounts are reported on the BAS.

Still unsure how to handle GST on your owner charges?
Wingr helps short-term rental managers across Australia get their books and tax treatment right—without the stress. Let’s simplify things together.