Lessee and GST

James Murphy Tax

We are a not-for-profit registered charity, registered for GST and endorsed for income tax exemption, operating as a church.

Another legal entity (also a registered not-for-profit charity) owns the church property. It leases it to our legal entity, which is the local church.

The lessee pays property costs (e.g., rates, insurance) as part of the lease agreement.

Because the invoices are related to the property ownership, it is not an option to request that all invoices be issued in the lessee’s name.

Can the lessee pay those tax invoices on the lessor’s behalf and claim the GST for the invoices issued in the lessor’s name?

Would you please direct me to any relevant ATO advice or legislation to support your response?


The owner of the church should send you a separate invoice to recover their costs on the outgoings.

This is what normally happens, and it is possible that GST will be charged on the tax invoice.

You will then be able to claim the GST back when you lodge your Business Activity Statement.