From www.bantacs.com.au: Body corporate fees related to strata units used for income generation are generally tax deductible, while special purpose levies may complicate tax claims depending on whether they represent repairs or improvements.

Income derived from common property rentals is taxable to unit owners and can lead to capital gains tax implications if the common property generates income, even for owner-occupiers.

Body corporates primarily function as companies for tax purposes, handling income and GST obligations differently based on specific criteria surrounding their operational income and nature of expenses.