GST included within rental payments

Hi,

I have two units which I rent to an international company who are contracted by the Federal Govt to supply services.

Both units are very positively geared and are in my own name (since reading Steve McKnights book Ithink I should have set up Discretionary Family Trust)

The units are rented as ‘serviced apartments’ in that they pay $270 per night PLUS GST of $27. The serviced apartment includes all furniture, power, water, Foxtel, cleaning etc.

I do not want the GST component as this means I have to set myself up to collect the GST and then have to submit BAS etc. My accountant advises they do no have to pay GST but the management company said because the income exceeds $75k/yr they are considered to not technically be residential leases and GST must be paid. I think I may be a case of the management company finding it too difficult to alter the current GST arrangements

I have tried to get the GST removed but the international company insist on including this element within the tenancy agreement. I do not have direct access to them due to the usual beauracracy with govt contractors.

Will this GST inclusion cause me any issues other than the BAS requirements?

What will be my yearly requirements for the GST?

I have got advice from my accountant so thought i would see if anyone else has some experience re this situation.

Thanks in advance

Brad