Land subdivision – supporting information

Here's a list of the documents and information we usually need to process a private ruling request or objection about whether the profit you make on the subdivision of land is ordinary income. If you provide supporting information this will reduce the time it takes us to process your request.

If you want to apply for a private ruling about subdividing land, you need to:

• complete and submit the relevant private ruling application form (for tax professionals or not for tax professionals)
• provide the supporting information and documentation listed below.

If you want to lodge an objection about subdividing land, you need to:

• complete and submit the relevant objection form (for taxpayers or tax professionals)
• provide the supporting information and documentation listed below.

Note: Check first whether your question is answered on our website.

See also  

• Subdividing and amalgamating land

Supporting information

In order for us to provide a private ruling decision you need to provide us with specific facts on how the subdivision of your land is going to be undertaken.

If you have not commenced the subdivision activities, or they have not progressed to a point at which we can determine the specific facts on which the ruling decision will based on, we may not be able to issue a ruling decision.

Note: If you've previously provided us with any of the information listed below, you don't need to provide it again. The information we need for a private ruling or objection about subdividing land includes:

• full details of the land/property being subdivided, such as
• the address of the land
• when the land was purchased
• the size of the land
• why you had originally purchased the land
• details of the use of the land from the date of acquisition
• how the land was zoned when it was acquired
• if the land has been rezoned since it was purchased, why and how the rezoning occurred
• details of any period/s that the land had been on the market for sale
• details of any offers received from a potential purchaser/s, including when the offer was made, the amount offered and the reason why the offer was not accepted
• if the land had been on the market for sale, why you changed your mind about selling the land as a whole
• details and the reasons of when and why you decided to sell the land by subdividing it and selling the resulting subdivided lots
• details of who initiated the proposed subdivision of the land
• details of any preliminary steps you took prior to entering into the subdivision arrangement, such as obtaining advice from professionals or applying for planning permission from the relevant authorities
• details of how the land is going to be subdivided such as the number of proposed lots, how many lots will be sold and if you will be keeping any of the subdivided lots
• documentation relating to the subdivision of the land such as
  • planning applications made and planning permits received
  • rezoning applications and approvals
  • subdivision applications and approvals
  • development agreements
  • maps of the subdivision
   
• full details of any entities whose services have been engaged, or will be used in relation to the subdivision of the land and
  • what activities they will undertake in relation to the subdivision of the land
  • the remuneration they will receive for their services
   
• documentation relating to the engagement of any entities in relation to the subdivision
• details of the activities that you will be personally undertaking in relation to the subdivision of the land
• the market value of the land just prior to the subdivision activities (un-subdivided)
• the selling value of the subdivided lots, or if not known, an estimate of the value of the subdivided lots
• details of what you will receive, or what you expect to receive, in relation to the sale proceeds on the sale of the subdivided lots
• details of how the subdivision activities will be funded
• if you are borrowing any funds to finance the subdivision activities, details of the borrowed funds and a copy of the loan application and any other relevant documentation
• planning documents, such as projected cash flow statements, projected financials, financial or economic modelling, budgets or business plans
• details of how the subdivided lots will be sold and whose service, if any, will be engaged to sell the subdivided lots
• the date the subdivision activities started, or you expect them to commence
• the date the subdivision activities stopped, or you expect them to be completed
• who the registered owner/s of the land was prior to the subdivision and who the registered owner/s of the land will be following the subdivision
• details of any subdivided lots that have been sold
• details of any subdivision activities or any business of land development you, or any related entities, have undertaken in the past
• details of any subdivision activities that you or any related entities will undertake in the future
• if you have registered for GST, the basis for your registration.

Next steps  

• Private ruling application form
• Objection form – for taxpayers
• Objection form – for tax professionals

Here's a list of the documents and information we usually need to process a private ruling request or objection about land subdivision.