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  • Property and Construction Industry Partnership - issues register - section 06 - farm land

    (a) added, (u) updated, (w) withdrawn

    Issue Number Index Date History


    Farm land


    Sale of farm land


    You own a five acre property. On three acres of the property, you have been carrying on a farming business for the last five years. On the other two acres is a house which you have been using as your private residence and does not form part of a profit-making activity carried out by you. You are registered for GST for the farming business. You are selling the property to a buyer who does not intend to use the property for carrying on a farming business.

    (a) Does GST apply to the sale of the property?
    (b) Can the margin scheme apply to the sale of the entire property or only that part used for the farming business?




    Lease of farm land (other than long term-leases or a lease by an Australian Government Agency)


    You lease to a farmer a rural property with a residential dwelling. In working out the GST payable, does the rent need to be apportioned between the land and the dwelling?




    Subdivision of farm land


    This issue was under revision and removed as of 24/10/2003. The ATO view on this issue is contained in the Primary Production Issues register accessed by the link provided.



    Tenants’ fixtures


    What are the GST consequences when a tenant attaches a fixture to farmland?



    ‘the GST Act’

    A New Tax System (Goods and Services Tax) Act 1999

    ‘the GST Regulations’

    A New Tax System (Goods and Services Tax ) Regulations 1999

    ‘the Transition Act’

    A New Tax System (Goods and Services Tax Transition) Act 1999

    ‘the Transition Regulations’

    A New Tax System (Goods and Services Tax Transition) Regulations 2000

    Relevant Rulings

    GSTR 2001/8 - Goods and services tax: apportioning the consideration for a supply that includes taxable and non-taxable parts

    MT 2006/1 - The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian business number

    Relevant determination

    GSTD 2006/6 - Goods and services tax: does MT 2006/1 have equal application to the meaning of 'entity' and 'enterprise' for the purposes of the A New Tax System (Goods and Services Tax) Act 1999?'

    Relevant sections

    Section 38-475 ‘Subdivided Farm Land’ of the GST Act.

    Section 38-480 ‘Farm Land supplied for farming’ of the GST Act.

      Last modified: 12 Jun 2013QC 16476