Part 8 - Motor vehicles and real property
Issue 1: Charities were exempt from wholesale sales tax and with the introduction of the GST what impact will this have on charities selling cars? Is there any impact on charities in selling or purchasing property?
Non-interpretative – straight application of the law
Wholesale sales tax was repealed in Australia upon the introduction on 1 July 2000 of the Goods and services tax. This section, Part 8, formerly stated:
Entities that are registered for GST and are currently exempt from sales tax on the purchase of motor vehicles will be able to claim full input tax credits from the 1 July 2000. The normal transition arrangements where input tax credits are phased in do not apply to entities that are currently sales tax exempt for motor vehicles.
The sale of real property when it is residential premises that is used predominantly for residential accommodation is input taxed under subsection 40-65(1). However the sale of commercial residential premises or new residential premises is a taxable supply under subsection 40-65(2).