| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012743131151
Ruling
Subject: GST and sale of property
Question 1
Is GST applicable to the sale of your property in which you operated a business?
Answer
No.
This ruling applies for the following periods:
The scheme commences on:
Relevant facts and circumstances
You owned and operated an enterprise.
You operated from a two storey dwelling with a residential area on the top floor and the bottom floor being a business since then.
You recently stopped trading and have cancelled your ABN, PAYG obligations, withholding tax obligations and GST registration.
You have also cancelled the business name under which you traded.
You informed us that you do not have the intention to start a business again in the future and that you are not currently carrying on any other business.
You also informed us that you have not sold business premises in the past and do not intend to sell any in the future and that you are not in the business of buying and selling houses.
You are selling your premises as individuals and want to know whether you have to pay GST on the sale of your premises.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
Reasons for decision
For the supply of anything to be subject to the goods and services tax, the supply must satisfy all of the provisions of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Section 9-5 of the GST Act provides that you make a taxable supply if you make the supply for consideration, the supply is made in the course or furtherance of an enterprise that you carry on, is connected with Australia and you are registered, or required to be registered.
However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.
In this case you are selling the property in which you operated an enterprise. The property is a two storey dwelling with a residential area on the top floor and the bottom floor being a business since then.
You informed us that you stopped trading and have cancelled your ABN, PAYG obligations, withholding tax obligations and GST registration. You have also cancelled the business name under which you traded and you do not have the intention to start a business again in the future and you are not currently carrying on any other business.
You also informed us that you have not sold business premises in the past and do not intend to sell any in the future and that you are not in the business of buying and selling properties.
You are selling your premises as individuals and are not registered or required to be registered for GST. You are also not carrying on any enterprise. Therefore, your sale of the property will not be subject to GST.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
