| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1012794711836
Ruling
Subject: GST and the sale of residential premises
Question
Was the sale of the Property an input tax supply of residential premises under section 40-65 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
The sale of the Property was an input taxed supply of residential premises to be used predominantly for residential accommodation.
The house has physical characteristics evidencing its suitability and capability for residential accommodation and the balance of the land is to be enjoyed with the house.
Relevant facts and circumstances
You are registered for GST.
You are a property developer.
On DDMMYYYY you acquired the Property. There was no GST on the supply.
The Property consists of residential premises and X hectares of land on one title. There are X livestock paddocks.
You acquired the Property for the purposes of property development.
The Property has been used as a residential rental property since acquisition. The Property was recently vacated. The land was not used for farming.
You were approached by a Property Developer (the Purchaser) and made an offer to purchase the Property.
On DDMMYYYY you entered into a Contract of Sale of Real Estate (Contract) with the Purchaser for $X GST Exclusive. You have provided a copy of the Contract.
The Purchaser was granted access to the Property for the purpose of, progressing, their development application and using the house as an office. None of the roads or any other structural improvements that were set out in the contract were made to the land. No structural changes have been made to the house other than painting.
A plan of subdivision for the Property has been approved by Council and the Purchaser will develop the Property.
The settlement of the Property occurred on DDMMYYYY.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 9-5, and
A New Tax System (Goods and Services Tax) Act 1999 Section 40-65.
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).
