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This edited version has been archived due to the length of time since original publication.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.

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Edited version of your written advice

Authorisation Number: 1012842528189

Date of advice: 17 July 2015

Ruling

Subject: GST and the sale of property

Question

Is the sale of the property a taxable supply?

Answer

No, the sale of the property is not a taxable supply as the supply of the property does not meet the requirements of a taxable supply as provided under section 9-5 of the GST Act which reads as follows:

    (a) you make the supply for *consideration; and

    (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and

    (c) the supply is *connected with the indirect tax zone; and

    (d) you are *registered or *required to be registered.

 

(terms marked with asterisks (*) are defined in section 195-1 of the GST Act)

The sale of the Property does not meet paragraph 9-5(d) of the GST Act as the couple is not registered or required to be registered at the time of sale of the Property. Further, the sale of the property comes within the meaning of an input taxed supply under section 40-65 of the GST Act as it is the supply of a residential premises (which is not a commercial residential premises or a new residential premises). Therefore, the sale of the property is not a taxable supply.

Relevant facts and circumstances

Relevant legislative provisions

Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999

Section 40-65 of the A New Tax System (Goods and Services Tax) Act 1999


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