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This edited version has been archived due to the length of time since original publication.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: 1012941155400

Date of advice: 22 January 2016

Ruling

Subject: Property

Question

Is the sale of specified property a GST-free supply under section 38-480 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes.

Relevant facts and circumstances

You are registered for GST.

You bought rural land in around specified year. You carried on an enterprise of rearing and selling livestock on the land since then. This is your main enterprise and is still continuing.

You sold the land. The sale settled in specified date.

The purchaser intends to rear and sell livestock on the land acquired.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 38-480

Reasons for decision

In this ruling, please note:

Section 38-480 provides that the supply of a freehold interest in land is GST-free if:

A 'farming business' is defined to include maintaining animals for the purpose of selling them or their bodily produce (including natural increase).

The land is land on which a farming business has been carried on for at least the period of 5 years preceding the supply.

In addition, the purchaser intends to maintain animals for the purpose of selling them or their bodily produce (including natural increase).

As a result, all of the requirements of section 38-480 have been met.

Therefore, you are making a GST-free supply under section 38-480 when you sell your freehold interest, in farmland.


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